MIRA INFORM REPORT

 

 

Report No. :

327735

Report Date :

16.06.2015

 

IDENTIFICATION DETAILS

 

Name :

CGC JAPAN CO LTD

 

 

Registered Office :

Santoku Bldg 2F, 2-1-14 Okubo Shinjukuku Tokyo 169-8531

 

 

Country :

Japan

 

 

Financials (as on) :

29.02.2016

 

 

Date of Incorporation :

Oct., 1973

 

 

Com. Reg. No.:

(Tokyo-Shinjukuku) 008920

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Grocery Chain Store Operator (3,722 Stores Nationwide)

 

 

No. of Employees :

353

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

Maximum Credit Limit :

Yen 5,118.0 Million

 

 

Status :

Good 

 

 

Payment Behaviour :

Regular

 

 

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)

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 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.

 

Source : CIA

 

Company Name and address

 

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)   

 

 

ACTIVITIES

 

Grocery chain store operator (3,722 stores nationwide)

 

 

BRANCHES

 

Tokyo, Chiba, Hiratsuka, Tokorozawa, Tochigi, Kawasaki, Niigata, Saitama, Yamagata, Kasama  (--distribution centers)

 

 

OVERSEAS

 

Seattle, Shanghai, Paris, Bangkok

 

 

FACTORIES

 

(Subcontracted)

 

 

OFFICER(S)

 

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

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES                      Yen 304,113 M

PAYMENTSREGULAR   CAPITAL                       Yen 523 M

TREND STEADY           WORTH                        Yen 9,119 M

STARTED         1973                 EMPLOYES                  353

 

 

COMMENT

           

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

 

 

HIGHLIGHTS

           

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.

 

 

FINANCIAL INFORMATION

 

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. 

 

REGISTRATION

 

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.

 

 

OPERATION

 

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

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

29/02/2016

28/02/2015

28/02/2014

28/02/2013

Annual Sales

 

313,500

304,113

294,739

282,766

Recur. Profit

 

1,160

1,139

896

 

Net Profit

 

685

671

540

432

Total Assets

 

 

45,145

42,084

39,855

Current Assets

 

 

39,252

25,982

 

Current Liabs

 

 

27,725

25,822

 

Net Worth

 

 

9,119

8,254

7,784

Capital, Paid-Up

 

 

523

523

523

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

3.09

3.18

4.23

1.36

    Current Ratio

 

..

141.58

100.62

..

    N.Worth Ratio

 

..

20.20

19.61

19.53

    R.Profit/Sales

 

0.37

0.37

0.30

..

    N.Profit/Sales

 

0.22

0.22

0.18

0.15

    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

UK Pound

1

Rs.99.57

Euro

1

Rs.71.84

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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.