MIRA INFORM REPORT

 

 

Report Date :

11.08.2007

 

IDENTIFICATION DETAILS

 

Name :

TAIYO BUSSAN KAISHA LTD

 

 

Registered Office :

Masonic 39 MT Bldg, 2-4-5 Azabudai Minatoku Tokyo 106-0041

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2006

 

 

Date of Incorporation :

Apr 1941

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of agricultural & livestock products, foods, industrial materials

 

 

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

 

Maximum Credit Limit :

Yen 1960.1 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

name

 

TAIYO BUSSAN KAISHA LTD

 

 

REGD NAME

 

Taiyo Bussan KK

 

 

MAIN OFFICE

 

Masonic 39 MT Bldg, 2-4-5 Azabudai Minatoku Tokyo 106-0041 JAPAN

Tel        : 03-5402-8181    

Fax       : 03-5402-8182

URL      : http://www.taiyo-bussan.co.jp/

E-Mail address: webmaster@taiyo-bussan.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of agricultural & livestock products, foods, industrial materials

 

 

BRANCHES

 

Fukuyama

 

 

OVERSEAS

 

Seattle, Beijing, Guangzhou, Shanghai (--China)

 

 

CHIEF EXEC

 

HIROSHI KASHIWABARA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 66,793 M

PAYMENTS      REGULAR                     CAPITAL           Yen 1,149 M

TREND             STEADY                       WORTH            Yen 6,543 M

STARTED         1941                             EMPLOYES      71

 

 

COMMENT

 

TRADING HOUSE SPECIALIZING IN FARM PRODUCTS, FOODS & INDUSTRIAL MATERIALS.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY           BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 1,960.1 MILLION, 30 DAYS NORMAL TERMS.

 

                        Forecast (or estimated) figures for 30/09/2007 fiscal term

 

 

HIGHLIGHTS

 

The subject company was established originally in 1936 by Masao Kashiwabara, on his account, in order to import agricultural products.  Incorporated in 1941, the firm has been succeeded by his descendants.  This is a midsize trading firm with imports of agricultural and livestock products as mainline.  Well-experienced in transactions with China from prewar days.  Has 3 rep offices in China: Beijing, Shanghai and Guanzhou.  Top-class importers of soybeans for foodstuff use.  In 1959, started imports of mutton from New Zealand.  In 1963 imported Chinese buckwheat under the Memorandum Agreement between Japan & China.  In 2004, listed on the JASDAQ.

 

 

FINANCIAL INFORMATION

 

The sales volume for Sept/2006 fiscal term amounted to Yen 66,793 million, a 5.4% up from Yen 63,398 million in the previous term.  Imports of beef from Australia increased when beef from USA was banned due to mad-cow disease problems.  By divisions, Agriculture Div rose 5.6% to Yen 24,474 million; food div up 5.6% to Yen 29,739 million; Living Materials Div down by 20.9% to Yen 5,171 million due to decrease in steel & iron products; industrial materials Div was up by 44% to Yen 7,408 million thanks to robust exports of automobiles to China.  The recurring profit was posted at Yen 268 million and the net profit at Yen 201 million, respectively, compared with Yen 212 million recurring profit and Yen 366 million net losses, respectively, a year ago.

           

[Third Quarter (Jan/Jun/2007) results]: Sales 52,019 million (up 6.1%), recurring profit Yen 344 million (up 38%), net profit Yen 125 million (down 8.9%). (% compared with same period last year).  Exports were robust particularly to China, other to Russia & Australia.

 

For the current term ending Sept 2007 the recurring profit is projected at Yen 400 million and the net profit at Yen 170 million, on a 1.8% rise in turnover, to Yen 68,000 million.  Products price hike will contribute.  Exports to China will continue rising.  Beef imports will stay steady.

           

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,960.1 million, on 30 days normal terms.

 

 

 

 

 

 

REGISTRATION

           

Date Registered:            Apr 1941

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    20 million shares

Issued:                          8,388,197 shares

Sum:                            Yen 1,149 million

Major shareholders (%): Taiyo Fudosan (45.7), Hiroshi Kashiwabara (7.2), Aioi Ins (7.2),      Sompo Japan Ins (4.4),

                                    Shigeru Kashiwabara (3.9), Citigroup Global Markets H26 (3.5), MUFG (2.1), Shoko

                                    Chukin Bank (2.1), Chuo Mitsui Trust & Banking (2.1), Yuko Ojiro (1.7); foreign owners

                                    (3.5)

No. of shareholders:       322

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

Managements:               Hiroshi Kashiwabara, pres; Shigeru Kashiwabara, s/mgn dir; Kunio Katoh, mgn dir

           

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

 

Related companies: None

           

 

OPERATION

 

Activities: A trading house for import, export and wholesale of:

           

(Sales breakdown by divisions):

 

Agricultural Products Div (37%); soybeans, soybeans meal, corn, mung beans, canola, wheat, rice, peanuts;

Food Products Div (44%): beef, mutton, chicken, pork, duck meat, rabbit meat, marine products, fruits & vegetables, cooked products;

Living Materials Div (8%): raw silk, thrown silk, sewn products, woven silk products, tie dyes, embroideries, clothing accessories, cashmere, synthetic fiber, textile goods, steel materials, flooring materials, shaoxing, buckwheat, food-related equipment, machine parts, control apparatus parts, valves, cutting oil, metal rolls, chemical raw materials & products, general merchandise, supplements;

Industrial Materials Div (11%): automobile, automobile parts, trucks, bus, specially-equipped vehicles, engines, harbor equipment, construction machines, electricity & precision instrument, agriculture & mining machines, industrial machines & parts, wireless application products;

Import/Export (80%). 

           

Clients: [Mfrs, wholesalers] Nissei Oilio, Ministry of Agriculture, Forestry & Fisheries, Nippon Meat Packers, Prima Meat Packers, Itoham Foods, Huadong Construction, other.

 

No. of accounts: 500

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] ADM Grain, Gemini Trading, Mitsui & Co, Flagship, Cargill, Mitsubishi Motors, X’can Grain, other.

 

Payment record: Regular

 

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

 

 

Bank References

 

MUFG (Kyobashi)

Shoko Chukin Bank (H/O)

 

Relations: Satisfactory

 

 

FINANCES

 

(Non-Consolidated in million yen)

 

　

　

Terms Ending:

30/09/2006

30/09/2005

INCOME STATEMENT

 

 

 

  Annual Sales

　

66,793

63,398

 

  Cost of Sales

65,193

61,822

 

      GROSS PROFIT

1,599

1,575

 

  Selling & Adm Costs

1,253

1,356

 

      OPERATING PROFIT

346

218

 

  Non-Operating P/L

-78

-6

 

      RECURRING PROFIT

268

212

　

      NET PROFIT

201

-366

BALANCE SHEET

 

 

 

 

  Cash

　

1,849

773

 

  Receivables

 

8,097

10,113

 

  Inventory

 

5,005

6,156

 

  Securities, Marketable

99

99

 

  Other Current Assets

1,609

1,126

 

      TOTAL CURRENT ASSETS

16,659

18,267

 

  Property & Equipment

355

635

 

  Intangibles

 

7

8

 

  Investments, Other Fixed Assets

1,114

1,183

 

      TOTAL ASSETS

18,135

20,093

 

  Payables

 

2,620

4,092

 

  Short-Term Bank Loans

7,200

7,300

 

　

 

　

　

 

  Other Current Liabs

1,467

2,316

 

      TOTAL CURRENT LIABS

11,287

13,708

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

260

275

 

  Other Debts

　

44

1

 

      TOTAL LIABILITIES

11,591

13,984

 

      MINORITY INTERESTS

 

 

 

Common stock

1,149

1,149

 

Additional paid-in capital

　

1,111

 

Retained earnings

　

3,767

 

Evaluation p/l on investments/securities

　

80,246

 

Others

 

5,394

(79,885)

 

Treasury stock, at cost

　

(279)

 

      TOTAL S/HOLDERS` EQUITY

6,543

6,109

　

      TOTAL EQUITIES

18,135

20,093

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

30/09/2006

30/09/2005

 

Cash Flows from Operating Activities

　

1,300

-305

 

Cash Flows from Investment Activities

220

30

 

Cash Flows from Financing Activities

-443

845

　

Cash, Bank Deposits at the Term End

　

1,849

773

ANALYTICAL RATIOS            Terms ending:

30/09/2006

30/09/2005

 

 

Net Worth (S/Holders' Equity)

6,543

6,109

 

 

Current Ratio (%)

147.59

133.26

 

 

Net Worth Ratio (%)

36.08

30.40

 

 

Recurring Profit Ratio (%)

0.40

0.33

 

 

Net Profit Ratio (%)

0.30

-0.58

 

 

Return On Equity (%)

3.07

-5.99

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. 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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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