MIRA INFORM REPORT

 

 

Report No. :

320969

Report Date :

05.05.2015

 

IDENTIFICATION DETAILS

 

Name :

ORANDAYA CORPORATION

 

 

Registered Office :

211 Shinminato Mihamaku Chiba 261-0002

 

 

Country :

Japan

 

 

Financials (as on) :

31.08.2014

 

 

Date of Incorporation :

December 2013

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures and retails cakes (Japanese & western), breads, other, operating 38 stores in Chiba-Pref and 9 franchisees (--100%)

 

 

No. of Employees :

75

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

Yen 2.6 Million

Status :

Moderate

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

 

ORANDAYA CORPORATION

 

 

REGD NAME

 

KK Orandaya

 

 

MAIN OFFICE

 

211 Shinminato Mihamaku Chiba 261-0002 JAPAN

Tel: 043-241-4111      Fax: 043-241-4116

 

URL:                 http://www.orandaya.net

E-Mail address: (thru the URL)

 

ACTIVITIES:     Mfg of cakes (Japanese & western), bread

BRANCHES:     38 retail shops in Chiba-Pref

FACTORIES:    Chiba

 

OFFICERS:       KAZUMASA IKEDA, PRES        Yuji Kitamura, mgn dir

                        Shuya Manabe, dir                    Satoshi Nishida, dir

                        Kunimitsu Kobayashi, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        R/WEAK                                   A/SALES          Yen 1,764 M

PAYMENTS      SLOW BUT CORRECT               CAPITAL           Yen 50 M

TREND             UP                                            WORTH            Yen 25 M        

STARTED         2013                                         EMPLOYES      75

 

COMMENT:      MFR OF CAKES & BREADS. FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: ESTIMATED AT YEN 2.6 MILLION, ON 30 DAYS NORMAL TERMS.

 

 

 

 

HIGHLIGHTS

           

The subject company is a specialized mfr of cakes (Japanese & western), breads, other.  Operates 38 retail shops in Chiba-Pref, and 9 franchisees.  Products are wholesaled to supermarkets, cake stores, other

 

 

FINANCIAL INFORMATION

           

The sales volume for the initial term ending Aug/2014 fiscal term amounted to Yen 1,764 million (for 8 months).  The operations were in red to post Yen 27 million recurring loss and Yen 25 million net losses, respectively.  This is due to the heavy costs for opening stores, the firm says.

 

For the current term ending Aug 2015 the recurring profit is projected at Yen 100 million and the net profit at Yen 50 million, respectively, on a 4% rise (as adjusted on a 12-month basis) in turnover, to Yen 2,750 million. 

 

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements.  Max credit limit is estimated at Yen 2.6 million, on 30 days normal terms.

 

 

REGISTRATION

    

Date Registered:                       Dec 2013

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              4,000 shares

Issued:                                     1,000 shares

Sum:                                        Yen 50 million

Major shareholders (%):           Chiba Industrial Bank (45), Higashi Nippon Disaster Victims         Support for

Reconstructing Livelihood Assn (30),Chiba Shinkin Bank (25) for Reconstructing Livelihood Assn (30),Chiba Shinkin Bank (25)

 No. of shareholders:                3

 

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

 

 

OPERATION

           

Activities: Manufactures and retails cakes (Japanese & western), breads, other, operating 38 stores in Chiba-Pref and 9 franchisees (--100%)

 

 

Clients: [Consumers, franchisees, mfrs, wholesalers] Ito-Yokado, other 

No. of accounts: Unavailable

Domestic areas of activities: Centered in Chiba-Pref

 

Suppliers: [Mfrs, wholesalers] Ito-Ya Pack, Okura Leisure Group, Sanko-Shokuhin, Iwase-Esta Tokyo, other

 

Payment record: Slow but correct

 

Location: Business area in Chiba.  Office premises at the caption address are owned and maintained satisfactory.

 

Bank References:

Chiba Shinkin Bank (Inage))

Chiba Kogyo Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

Terms Ending:

31/08/2015

31/08/2014

Annual Sales

 

2,750

1,764

Recur. Profit

 

100

-27

Net Profit

 

50

-24

Total Assets

 

 

1,570

Current Assets

 

 

369

Current Liabs

 

 

422

Net Worth

 

 

25

Capital, Paid-Up

 

 

50

Div.P.Share(¥)

 

 

0.00

<Analytical Data>

 

(%)

(%)

    S.Growth Rate

 

3.93

       - - -

    Current Ratio

 

..

87.44

    N.Worth Ratio

 

..

1.59

    R.Profit/Sales

 

3.64

-1.53

    N.Profit/Sales

 

1.82

-1.36

 

Notes: The 31/08/2014 fiscal term is the initial accounting term.  Growth rate is adjusted on a        12-month basis.

Forecast (or estimated) figures for the 31/08/2015 fiscal term.

 

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.57

UK Pound

1

Rs.97.99

Euro

1

Rs.70.53

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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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