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Report No. : |
330113 |
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Report Date : |
01.07.2015 |
IDENTIFICATION DETAILS
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Name : |
JAPAN HOTEL REIT INVESTMENT CORPORATION |
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Registered Office : |
Ebisu Neonato 4F, 4-1-18 Ebisu Shibuyaku Tokyo 150-0013 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
November 2005 |
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Legal Form : |
Investment Corporation |
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Line of Business : |
Subject is engaged in Investment, asset management |
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No. of Employees : |
10 (About) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 417.0 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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 four times since 2008. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 2014 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. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.
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Source
: CIA |
JAPAN
HOTEL REIT INVESTMENT CORPORATION
Japan Hotel Reit Investment Corporation
Ebisu Neonato 4F, 4-1-18 Ebisu Shibuyaku
Tokyo 150-0013 JAPAN
Tel: 03-6422-0542 Fax: 03-6422-0531
E-Mail address: (thru the URL)
Investment, asset management
Nil
YUKIO ISA, PRES
Hiroshi Matsuzawa, dir
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 12,760 M
PAYMENTSNO COMPLAINTS CAPITAL -
- -
TREND STEADY WORTH Yen 100,343 M
STARTED 2005 EMPLOYES 10 (ABOUT)
ASSET MANAGEMENT COMPANY.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: ESTIMATED AT
YEN 417.0 MILLION, ON 30 DAYS NORMAL TERMS.
This is the asset management
company, investment, other. Clients are
hotels, other.
The sales volume for Dec/2014 fiscal
term amounted to Yen 12,760 million, an 11% up from Yen 11,473 million in the
previous term. The recurring profit was
posted at Yen 5,776 million and the net profit at Yen 5,775 million,
respectively, compared with Yen 3,741 million recurring profit and Yen 3,233
million net profit, respectively, a year ago.
For the current term ending Dec 2015
the recurring profit is projected at Yen 6,100 million and the net profit at
Yen 5,950 million, respectively, on a 5% rise in turnover, to Yen 13,400
million.
The financial situation is
considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 417.0
million, on 30 days normal terms.
Date Registered:
Nov
2005
Legal Status: Investment
Corporation (Toshi Hojin)
Net worth: Yen 100,343 million*
*.. This is Investment Corporation
and no capital is paid.
Nothing detrimental is known as
to the commercial morality of executives.
Activities:
Asset management, investment, other (--100%)
Clients:
[Mfrs, wholesalers] Kyoritsu maintenance, Kamogawa Grant Hotel, Sunroute Co,
Toyoko Inn, Resort Solution, other
No. of accounts: 300
Domestic areas of activities:
Nationwide
Suppliers:
[Mfrs, wholesalers] Japan Hotel Reit Advisors, Mitsui Sumitomo Trust Bank,
Price Water House Coopers, other
Payment record: No Complaints
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactorily.
Bank References:
Resona
Bank (Tokyo)
Norin
Chukin Bank (H/O)
Relations:
Satisfactory
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Terms Ending: |
31/12/2015 |
31/12/2014 |
31/12/2013 |
31/12/2012 |
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Annual Sales |
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13,400 |
12,760 |
11,473 |
7,284 |
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Recur. Profit |
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6,100 |
5,776 |
3,741 |
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Net Profit |
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5,950 |
5,775 |
3,233 |
19,032 |
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Total Assets |
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188,092 |
170,728 |
139,624 |
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Current Assets |
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15,836 |
13,643 |
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Current Liabs |
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23,475 |
17,887 |
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Net Worth |
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100,343 |
89,756 |
69,010 |
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Capital, Paid-Up |
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Div.Ttl in Million (¥) |
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5,083 |
3,013 |
474 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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5.02 |
11.22 |
57.51 |
409.01 |
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Current Ratio |
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.. |
67.46 |
76.27 |
.. |
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N.Worth Ratio |
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.. |
53.35 |
52.57 |
49.43 |
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R.Profit/Sales |
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45.52 |
45.27 |
32.61 |
.. |
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N.Profit/Sales |
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44.40 |
45.26 |
28.18 |
261.29 |
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Return On Equity |
|
.. |
5.76 |
3.60 |
27.58 |
Notes: Financials are only
partially disclosed. Investment Corp and
no Capital involved.
Forecast (or estimated) figures
for the 31/12/2015 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 63.75 |
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1 |
Rs. 100.12 |
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Euro |
1 |
Rs. 71.20 |
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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Report Prepared
by : |
DPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.