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MIRA INFORM REPORT
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Report No. : |
502147 |
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Report Date : |
11.04.2018 |
IDENTIFICATION DETAILS
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Name : |
CROSTER CO LTD |
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Registered Office : |
Croster Bldg, 2-17-14 Kaminarimon Taitoku Tokyo 111-0034 |
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Country : |
Japan |
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Financials (as on) : |
31.10.2017 |
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Date of Incorporation : |
Oct 1988 |
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Com. Reg. No.: |
0105-01-003291 |
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Legal Form : |
Limited Company |
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Line of Business : |
OEM produces sports bags, fashion bags, sports
accessories, tents, rucksacks, outdoor goods, other, all manufactured at
subsidiary factories in China |
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No. of Employees : |
25 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
C |
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Credit Rating |
Explanation |
Rating Comments |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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Maximum Credit Limit : |
Yen (-) 27.7 Million |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II 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 have significantly eroded under the dual pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2017 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. For three postwar decades, overall real economic growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which entailed considerable 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.
Japan enjoyed an 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. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the necessity of addressing its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to another recession, so Prime Minister ABE has twice postponed the next increase, now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Japan was the first country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP in January 2017, and in November 2017 the remaining 11 countries agreed on the core elements of a modified agreement, which they renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
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Source
: CIA |
Company
name and address
CROSTER CO LTD
REGD NAME: KK
Croster
MAIN OFFICE: Croster
Bldg, 2-17-14 Kaminarimon Taitoku Tokyo 111-0034 JAPAN
Tel:
03-3845-0066 Fax: 03-3843-6300
E-Mail
address: (thru the URL)
ACTIVITIES: Mfg (OEM) of sports bag, rucksack, tents
(Manufactured in China)
BRANCHES: Osaka, Chiba (distribution center)
OVERSEAS: China, Vietnam
FACTORIES: China (subsidiary factory)
OFFICERS: KENJI
HIGUCHI, PRES
Hitomi Higuchi, dir
Takao Higuchi, dir
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES WEAK A/SALES Yen 1,086 M
PAYMENTS SLOW CAPITAL Yen 82.5 M
TREND SLOW WORTH Yen (-) 342 M
STARTED 1988 EMPLOYES 25
COMMENT
MFR SPECIALIZING IN SPORTS BAGS.
FINANCIAL SITUATION CONSIDERED WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: ESTIMATED AT YEN (-) 27.7 MILLION, ON 30 DAYS), RECOMMENDING NO DREDITS ON NEW TRANSACTIONS WITHOUT STRICTLY SECURED TERMS.
HIGHLIGHTS
The subject
company was originally founded 1959 for making sports bags, and was
incorporated in 1988. This is a
specialized OEM mfr of sports bags, fashion bags, outdoor goods, tents, other. Mfg is all done in China at a subsidiary
factories.
FINANCIAL
INFORMATION
The sales
volume for Oct/2017 fiscal term amounted to Yen 1,086 million, a 13% up from
Yen 962 million in the previous term.
The operations went down to post Yen 10 million recurring loss and Yen
37 million net losses, respectively, compared with Yen 169 million recurring
profit and Yen 389 million net profit, respectively, a year ago.
For the
current term ending Oct 2018 the operations are projected to come back to
prosperity but still limited to a minimum amount post-taxes, on a 3% rise in
turnover, to Yen 1,120 million.
The
financial situation is considered WEAK but should be good for MODERATE business
engagements. Max credit limit is
estimated at Yen (-) 27.7 million, on 30 days.
No credits are recommended on new transactions unless with strictly
secured terms. The net worth is
negative.
REGISTRATION
Date Registered: Oct 1988
Regd No.: 0105-01-003291 (Tokyo-Taitoku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
560,000 shares
Issued:
140,000 shares
Sum: Yen 70 million
Major shareholders (%): Great Valley, Koshiro Higuchi,
Kenji Higuchi, Takao Higuchi, other
(Details not disclosed)
No. of shareholders: 7
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION
Activities: OEM
produces sports bags, fashion bags, sports accessories, tents, rucksacks,
outdoor goods, other, all manufactured at subsidiary factories in China
(--100%)
Clients: [Mfrs,
wholesalers] Aeon Retail, Alpen, Uny, Asics, Ito-Yokado, other
No.
of accounts: 300
Domestic
areas of activities: Nationwide
Suppliers:
[Mfrs, wholesalers] Great Valley (90%), other
Payment record: Slow
Location:
Business area in Tokyo. Office premises
at the caption address are owned and maintained satisfactory.
Bank References:
Resona
Bank (Nippori)
MUFG
(Kaminarimon)
Relations:
Money deposits & transfers only
FINANCES
(In Million Yen)
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Terms Ending: |
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31/10/2018 |
31/10/2017 |
31/10/2016 |
31/10/2015 |
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Annual
Sales |
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1,120 |
1,086 |
962 |
1,123 |
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Recur.
Profit |
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0 |
-10 |
169 |
-110 |
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Net
Profit |
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0 |
-37 |
389 |
-120 |
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Total
Assets |
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806 |
841 |
800 |
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Net
Worth |
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-342 |
-304 |
-690 |
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Capital,
Paid-Up |
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82 |
82 |
82 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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3.13 |
12.89 |
-14.34 |
3.50 |
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Current Ratio |
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.. |
.. |
.. |
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N.Worth Ratio |
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-42.43 |
-36.15 |
-86.25 |
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N.Profit/Sales |
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0.00 |
-3.41 |
40.44 |
-10.69 |
Notes: Forecast (or estimated) figures for the
31/10/2018 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.94 |
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1 |
INR 91.75 |
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Euro |
1 |
INR 79.90 |
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YEN |
1 |
INR 0.61 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low risk
of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably on
secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the business
is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.