MIRA INFORM REPORT

 

 

Report No. :

299852

Report Date :

21.01.2015

 

IDENTIFICATION DETAILS

 

Name :

MOTO GARCON INC. 

 

 

Registered Office :

1-16-1, Imagawa, Suginami-ku, Tokyo

 

 

Country :

Japan

 

 

Date of Incorporation :

26.01.1983

 

 

Com. Reg. No.:

0113-01-009030 (Tokyo)

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

·         Engaged in trading of Motorcycle & its Accessories

·         Engaged in providing repairing Service for motorcycle

·         Engaged as importer of motorcycle including Harley Davidson and Ducati.

 

 

No of Employees :

30

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

US$ 85,000

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

 

 

COMPANY NAME

 

MOTO GARCON INC.

 

 

Company OUTLINE

 

Company name:            MOTO GARCON INC.

Name in local language: MOTO GARCON, K.K.

Office address:             1-34-16, Tobita-kyu, Chofu-shi, Tokyo 182-0036

Country:                        Japan

Office tel:                                 042-482-1170

Website:                       www.motogarcon.com  

Business type:              Trader/Service  

Industry:                       Motorcycle

Established:                  January 26, 1983

Capital:                        Jp. 10,000,000 yen

Employees:                  30

Corporate formation:     Private  

Corporation No.:           0113-01-009030 (Tokyo Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

Paid in capital :                         Jp. 10,000,000 yen

Number of authorized shares :   800 shares

Shares issued :                         200 shares

Number of shareholder :                        7

 

Name of shareholders                                       Number of shares (%)

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

Mr. Masatoshi Ohtsubo, president                      82 shares (41.0)

Mr. Yasuo Ohtsubo, director                              40 shares (20.0)

Mr. Tadamichi Takai, director                              36 shares (18.0)

Ms. Nobuko Yamamoto                                      16 shares ( 8.0)

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

Total                                                                 174 shares (87.0)

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

Activity             Product/Service Description

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

Trading             Motorcycle

Trading             Accessories of motorcycle

Service             Repair work of motorcycle

COMPANY MANAGEMENT

 

President                      Mr. Masatoshi Ohtsubo

Nationality:                    Japan

 

Director                        Mr. Masatoshi Kishiro

Nationality:                    Japan

 

Director                                    Mr. Tadamichi Takai

Nationality:                    Japan

 

Director                                    Mr. Yasuo Ohtsubo

Nationality:                    Japan

 

Auditor                         Ms. Miharu Ohtsubo

Nationality:                    Japan

 

 

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

 

 

*Key Personnel*

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

Mr. Masatoshi Ohtsubo

President and representative director

Born on June 17, 1947

Education: Graduated from Tokyo University of Science in 1971

Business career:

Apr. 1971: Employed by Nissan Prince Tokyo Sales Co., Ltd.

Jan. 1980: Started selling used cars as his side business while working as a commission sales

for Nissan Prince.

May 1982: Started selling motorcycle under the name of “Moto Garcon.”

Jan. 26, 1983: The above firm was incorporated and became a dealer of Yamaha, Suzuki and

Kawasaki motorcycles.

Apr. 1996: Became an authorized dealer of Harley Davidson Japan.

Home address: 1-16-1, Imagawa, Suginami-ku, Tokyo

 

 

FINANCIALS

 

Currency: (local currency - Jp. yen)

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

 Year |         Sales            |      Net Income    

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

2008

1,230,000,000

10,000,000

2009

1,050,000,000

loss 10,000,000

2010

970,000,000

loss 5,000,000

2011

842,000,000

1,300,000

2012

927,000,000

6,000,000

2013

980,000,000

15,800,000

 

 

FINANCIAL DESCRIPTION

 

*Book Closing*

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

December 31st

 

*Financials*

==========

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

 

*Bank Details*

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

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

Branch :            Mitaka

 

Bank Name :     Mizuho Bank, Ltd.

Branch :            Kichijoji

 

 

*Credit Opinion*

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

Subject is a Tokyo-based firm, now specializing in dealing mainly with Harley Davidson Japan.

The business founder started as a professional sales person of Nissan Motor and then became a specialist of imported motorcycle including Harley Davidson and Ducati.

The subject runs a shop in Okinawa far from Tokyo, of which reason is unknown.

Sales has been declining or flat despite increased number of shops opened.

The performance picked up for Dec. 2013 term after facing tough fiscal years of 2009 through 2011.

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.

A weaker currency might affect the business to some extent though the competitors are in the same position.

Our standard suggestion would be up to US$ 85,000 on terms of 90 days.

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

 

*Main Products & Services*

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

Retailing motorcycle at the following shops:

-       Chofu shop: at the head office

-       Higashi-murayama shop: Higashi-murayama-shi, Tokyo

-       Okinawa shop: Okinawa Prefecture

-       Shimo-takaido shop: Shimo-takaido, Tokyo

 

ORGANIZATION STRUCTURE

 

*Address*

=========

Registered address: 1-16-1, Imagawa, Suginami-ku, Tokyo

This is also the residence of the president.

 

Operational head office: 1-34-16, Tobita-kyu, Chofu-shi, Tokyo

 

The quoted address is for the Okinawa branch office of Harley Davidson Japan K.K.

 

This location might be jointly operated by HDJ and the subject.

 

 

Company History

 

Date                 Development

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

January 26, 1983           Incorporated and started selling major brand of motorcycle at Mitaka

shop.

April 1986                     Founded Goland Co., Ltd.

March 1997                   Opened Chofu shop and started selling Harley Dvidson.

March 1999                   Opened Higashi-murayama shop.

May 1999                      Opened Okinawa shop.

December 2003             Closed Mitaka shop and opened Suginami shop to deal with Ducati.

February 2007               Gorland was renamed as “Field Japan Co., Ltd.” to deal with used

motorcycle of Harley Davidson.

November 2007             Relocated to expand the Okinawa shop as the No.1 largest dealer of

HDJ in Okinawa Prefecture.

March 2011                   Relocated Suginami shop to Shimo-takaido.

 

 

TRADE REFERENCES

 

*Suppliers*

==========

Harley Davidson Japan K.K.(88%)

Ducati Japan K.K.(8%)

Field Japan Co., Ltd.(2%)

 

*Customers*

==========

General public (90%)

Business counterparts (7%)

Field Japan Co., Ltd. (3%)

 


 

SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

 

Company name:            Field Japan Co., Ltd.

Country:                        Japan

Status:                          Subsidiary  

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.85

UK Pound

1

Rs.93.27

Euro

1

Rs.71.57

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

MNL

 

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.