MIRA INFORM REPORT

 

 

Report No. :

340423

Report Date :

08.09.2015

 

IDENTIFICATION DETAILS

 

Name :

MISAWA & CO LTD

 

 

Registered Office :

Ebisu Garden Place Tower 25F, 4-20-3 Ebisu Shibuyaku Tokyo 150-0013

 

 

Country :

Japan

 

 

Financials (as on) :

31.01.2015

 

 

Date of Incorporation :

February 1959

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Subject is manufactures (consigned) furniture branded “Unico” (98%), restaurant management (2%)

 

 

No. of Employee :

426

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

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

 

MISAWA & CO LTD

 

REGD NAME:   KK Misawa

MAIN OFFICE:  Ebisu Garden Place Tower 25F, 4-20-3 Ebisu Shibuyaku Tokyo 150-0013 JAPAN

                                    Tel: 03-5723-8500     Fax: 03-5723-8508     -

URL:                 http://www.unico-fan.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Import, export, retail of furniture

 

 

BRANCHES

 

38 stores (direct-run)

 

 

OVERSEAS

 

Philippines (plant)

 

 

CHIEF EXEC

 

FUTOSHI MISAWA, PRES

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 7,641 M

PAYMENTSREGULAR   CAPITAL           Yen 206 M

TREND UP                    WORTH            Yen 1,492 M

STARTED         1959                 EMPLOYES      426

 

 

COMMENT

 

RETAILER OF FURNITURE

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

Unit: In Million Yen

Forecast figures for the 31/01/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is the leading retailer of furniture mainly for young adult women in 20th-30th age bracket.  Sells these products, including interiors such as dining sets and accessories at stores on Website named “unico”.  Also engaged in restaurant business.  Known for its SPA business model: manufacturing and retailing independently planned products at its own plants in the Philippines and at subcontracted plants in Japan and overseas. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Jan/2015 fiscal term amounted to Yen 7,641 million, a 20.9% up from Yen 6,320 million in the previous term.  The recurring profit was posted at Yen 662 million and the net profit at Yen 369 million, respectively, compared with Yen 486 million recurring profit and Yen 234 million net profit, respectively, a year ago.

 

(Feb/Jul/2015 results): Sales Yen 4,208 million (up 6.5%), operating profit Yen 152 million (down 64.9%), recurring profit Yen 146 million (down 66.4%), net profit Yen 69 million (down 69.3%).  (% as compared with the corresponding period a year ago).

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 400 million and the net profit at Yen 184 million, respectively, on a 10.5% rise in turnover, to Yen 8,448 million.  Openings are planned 4 to 5 stores in the second half.  The 4 stores opened in the preceding term are contributing to earnings.  Sales such as dining sets will be solid. 

 

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

 

 

REGISTRATION

           

Date Registered:　          Feb 1959

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              6.4 million shares

Issued:                         2,085,600 shares

Sum:                            Yen 206 million

 

Major shareholders (%): Futoshi Misawa (53.7), Chika Iitsuka (3.8), Mutsumi Owari (3.8), Norhern-Trust (AVFC) Re NT (G) AIF (2.9), Sachie Ohtsuka (2.1), Employees’ S/Holding Assn (1.5), Japan Trustee Services T (1.5), SBI Securities (1.3), Japan Securities Finance (0.8), MSIP Client Securities (0.8); foreign owners (5.7)

 

No. of shareholders: 2,842

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Futoshi Misawa, pres; Chika Iitsuka, dir; Sachie Ohtsuka, dir; Hiroyuki Suzuki, dir; Keisuke Fukumoto, dir

 

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

 

Related companies: Lamon Bay Furniture, other.

 

 

OPERATION

           

Activities: Manufactures (consigned) furniture branded “Unico” (98%), restaurant management (2%).

           

Clients: [Consumers, mfrs, wholesalers] Rumine, Metro Properties, Palco, JCB, Mitsubishi UFJ Nicos, SMBC Card, Hankyu Corp, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Watari Japan, Textile Depot, Ito Co, Kakunaka Co, Suetsugu Furniture, Paged Fabryki Mebli, other

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Utsunomiya)

Gunma Bank (Utsunomiya)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/01/2015

31/01/2014

INCOME STATEMENT

　

　

  Annual Sales

　

7,641

6,320

　

  Cost of Sales

3,209

2,643

　

      GROSS PROFIT

4,432

3,677

　

  Selling & Adm Costs

3,786

3,175

　

      OPERATING PROFIT

646

501

　

  Non-Operating P/L

16

-15

　

      RECURRING PROFIT

662

486

　

      NET PROFIT

369

234

BALANCE SHEET

　

　

  Cash

　

442

500

　

  Receivables

459

390

　

  Inventory

1,175

1,067

　

  Securities, Marketable

　

　

　

  Other Current Assets

233

156

　

      TOTAL CURRENT ASSETS

2,309

2,113

　

  Property & Equipment

644

530

　

  Intangibles

76

66

　

  Investments, Other Fixed Assets

575

463

　

      TOTAL ASSETS

3,604

3,172

　

  Payables

244

247

　

  Short-Term Bank Loans

　

236

　

　

　

　

　

  Other Current Liabs

1,323

1,102

　

      TOTAL CURRENT LIABS

1,567

1,585

　

  Debentures

　

　

　

  Long-Term Bank Loans

502

404

　

  Reserve for Retirement Allw

8

8

　

  Other Debts

　

34

38

　

      TOTAL LIABILITIES

2,111

2,035

　

      MINORITY INTERESTS

　

　

Common stock

206

206

　

Additional paid-in capital

186

186

　

Retained earnings

1,118

748

　

Evaluation p/l on investments/securities

(17)

(4)

　

Others

0

1

　

Treasury stock, at cost

(1)

(1)

　

      TOTAL S/HOLDERS` EQUITY

1,492

1,136

　

      TOTAL EQUITIES

3,604

3,172

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/01/2015

31/01/2014

　

Cash Flows from Operating Activities

　

436

209

　

Cash Flows from Investment Activities

-338

-222

　

Cash Flows from Financing Activities

-112

134

　

Cash, Bank Deposits at the Term End

　

442

500

ANALYTICAL RATIOS            Terms ending:

31/01/2015

31/01/2014

　

Net Worth (S/Holders' Equity)

1,492

1,136

　

Current Ratio (%)

147.35

133.31

　

Net Worth Ratio (%)

41.40

35.81

　

Recurring Profit Ratio (%)

8.66

7.69

　

Net Profit Ratio (%)

4.83

3.70

　

　

Return On Equity (%)

24.73

20.60

 

           

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.74

UK Pound

1

Rs.101.36

Euro

1

Rs.74.27

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

 

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.