MIRA INFORM REPORT

 

 

Report No. :

309933

Report Date :

26.02.2015

 

IDENTIFICATION DETAILS

 

Name :

BENESSE CORPORATION

 

 

Registered Office :

1-34 Ochiai Tama City Tokyo-Metrop 206-0033

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

October 2009

 

 

Com. Reg. No.:

0124-01-628447 (Okayama-Kitaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Trading firm for wholesale and retails educational systems, method, education books, magazines, education by correspondence named “Shinkenzemi

 

 

No. of Employee :

3,213

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No complaints

 

 

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 and address

 

 

BENESSE CORPORATION

 

REGD NAME:   KK Benesse Corporation

MAIN OFFICE:  1-34 Ochiai Tama City Tokyo-Metrop 206-0033 JAPAN

                        Tel: 042-356-8686     

 

                        *.. The is its Tokyo Office

                        **.. Registered at: 3-7-17 Minamigata Kitaku Okayama City

 

URL:                 http://www.benesse.co.jp

E-Mail address: (thru the URL)

 

ACTIVITIES:     Retail, wholesale of educational system, method, correspondence education

BRANCHES:     Tokyo, Sapporo, other (Tot 13)

 

OFFICERS:       HITOSHI KOBAYASHI, PRES     Naoto Saito, dir

                        Kenji Yamakawa, dir                  Hisano Harada, dir

                                               

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 239,410 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 3,000 M

TREND STEADY                       WORTH            Yen 68,311 M   

STARTED         2009                             EMPLOYES      3,213

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN EDUCATIONAL SYSTEMS, ETC.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR

ORDINARY BUSINESS ENGAGEMENTS.

                       

                       

HIGHLIGHTS

           

The subject company was established originally in 1955 and was incorporated in 2009, under Benesse Holdings Inc (See REGISTRATION).  This is a trading firm for wholesale and retail of educational systems, method, correspondence education, publishing of educational literature, other.  Clients include book stores, other, nationwide

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 239,410 million, a 2% down from Yen 244,709 million in the previous term.  The number of new enrollments for correspondence education fell, amid the backlash of customer data leak accident.  The recurring profit was posted at Yen 22,410 million and the net profit at Yen 12,231 million, respectively, compared with Yen 27,265 million recurring profit and Yen 16,164 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 22,600 million and the net profit at Yen 12,400 million, respectively, on a 2% rise in turnover, to Yen 244,000 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

    

Date Registered:   Oct 2009

Regd No.:            0124-01-628447 (Okayama-Kitaku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         240,000 shares

Issued:                60,000 shares

Sum:                   Yen 3,000 million

Major shareholders (%): Benesse Holdings Inc* (100)

 

*..Largest provider of education by correspondence, Okayama, listed Tokyo E/E, capital             Yen 13,600 million, sales Yen 466,399 million, operating profit Yen 35,830 million,             recurring profit Yen 35,216 million, net profit Yen 19,930 million, total assets Yen475,599             million, net worth Yen 190,401 million, employees 20,005, pres Eiko Harada

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

           

Activities: Trading firm for wholesale and retails educational systems, method, education books, magazines, education by correspondence named “Shinkenzemi”, other (--100%)

 

 

Clients: [Students, individuals, mfrs, wholesalers] Tohan Co, Nippan Inc, Dentsu Corp, Osakaya, Kurita Publisher, other 

No. of accounts: 350

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Dai Nippon Printing, Isetan Corp, Benesse Hong Kong, With Corporation, Post Office, other

 

Payment record: No complaints

 

Location: Business area in Tama City, Tokyo-Metrop.  Office premises at the caption address are owned and maintained satisfactory.

 

Bank References:

Chugoku Bank (Tomitacho)

SMBC (Okayama)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

244,000

239,410

244,709

240,151

Recur. Profit

 

22,600

22,414

27,265

24,043

Net Profit

 

12,400

12,231

16,164

12,507

Total Assets

 

 

185,940

177,731

173,523

Current Assets

 

 

104,644

100,340

97,594

Current Liabs

 

 

115,501

114,444

111,476

Net Worth

 

 

68,311

61,069

59,902

Capital, Paid-Up

 

 

3,000

3,000

3,000

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

1.92

-2.17

1.90

-1.07

    Current Ratio

 

..

90.60

87.68

87.55

    N.Worth Ratio

 

..

36.74

34.36

34.52

    R.Profit/Sales

 

9.26

9.36

11.14

10.01

    N.Profit/Sales

 

5.08

5.11

6.61

5.21

    Return On Equity

 

..

17.90

26.47

20.88

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.05

UK Pound

1

Rs.96.03

Euro

1

Rs.70.43

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

ANK

 


 

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.