MIRA INFORM REPORT

 

 

Report No. :

333534

Report Date :

23.07.2015

 

IDENTIFICATION DETAILS

 

Name :

JL CORPORATION

 

 

Registered Office :

1-4-9 Awaza Nishiku Osaka 550-0011

 

 

Country :

Japan

 

 

Financials (as on) :

31.05.2015

 

 

Date of Incorporation :

July, 1995

 

 

Com. Reg. No.:

1200-01-044198 (Osaka-Nishiku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Export of Used Construction Machinery.

 

 

No. of Employees :

5

 

 

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 – 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

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 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 and address

 

JL CORPORATION

 

REGD NAME:               JL Corporation KK

 

MAIN OFFICE:              1-4-9 Awaza Nishiku Osaka 550-0011 JAPAN

                                                Tel: 06-6535-1115      Fax: 06-6535-0222

URL:                             N/L

 

 

ACTIVITIES

 

Export of used construction machinery

 

 

BRANCHES

           

Nil

 

 

OVERSEAS   

 

S/E Asia (--business partners)

 

 

OFFICERS

 

TAKURYO RA, PRES

Mijun Wang, dir

Shuko Ra, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

           

FINANCES        R/WEAK                       A/SALES          Yen 10 M

PAYMENTSSLOW BUT CORRECT         CAPITAL           Yen 1,100 M

TREND SLOW                           WORTH            Yen 675 M       

STARTED         1995                             EMPLOYES      5

 

 

COMMENT

 

EXPORTER OF USED CONSTRUCTION MACHINERY.

 

FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

This is a trading firm specializing in exporting used construction machinery (except tractors, cranes), to S/E Asian countries (Hong Kong, Thailand, Singapore, other). Goods are supplied from construction machinery makers, auction markets, other.

 

 

FINANCIAL INFORMATION

           

Financials are disclosed only partially.  Profits are not disclosed and only estimated.

 

The sales volume for May/2014 fiscal term amounted to Yen 1,100 million, a similar amount in the previous term. The net profit is estimated posted at Yen 50 million, similarly in the previous term.

 

For the term that ended May 2015 the net profit was projected at Yen 52 million, on a 3% rise in turnover, to Yen 1,130 million.  Final results are yet to be released.

 

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements.

 

 

REGISTRATION

    

Date Registered:             July, 1995

Regd No.:         1200-01-044198 (Osaka-Nishiku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         800 shares

Issued:                200 shares

Sum:                   Yen 10 million

Major shareholders (%): Takuryo Ra (100)

 

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

 

 


OPERATION

           

Activities: A trading firm for export of used construction machinery (except tractors, cranes), other (--100%)

 

Clients: [Mfrs, wholesalers] Exports to S/E Asian countries (Singapore, Hong Kong, Taiwan Thailand, other), other 

No. of accounts: Unavailable

Domestic areas of activities: Centered in the greater-Osaka

Suppliers: [Mfrs, wholesalers] Construction machinery makers, construction companies, auction markets, other

 

Payment record: Slow but correct

 

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

 

Bank References:

            MUFG (Umeda)

            SMBC (Itachibori)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

Terms Ending:

 

31/05/2015

31/05/2014

31/05/2013

31/05/2012

Annual Sales

 

1,130

1,100

1,100

1,100

Recur. Profit

 

..

..

..

..

Net Profit

 

52

50

50

50

Total Assets

 

 

N/A

N/A

N/A

Net Worth

 

 

675

625

575

Capital, Paid-Up

 

 

10

10

10

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

2.73

0.00

0.00

-18.52

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

 

..

..

..

    N.Profit/Sales

 

4.60

4.55

4.55

4.55

 

Notes: Financials are only partially disclosed.  Profits are not disclosed and only estimated

 

Forecast (or estimated) figures for the 31/05/2015 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.53

UK Pound

1

Rs.99.19

Euro

1

Rs.69.60

 

INFORMATION DETAILS

 

Analysis Done by :

TRI 

 

 

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%)

 

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.