MIRA INFORM REPORT

 

 

Report No. :

308862

Report Date :

21.02.2015

 

IDENTIFICATION DETAILS

 

Name :

CFD SALES INC.

 

 

Registered Office :

Akamon-dori Bldg. 6F., 3-30-20, Ohsu, Naka-ku, Nagoya-shi,  Aichi pref. 460-0011

 

 

Country :

Japan

 

 

Date of Incorporation :

21.01.1974

 

 

Com. Reg. No.:

1800-01-051148

 

 

Legal Form :

Private Company

 

 

Line of Business :

Trader of Computer Peripherals.

 

 

No. of Employee :

37

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

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

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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

 

COMPANY NAME

 

CFD SALES INC.

 

 

OUTLINE

 

Country:                                    Japan

Company name:                        CFD SALES INC.

Name in local language:             C.F.D. HANBAI K.K.  (シー・エフ・デー販売株式会社)

Office address:                         Akamon-dori Bldg. 6F., 3-30-20, Ohsu, Naka-ku, Nagoya-shi,

Aichi pref. 460-0011

Office tel:                                 052-249-6606

Office fax:                                050-5830-8824

Website:                                   www.cfd.co.jp

Business type:                          Trader 

Industry:                                   Computer peripherals

Established:                              January 21, 1974

Capital:                                     Jp. 133,000,000 yen

Employees:                              37

Corporate formation:                 Private

Corporation No.:                       1800-01-051148 (Nagoya Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

Paid in capital :                         Jp. 133,000,000 yen

Number of authorized shares :   1,467,156 shares

Shares issued :                         170 000 shares

Number of shareholder :                        1

 

Melco Holdings Inc. holds 100 percent.

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

Activity                         Product/Service Description

-------------------------------------------------------------------------------

Trading                                     Peripherals of personal computer

Trading                                     Parts of personal computer

 

 

COMPANY MANAGEMENT

 

President                      Mr. Masatoshi Morishita

Nationality:                    Japan

 

Director                        Mr. Katsumi Iwasaki

Nationality:                    Japan

 

Auditor                         Mr. Masafumi Toyooka (Auditor of Melco Holdings Inc.)

Nationality:                    Japan

 

Note: The names of director(s) and auditor(s) are phonetically spelt.

 

 

*Key Personnel*

==============

Mr. Masatoshi Morishita

President and representative director

Business career:

February 1, 2014: Representative director and president of the subject.

Home address: 5-23-5, Takada-nishi, Kohoku-ku, Yokohama-shi 223-0066

 

 

FINANCIALS

 

Currency: (local currency - Jp. yen)

-------------------------------------------------------------------------------------

 Year |          Sales            |      Net Income    

-------------------------------------------------------------------------------------

2009

15,313,693,000

loss 146,714,000

2010

14,012,362,000

211,416,000

2011

14,303,744,000

149,439,000

2012

11,330,295,000

213,379,000

2013

12,023,471,000

68,824,000

2014

14,172,498,000

126,103,000

 

 

FINANCIAL DESCRIPTION

 

*Book Closing*

March 31st

 

 

*Financials*

 

 

Balance Sheet

Unit: millions of JP yen

                          

3/31/2012

3/31/2013

3/31/2014

Current assets  

2,154

2,330

3,362

 Cash & deposits      

45

13

39

 Account receivables   

1,646

1,749

2,531

 Inventories          

426

463

647

 Others

37

105

145

Fixed assets           

11

11

10

 Tangible assets      

1

1

1

 Investments & others  

10

10

9

Total Assets       

2,165

2,341

3,373

　

　

　

　

Current liabilities     

1,738

2,057

3,031

 Account payables  

1,506

1,643

2,708

 Short term loans    

-　

190

100

 Outstanding accounts  

120

113

110

 Outstanding taxes    

8

-　

38

 Others

104

111

75

 

Fixed liabilities      

22

22

20

 Long term loans     

21

21

19

 Others

1

1

1

Shareholders' equity    

405

261

318

 Paid up capital      

133

133

133

 Capital reserves      

35

35

35

 Retained earnings    

237

93

150

Valuation & adjustment 

-　

-　

2

Total Net Assets       

405

261

321

Total Liabilities & Net Assets     

2,165

2,341

3,373

 

 

*Bank Details*

 

Bank Name :     Bank of Tokyo-Mitsubishi UFJ, Ltd.

Branch :            Nagoya business banking department

 

Bank Name :     Sumitomo Mitsui Banking Corp.

Branch :            Nanba

 

 

*Credit Opinion*

 

The subject is one of 21 subsidiaries, owned by Melco Holdings Inc., a public listed corporation(#6676). The company name comes from “Customer” “First” “Digital.”

Melco group is known for “BUFFALO” from its leading subsidiary.

 

The profile of the parent is as follows:

Date of incorporation: October 1999 (listed in October 2003)

Capital paid in: JPY 1,000 million

Main business: Memory(12%), Storage(48%), Network(21%) and others(19%)/Overseas(19%)

Sales: JPY 101,185 million for Mar. 2014 term

Net income: JPY 2,116 million for Mar. 2014 term

Shareholders’ equity: JPY 44,142 million (as of September 30, 2014)

Retained earnings: JPY 42,120 million (ditto)

 

Financial status as the whole group is fairly good, but that of the subject as a single business entity is not so great at present due mainly to keen competition.

The above suggestion for credit is based on the current situation of the single entity to play it safe.

Our standard suggestion would be up to US$ 80,000 on terms of 90 days.

 

 

LOCAL BRANCHES & MANAGEMENT

 

Branch name:                Tokyo branch

Branch address:            Shinkawa, Chuo-ku, Tokyo

----------------------------------------------------------------------------------------------------

Branch name:                Osaka branch

Branch address:            Miyahara, Yodogawa-ku, Osaka-shi

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

 

*Main Products & Services*

 

Wholesale of the following products:

Peripherals and parts of personal computer such as;

-       Bulk memory

-       Bulk drive

-       AMD-made CPU

-       Video card

-       Other parts and peripherals

 

FACTORY FACILITIES & MANUFACTURING CAPABILITIES

 

Logistics center: Kasugai-shi, Aichi pref.

 

 

ORGANIZATION STRUCTURE

 

*Address*

=========

Registered address is the same as the operational address.

 

*Company History*

================

Date                                         Development

-----------------------------------------------------------------------------------------------

January 21, 1974                       Incorporated.

March 1, 2002                           Relocated to 4-11-50, Ohsu, Naka-ku, Nagoya-shi, Aichi from

the following address:

                                                9-1-18, Tanimachi, Chuo-ku, Osaka-shi, Osaka

September 1, 2010                    Relocated to the current address.

 

 

TRADE REFERENCES

 

*Suppliers*

==========

BUFFALO Inc.(60%)

GIGABYTE TECHNOLOGY Co., Ltd.(25%)

AMD Japan K.K.(5%)

Seagate Inc.

 

*Customers*

==========

Unit Com Inc.

ZOA Corp.

Third Wave Inc.

JaMtek Inc.

Amazon. Com Inc.

PC Depot Corp.

Bic Camera Co., Ltd.

Yamada Denki Co., Ltd.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.25

UK Pound

1

Rs.96.00

Euro

1

Rs.70.72

 

INFORMATION DETAILS

 

Report Prepared by :

TPT

 

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

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

 

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

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

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

 

<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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.