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Report No. : |
327735 |
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Report Date : |
16.06.2015 |
IDENTIFICATION DETAILS
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Name : |
CGC JAPAN CO LTD |
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Registered Office : |
Santoku Bldg 2F, 2-1-14 Okubo Shinjukuku Tokyo 169-8531 |
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Country : |
Japan |
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Financials (as on) : |
29.02.2016 |
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Date of Incorporation : |
Oct., 1973 |
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Com. Reg. No.: |
(Tokyo-Shinjukuku) 008920 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Grocery Chain Store Operator (3,722 Stores Nationwide) |
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No. of Employees : |
353 |
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 5,118.0 Million |
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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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 |
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 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.
Since the complete shutdown of Japan’s nuclear reactors after the earthquake
and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused
the economy to contract during the 2nd and 3rd quarters of 2014. The economy
has largely recovered in the three years since the disaster, but reconstruction
in the Tohoku region has been uneven due to labor shortages. 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 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. The government will continue a
longstanding debate on restructuring the economy and reining in Japan's huge
government debt, which amounts to more than 240% 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 2015, although the government
in 2014 decided to postpone the final phase of the increase until 2017 to give
the economy time to recover from the 2014 increase. 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.
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Source
: CIA |
CGC JAPAN CO LTD
REGD NAME: KK
CGC Japan
MAIN OFFICE: Santoku
Bldg 2F, 2-1-14 Okubo Shinjukuku Tokyo 169-8531 JAPAN
Tel: 03-3203-1111 Fax: 03-3207-7151
URL: http//:www.cgcjapan.co.jp
E-mail: (thru the URL)
Grocery
chain store operator (3,722 stores nationwide)
Tokyo, Chiba, Hiratsuka, Tokorozawa, Tochigi, Kawasaki,
Niigata, Saitama, Yamagata,
Kasama (--distribution centers)
Seattle,
Shanghai, Paris, Bangkok
(Subcontracted)
ATSUHIRO
HORIUCHI, PRES Kazuhoko Hara, ch
Kiyoshi
Yokoyama, v ch Kunio
Munekane, v ch
Yuzo Shoji, v pres Koichi
Saito, v pres
Yen
Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 304,113
M
PAYMENTSREGULAR CAPITAL Yen
523 M
TREND STEADY WORTH Yen 9,119 M
STARTED 1973 EMPLOYES 353
CO-OPERATIVE
GROCER CHAIN STORE OPERATOR.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS
MAX
CREDIT LIMIT: YEN 5,118.0 MILLION, 30 DAYS NORMAL TERMS
This
is a co-operative grocer chain operator (as short for CGC Japan) organized by
several supermarket operators under the leadership of “Supermarket Santoku”, also
the owner of the captioned building, in order to purchase products jointly and
distribute them on a regular, stable basis.
The objectives of the company are: procurement and physical distribution
of products; development of new products; information support for physical
distribution; executive & employee education/training for affiliated
companies. The co-op now supplies
products to 3,722 supermarkets operated by 228 member companies in all parts of
Japan. Handling items are: meat,
confectionary, foods, boxed lunches, takeaway foods, fishery products, other
(more than 1,000 product items).
Operating purchasing offices in: USA, France, China, Thailand, other.
The
sales volume for Feb/2015 fiscal term amounted to Yen 304,113 million, a 3% up
from Yen 294,739 million in the previous term. The recurring profit was posted at Yen
1,139 million and the net profit at Yen 671 million, respectively, compared
with Yen 896 million recurring profit and Yen 540 million net profit, respectively,
a year ago. .
For
the current term ending Feb 2016 the recurring profit is projected at Yen 1,160
million and the net profit at Yen 685 million, respectively, on a 3% rise in
turnover, to Yen 313,500 million.
The
financial situation is considered FAIR and good for ORDINARY business engagements. Max
credit limit is estimated at Yen 5,118.0 million, on 30 days normal terms.
Date Registered: Oct 1973
Regd No.: (Tokyo-Shinjukuku)
008920
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 37.77
million shares
Issued: 37.77
million shares
Sum: Yen 523 million
Major shareholders (%): Santoku KK* (20), Tsuruya KK**
(3), Tokai CGC** (2.4), Hokkaido CGC** (2.4), Tohoku CGC** (2.4), Chugoku CGC**
(2.4)
*.. Owner of the caption
building, operator of 27 chain grocery stores in Tokyo, founded 1949, capital
Yen 88 million, sales Yen 30,475 million, recurring profit Yen 147 million, net
profit Yen 44 million, employees 46, pres Yozo Saitoh
**..
Operators of supermarkets
No. of shareholders: 56
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Co-operative grocer chain store
operator, supplying products for 3,722 supermarkets operated by 228 affiliated
member firms all over Japan: selling processed foods, meat, confectionary,
boxed lunches, fast foods, wires/liquors, beers, other (--100%)
Clients: [Supermarkets] Fressay, Nisshin Oil
group firms, Tsuruya, Supermarket Santoku, Olympic, Ogino, Harashin Narusu
Logitec, other
No. of
accounts: 3,800
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Zen-Noh, Itoh
Foods, Nippon Meat Packers, Nisshin Oil Group firms, Mitsui & Co, Meiji
Dairies, Snow Brand Access, Ryoshoku Ltd, Mitsubishi Corp, other
Payment record:
Regular
Location: Business area in Tokyo. Office
premises at the caption address are leased and maintained satisfactorily.
Bank References:
MUFG
(Shinjuku)
Mizuho
Bank (Shinjuku)
Relations:
Satisfactory
(In Million Yen)
|
Terms Ending: |
29/02/2016 |
28/02/2015 |
28/02/2014 |
28/02/2013 |
|
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Annual
Sales |
|
313,500 |
304,113 |
294,739 |
282,766 |
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Recur.
Profit |
|
1,160 |
1,139 |
896 |
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Net
Profit |
|
685 |
671 |
540 |
432 |
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Total
Assets |
|
|
45,145 |
42,084 |
39,855 |
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Current
Assets |
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|
39,252 |
25,982 |
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Current
Liabs |
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|
27,725 |
25,822 |
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Net
Worth |
|
|
9,119 |
8,254 |
7,784 |
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Capital,
Paid-Up |
|
|
523 |
523 |
523 |
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Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
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<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
3.09 |
3.18 |
4.23 |
1.36 |
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Current Ratio |
|
.. |
141.58 |
100.62 |
.. |
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N.Worth Ratio |
|
.. |
20.20 |
19.61 |
19.53 |
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R.Profit/Sales |
|
0.37 |
0.37 |
0.30 |
.. |
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N.Profit/Sales |
|
0.22 |
0.22 |
0.18 |
0.15 |
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Return On Equity |
|
.. |
7.36 |
6.54 |
5.55 |
Notes:
Forecast (or estimated) figures for the 29/02/2016 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.09 |
|
|
1 |
Rs.99.57 |
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Euro |
1 |
Rs.71.84 |
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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Report Prepared
by : |
NIT |
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 |
-- |
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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.