MIRA INFORM REPORT

 

 

Report Date :

13.07.2007

 

IDENTIFICATION DETAILS

 

Name :

TAIYO A&F CO LTD

 

 

Registered Office :

Toyomi Shinko Bldg 4&6F, 4-5 Toyomicho Chuoku Tokyo 104-0055

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Mar 1950

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Deep-sea fishing, trawling; seafood processing

 

 

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 110.2 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

--

 

 

name

 

TAIYO A&F CO LTD

 

 

REGD NAME

 

Taiyo A&F KK

 

 

MAIN OFFICE

 

Toyomi Shinko Bldg 4&6F, 4-5 Toyomicho Chuoku Tokyo 104-0055 JAPAN

Tel        : 03-6220-1255

Fax       : 03-6220-1455

URL      : http://www.tafco.jp

E-Mail address: info@tafco.jp

 

 

ACTIVITIES

 

Deep-sea fishing, trawling; seafood processing

 

 

BRANCHES

 

Kushiro, Hachinohe, Ishinomaki, Choshi, Niigata, Yaizu, Kashiwajima, Yuya, Goto, Okinawa

 

 

OVERSEAS

 

Suriname, Cape Town (--Branches)

 

(Subsidiaries): Capt Town, Peru, Manila, Qingdao, Channel Islands (UK) (2), Cartagena, Namibia (2).  (Details see REGISTRATION). 

 

 

OFFICERS

 

HIRONOBU IMAMURA, PRES                Setsuo Miura, mgn dir

Hiroshi Hisakawa, mgn dir                      Yuji Kitagawa, mgn dir

Osamu Shirakawa, dir                            Shinsuke Sawa, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

 

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 24,516 M

PAYMENTS      REGULAR                     CAPITAL           Yen 709 M

TREND             STEADY                       WORTH            Yen 988 M

STARTED         1950                             EMPLOYES      227

 

 

COMMENT

 

FISHING & TRAWLING OPERATOR; SEAFOOD PROCESSING, WHOLLY OWNED BY MARUHA GROUP INC.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 110.2 MILLION, 30 DAYS NORMAL TERMS. 

 

 

HIGHLIGHTS

           

The subject company was established originally by Miyagi-Pref Office and local entrepreneurs as a JV to engage in fishing and fish processing works.  Later joined in Maruha Fishery Group and became its wholly owned subsidiary.  This is a fishery company with seafood processing division.  Fishing operations include, deep-sea tuna fishing, purse seine fishing, shrimp fishing, crab pot fishing, bottom long-line fishing, trawl fishing, etc, covering Pacific, Atlantic, & Indian Oceans, further in the waters off Greenland.  Shrimp fishing and processing is centered in Suriname.  Owns total 29 fishing boats. 

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2007 fiscal term amounted to Yen 24,516 million, a 12% up from Yen 21,864 million in the previous term.  Price hikes of tuna due to restricted catches from fishery preservation purposes contributed.  The recurring profit was posted at Yen 754 million and the net profit at Yen 237 million, respectively, compared with Yen 489 million recurring profit and Yen 246 million net profit, respectively, a year ago.  Rising costs of operations, particularly of fuels, ate into profits.

 

For the current term ending Mar 2008 the recurring profit is projected at Yen 760 million and the net profit at Yen 245 million, respectively, on an 8% rise in turnover, to Yen 26,500 million.  Good market will continue.  Weaker Yen will also contribute to raise sales in Yen terms.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 110.2 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:            Mar 1950

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    28.8 million shares

Issued:                          14,186,339 shares

Sum:                            Yen 709.3 million

Major shareholders (%): Maruha Group Inc*(100)

*.. Holding company formed in Apr/2004 with Maruha Corp as core operating company, Tokyo, in the line of seafoods, foodstuffs, fishing, storage & distribution operations, listed Tokyo S/E, capital Yen 31,000 million, turnover Yen 737,510 million, recurring profit Yen 11,093 million, net profit Yen 1,617 million, total assets Yen 384,275 million, net worth Yen 48,442 million, employees 10,311, pres Yuji Igarashi

Consolidated Financials are as attached.

 

(Overseas subsidiaries, including JV’s):

South Africa Tafisa (Pty) Ltd (Cape Town);

Sakana del Peru SA (Paita Office & Lima Office, Peru)

Philippines Sun Tai International Fishing Corp (Manila);

Qingdao TAFCO Food Co Ltd (Qingdao, China);

ORAFCO Ltd, TOFISCO Ltd (--Channel Islands, UK);

Viver-Atun Cartagena SA (Cartagena, Spain)

Taiyo Namibia (Pty) Ltd (Walvis Bay, Namibia);

Trans Namibia Fishing (Pty) Ltd (Windhoek, Namibia)

           

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

 

 

OPERATION

 

Activities: Fishing, trawling; seafood processing, frozen vegetables, operating a total 29 fishing boats (--100%).

 

(Operations):

           

Deep-Sea Tuna Fishing (11 ships): 11 tuna long-line fishing boats are engaged in the Pacific, Atlantic & Indian Oceans, extending further afield in the waters off Greenland;

Far Seas Purse Seine Fishing & Offshore Purse Seine Fishing (7 ships): operates in the Pacific fishing grounds, mainly for skipjack tuna catches;

Shrimp Fishing: operates in Suriname for Guano pink shrimps, JV operations with fishing & fish processing partners, operating 13 ships, with exclusive purchase of shrimps from them;

Crab Pot Fishing (2 ships): operates in the waters off Namibia to catch deep-sea red crabs, also in the Brazilian fishing grounds starting in 1998;

Bottom Long-Line Fishing (2 ships): since 1996, under JV with a South African Firm;

Trawl Fishing (1 ship): under JV since 2000 in the Southern Sea, catching mainly in the Indian Ocean.

 

Clients: [Fish markets, fisheries, wholesalers] Maruha Corp, Mitsubishi Corp, Daito Gyorui, Dairei, Yokohama Marugyo, other. 

 

No. of accounts: 1,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Maruha Corp, Sakana del Peru, ORAFCO, Taiyo Namibia, Carib Fisheries, Worldwide Seafoods, Tafco Food, other.

 

Payment record: Regular

 

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

 

 

Bank References

 

Mizuho Corporate Bank (H/O)

Norin Chukin Bank (H/O)

 

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

 

       Terms Ending:

31/03/2008

31/03/2007

31/03/2006

31/03/2005

Annual Sales

　

26,500

24,516

21,864

21,579

Recur. Profit

　

760

754

489

　

Net Profit

　

245

237

246

-1,233

Total Assets

　

　

17,238

17,632

　

Current Assets

　

　

11,672

10,935

　

Current Liabs

　

　

15,121

15,348

　

Net Worth

　

　

988

781

　

Capital, Paid-Up

　

　

709

709

709

Div.P.Share(¥)

　

　

　

　

　

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

8.09

12.13

1.32

-11.63

       Current Ratio

 

..

77.19

71.25

..

       N.Worth Ratio

..

5.73

4.43

..

       R.Profit/Sales

 

2.87

3.08

2.24

..

       N.Profit/Sales

0.92

0.97

1.13

-5.71

       Return On Equity

..

23.99

31.50

..

 

Note: Forecast (or estimated) for the 31/03/2007 fiscal term.

 

 

CONSOLIDATED FINANCIALS OF THE PARENT,

MARUHA GROUP INC.

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

737,510

719,275

 

  Cost of Sales

662,599

644,195

 

      GROSS PROFIT

74,910

75,080

 

  Selling & Adm Costs

62,772

64,418

 

      OPERATING PROFIT

12,137

10,661

 

  Non-Operating P/L

-1,044

1,423

 

      RECURRING PROFIT

11,093

12,084

　

      NET PROFIT

1,617

4,647

BALANCE SHEET

 

 

 

 

  Cash

　

14,941

37,617

 

  Receivables

 

73,644

56,765

 

  Inventory

 

85,274

78,389

 

  Securities, Marketable

7,663

2,223

 

  Other Current Assets

14,199

17,772

 

      TOTAL CURRENT ASSETS

195,721

192,766

 

  Property & Equipment

102,644

102,683

 

  Intangibles

 

12,432

5,850

 

  Investments, Other Fixed Assets

73,478

83,365

 

      TOTAL ASSETS

384,275

384,664

 

  Payables

 

29,180

26,688

 

  Short-Term Bank Loans

132,860

141,911

 

　

 

　

　

 

  Other Current Liabs

20,535

19,706

 

      TOTAL CURRENT LIABS

182,575

188,305

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

121,520

118,654

 

  Reserve for Retirement Allw

8,073

　

 

  Other Debts

　

10,056

15,806

 

      TOTAL LIABILITIES

322,224

322,765

 

      MINORITY INTERESTS

 

15,467

 

Common stock

31,000

25,000

 

Additional paid-in capital

7,190

10,160

 

Retained earnings

10,740

9,844

 

Evaluation p/l on investments/securities

2,943

5,475

 

Others

 

11,476

(3,803)

 

Treasury stock, at cost

(1,299)

(245)

 

      TOTAL S/HOLDERS` EQUITY

62,050

46,431

　

      TOTAL EQUITIES

384,275

384,664

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

2,821

3,531

 

Cash Flows from Investment Activities

-13,486

12,774

 

Cash Flows from Financing Activities

-13,090

-14,296

　

Cash, Bank Deposits at the Term End

　

14,355

37,298

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

62,050

46,431

 

 

Current Ratio (%)

107.20

102.37

 

 

Net Worth Ratio (%)

16.15

12.07

 

 

Recurring Profit Ratio (%)

1.50

1.68

 

 

Net Profit Ratio (%)

0.22

0.65

 

 

Return On Equity (%)

2.61

10.01

 

 

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/normal.

 

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