MIRA
INFORM REPORT
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Report Date : |
29.06.2007 |
IDENTIFICATION DETAILS
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Name : |
TREE OF LIFE CO LTD |
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Registered Office : |
6-3-8 Jingumae Shibuyaku |
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Country : |
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Financials (as on) : |
31.08.2006 |
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Date of Incorporation : |
Dec 1967 |
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Legal Form : |
Limited Company (Kabushiki
Kaisha) |
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Line of Business : |
Import, wholesale of aromatherapy products; retail of herbal products; travel agency |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 93.8 millions |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name
TREE OF LIFE CO LTD
REGD NAME
KK Seikatsu No Ki
(Seikatsu is Life; Ki is tree in Japanese)
MAIN OFFICE
6-3-8 Jingumae
Shibuyaku
Tel : 03-3409-1781
Fax : 03-3400-4988
URL : http://www.treeoflife.co.jp/
E-Mail
address: intl@treeoflife.co.jp
ACTIVITIES
Import,
wholesale of aromatherapy products; retail of herbal products; travel agency
License
Tokyo-Metrop
Governor No. 3-5559 for travel agency
STORES
119 locations nationwide (mostly attached with tea house, herb gallery & healing parlor), including in-store shops at department stores.
OVERSEAS
Tree of Life (Private) Ltd (Sri Lanka) (Head Office, Tree of Life Hotel & Travel Agency, owned by Tadashi Shigenaga); Kaohsiung (Taiwan).
FACTORY(IES)
Gunma
(Herbal garden), Saitama (
OFFICER(S)
TADASHI
SHIGENAGA, PRES
Ryoichi
Udagawa, mgn dir
Akira
Ogura, dir
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 4,335 M
PAYMENTS REGULAR CAPITAL Yen 10 M
TREND STEADY WORTH Yen
1,208 M
STARTED 1967 EMPLOYES 360
COMMENT
IMPORTER, WHOLESALER AND RETAILER OF AROMATHERAPY & HERBAL
PRODUCTS; TRAVEL AGENCY. FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 93.8 MILLION, 30 DAYS
HIGHLIGHTS
The subject company was established originally in 1955 by father
of T Shigenaga, on his account, and was incorporated in 1967. The firm, owned and managed by the Shigenaga
family, specializes in importing and wholesaling aromatherapy products and
retailing herbal products, operating a total of 119 stores nationwide. Goods are also retailed online and through
mail-order houses. Also, manufactures
and processes them, on consignment, into own brands, including OEM products. Owns herbal farm garden in Gunma-Pref; also
operates herbal life colleges, classes, restaurants, tea houses, herb galleries
at most of its stores. Goods are
imported from Europe,
FINANCIAL INFORMATION
The sales volume for Aug/2006 fiscal term amounted to Yen 4,335 million, a 19% up from Yen 3,634 million in the previous term. Demand continues rising for herbal & natural products from health-conscious population nationwide, added to the increasing number of direct-run stores & franchisees (25 stores newly added during the term). Herbal supplements, herbal cosmetics & toiletries, etc are widely marketed. The recurring profit was posted at Yen 586 million and the net profit at Yen 250 million, respectively, compared with Yen 413 million recurring profit and Yen 200 million net profit, respectively, a year ago.
For the current term ending Aug 2007 the recurring profit is projected at Yen 600 million and the net profit at Yen 260 million, respectively, on a 6% rise in turnover, to Yen 4,600 million. Weaker Yen against foreign currencies and increasing number of new store openings will contribute to sales growth.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 93.8 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Dec 1967
Legal
Status: Limited Company
(Kabushiki Kaisha)
Authorized: 800 shares
Issued: 200 shares
Sum: Yen 10 million
Major shareholders (%): KK Hint*(31.5), Tadashi Shigenaga (29.5), Akira Shigenaga (26.5), Susumu Shigenaga (6.5), Hajime Shigenaga (3)
No. of
shareholders: 6
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Imports and wholesales aromatherapy products: botanical essential oils, aroma oils, mist spray, massage oils, natural essence shampoo, conditioners, other skin-care & hair-care products (--70%); retails (including online & mail order catalog sales) herbal products: herbal teas, herbal shampoo, herbal extracts, herb candies, herbal supplements, pet foods, others (--30%).
Operates a total 119 direct-run stores nationwide, and one in
Clients: [Department stores, theme parks, hotels, mail order houses, consumers] Consumers (55%), Oriental Land, Aeon Forest, Tokyu Hands, Takashimaya, Uchino Co, Senshukai, Matsuzakaya, Kataoka Bussan, JTB Traveland, Askul, Isetan, Hankyu Department Stores, other.
No. of
accounts: 1,000 (Wholesale div only)
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Imports from
Payment
record: Regular
Location: Business area in
Bank References
MUFG
(Aoyama)
Seibu
Shinkin Bank (Harajuku)
Relations:
Satisfactory
FINANCES
(In
Million Yen)
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Terms Ending: |
31/08/2007 |
31/08/2006 |
31/08/2005 |
31/08/2004 |
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Annual
Sales |
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4,600 |
4,335 |
3,634 |
3,215 |
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Recur.
Profit |
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600 |
586 |
413 |
365 |
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Net
Profit |
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260 |
250 |
200 |
150 |
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Total
Assets |
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3,456 |
3,192 |
2,593 |
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Current
Assets |
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2,391 |
1,029 |
1,613 |
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Current
Liabs |
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671 |
632 |
567 |
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Net
Worth |
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1,208 |
971 |
784 |
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Capital,
Paid-Up |
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10 |
10 |
10 |
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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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S.Growth Rate |
6.11 |
19.29 |
13.03 |
12.85 |
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Current Ratio |
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.. |
356.33 |
162.82 |
284.48 |
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N.Worth Ratio |
.. |
34.95 |
30.42 |
30.24 |
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R.Profit/Sales |
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13.04 |
13.52 |
11.36 |
11.35 |
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N.Profit/Sales |
5.65 |
5.77 |
5.50 |
4.67 |
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Return On Equity |
.. |
20.70 |
20.60 |
19.13 |
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Notes:
Forecast (or estimated) figures for the 31/08/2007 fiscal term.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)