MIRA INFORM REPORT

 

 

Report No. :

311896

Report Date :

19.03.2015

 

IDENTIFICATION DETAILS

 

Name :

JAPANESE CONSUMERS’ CO-OPERATIVE UNION

 

 

Registered Office :

Coop plaza, 3-29-8 Shibuya Shibuyaku Tokyo 150-0002

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Year of Establishment :

1951

 

 

Legal Form :

Not Available

 

 

Line of Business :

Subject is operating stores, home delivery, internet business, insurance.

 

 

No. of Employee :

1087

 

 

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 2,288 Million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

No complaints

 

 

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. Japan's industrial sector is 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 three 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. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. 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 2013 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 new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which is exceeding 230% 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 the year 2015. 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

 

JAPANESE CONSUMERS’ CO-OPERATIVE UNION

 

REGD NAME:   Japanese Consumers Co-operative Rengoukai

MAIN OFFICE:  Coop plaza, 3-29-8 Shibuya Shibuyaku Tokyo 150-0002 JAPAN

                                    Tel: 03-5778-8111     Fax: 03-5778-8111     -

 

URL:                 http://jccu.coop

E-Mail address: kokusai@jccu.coop

 

 

ACTIVITIES

 

Operate stores, home delivery, internet business, insurance

 

 

BRANCHES

 

Saitama,Yokohama

 

 

CHIEF EXEC

 

HIROYUKI SHIMADA,PRE

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 389,395 M

                        PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 9,143 M

                        TREND UP                                WORTH            Yen Unavailable

                        STARTED         1951                             EMPLOYES      1087

 

 

COMMENT

 

OPERATION OF STORES, HOME DELIVERY, INTERNET BUSINESS.

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 2,288 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

 

This is the leading mfr of store operaton, home delivery, catalog and internet businesses.

They all involve the sale of food and non-food items to the numbers.The store division is

facing serious competition from other giant retailers and retail co-ops are strengthening

Their business effort in the home delivery service where competition is low to offset the

Returns from the store business.  About 60% of the total turnover for the retailing   business is coming from the home delivery operation.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 389,395 million, a 1% up from Yen 386,541 million in the previous term.  The recurring profit was posted at Yen ^ million and the net profit at Yen 3,630 million, respectively, compared with Yen ^ million recurring profit and Yen 2,566 million net profit, respectively, a year ago.

 

For the current term ending Mar/ 2015 the recurring profit is projected at Yen ^ million and the net profit at Yen ^ million, respectively, on a 1% rise in turnover, to Yen 392,276 million.  Final results are yet to be released.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 2,288 million, on 30 days normal terms.

 

 

OPERATION

           

Activities: Operate stores, home delivery, internet business, insurance

 

Clients: [Mfrs, wholesalers] National federation of agricultural corporative associations,dairy farming industry, fishery, other

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Memberships of Coop

 

Payment record: No Complaints

 

Location: Business area in Tokyo.  Office premises at the caption address are maintained satisfactorily.

 

Bank References:

 

NCBC (Chiyoda)

RIBC  (Shintoshin)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

 

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

           

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.67

UK Pound

1

Rs.92.46

Euro

1

Rs.66.33

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ASH

 

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.