MIRA INFORM REPORT

 

 

Report No. :

346751

Report Date :

26.10.2015

 

IDENTIFICATION DETAILS

 

Name :

CORDON VERT CO LTD

 

 

Registered Office :

Sompo Japan Sendai Bldg 10f, 3-7-35 Tsutsujigaoka Miyaginoku Sendai 983-0852

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2015

 

 

Date of Incorporation :

July, 2006

 

 

Com. Reg. No.:

0100-01-101442 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import and Wholesale of Wines, Whisky, Liquor, Foodstuffs, Confectionery.

 

 

No. of Employees :

22

 

 

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

 

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.

 

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

 

CORDON VERT CO LTD

 

REGD NAME:               Cordon Vert KK

 

MAIN OFFICE:              Sompo Japan Sendai Bldg 10f, 3-7-35 Tsutsujigaoka Miyaginoku Sendai

                                                983-0852 JAPAN

                                                Tel: 022-742-3120     Fax: 022-742-3139

 

                                                * Registered address and Tokyo Head Office at: 1-1 Kanda-Nishikicho Chiyodaku

                                                Tokyo, as given

                                                **.. The given Reg No is not applicable in Japan

 

URL:                             http//:www.cordonvert.jp

E-mail:                         (thru the URL)   

 

 

ACTIVITIES

 

Import, wholesale of wines, whisky, liquor, foodstuffs, confectionery

 

 

BRANCHES

 

Tokyo (as given)

 

 

OFFICER(S)

 

HIROAKI YAMAUCHI, PRES      Eiji Shibata, ch

Takashi Fukui, s/mgn dir                        Hidefusa Yamauchi, dir

Yasuo Suzuki, dir                                  Hiaki Sato, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES                      Yen 12,715 M

PAYMENTSSLOW BUT CORRECT         CAPITAL                       Yen 490 M

TREND SLOW                           WORTH                        Yen 724 M

STARTED         2006                             EMPLOYES                  22

 

 

COMMENT

 

PURCHASING COMPANY OF LIQUOR, WINE, FOODS, JOINTLY OWNED BY AEON CO LTD & YAMAYA CORP 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

 

HIGHLIGHTS

           

The subject company was established jointly by Aeon Co Ltd & Yamaya Corp (See REGISTRATION for details of both firms) as a joint purchasing company of liquors, wines, foodstuffs, confectionary, other.  It supports them from factories to store shelves.  Goods are all imported, and shipped to the joint parents & their group firms.  Import sources are Europe, USA, Asia, Africa, other.

 

 

FINANCIAL INFORMATION

 

Financials are consolidated by the parent, Aeon Co Ltd, and only partially disclosed.

 

The sales volume for Feb/2015 fiscal term amounted to Yen 12,715 million, a 17% down from Yen 15,342 million in the previous term. The weaker Yen affected down both sales & profits in Yen terms. The recurring profit was posted at Yen 53 million and the net profit at Yen 32 million, respectively, compared with Yen 69 million recurring profit and Yen 41 million net profit, respectively, a year ago. .

 

For the current term ending Feb 2016 the recurring profit is projected at Yen 55 million and the net profit at Yen 35 million, respectively, on a 3% rise in turnover, to Yen 13,100 million. 

           

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

            Date Registered:  Jul 2006

            Regd No.:           0100-01-101442 (Tokyo-Chiyodaku)

            Legal Status:     Limited Company (Kabushiki Kaisha)

            Authorized:       9,800 shares

            Issued:              9,800 shares

            Sum:                 Yen 490 million

            Major shareholders (%): Aeon Co Ltd* (51), Yamaya Corp ** (49)

            No. of shareholders: 2

           

* Top-ranked operator general merchandise stores, Chiba, operating 405 stores nationwide, founded 1926, listed Tokyo S/E, capital Yen 220,007 million, sales Yen 7,078,577 million, operating profit Yen 141,368 million, recurring profit Yen 152,509 million, net profit Yen 42,069 million, total assets Yen 7,859,803 million, net worth Yen 1,206,305 million, employees 126,445, pres Motoya Okada

 

** Retailer of liquor, at the caption address, operating 189 retail stores nationwide, founded 1970, listed Tokyo S/E, capital Yen 3,247 million, sales Yen 163,158 million, operating profit Yen 5,494 million, recurring profit Yen 5,460 million, net profit Yen 1,614 million, total assets Yen 69,641 million, net worth Yen 23,513 million, employees 2,088, pres Hideharu Yamauchi

 

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

 

 

OPERATION

 

Activities: Imports and wholesales wines, liquors, whiskies, brandies, beer, foods, confectionery (--100%).

 

Clients: [Wholesalers, retailers] Goods are wholly shipped to the joint parents and their group firms

            No. of accounts: 600

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs wholesalers] Goods are imported from: Europe (51%), Asia (17%), Africa (2%), Oceania (8%), North America (14%), Central America (3%), & South America (7%).

 

Payment record: Slow but correct

 

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

 

Bank References:

            Mizuho Bank (Sendai)

            SMBC (Sendai)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

Terms Ending:

 

29/02/2016

28/02/2015

28/02/2014

28/02/2013

Annual Sales

 

13,100

12,715

15,342

13,929

Recur. Profit

 

55

53

69

..

Net Profit

 

35

32

41

21

Total Assets

 

 

1,214

1,073

N/A

Net Worth

 

 

724

692

605

Capital, Paid-Up

 

 

490

490

490

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

3.03

-17.12

10.14

31.74

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

 

59.64

64.49

..

    N.Profit/Sales

 

0.27

0.25

0.27

0.15

 

Notes: Financials are only partially disclosed. 

 

Forecast (or estimated) figures for the 29/02/2016 fiscal term. 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.88

UK Pound

1

Rs.99.89

Euro

1

Rs.72.06

 

 

 

 

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

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.