MIRA INFORM REPORT

 

 

Report No. :

337866

Report Date :

03.09.2015

 

IDENTIFICATION DETAILS

 

Name :

POPS KAWAKAMI KK

 

 

Registered Office :

2-22 Honmachi Shunan City Yamaguchi-Pref 745-0036

 

 

Country :

Japan

 

 

Financials (as on) :

31.07.2014

 

 

Date of Incorporation :

March 1963

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is engaged in Retails musical instruments: guitars, bases, synthesizers, keyboards, percussion, string instruments, other; operates music schools/classes, other (--100)

 

 

No. of Employees :

11

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

Payment Behaviour :

Slow

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

 

POPS KAWAKAMI KK

 

REGD NAME:   KK Pops Kawakami

MAIN OFFICE:  2-22 Honmachi Shunan City Yamaguchi-Pref 745-0036 JAPAN

                                    Tel: 0834-31-0011      Fax: 0834-31-0309

 

URL:                 http://www.pops-k.co.jp

E-Mail address: (thru the URL)

 

ACTIVITIES:     Retail of musical instruments; operate of music school

BRANCHES:     At the caption address, Yamaguchi (2) (Tot 3)

 

OFFICERS:       TOHRU KAWAKAMI, PRES

                        Mitsunobu Kawakami, ch

                        Masako Kawakami, dir

                       

Yen Amount:In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        WEAK                          A/SALES          Yen 207 M

PAYMENTS      SLOW                           CAPITAL           Yen 10 M

TREND UP                                WORTH            Yen (-) 2 M       

STARTED         1963                             EMPLOYES      11

 

COMMENT:      RETAILER OF MUSICAL INSTRUMENTS.  FINANCIAL SITUATION CONSIDERED WEAK BUT GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

This is a retailer of musical instruments: guitar, bases, synthesizers, keyboards, percussion, string instruments, other.  Also operates music schools/classes.  Clients include schools, public agencies, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Jul/2014 fiscal term amounted to Yen 207 million, a 5% up from Yen 197 million in the previous term.  The recurring profit was posted at Yen 1 million and the net profit at Yen 1 million, respectively, compared with Yen 5 million recurring loss and Yen 6 million net losses, respectively, a year ago.

 

For the term that ended Jul 2015 the recurring profit was projected at Yen 3 million and the net profit at Yen 3 million, respectively, on a 4% rise in turnover, to Yen 215 million.  Final results are yet to be released.

 

The financial situation is considered WEAK but should be good for MODERATE business engagements. 

 

 

REGISTRATION

    

Date Registered:                       Mar 1963

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              80,000 shares

Issued:                         20,000 shares

Sum:                            Yen 10 million

Major shareholders (%):           Tohru Kawakami (52), Mitsunobu Kawakami (32), Masako Kawakami (16)

 No. of shareholders:                3

 

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

 

 

OPERATION

           

Activities: Retails musical instruments: guitars, bases, synthesizers, keyboards, percussion, string instruments, other; operates music schools/classes, other (--100)

 

Clients: [Mfrs, wholesalers] Consumers, schools, enterprises, other 

No. of accounts: 350

Domestic areas of activities: Centered in Yamaguchi-Pref & vicinities

 

Suppliers: [Mfrs, wholesalers] Yamaha Corp (40%), Roland, Kyoritsu Corp (10%), Osaka Murakami Musical Instruments (5%), other

 

Payment record: Slow

 

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

 

Bank References:

MUFG (Tokuyama)

Yamaguchi Bank (Tokuyama-Ekimae))

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

 Terms Ending:

'31/072015

'31/07/2014

31/07/2013

31/07/2012

Annual Sales

 

215

207

197

209

Recur. Profit

 

3

1

-5

-1

Net Profit

 

3

1

-6

-1

Total Assets

 

 

122

132

131

Current Assets

 

 

55

67

60

Current Liabs

 

 

50

58

54

Net Worth

 

 

-2

-4

2

Capital, Paid-Up

 

 

10

10

10

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

3.86

5.08

-5.74

2.45

    Current Ratio

 

..

110.00

115.52

111.11

    N.Worth Ratio

 

..

-1.64

-3.03

1.53

    R.Profit/Sales

 

1.40

0.48

-2.54

-0.48

    N.Profit/Sales

 

1.40

0.48

-3.05

-0.48

 

Notes: Forecast (or estimated) figures for the 31/07/2015 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.16

UK Pound

1

Rs.101.22

Euro

1

Rs.74.61

 

 

INFORMATION DETAILS

 

Analysis Done by :

TRI

 

 

Report Prepared by :

TPT

 

               

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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