MIRA
INFORM REPORT
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Report No. : |
346619 |
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Report Date : |
21.10.2015 |
IDENTIFICATION DETAILS
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Name : |
ZENSHO HOLDINGS CO LTD |
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Registered Office : |
JR Shinagawa East Bldg, 2-18-1 Konan Minatoku
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Country : |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
June, 1982 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Restaurant Chain Operator. |
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No. of Employees : |
409 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 4,705.6 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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 |
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.
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Source
: CIA |
Company Name and address
ZENSHO HOLDINGS CO LTD (Renamed from Zensho Trading Co Ltd)
REGD NAME: KK
Zensho Holdings
MAIN OFFICE: JR
Shinagawa East Bldg, 2-18-1 Konan Minatoku Tokyo
108-0075 JAPAN
Tel: 03-6833-1600 -
URL: http://www.zensho.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Restaurant chain
operator
BRANCHES
200 restaurants
nationwide (25 subsidiaries/affiliates)
OVERSEAS
Brazil, Thailand, Malaysia,
Mexico, Indonesia (--subsidiaries & restaurants)
CHIEF EXEC
KENTARO OGAWA,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 511,810 M
PAYMENTS SLOW BUT CORRECT CAPITAL Yen
23,470 M
TREND UP WORTH Yen
74,233 M
STARTED 1982 EMPLOYES 409
COMMENT
RESTAURANT CHAIN OPERATOR
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 4,705.6 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast
figures for the 31/10/2016 fiscal term.
HIGHLIGHTS
This is the
direct-run family restaurant chain operator, with Gyudon
(bowl of rice topped with seasoned beef) shop and “Sukiya”
as core shop. No.1 ranked player in Gyudon business.
Expanding into Kanto, Chubu, Chugoku and Kiki areas.
Aggressive in M&A activities. Acquired the food supermarket Maruya in autumn 2012. The founding Ogawa family retains a
strong influence.
FINANCIAL INFORMATION
The sales volume
for Mar/2015 fiscal term amounted to Yen 511,810 million, a 9.3% up from Yen
468,377 million in the previous term.
The recurring profit was posted at Yen 2,875 million and the net loss at
Yen 11,138 million, respectively, compared with Yen 7,957 million recurring
profit and Yen 1,103 million net profit, respectively, a year ago. Extraordinary losses were written off in this
term.
(Apr/Jun/2015
results): Sales Yen 126,135 million (up 5.0%), operating profit Yen 294 million
(previously Yen 923 million loss), recurring profit Yen 212 million (previously
Yen 1,232 million loss), net loss Yen 272 million (previously 2,331 million
loss). (% & figures as compared with
the corresponding period a year ago).
For the current
term ending Mar 2016 the recurring profit is projected at Yen 10,939 million
and the net profit at Yen 3,311 million, respectively, on a 6.8% rise in
turnover, to Yen 546,725 million. Net
store opening is planned at around the same as the preceding term (147). Sales at revolving sushi stores will continue
in good shape.
The financial
situation is considered FAIR and good for ORDINARY business engagements. Max
credit limit is estimated at Yen 4,705.6 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Jun 1982
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized:
432 million shares
Issued: 148,600,000
shares
Sum: Yen
23,470 million
Major shareholders
(%):
Nihon Create (33.4), Yohei Ogawa (2.4), Kentaro Ogawa (2.1) Kazumasa
Ogawa (2.1), Group Employees’ S/Holding Assn (1.8), Japan Trustee Services T
(0.9), Master Trust Bank of Japan T (0.8), Japan Trustee Services T5 (0.7),
Japan Trustee Services T6 (0.7), Japan Trustee Services T3 (0.7); foreign
owners (3.6)
No.
of shareholders: 171,671
Listed
on the S/Exchange (s) of: Tokyo
Managements: Kentaro Ogawa, ch & CEO;
Koichi Takei, s/mgn dir; Kazumasa
Ogawa, mgn dir; Toshiyuki Hara, mgn
dir; Yoshiro Kunii, mgn dir; Makoto Hirano, dir; Ryutaro Okitsu, dir; Naomi Eto, dir; Yoshimi Enomoto, dir
Nothing detrimental is known as to the
commercial morality of executives.
Related
companies: Sukiya Co, Big Boy Japan Inc, Maruya Co, other
OPERATION
Activities: Restaurant chain
operator: restaurants (90%), retail, other (10%)
(Sales by
divisions): Gyudon category (38.4%), family dining category
(31.9%), fast food service category (17.7%), retail business (7.3%), other
category (4.7%)
Clients: [Mfrs,
wholesalers] Sukiya Headquarters, GFF, Hamazushi Co, Cocos Japan, Big
Boy Japan, Nakau Co, Tolona
Japan, Hanaya Yohei Co,
other
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] GFF, Global Foods, Tolona Japan, Mitsui
Foods, other
Payment
record: Slow but correct
Location: Business area in Tokyo.
Office premises at the caption address are leased and maintained
satisfactorily.
Bank References:
MUFG (Yokohama-Ekimae)
SMBC (Yokohama-Ekimae)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2015 |
31/03/2014 |
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INCOME STATEMENT |
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Annual Sales |
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511,810 |
468,377 |
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Cost of Sales |
220,192 |
191,410 |
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GROSS PROFIT |
291,617 |
276,966 |
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Selling & Adm
Costs |
289,119 |
268,832 |
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OPERATING PROFIT |
2,498 |
8,134 |
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Non-Operating P/L |
377 |
-177 |
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RECURRING PROFIT |
2,875 |
7,957 |
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NET PROFIT |
-11,138 |
1,103 |
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BALANCE SHEET |
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Cash |
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29,428 |
44,313 |
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Receivables |
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4,837 |
4,765 |
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Inventory |
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23,199 |
16,669 |
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Securities, Marketable |
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Other Current Assets |
15,181 |
12,141 |
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TOTAL CURRENT ASSETS |
72,645 |
77,888 |
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Property & Equipment |
126,755 |
129,851 |
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Intangibles |
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17,170 |
19,720 |
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Investments, Other Fixed Assets |
72,897 |
65,733 |
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TOTAL ASSETS |
289,467 |
293,192 |
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Payables |
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15,877 |
15,472 |
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Short-Term Bank Loans |
9,214 |
6,113 |
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Other Current Liabs |
73,923 |
75,621 |
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TOTAL CURRENT LIABS |
99,014 |
97,206 |
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Debentures |
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13,255 |
18,744 |
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Long-Term Bank Loans |
88,432 |
81,857 |
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Reserve for Retirement Allw |
715 |
580 |
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Other Debts |
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13,817 |
13,514 |
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TOTAL LIABILITIES |
215,233 |
211,901 |
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MINORITY INTERESTS |
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Common
stock |
23,470 |
23,470 |
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Additional
paid-in capital |
24,023 |
24,023 |
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Retained
earnings |
12,469 |
24,796 |
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Evaluation
p/l on investments/securities |
(306) |
(711) |
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Others |
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14,598 |
9,733 |
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Treasury
stock, at cost |
(21) |
(20) |
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TOTAL S/HOLDERS` EQUITY |
74,233 |
81,291 |
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TOTAL EQUITIES |
289,467 |
293,192 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2015 |
31/03/2014 |
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Cash
Flows from Operating Activities |
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17,368 |
21,196 |
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Cash
Flows from Investment Activities |
-23,111 |
-22,891 |
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Cash
Flows from Financing Activities |
-9,352 |
26,860 |
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Cash,
Bank Deposits at the Term End |
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29,428 |
44,313 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
74,233 |
81,291 |
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Current
Ratio (%) |
73.37 |
80.13 |
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Net
Worth Ratio (%) |
25.64 |
27.73 |
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Recurring
Profit Ratio (%) |
0.56 |
1.70 |
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Net
Profit Ratio (%) |
-2.18 |
0.24 |
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Return
On Equity (%) |
-15.00 |
1.36 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.64.89 |
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1 |
Rs.100.39 |
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Euro |
1 |
Rs.73.52 |
INFORMATION DETAILS
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Analysis Done by
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TRI |
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Report Prepared
by : |
NIT |
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 |
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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.