MIRA INFORM REPORT

 

 

Report No. :

346900

Report Date :

24.10.2015

 

IDENTIFICATION DETAILS

 

Name :

RUN’A CO LTD

 

 

Registered Office :

Makoh Bldg 5F, 3-2-22 Minamisemba Chuoku Osaka 542-0081

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

January 1987

 

 

Com. Reg. No.:

1200-01-092018

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, wholesale of cartoon character goods, toys, clothing accessories

 

 

No. of Employees :

55

 

 

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 36.0 Million

 

 

Status :

Satisfactory

 

 

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 – 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

 

RUN’A CO LTD

 

 

REGD NAME 

 

KK Runa

 

 

MAIN OFFICE

 

Makoh Bldg 5F, 3-2-22 Minamisemba Chuoku Osaka 542-0081 JAPAN

Tel: 06-6258-9301     Fax: 06-6258-9331

                       

URL:                 http://www.runat.co.jp/

E-Mail address:            support@runat.co.jp

 

 

ACTIVITIES  

 

Import, wholesale of cartoon character goods, toys, clothing accessories

 

 

BRANCHES   

 

Tokyo, Osaka (distribution center)

 

 

OVERSEAS   

 

Shanghai; Hong Kong (2) (--subsidiaries)

 

 

OFFICERS

 

YOSHITAKA SUZUMI, PRES     Keiji Muta, mgn dir

Sadahito Kojima, mgn dir                      Hiroshi Kariya, dir

Taiju Shimokawa, dir                 

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                                         A/SALES          Yen 1,964 M

     PAYMENTS SLOW BUT CORRECT               CAPITAL           Yen 97 M

TREND SLOW                                       WORTH            Yen 594 M

STARTED         1987                                         EMPLOYES      55

 

 

COMMENT    

 

IMPORTER AND WHOLESALER SPECIALIZING CARTOON CHARACTER GOODS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 36.0 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

 

The subject company was established by Yoshitaka Suzumi in order to make most of his experience in foreign trading.  This is a trading firm, with mfg division, for import and wholesale of cartoon character merchandises, toys, fancy gifts & goods.  Goods are subcontracted mfg to domestic and overseas mfrs (China & Hong Kong centrally), on licensee agreement from license holders.  Goods are imported mainly from its subsidiary, Run’a International Ltd, Hong Kong, established in May 2006 to engage in mfg of character goods for exports to USA, other.  This is a Group of R&J Holdings KK, Osaka (See REGISTRATION), under which Jammy Inc and Run’a Entertainment Inc are group subsidiaries.  Domestic clients are amusement parks, game software producers, mail-order houses, department stores, toy shops, nationwide. 

 

 

FINANCIAL INFORMATION

 

Financials are only partially disclosed.  Profits are not disclosed and only estimated.

 

The sales volume for Mar/2015 fiscal term amounted to Yen 1,964 million, a 6% down from Yen 2,084 million in the previous term.  This is referred to the sluggish consumer spending.  The net profit is estimated posted at Yen 10 million, compared with Yen 11 million a year ago.

 

For the current term ending Mar 2016 the net profit is projected at Yen 11 million, on a 4% rise in turnover, to Yen 2,050 million.

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 36.0 million, on 30 days normal terms.

 

 

 

 

 

REGISTRATION

 

Date Registered:                                   Jan 1987

Regd No.:                                             1200-01-092018 (Osaka-Chuoku)

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              7,776 shares

Issued:                                     1,944 shares

Sum:                                        Yen 97.2 million

Major shareholders (%):                       R&J Holdings KK* (100)

 

*.. Holding company, Osaka, founded 1998, capital Yen 25 million, sales Yen 50 million, net profit Yen 8 million, employees 4, pres Yoshitaka Suzumi, concurrently

 

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

 

 

OPERATION

 

Activities: Imports and wholesales cartoon character merchandises, popular character     goods, fancy gift items, toys, others (--100). 

Goods are sold online, too, directly and through mail-order houses.

Mfg is subcontracted to domestic and China/Hong Kong affiliates, on licensee agreement, and imported.

Hong Kong subsidiary maker also exports to USA, other.

 

Clients: [Amusement parks, department stores, mail-order houses, online] Oriental Land,             Sega Games, Senshukai (mail-order house), Mitsubishi Corp, Dentsu Inc (AD       agency), Shogakukan Production, Walt Disney Japan, Shogakukan-Shueisha Production,    SUN-S Co, other. 

No. of accounts: 300

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Run’a International Hong Kong (80%), Walt Disney Japan, San Rio Corp, other.  Goods are sold online, too, directly and through mail-order houses.

 

Payment record: Slow But Correct

 

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

 

 

Bank References:

                        MUFG (Semba-Chuo)

                        Mizuho Bank (Semba)

                        Relations: Satisfactory

 

 

 

FINANCES: (In Million Yen)

 

Terms Ending:

 

31/03/2016

31/03/2015

31/03/2014

31/03/2013

Annual Sales

 

2,050

1,964

2,084

2,163

Recur. Profit

 

..

..

..

..

Net Profit

 

11

10

11

12

Total Assets

 

 

N/A

N/A

N/A

Net Worth

 

 

594

584

573

Capital, Paid-Up

 

 

97

97

97

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.38

-5.76

-3.65

7.77

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

 

..

..

..

    N.Profit/Sales

 

0.54

0.51

0.53

0.55

 

Notes: Financials are only partially disclosed.  Profits are not disclosed and only estimated.

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

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.88

UK Pound

1

Rs.99.88

Euro

1

Rs.72.06

 

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

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%)

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.