MIRA INFORM REPORT

 

 

Report No. :

299797

Report Date :

20.01.2015

 

IDENTIFICATION DETAILS

 

Name :

ABC DESIGN INC.

 

 

Registered Office :

4811-21, Tsukahara, Minami-Ashigara-Shi, Kanagawa Pref. 250-0117

 

 

Country :

Japan

 

 

Date of Incorporation :

09.11.2010

 

 

Com. Reg. No.:

0210-01-035922

 

 

Legal Form :

Private Company

 

 

Line of Business :

Trader of Baby- Child Care Equipment.

 

 

No. of Employees :

3

 

 

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 – 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


NOTE

 

In absence of financials, no credit limit could be recommended.

 

 

COMPANY NAME

 

ABC DESIGN INC.

 

 

OUTline

 

Country:                                    Japan

Company name:                        ABC DESIGN INC.

Name in local language:             ARAKI BUSINESS CONSULTING & DESIGN, K.K. 

Office address:                         4811-21, Tsukahara, Minami-ashigara-shi, Kanagawa pref. 250-0117

Office tel:                                             0465-33-6030

Website:                                   www.abc-design.co.jp

Business type:                          Trader

Industry:                                               Baby/child care equipment

Established:                              November 9, 2010

Capital:                                                 Jp. 2,000,000 yen

Employees:                              3

Corporate formation:                 Private 

Corporation No.:                       0210-01-035922 (Yokohama Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

Paid in capital :                         Jp. 2,000,000 yen

Number of authorized shares :   5,000 shares

Shares issued :                         200 shares

Number of shareholder :                        1

 

Mr. Toshihiko Araki, president, holds 100 percent.

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

Activity                         Product/Service Description

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

Trading                                     Stroller(baby car)

Trading                                     Stand paddle board

Service                                     Operating English lesson school

 

 

COMPANY MANAGEMENT

 

President                      Mr. Toshihiko Araki

Nationality:                    Japan

 

Director                                    Ms. Keiko Araki

Nationality:                    Japan

 

Director                                    Mr. Ryota Araki

Nationality:                    Japan

 

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

 

*Key Personnel*

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

Mr. Toshihiko Araki

President and representative director since its establishment

Born on February 5, 1954

Home address: 4811-21, Tsukahara, Minami-ashigara-shi, Kanagawa pref. 250-0117

(This is also the registered address of the subject.)

 

 

FINANCIALS

 

Currency: (local currency - Jp. yen)

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

 Year |          Sales            |      Net Income    

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

2011

8,000,000

loss 1,000,000

2012

16,040,000

327,000

2013

18,564,000

214,000

 

 

FINANCIAL DESCRIPTION

 

*Book Closing*

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

October 31st

 

 

*Financials*

==========

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

 

 

*Bank Details*

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

Bank Name :     Mizuho Bank, Ltd.

Branch :            Odawara

 

 

*Credit Opinion*

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

Subject is a relatively new and small-sized local firm, specializing in import and sales(wholesale and online sales) of two types of strollers from Germany as well as operating English lesson school at the same location.

There is no information about the English lesson school given in its website.

The website shows a total of 25 shops, which are selling the above strollers.

Usually it is not easy for only three employees to handle import and distribution to such tough retailers together with online sales directly to consumers.

Also the amount of the capital paid-in is not strong enough to conduct the above business at the same time.

It may be safely said that the business is just at an initial stage.

It would be advisable to enter into any business under well-secured conditions such as advance payment etc.

No recommendation for any open accounts at this moment.

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

 

*Main Products & Services*

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

Import and sales(wholesale and online sales) of the following items:

-       “3 TEC” tricycle-type stroller(Germany)

-       “zoom” twin-seat baby car(Germany)

 

Operating English lesson school

 

 

ORGANIZATION STRUCTURE

 

*Address*

=========

Registered address is the same as the operational address.

 

The registered address is also the residence of the president.

 

 

*Company History*

 

Date                             Development

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

November 9, 2010         Incorporated.

 

 

TRADE REFERENCES

 

*Suppliers*

==========

Takata Corp.

Mistral GmbH

 

*Customers*

==========

Isetan Mitsukoshi Department Stores Ltd.

Miki Shoko Co., Ltd.

Hello Baby Inc.

Hankyu Hanshin Department Stores Co., Ltd.

Kintetsu Department Store Co., Ltd.

Amazon Japan, Inc.

Illums Japan Co., Ltd.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.70

UK Pound

1

Rs.93.41

Euro

1

Rs.71.33

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

               

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%)

 

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