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Report No. : |
328616 |
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Report Date : |
20.06.2015 |
IDENTIFICATION DETAILS
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Name : |
COSTCO WHOLESALE JAPAN LTD |
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Registered Office : |
3-1-4 Ikegami Shincho Kawasakiku Kanagawa-Pref 210-0832 |
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Country : |
Japan |
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Date of Incorporation : |
April 1998 |
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Com. Reg. No.: |
0200-01-079681 (Yokohama-Kawasaki) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Membership warehouse store operator, with 5
stores operating, wholesaling & retailing of the following goods (--100%)
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No. of Employee : |
7,500 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 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.
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Source
: CIA |
In absence of financials, no credit limit could be recommended.
COSTCO WHOLESALE JAPAN LTD
REGD NAME: Costco
Wholesale Japan KK
MAIN OFFICE: 3-1-4
Ikegami Shincho Kawasakiku Kanagawa-Pref 210-0832 JAPAN
Tel: 044-281-2600
E-Mail address: info@costco.co.jp
Membership
warehouse store operator
Fukuoka, Chiba, Tokyo, Hyogo, Yokohama, Kyoto, Kobe, Hiroshima, Hokkaido, Gunma, Saitama, Ibaraki, other (Tot 23 warehouses/shops)
KEN THERIAULT,
PRES
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 85,000 M*
PAYMENTSUNKNOWN CAPITAL Yen 7,505 M
TREND STEADY WORTH Yen 9,800 M*
STARTED 1998 EMPLOYES 7,500
*.. Estimated only
as not disclosed
MEMBERSHIP WAREHOUSE STORE OPERATOR, WHOLLY OWNED BY
COSTCO WHOLESALE CORP, USA.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: UNABLE TO BE ASSESSED DUE TO NON-AVAILABILITY OF PROVEN BUSINESS, WITH THE FIRM NOT DISCLOSING FINANCIALS.
The subject company was established by
Costco Wholesale Corp, USA, in order to advance into Japan for operating its
membership warehouse stores. In 1999,
opened the first store in Hisayama (Fukuoka), followed by Chiba (Dec/2000),
Tokyo (Sept/2002), Hyogo (Apr/2003) and Kanazawa stores (Oct/2004). The stores employ two membership systems:
Business (Corporate) & Gold Star (Individuals). Warehouse stores now total 23 nationwide,
aiming to reach 50 nationwide. The firm
stocks 5,000 more items, selling in bulk at low prices. Handling items are: fresh & frozen foods,
processed foods, jewelry & watches, house-ware, apparel, gardening tools,
sporting goods, other.
The financials are consolidated by the US parent, Costco Wholesale Corp,
and not disclosed. From the past we
estimate that: sales volume for Aug/2014 amounted to Yen 80,000 million, with
net worth at Yen 9,800 million. The
figures are only estimated and not attested by the third parties, no reports
coming from them.
The financial situation is considered maintained FAIR and good for
ORDINARY business engagements. Max
credit limit is unable to be assessed due to the non-availability of proven
business records (financials, others).
Date Registered: Apr
1998
Regd No.:
0200-01-079681
(Yokohama-Kawasaki)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 150.1
million shares
Issued:
150.1 million shares
Sum: Yen
7,505 million
Major shareholders (%): Costco Wholesale
Corp, USA (100)
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Membership
warehouse store operator, with 5 stores operating, wholesaling & retailing
of the following goods (--100%)
(Product
categories) – typical & not confined to these items):
Personal: jewelry &
watches; apparel (quality brands/Kirkland Signature apparel of dresses,
sweaters, jeans, jackets, socks & accessories; health & beauty:
shampoo, soap, toothbrushes, shaving products, lotions, foundation, vitamins,
remedies, diapers, brand-name perfumes, other; office supplies (desks &
office furniture, paper, pads, stationery, file cabinets, tables, other wide
range of office accessories); seasonal/toys (toys, seasonal/holiday items);
books & media (imported books & magazines, DVD’s, videos, music CD’s,
PC software);
Outdoor/Home: lawn &
garden (live plants, fertilizers, gardening tools & supplies, patio
furniture, barbecues); hardware /storage (power & hand tools, ladders, compressors,
pressure washers); sporting goods (snowboards, golf clubs, bicycles, camping
equipment, fitness equipment); auto (oils, chemicals, auto cleaners, car
batteries, other automotive accessories);
Processed
foods: frozen foods (fresh frozen chicken, vegetables & seafood); snacks
& candy (name-brand candy bars, candies, chewing gums, mints, chips, nuts,
jerky, rice crackers); dry groceries (soy sauce, teas, olive oils, coffee,
cranberry products, other imported items); liquor (wine, spirits, sake, beer);
Fresh
foods: fresh meat (beef, pork, chicken, other); fresh fish (including sushi
& sashimi trays); fresh produce (fresh fruits & vegetables – washed,
cut and assorted); fresh bakery (breads, pies, muffins, cookies, pastries,
croissants, custom-order cakes); fresh Deli (cheeses, ham, sausages, seaweed,
kimchi, sushi, sashimi, salads);
Services: optical
(eyeglasses, frames & lenses, sunglasses); 1 hour photo shop; tire center
(brand-name vehicle tires, including balancing & installation services); Food
Court (quick snacks); delivery services (offers delivery services from
freezers, cooler items to sofas, refrigerators and up to pallet quantities).
About 40% of the goods are imported from the
parent and its group firms in USA, other.
Clients: Individual consumers, business firms, other
No. of accounts:
Unavailable
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Kao Corp, San Rio Corp, Proctor & Gamble Far East Inc , Itochu
Corp, Suntory, other.
Also, imports from Costco Wholesale Corp,
USA and its group firms.
Payment record: Unknown
Location: Business area in Tokyo.
Office premises at the caption address are leased and maintained
satisfactorily.
Bank References:
MUFG (Shibuya)
SMBC (Kumamoto)
Relations:
Satisfactory
(In Million Yen)
NOT DISCLOSED AND UNAVAILABLE
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.82 |
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1 |
Rs.101.26 |
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Euro |
1 |
Rs.72.36 |
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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Report Prepared
by : |
ANK |
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 |
-- |
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.