MIRA INFORM REPORT

 

 

Report No. :

299304

Report Date :

07.01.2015

 

IDENTIFICATION DETAILS

 

Name :

ISHIN HOLDINGS K.K.

 

 

Registered Office :

654-4, Ninomiya, Tsuyama-shi, Okayama pref. 708-0013

 

 

Country :

Japan

 

 

Date of Incorporation :

30.05.1990

 

 

Com. Reg. No.:

2600-01-020131

 

 

Legal Form :

Private Company

 

 

Line of Business :

Subject is specializing in a franchising system for housing-related services

 

 

No. of Employees :

37

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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

 

ISHIN HOLDINGS K.K.

 

 

Company summary

 

Country:                        Japan

Company name:            ISHIN HOLDINGS K.K.

Name in local language: ISHIN HOLDINGS, K.K.  (株式会社イシンホールディングス)

Office address:             654-4, Ninomiya, Tsuyama-shi, Okayama pref. 708-0013

Office tel:                     0868-28-9771

Office fax:                    0868-28-9775

Website:                       www.ishinhome.co.jp

Business type:              Service

Industry:                       Housing and related services

Established:                  May 30, 1990

Capital:                         Jp. 99,000,000 yen

Employees:                  37

Corporate formation:     Private 

Corporation No.:           2600-01-020131 (Okayama Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

Paid in capital :                         Jp. 99,000,000 yen

Number of authorized shares :   41,200 shares

Shares issued :                         9,600 shares

Number of shareholder :                        1

 

Ishin K.K. holds 100 percent.

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

Activity                         Product/Service Description

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

Service                         Franchising business for housing

 


 

COMPANY MANAGEMENT

 

President                                  Mr. Hiroaki Ishihara

Nationality:                                Japan

 

Senior Managing Director          Mr. Tetsuro Kasaya

Nationality:                                Japan

 

Managing Director                     Mr. Shingo Akiyama

Nationality:                                Japan

 

Managing Director                     Mr. Takayoshi Yamamoto

Nationality:                                Japan

 

Director                                    Ms. Hiromi Umino

Nationality:                                Japan

 

Director                                    Mr. Hiromasa Suto

Nationality:                                Japan

 

Auditor                                     Mr. Yasushi Makino

Nationality:                                Japan

 

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

 

 

*Key Personnel*

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

Mr. Hiroaki Ishihara

President and representative director

Born on April 11, 1953

Home address: 77-4, Higashi-ichinomiya, Tsuyama-shi, Okayama pref. 708-0814

 

 

FINANCIALS

 

Currency: (local currency - Jp. yen)

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

 Year |         Sales            |      Net Income    

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

2009

864,305,000

106,021,000

2010

884,207,000

120,649,000

2011

1,188,242,000

117,783,000

2012

1,293,083,000

145,806,000

2013

2,847,857,000

252,021,000

2014

8,486,493,000

486,921,000

 

 

FINANCIAL DESCRIPTION

 

*Book Closing*

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

End of February

 

 

*Financials*

==========

As a private limited company, no official financial statement is required to be disclosed publicly.

 

 

*Bank Details*

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

Bank Name :     Chugoku Bank, Ltd.

Branch :            Tsuyama-kita

 

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

Branch :            Okayama

 

Bank Name :     Tsuyama Credit Bank, Ltd.

Branch :            Ninomiya

 

 

*Credit Opinion*

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

The subject is a local firm specializing in a franchising system for housing-related services.

The latest status of the subject is also the holding company of its group firms.

The business founder, Mr. Hiroaki Ishihara, looks a business development-minded person.

He created new business models by changing its articles of incorporation five times since 1990.

The change of the business size is due to change of business formation from the merger to company split and finally the holding company at present.

A successful growth has continued for recent years as the number of franchisees topped 150.

Although the exact financial condition is not available due to non-disclosure of its financial statements, there would be a certain amount of retained earnings.

Negative factors are not observed in particular at moment though there is an issue in the nation that an increasing number of empty houses may become serious in the near future.

 


 

LOCAL BRANCHES & MANAGEMENT

 

Branch name:                Ishin Home Residence Research Circle

Branch address:            Kunitomi, Naka-ku, Okayama-shi

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

Branch name:                Tokyo Business Development Division

Branch address:            Nihonbashi-kayaba-cho, Chuo-ku, Tokyo

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

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

 

*Main Products & Services*

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

Franchising business for housing such as:

Providing the franchisees Ishin’s housing method on a royalty basis

Logistics arrangement of housing materials

Training services for carpenters

Real estate agency with lower cost offers

 

 

ORGANIZATION STRUCTURE

 

*Address*

=========

Registered address is the same as the operational address.

 

 

*Company History*

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

Date                             Development

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

1989                             Started business.

May 30, 1990                Incorporated under the name of “Housing Work Ishihara K.K.”

December 1995             Invented “Ishin Housing Construction Method.”

March 1997                   Founded “Ishin Home FC Business Headquarters” for franchising

business.

January 2000                 Renamed as “Ishin Home K.K.”

March 2000                   The number of franchisees topped 50.

October 2000                Opened Okayama office for housing division.

March 2001                   The number of franchisees topped 100.

                                    Opened Tokyo office for FC business headquarters.

October 2001                Renamed as “Ishin K.K.”  The number of franchisees topped 150.

December 2001             Embarked onto restaurant business.

April 2002                     Completed the head office building.

December 2002             Changed the name of “Ishin Home FC Business Headquarters” to

“Ishin Home Partner Support(PS) System Headquarters.”

April 2003                     Started training business for carpenters of the franchisees.

January 2004                 Embarked onto remodeling business under the name of “Re Home

Run.”

March 2004                   Started real estate agency business under the name of “Fudosan(real

estate) Medama-ichi(special discount market).”

January 2005                 Separated the above real estate business to found “Fudosan Medama-

chi K.K.”

February 2005               Separated the housing division to found “Ishin Home Tsuyama K.K.”

and “Ishin Home Okayama K.K.”

January 2006                 Started logistics service of housing materials for the members.

April 2007                     Founded a joint venture, “2020 Chintai(leasing/rentals) House

Research Circle” with “Canadian Home K.K.” and “Miki Koumuten

K.K.”

October 2007                Changed the name of “Ishin Partner Support System Business

Headquarters” to Ishin Home Residence Research Circle.”

October 2008                Invented “Eco-I Housing Construction Method.”

 

November 2011             Started “Disaster Prevention Residence Research Circle” in the face

of March 11th Disaster(East Japan Great Earthquake).

March 1, 2012               Took the current company name. Other group companies became its

subsidiaries accordingly.

August 2012                  Founded “S I Solar K.K.,” a new subsidiary for solar-powered housing

business.

October 2012                Ranked as No.1 firm by JSK, a research organization in the housing

industry.

November 2012             Founded “Ishin Home Tokyo K.K.,” a new subsidiary

February 2013               “House-of-The-Year, Energy 2013” awarded.

August 2013                  Founded “Ishin Home Osaka K.K.,” a new subsidiary.

2014                             Founded “MIXAMAX K.K.” and “Ishin Software K.K.”

 

 

TRADE REFERENCES

 

*Suppliers*

==========

Ascon Corp.

Recruit Corp.

Asahi-Du Pont Flash Span Products K.K.

Chofu Seisakusho Co., Ltd.

Sumitomo Forestry Co., Ltd.

S I Solar K.K.

 


 

*Customers*

==========

Ishin Home Okayama K.K.

World Brains Co., Ltd.

Anshin Keikaku Co., Ltd.

Tanaka Kensetsu K.K.

Chuo Kenzai Center Ltd.

Amagawara Co., Ltd.

Kigan Kogyo Co., Ltd.

Suns Corp.

Aiken Service Inc.

Suzuya Corp.

 

 

MAJOR SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

 

Company name:            Ishin Home Okayama K.K.

Country:                        Japan

Status:                                      Subsidiary  

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

Company name:            I S Solar K.K.

Country:                        Japan

Status:                                      Subsidiary  

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

Company name:            Ishin Home Tokyo K.K.

Country:                        Japan

Status:                                      Subsidiary 

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

 

 

RELATED PARTIES DESCRIPTION

 

*Subsidiaries & Affiliates*

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

As of February 28, 2014, the subject owns and controls a total of nine subsidiaries and affiliates at home.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.39

UK Pound

1

Rs.96.72

Euro

1

Rs.75.80

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIS

 

               

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.