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Report No. : |
308235 |
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Report Date : |
14.02.2015 |
IDENTIFICATION DETAILS
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Name : |
OTTO JAPAN INC |
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Registered Office : |
Mikami Bldg, 1-18-1 Wakabayashi Setagayaku Tokyo 154-0023 |
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Country : |
Japan |
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Financials (as on) : |
28.02.2015 (Estimated) |
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Date of Incorporation : |
September 1986 |
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Legal Form : |
Limited Company |
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Line of Business : |
Engaged as Mail Order House, Catalog Sales, In-Shop Store Sales, Outlet Mall Sales of Ladies’ Garments (Blouse, Shirts, Jackets, Skirts, Knit Sweater, Cardigans), Accessories (Shoes, Bags, Wallets) & House Interior Goods |
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No of Employees : |
164 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
JAPAN ECONOMIC OVERVIEW
In the years following World
War II, government-industry cooperation, a strong work ethic, mastery of high
technology, and a comparatively small defense allocation (1% of GDP) helped
Japan develop a technologically advanced economy. Two notable characteristics
of the post-war economy were the close interlocking structures of
manufacturers, suppliers, and distributors, known as keiretsu, and the
guarantee of lifetime employment for a substantial portion of the urban labor
force. Both features are now eroding under the dual pressures of global
competition and domestic demographic change. Japan's industrial sector is
heavily dependent on imported raw materials and fuels. A small agricultural
sector is highly subsidized and protected, with crop yields among the highest
in the world. While self-sufficient in rice production, Japan imports about 60%
of its food on a caloric basis. For three decades, overall real economic growth
had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s,
and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging
just 1.7%, largely because of the after effects of inefficient investment and
an asset price bubble in the late 1980s that required a protracted period of
time for firms to reduce excess debt, capital, and labor. Modest economic
growth continued after 2000, but the economy has fallen into recession three
times since 2008. A sharp downturn in business investment and global demand for
Japan's exports in late 2008 pushed Japan into recession. Government stimulus
spending helped the economy recover in late 2009 and 2010, but the economy
contracted again in 2011 as the massive 9.0 magnitude earthquake and the
ensuing tsunami in March disrupted manufacturing. The economy has largely
recovered in the two years since the disaster, but reconstruction in the Tohoku
region has been uneven. Prime Minister Shinzo ABE has declared the economy his
government's top priority; he has overturned his predecessor's plan to
permanently close nuclear power plants and is pursuing an economic
revitalization agenda of fiscal stimulus, monetary easing, and structural
reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact
that would open Japan's economy to increased foreign competition and create new
export opportunities for Japanese businesses. Measured on a purchasing power
parity (PPP) basis that adjusts for price differences, Japan in 2013 stood as
the fourth-largest economy in the world after second-place China, which
surpassed Japan in 2001, and third-place India, which edged out Japan in 2012.
The new government will continue a longstanding debate on restructuring the
economy and reining in Japan's huge government debt, which is exceeding 230% of
GDP. To help raise government revenue and reduce public debt, Japan decided in
2013 to gradually increase the consumption tax to a total of 10% by the year
2015. Japan is making progress on ending deflation due to a weaker yen and
higher energy costs, but reliance on exports to drive growth and an aging,
shrinking population pose other major long-term challenges for the economy
|
Source
: CIA |
OTTO JAPAN INC
Otto
Japan KK
Mikami Bldg, 1-18-1 Wakabayashi Setagayaku Tokyo 154-0023 JAPAN
Tel: 03-5431-2800 Fax: 03-5431-2911
URL: http://www.otto-online.jp
E-Mail address: (thru
the URL)
Engaged as Mail Order House, Catalog Sales, In-Shop Store
Sales, Outlet Mall Sales of Ladies’ Garments (Blouse, Shirts, Jackets, Skirts,
Knit Sweater, Cardigans), Accessories (Shoes, Bags, Wallets) & House
Interior Goods
In-store shops at Keio & Matsuzakaya Dept Store; outlet
mall in Saitama
Germany (Parent)
SUSUMU TANAKA, PRES
Schaeffler Berhard, rep dir
Yen Amount: In
million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 11,351 M
PAYMENTSSlow but Correct CAPITAL Yen
5,150 M
TREND SLOW WORTH Yen 6,037 M
STARTED 1986 EMPLOYES 164
MAIL
ORDER HOUSE OF LADIES’ GARMENTS, OTHER, OWNED BY GERMAN CAPITAL.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
The subject company was established originally as a JV between Otto Versand GmbH & Co, Germany, and Sumisho Corp, as Sumisho Otto Mail Order Inc, as a mail order house and catalog sales of ladies’ garments & accessories. In 2007, the German partner acquired full share of the company, and became its 100% subsidiary in Japan, and renamed Otto Japan Inc. This is a mail order house & catalog sales company, but advanced into direct sales of these goods in department stores (now in Keio & Matsuzakaya Department Stores), and outlet malls (Otto Outlet) in Koshigaya, Saitama-Pref.
The sales volume for Feb/2014 fiscal term amounted to Yen 11,351 million, a 9% down from Yen 12,508 million in the previous term. The operations, however, came back to profitability to post Yen 219 million recurring profit and Yen 156 million net profit, respectively, compared with Yen 158 million recurring loss and Yen 143 million net losses, respectively, a year ago.
For the current term ending Feb 2015 the recurring profit is projected at Yen 230 million and the net profit at Yen 165 million, respectively, on a 5% rise in turnover, to Yen 11,950 million.
The financial situation is considered FAIR and good for ORDINARY business engagements.
Date Registered: Sept 1986
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 10.3 million shares
Issued: 10.3 million shares
Sum: Yen 5,150 million
Major shareholders (%): Otto-Asia Beteiligungs-Verwaltungs GmbH* (100)
*..
100% subsidiary of Otto GmbH (Germany)
Nothing detrimental is known as to the commercial morality
of executives.
Activities: Mail order house, catalog sales, in-shop store sales, outlet mall sales of ladies’ garments (blouse, shirts, jackets, skirts, knit sweater, cardigans, other), accessories (shoes, bags, wallets, other), house interior goods (--100%)
Clients: Consumers
No. of accounts: Unavailable
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Sumitomo Corp, Toyobo Co, Sankyo Seiko Co, Marukin Co, Euro Passion SA, Sunpac Co, Toyo Tokei Co, other
Payment record: Slow but Correct
Location: Business area in Tokyo. Office premises at the caption address are owned and maintained satisfactory.
Bank References:
SMBC (Tokyo)
Deutsche Bank (Tokyo)
Relations: Satisfactory
(In Million Yen)
|
Terms Ending: |
28/02/2015 |
28/02/2014 |
28/02/2013 |
29/02/2012 |
|
|
Annual
Sales |
|
11,950 |
11,351 |
12,508 |
13,041 |
|
Recur.
Profit |
|
230 |
219 |
-158 |
-540 |
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Net
Profit |
|
165 |
156 |
-143 |
-403 |
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Total
Assets |
|
|
8,453 |
8,457 |
9,680 |
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Current
Assets |
|
|
5,746 |
5,722 |
6,981 |
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Current
Liabs |
|
|
2,270 |
2,041 |
2,773 |
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Net
Worth |
|
|
6,037 |
6,262 |
6,740 |
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Capital,
Paid-Up |
|
|
5,150 |
5,150 |
5,150 |
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Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
5.28 |
-9.25 |
-4.09 |
-9.62 |
|
Current Ratio |
|
.. |
253.13 |
280.35 |
251.75 |
|
N.Worth Ratio |
|
.. |
71.42 |
74.05 |
69.63 |
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R.Profit/Sales |
|
1.92 |
1.93 |
-1.26 |
-4.14 |
|
N.Profit/Sales |
|
1.38 |
1.37 |
-1.14 |
-3.09 |
|
Return On Equity |
|
.. |
2.58 |
-2.28 |
-5.98 |
Notes: Forecast (or estimated) figures for the 28/02/2015
fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.14 |
|
UK Pound |
1 |
Rs.95.78 |
|
Euro |
1 |
Rs.71.05 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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|
|
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Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.