MIRA INFORM REPORT

 

 

Report No. :

330492

Report Date :

03.07.2015

 

IDENTIFICATION DETAILS

 

Name :            

DOSHISHA CORPORATION

 

 

Registered Office :

1-5-5 Higashi-Shinsaibashi Chuoku Osaka 542-0083

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

January 1977

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, wholesale of consumer electronics, watches, jewelry, apparel, other

 

 

No. of Employees :

1,827

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

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

 

Maximum Credit Limit :

Yen 5,625.4 million

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : 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 Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

B2

Moderate High Risk

 

C1

High Risk

C2

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.

 

Source : CIA

 

Company name

 

DOSHISHA CORPORATION

 

 

REGD NAME 

 

KK Doshisha

 

 

MAIN OFFICE

 

1-5-5 Higashi-Shinsaibashi Chuoku Osaka 542-0083 JAPAN

Tel: 06-6121-5888     Fax: 06-6121-5686

 

*.. The is its Tokyo Branch (Headquarters)     -

 

URL:                 http://www.doshisha.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Import, wholesale of consumer electronics, watches, jewelry, apparel, other

 

 

BRANCHES

 

Tokyo (2)

 

 

OVERSEAS

 

China, Hong Kong, Taiwan, other

 

 

FACTORIES  

 

(outsourced)

 

 

CHIEF EXEC 

 

MASAYUKI NOMURA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 103,647 M

PAYMENTSREGULAR   CAPITAL           Yen 4,993 M

TREND UP                    WORTH            Yen 58,161 M

STARTED         1977                 EMPLOYES      1,827

 

 

COMMENT    

 

TRADING FIRM SPECIALIZING IN CONSUMER GOODS, OTHER FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 5,625.4 MILLION, 30 DAYS NORMAL TERMS

 

 

                        Unit: In Million Yen

Forecast figures for the 31/03/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is a medium-scale comprehensive wholesaler, handling some 9,000 items, including consumer electronics, watches, jewelry and apparel.  Known for handling of PB (Private Brands) products developed jointly with domestic and overseas makers.  Striving to win consumers in the Kanto region.  .

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 103,647 million, a 1.8% down from Yen 105,576 million in the previous term.  The recurring profit was posted at Yen 7,114 million and the net profit at Yen 4,477 million, respectively, compared with Yen 7,510 million recurring profit and Yen 4,421 million net profit, respectively, a year ago.

 

            For the current term ending Mar 2016 the recurring profit is projected at Yen 8,000 million and the net profit at Yen 5,150 million, respectively, on a 6.1% rise in turnover, to Yen 110,000 million.  Sales of watches and shoes to tourists to Japan will make a strong earnings contribution.  Sales of private brand retail products will also rise steadily.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 5,625.4 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　                   Jan 1977

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              78.6 million shares

Issued:                         37,375,636 shares

Sum:                            Yen 4,993 million

 

Major shareholders (%): MS Shoji (25.0), Nomura Kosan Ltd (5.9), JP Morgan Chase Bank 385174 (4.6), Fidelity Low Priced Stock T (4.4), Masaharu Nomura (2.7), Master Trust Bank of Japan T (2.5), Japan Trustee Services T (2.5), CBNY Government of Norway (2.5), SMBC (2.4), Sumitomo Mitsui Trust Bank (2.2); foreign owners (32.9)

 

No. of shareholders: 6,258

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Masaharu Nomura, ch; Masayuki Nomura, pres; Rinesato Kanahara, v ch; Kazuhiro Niki s/mgn dir; Tadahito Kurume, s/mgn dir; Toshihiro Fujimoto, mgn dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

Related companies: Karinpia Co, Life Corp (Super market), Doshisha Butsuryu, other.

 

 

OPERATION

           

Activities: Imports and wholesales some 9,000 items, including consumer electronics, watches, jewelry, apparel, foods, gift sets, other, mostly of private brands developed by domestic and overseas makers: Development-type business model (49%), wholesale-type business model (47%), others (4%)

           

Clients: [Mfrs, wholesalers] Don Quijote Co, Shimamura, Izumiya, Nagasakiya, Happi-     ness & D, Mr Max Corp, Best Denki Co, Shaddy Co, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Kato Sangyo, Orion Electric, Itochu Corp, Tamurakoma &             Co, Arata Corp, Itochu

Fashion Systems, Asahi Shokuhin, other

 

Payment record: Regular

 

Location: Business area in Osaka.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

                        SMBC (Namba)

                        Mizuho Bank (Namba)

                        Relations: Satisfactory

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

103,647

105,576

　

  Cost of Sales

79,250

81,116

　

      GROSS PROFIT

24,396

24,460

　

  Selling & Adm Costs

17,853

17,176

　

      OPERATING PROFIT

6,543

7,284

　

  Non-Operating P/L

571

226

　

      RECURRING PROFIT

7,114

7,510

　

      NET PROFIT

4,477

4,421

BALANCE SHEET

　

　

  Cash

　

26,736

26,233

　

  Receivables

16,890

15,931

　

  Inventory

7,614

7,292

　

  Securities, Marketable

　

　

　

  Other Current Assets

2,925

984

　

      TOTAL CURRENT ASSETS

54,165

50,440

　

  Property & Equipment

11,297

11,656

　

  Intangibles

148

161

　

  Investments, Other Fixed Assets

2,670

2,718

　

      TOTAL ASSETS

68,280

64,975

　

  Payables

4,698

4,420

　

  Short-Term Bank Loans

　

5

　

　

　

　

　

  Other Current Liabs

4,623

3,613

　

      TOTAL CURRENT LIABS

9,321

8,038

　

  Debentures

　

2,500

　

  Long-Term Bank Loans

　

198

　

  Reserve for Retirement Allw

389

353

　

  Other Debts

　

409

469

　

      TOTAL LIABILITIES

10,119

11,558

　

      MINORITY INTERESTS

　

　

Common stock

4,993

4,993

　

Additional paid-in capital

6,043

6,043

　

Retained earnings

44,526

41,354

　

Evaluation p/l on investments/securities

260

80

　

Others

2,419

1,025

　

Treasury stock, at cost

(80)

(79)

　

      TOTAL S/HOLDERS` EQUITY

58,161

53,416

　

      TOTAL EQUITIES

68,280

64,975

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

4,741

4,511

　

Cash Flows from Investment Activities

581

-735

　

Cash Flows from Financing Activities

-4,914

-1,276

　

Cash, Bank Deposits at the Term End

　

26,736

26,233

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

58,161

53,416

　

Current Ratio (%)

581.11

627.52

　

Net Worth Ratio (%)

85.18

82.21

　

Recurring Profit Ratio (%)

6.86

7.11

　

Net Profit Ratio (%)

4.32

4.19

　

　

Return On Equity (%)

7.70

8.28

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 63.57

UK Pound

1

Rs. 99.20

Euro

1

Rs. 70.35

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

DPT

 

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.