MIRA INFORM REPORT

 

 

Report No. :

327653

Report Date :

17.06.2015

 

IDENTIFICATION DETAILS

 

Name :

HAYASHI BUSSAN CORPORATION

 

 

Registered Office :

1-4-5 Kamimaezu Nakaku Nagoya 460-0013

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2014

 

 

Date of Incorporation :

January 1967

 

 

Com. Reg. No.:

1800-01-039912

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Imports and wholesales rugs & carpets, other upholstery and cosmetics (--100%)

 

 

No. of Employees :

40

 

 

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

 

Status :

Satisfactory

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 – 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

 

HAYASHI BUSSAN CORPORATION

 

REGD NAME:   Hayashi Bussan KK

MAIN OFFICE:  1-4-5 Kamimaezu Nakaku Nagoya 460-0013 JAPAN

                                    Tel: 052-262-2111     Fax: 052-262-2001

                       

URL:                 http://www.crossway-bussan.co.jp

E-Mail address: info@crossway-bussan.co.jp

 

ACTIVITIES:     Import, wholesale of rugs & carpets, other upholstery

BRANCHES:     Tokyo, Osaka, Sapporo (--showrooms)

SHOPS:                        Nagoya, Sapporo, other

 

OFFICERS:       TAKAO HAYASHI, PRES                       Eriko Hayashi, dir

                        Isao Hayashi, dir                                   Hideo Hayashi, dir                    

                        Hiroyuki Hayashi, dir                              Toshiyuki Takahashi, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                                         A/SALES          Yen 9,124 M

PAYMENTSSLOW BUT CORRECT                     CAPITAL           Yen 45 M

TREND STEADY                                   WORTH            Yen 4,610 M

STARTED         1967                                         EMPLOYES      40

 

COMMENT:      IMPORTER & WHOLESALER SPECIALIZING IN RUGS & CARPETS.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a trading division separated from Hayashi Telempu Co Ltd, Nagoya.  This is a trading house specializing in importing rugs & carpets centrally, other upholstery & cosmetics.  Goods are imported from Iran, Nepal, India, China, Pakistan, other.  Clients are major department stores, furniture stores, etc, nationwide.

 

 

FINANCIAL INFORMATION

           

The sales volume for Sept/2014 fiscal term amounted to Yen 9,124 million, an 11% up from Yen 8,213 million in the previous term.  The recurring profit was posted at Yen 156 million and the net profit at Yen 102 million, respectively, compared with Yen 597 million recurring profit and Yen 373 million net profit, respectively, a year ago.

 

For the current term ending Sept 2015 the recurring profit is projected at Yen 160 million and the net profit at Yen 110 million, respectively, on a 3% rise in turnover, to Yen 9,400 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:                                   Jan 1967

Regd No.:                                             1800-01-039912 (Nagoya-Nakaku)  

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              360,000 shares

Issued:                                     90,000 shares

Sum:                                        Yen 45 million

Major shareholders (%):                       Hayashi Telempu Co Ltd*(100)

 

*.. Mfr of automobile interior furniture & goods, Nagoya, founded 1950, capital Yen 1,000 million, turnover Yen 192,442 million, net profit Yen 3,131 million, employees 1,499, pres Takao Hayashi concurrently.

           

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

 

 

OPERATION

 

Activities: Imports and wholesales rugs & carpets, other upholstery and cosmetics (--100%)

 

(Handling items):

Rugs & carpets, tables, chairs, sofas, lighting fixtures, kitchen ware, cushion, bedspread, table linen, bath linen, tableware, face towel, bath towel, fragrance, toiletries, other.

 

 

Clients: [Department stores, furniture stores] Hayashi Telempu Co, Takashimaya, Tokyu Department Store, Keio Department Store, France Bed, Shimachu Co, Uny Group Holdings, Kawashima Selcon Textiles, other. 

No. of accounts: 800

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Imports from Nepal, Iran, Pakistan, India, China, Europe, other. Domestically, supplied from Suminoe Textiles, Kawashima Selcon Textiles.

 

Payment record: Slow but correct

 

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

 

Bank References:

Mizuho Bank (Nagoya)

MUFG (Nagoya)

Relations: Satisfactory.

 

 

FINANCES

 

 (In Million Yen)

Terms Ending:

30/09/2015

30/09/2014

30/09/2013

Annual Sales

 

9,400

9,124

8,213

Recur. Profit

 

160

156

597

Net Profit

 

110

102

373

Total Assets

 

 

7,195

6,873

Current Assets

 

 

5,653

5,232

Current Liabs

 

 

2,585

2,221

Net Worth

 

 

4,610

4,652

Capital, Paid-Up

 

 

45

45

Div.P.Share(¥)

 

 

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

    S.Growth Rate

 

3.02

11.09

0.06

    Current Ratio

 

..

218.68

235.57

    N.Worth Ratio

 

..

64.07

67.69

    R.Profit/Sales

 

1.70

1.71

7.27

    N.Profit/Sales

 

1.17

1.12

4.54

    Return On Equity

 

..

2.21

8.02

 

Note: Forecast (or estimated) for the 30/09/2015 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.15

UK Pound

1

Rs.100.04

Euro

1

Rs.72.27

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

               

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.