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MIRA INFORM REPORT
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Report No. : |
484446 |
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Report Date : |
05.01.2018 |
IDENTIFICATION DETAILS
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Name : |
LEC INC |
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Registered Office : |
Nihombashi Yasuda Sky Gate 6F, 3-15-1 Nihombashi-Hamacho Chuoku Tokyo 103-0007
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
Mar 1983 |
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Com. Reg. No.: |
0100-01-128155 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufactures
household goods: storage furniture (11%), sanitary goods (17%), washing goods
(7%), home-use cleaning goods (20%), kitchen equipment (13%), baby &
kids’ goods (15%), others (18%) |
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No. of Employees : |
455 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Maximum Credit Limit : |
Yen 1,484.0 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 (30.06.2017) |
Current Rating (30.09.2017) |
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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 2016 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 second country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP on January 23, 2017, and as of April 2017 the agreement has not gone into effect.
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Source
: CIA |
Company
name and address
LEC INC
REGD NAME: KK
Lec
MAIN OFFICE: Nihombashi
Yasuda Sky Gate 6F, 3-15-1 Nihombashi-Hamacho Chuoku Tokyo 103-0007 JAPAN
Tel:
03-5847-0600 Fax: 03-5847-0605 -
URL: http://www.lecinc.co.jp
E-Mail
address: (thru the URL)
ACTIVITIES: Mfg of household goods, furniture, kitchen
equipment, other
BRANCHES: Sapporo, Sendai, Takasaki, Nagoya, Osaka, Hiroshima,
Fukuoka, other (Tot 11)
OVERSEAS: China & Singapore
FACTORIES: Mitaka, Shizuoka (2), other (Tot 4)
CHIEF EXEC: TAKAKI NAGAMORI, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 36,985 M
PAYMENTS REGULAR CAPITAL Yen
5,491 M
TREND UP WORTH Yen 24,296 M
STARTED 1983 EMPLOYES 455
COMMENT
MFR OF HOUSEHOLD GOODS & SUPPLIES
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 1,484.0 MILLION, 30 DAYS NORMAL TERMS
HIGHLIGHTS
This
is former Suruga Industry, and engaged in mfg and sales of household goods to
100-Yen shops and supermarkets. Acquired
Lee in the same industry from Nifco, in 2003 and converted it to a subsidiary. Changed its name to Lee at the time of the
merger in 2009. Mainstay products
include kitchen goods, bath and toilet goods, and cleaning products. Operates 5 mfg subsidiaries and two sales
subsidiaries in China, and advancing also into Singapore. Expanding its market shares by aggressively
launching sundry gadgets in addition to leveraging character items such as the
Anpanman series and the “Gekiochi-kun” series, a proprietary brand.
FINANCIAL
INFORMATION
The sales volume for Mar/2017
fiscal term amounted to Yen 36,985 million, a 9.06% up from Yen 33,911 million
in the previous term. The recurring
profit was posted at Yen 3,525 million and the net profit at Yen 2,137 million,
respectively, compared with Yen 687 million recurring profit and Yen 598 million
net losses, respectively, a year ago.
For the
current term ending Mar 2018 the recurring profit is projected at Yen 4,100
million and the net profit at Yen 2,500 million, respectively, on a 5.45% rise
in turnover, to Yen 39,000 million.
The
financial situation is considered FAIR and good for ORDINARY business
engagements. Max credit limit is
estimated at Yen 1,484.0 million, on 30 days normal terms.
REGISTRATION
Date Registered: Mar 1983
Regd No.: 0100-01-128155 (Tokyo-Chuoku)
Legal Status: Limited Company (Kabushiki Kaisha
Authorized:
28,891,240 shares
Issued: 9,541,335 shares
Sum: Yen 5,491 million
Major shareholders (%): Japan Trustee Services T (9.2),
Mitsuo Aoki (5.6), Takaki Nagahori (5.2), SN Kosan (5.2), Company’s Treasury
Stock (5.0), Norikazu Watanabe (4.2), Shigeru Takabayashi (4.2), Trust &
Custody Services Bank (2.7), Employees’ S/Holding Assn (2.5), Goldman Sachs
(Regular) Acct (2.3), Bank of New York Jasdec Treaty (2.2); foreign owners
(19.3)
No. of shareholders: 7,457
Listed on the S/Exchange (s) of:
Tokyo
Managements: Mitsuo Aoki, ch; Takaki Nagahori,
pres; Ken’ichi Watanabe, v pres; Isamu Aoki, s/mgn dir; Mutsuo Kumazawa, mgn
dir; Masayoshi Abe, mgn dir; Kazutoshi Ozawa, mgn dir; Hideo Masuda, dir; Teruo
Ozawa, dir; Toshiyuki Asano, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies:
Hotta Carpet, Plus Minus Zero Co, other.
OPERATION
Activities:
Manufactures household goods: storage furniture (11%), sanitary goods (17%),
washing goods (7%), home-use cleaning goods (20%), kitchen equipment (13%),
baby & kids’ goods (15%), others (18%)
Clients:
[Mfrs, wholesalers] Daiso Sangyo Inc, Nishimatsuya Chain, Aoki Trans, Akatsuki Corp, Top Sangyo, other
No. of accounts:
500
Domestic areas
of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Marubeni
Intex, Yuwa, BASF, other
Payment record:
Regular
Location: Business area in Tokyo. Office premises at the caption address are
leased and maintained satisfactorily.
Bank References:
Shizuoka
Bank (H/O)
Mizuho
Bank (Kobunacho)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual
Sales |
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39,000 |
36,985 |
33,911 |
29,315 |
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Recur.
Profit |
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4,100 |
3,525 |
687 |
939 |
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Net
Profit |
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2,500 |
2,137 |
598 |
254 |
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Total
Assets |
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37,246 |
33,901 |
32,642 |
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Current
Assets |
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24,532 |
20,310 |
18,994 |
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Current
Liabs |
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3,609 |
7,052 |
3,786 |
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Net
Worth |
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24,296 |
22,597 |
22,561 |
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Capital,
Paid-Up |
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5,491 |
5,491 |
5,491 |
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Div.Ttl
in Million (¥) |
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362 |
362 |
362 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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5.45 |
9.06 |
15.68 |
5.74 |
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Current Ratio |
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.. |
679.75 |
288.00 |
501.69 |
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N.Worth Ratio |
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.. |
65.23 |
66.66 |
69.12 |
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R.Profit/Sales |
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10.51 |
9.53 |
2.03 |
3.20 |
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N.Profit/Sales |
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6.41 |
5.78 |
1.76 |
0.87 |
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Return On Equity |
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.. |
8.80 |
2.65 |
1.13 |
Notes:
Forecast (or estimated) figures for the 31/03/2018 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 63.39 |
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1 |
INR 85.74 |
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Euro |
1 |
INR 76.25 |
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YEN |
1 |
INR 0.56 |
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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NIS |
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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
·
Company
background and operations size
·
Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
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.