MIRA INFORM REPORT

 

 

Report No. :

323426

Report Date :

20.05.2015

 

IDENTIFICATION DETAILS

 

Name :

HUMAN HOLDINGS CO LTD

 

 

Registered Office :

Nishi-Shinjuku Kimuraya Bldg 1F, Nishi-Shinjuku Shinjukuku Tokyo 160-0023

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

August 2002

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Holding company of education, temporary staffing, nursing care services

 

 

No of Employees :

2,493

 

 

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 884.4 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 Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

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

 

HUMAN HOLDINGS CO LTD

 

 

REGD NAME

 

Human Holdings KK

 

 

MAIN OFFICE

 

Nishi-Shinjuku Kimuraya Bldg 1F, Nishi-Shinjuku Shinjukuku Tokyo 160-0023 JAPAN

Tel: 03-6846-8001          -

 

URL:                 http://www.human.com

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Holding company of education, temporary staffing, nursing care services

 

 

BRANCHES   

 

Nil

 

 

OVERSEAS   

 

China, Thailand

 

 

CHIEF EXEC 

 

TOMONARI SATO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 62,593 M

PAYMENTSREGULAR   CAPITAL           Yen 1,299 M

TREND UP                    WORTH            Yen 7,313 M

STARTED         2002                 EMPLOYES      2,493

 

 

COMMENT    

 

HOLDING COMPANY OF EDUCATION, TEMPORARY STAFFING & NURSING     CARE SERVICES COMPANIES 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 884.4 MILLION, 30 DAYS NORMAL TERMS

 

                        Unit: In Million Yen

Forecast figures for the 31/03/2016 fiscal term.

 

HIGHLIGHTS

 

This is the Holding Company, with core operating education, temporary staffing and nursing care services and schools for obtaining licenses and qualifications targeted at corporate customers.  .

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 62,593 million, a 10.5% up from Yen 56,659 million in the previous term.  The recurring profit was posted at Yen 2,229 million and the net profit at Yen 1,142 million, respectively, compared with Yen 1,350 million recurring profit and Yen 1,243 million net profit, respectively, a year ago.

 

            For the current term ending Mar 2016 the recurring profit is projected at Yen 2,048 million and the net profit at Yen 1,242 million, respectively, on a 10.5% rise in turnover, to Yen 69,167 million.     

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 884.4 million, on 30 days normal terms.

 

REGISTRATION

           

Date Registered:　                   Aug 2002

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              41 million shares

Issued:                         10,987,200 shares

Sum:                            Yen 1,299 million

 

Major shareholders (%): Parents Co (25.0), Tomonari Sato (21.0), Koichi Sato (11.9), Office Aguri (4.7), Employees’ S/Holding Assn (4.1), Kosuke Kurosaki (2.9), TH Co (2.9), YS Co (2.9), AN Co (2.4), KK Co (2.4); foreign owners (1.4)

 

No. of shareholders: 1,257

 

Listed on the S/Exchange (s) of: JASDAQ (Tokyo)

 

Management Koichi Sato, ch; Tomonari Sato, pres; Kosuke Kurosaki, dir; Kazuomi Moromikawa, dir; Narimasa Okamoto, dir; Narimasa Okamoto, dir; Mitsugu Otaya, dir; Teruyuki Kawakami, dir

 

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

 

Related companies: Human Academy, Kurdyla Associates, Human Resocia, other.

 

 

OPERATION

           

Activities: Holding Company of firms servicing education (29%), temporary staffing services (56%), nursing care services (elderly) (13%), others (2%)

           

Clients: [Mfrs, wholesalers] Offering thru subsidiaries: Human Academy, Human Resocia,           Human Life-care, Human Sports Entertainment, other

No. of accounts: 800 (for marketing/distribution)

Domestic areas of activities: Nationwide

 

Payment record: Regular

 

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

 

Bank References:

                        SMBC (Shinjuku-Nishiguchi)

                        MUFG (Shinjuku-Nishi)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

62,593

56,659

　

  Cost of Sales

44,819

40,943

　

      GROSS PROFIT

17,774

15,716

　

  Selling & Adm Costs

15,712

14,573

　

      OPERATING PROFIT

2,062

1,143

　

  Non-Operating P/L

167

207

　

      RECURRING PROFIT

2,229

1,350

　

      NET PROFIT

1,142

1,243

BALANCE SHEET

　

　

  Cash

　

14,686

12,817

　

  Receivables

7,761

7,111

　

  Inventory

430

338

　

  Securities, Marketable

　

　

　

  Other Current Assets

1,113

1,067

　

      TOTAL CURRENT ASSETS

23,990

21,333

　

  Property & Equipment

2,887

2,750

　

  Intangibles

1,209

660

　

  Investments, Other Fixed Assets

2,796

2,865

　

      TOTAL ASSETS

30,882

27,608

　

  Payables

209

228

　

  Short-Term Bank Loans

200

850

　

　

　

　

　

  Other Current Liabs

19,998

16,852

　

      TOTAL CURRENT LIABS

20,407

17,930

　

  Debentures

　

　

　

  Long-Term Bank Loans

2,390

2,601

　

  Reserve for Retirement Allw

406

340

　

  Other Debts

　

365

330

　

      TOTAL LIABILITIES

23,568

21,201

　

      MINORITY INTERESTS

　

　

Common stock

1,299

1,299

　

Additional paid-in capital

809

809

　

Retained earnings

5,264

4,351

　

Evaluation p/l on investments/securities

6

5

　

Others

1

9

　

Treasury stock, at cost

(66)

(66)

　

      TOTAL S/HOLDERS` EQUITY

7,313

6,407

　

      TOTAL EQUITIES

30,882

27,608

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

4,537

562

　

Cash Flows from Investment Activities

-1,323

-1,037

　

Cash Flows from Financing Activities

-1,344

1,714

　

Cash, Bank Deposits at the Term End

　

14,686

12,817

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

7,313

6,407

　

Current Ratio (%)

117.56

118.98

　

Net Worth Ratio (%)

23.68

23.21

　

Recurring Profit Ratio (%)

3.56

2.38

　

Net Profit Ratio (%)

1.82

2.19

　

　

Return On Equity (%)

15.62

19.40

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 63.68

UK Pound

1

Rs. 99.72

Euro

1

Rs. 71.90

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

Report Prepared by :

DPT

 

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.