MIRA INFORM REPORT

 

 

Report No. :

350190

Report Date :

19.11.2015

 

IDENTIFICATION DETAILS

 

Name :

EPSON SALES JAPAN CORPORATION

 

 

Registered Office :

Nishi-Shinjuku Mitsui Bldg24F, 6-24-1 Nishi-Shinjuku Shinjukuku Tokyo 160-8324

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

May, 1983

 

 

Com. Reg. No.:

0111-01-003378 (Tokyo-Shinjukuku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Sale of PC’s, Printers, Other (Products of the parent, Seiko Epson)

 

 

No. of Employees :

1,765

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

Maximum Credit Limit :

Yen 2,728.8 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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 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 first-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.

 

Source : CIA

 

Company name and Address

 

EPSON SALES JAPAN CORPORATION

 

REGD NAME:               Epson Hanbai KK

MAIN OFFICE:              Nishi-Shinjuku Mitsui Bldg24F, 6-24-1 Nishi-Shinjuku Shinjukuku Tokyo 160-8324

JAPAN

                                                Tel: 03-5321-4111      Fax: 03-5321-4123

 

                                                *.. The is one of the parent’s factories

 

URL:                             http://www.eson.jp

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES

 

Sale of PC’s, printers, other (products of the parent, Seiko Epson)

 

 

BRANCHES

 

Osaka, Nagoya, Sendai, Sapporo, Hiroshima, other (Tot 29)

 

 

OFFICERS

 

NAOYUKI SAEKI, PRES            Kenji Sato, dir  

Koji Ogawa, dir                         Fuminori Suzumura, dir 

Tomoshi Niki, dir                       Koichi Kubota, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES                      Yen 202,453 M

PAYMENTSREGULAR   CAPITAL                       Yen 4,000 M

TREND SLOW               WORTH                        Yen 13,338 M   

STARTED         1983                 EMPLOYES                  1,765

 

 

COMMENT

 

TRADING FIRM, OWNED BY SEIKO EPSON CORP.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: ESTIMATED AT YEN 2,728.8 MILLION, ON 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company was established by Seiko Epson Corp as its sales agent of the products produced.  This is a trading firm for import, export and wholesale of the products made by the parent (See OPERATION). The firm plans to merge three group firms in Mar 2016 in order to streamline operations.  Clients include electronic makers, stores, other, nationwide

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2015 fiscal term amounted to Yen 202,453 million, a 2% down from Yen 206,994 million in the previous term. The recurring profit was posted at Yen 2,506 million and the net profit at Yen 2,612 million, respectively, compared with Yen4,026 million recurring profit and Yen2,107 million net losses, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 4,100 million and the net profit at Yen 2,700 million, respectively, on a 5% rise in turnover, to Yen 212,500 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 2,728.8 million, on 30 days normal terms.

 

 

REGISTRATION

 

            Date Registered:  May 1983

            Regd No.:            0111-01-003378 (Tokyo-Shinjukuku)

            Legal Status:       Limited Company (Kabushiki Kaisha)

            Authorized:         32 million shares

            Issued:                8 million shares

            Sum:                   Yen 4,000 million

  Major shareholders (%): Seiko Epson Corp* (100)

 

 *.. Leading printer mfr, Tokyo, founded 1959, listed Tokyo S/E, capital Yen 53,204 million, sales Yen 1,086,341 million, operating profit Yen 131,380 million, recurring profit Yen 132,536 million, net profit Yen 112,560 million, total assets Yen 1,014,690 million, net worth Yen 499,804 million, employees 71,835, pres Minoru Usui

 

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

 

 

OPERATION

           

Activities: Export, import and wholesales PC’s, printers, scanners, LC projectors, other, the products of the parent, Seiko Epson Corp (--100%)

 

Clients: [Mfrs, wholesalers] Yamada Denki, Kojima, Daiwabo Information Systems, Otsuka Shokai, Ryoyo Electro, other 

No. of accounts: 350

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Seiko Epson Corp (95%), other

 

Payment record: Regular

 

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

 

Bank References:

            Mizuho Bank (Shinjuku)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2016

31/03/2015

31/03/2014

31/03/2013

Annual Sales

 

212,500

202,453

206,994

191,564

Recur. Profit

 

4,100

2,506

4,026

536

Net Profit

 

2,700

2,612

2,107

-284

Total Assets

 

 

66,125

65,567

59,228

Current Assets

 

 

57,883

57,733

50,374

Current Liabs

 

 

51,641

51,393

46,185

Net Worth

 

 

13,338

13,087

10,925

Capital, Paid-Up

 

 

4,000

4,000

4,000

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.96

-2.19

8.05

-9.14

    Current Ratio

 

..

112.09

112.34

109.07

    N.Worth Ratio

 

..

20.17

19.96

18.45

    R.Profit/Sales

 

1.93

1.24

1.94

0.28

    N.Profit/Sales

 

1.27

1.29

1.02

-0.15

    Return On Equity

 

..

19.58

16.10

-2.60

 

Notes: Forecast (or estimated) figures for the 31/03/2016 fiscal term.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.11

UK Pound

1

Rs.100.51

Euro

1

Rs.70.39

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

NIT

 

 

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.