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Report No. : |
330497 |
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Report Date : |
02.07.2015 |
IDENTIFICATION DETAILS
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Name : |
GAP JAPAN KK |
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Registered Office : |
Shinjuku SK Bldg, 5-32-10 Sendagaya Shinjukuku Tokyo 151-0051 |
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Country : |
Japan |
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Financials (as on) : |
31.01.2014 |
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Date of Incorporation : |
February 1994 |
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Com. Reg. No.: |
0110-01-006372 |
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Legal Form : |
Limited Company |
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Line of Business : |
Imports, wholesales and retails apparel (branded
casual wear) for men, women, children and babies, operating 230 retail shops
nationwide, other (--100%) |
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No. of Employees : |
8,200 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 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.
|
Source
: CIA |
GAP JAPAN KK
REGD NAME:
Gap Japan KK
MAIN OFFICE:
Shinjuku SK Bldg,
5-32-10 Sendagaya Shinjukuku Tokyo 151-0051 JAPAN
Tel:
03-5369-5300 Fax: 03-5269-5341
E-Mail address: (thru the URL)
ACTIVITIES:
Import, wholesale,
retail of apparel (branded casual wear), other
BRANCHES:
230 retail shops
nationwide
OVERSEAS:
San Francisco
(Global Headquarters), London, New York, Paris, Toronto, Beijing, Shanghai
(global network)
OFFICERS:
NORAN ELI, PRES
(Only phonetically spelled)
Yen Amount: In million Yen, unless otherwise stated
SUMMARY:
FINANCES FAIR A/SALES Yen 85,000 M
PAYMENTSREGULAR CAPITAL Yen 400 M
TREND STEADY WORTH Yen 16,853 M
STARTED 1994 EMPLOYES 8,200
COMMENT:
RETAILER OF APPAREL, OWNED BY US CAPITAL.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
HIGHLIGHTS:
The subject company is a trading firm, established by Gap Inc US, for import and retail of casual wear for men/women/children/babies. The apparel is branded: “GAP”, “BANANA REPUBLIC” and “OLD NAVY”. Operates 230 retail shops nationwide. Goods are also wholesaled to department stores, apparel stores, other.
FINANCIAL INFORMATION:
Financials are consolidated by the US parent and disclosed only partially.
The sales volume for Jan/2014 fiscal term amounted to Yen 85,000 million, a 1% down from Yen 86,202 million in the previous term. The net profit was posted at Yen 5,000 million, compared with Yen 6,461 million a year ago.
For the term that ended Jan 2015 the net profit was projected at Yen 6,550 million, on a 3% rise in turnover, to Yen 87,550 million. Final results are yet to be released.
The financial situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Feb 1994
Regd No.:
0110-01-006372
(Tokyo-Shinjukuku)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 8,000
shares
Issued: 8,000
shares
Sum: Yen
400 million
Major
shareholders (%): Gap Inc (USA) (100)
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION:
Activities: Imports,
wholesales and retails apparel (branded casual wear) for men, women, children
and babies, operating 230 retail shops nationwide, other (--100%)
(Brand
Names): “GAP”. “BANANA REPUBLIC” and “OLD NAVY”
Clients: [Mfrs,
wholesalers] Consumers, Aeon Mall, Mitsui Fudosan Retail Management, Marui Co,
Takashimaya, Mitsubishi Real Estate, Sogo & Seibu Co, other
No. of accounts:
350
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Imports from Gap Inc (USA) and group firms
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
SMBC (Shimbashi)
Mizuho Bank
(Aoyama)
Relations:
Satisfactory
FINANCES
(In Million Yen)
|
Terms Ending: |
|
31/01/2015 |
31/01/2014 |
31/01/2013 |
31/01/2012 |
|
Annual
Sales |
|
87,550 |
85,000 |
86,202 |
85,000 |
|
Recur.
Profit |
|
.. |
.. |
11,433 |
.. |
|
Net
Profit |
|
6,550 |
5,000 |
6,461 |
6,700 |
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Total
Assets |
|
|
N/A |
52,018 |
N/A |
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Net
Worth |
|
|
36,853 |
33,353 |
28,830 |
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Capital,
Paid-Up |
|
|
400 |
400 |
400 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
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<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
3.00 |
-1.39 |
1.41 |
0.59 |
|
Current Ratio |
|
|
.. |
.. |
.. |
|
N.Worth Ratio |
|
|
.. |
64.12 |
.. |
|
N.Profit/Sales |
|
7.48 |
5.88 |
7.50 |
7.88 |
Notes: Financials
are only partially disclosed.
Forecast (or estimated)
figures for the 31/01/2015 fiscal term.
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 |
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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 |
|
|
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 |
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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 |
-- |
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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.