MIRA
INFORM REPORT
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Report Date : |
18.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
TREE OF LIFE CO LTD |
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Registered Office : |
6-3-8 Jingumae Shibuyaku Tokyo 150-0001 |
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Country : |
Japan |
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Financials (as on) : |
31.08.2007 |
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Date of Incorporation : |
December 1967 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, Wholesale, Retail of Aromatherapy Products; Retail of herbal Products; Operates Herbal Life College; Travel Agency |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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. |
Small |
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Maximum Credit Limit : |
Yen 119.0 Million |
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Status : |
Small Company |
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Payment Behaviour : |
Regular |
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 Tokyo 150-0001 JAPAN
Tel: 03-3409-1781 Fax:
03-3400-4988
URL: http://www.treeoflife.co.jp/
E-Mail address:intl@treeoflife.co.jp
ACTIVITIES
Import, wholesale, retail of aromatherapy products; retail
of herbal products; operates herbal life college; travel agency
License
Tokyo-Metrop Governor No. 3-5559 for travel agency
STORES
85 direct-run stores nationwide (mostly attached with tea
house, herb gallery & healing parlor), including in-store shops at
department stores.
HERBAL LIFE COLLEGES
17 schools centering in greater-Tokyo region
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 (Herbal Life College)
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 4,946 M
PAYMENTS REGULAR CAPITAL Yen 10 M
TREND STEADY WORTH Yen 1,479 M
STARTED 1967 EMPLOYES 430
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 119.0 MILLION, 30 DAYS NORMAL TERMS.
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 85 direct-run stores
nationwide. Goods are also retailed
online and through mail-order houses.
Also, manufactures and processes them, on consignment, into own brand,
including OEM products. Owns herbal
farm garden in Gunma-Pref; also operates herbal life colleges & classes,
totaling 17 schools, restaurants, tea houses, herb galleries at most of its
stores. Goods are imported from Europe,
USA, Sri Lanka, China, other. Operates
Tree of Life Hotel in Sri Lanka, too.
Travel agency division acts as marketing office in Japan. Clients are major department stores,
amusement parks, food wholesalers, cosmetics & toiletries mfrs, food
processors, hotels, travel agents, etc, nationwide.
FINANCIAL INFORMATION
The sales volume for Aug/2007
fiscal term amounted to Yen 4,94 million, a 14% hike from Yen 4,335 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. Herbal supplements, herbal
cosmetics & toiletries, etc are widely marketed. The recurring profit was posted at Yen 600 million and the net
profit at Yen 271 million, respectively, compared with Yen 586 million
recurring profit and Yen 250 million net profit, respectively, a year ago.
For the current term ending Aug
2008 the recurring profit is projected at Yen 620 million and the net profit at
Yen 280 million, respectively, on a 7% rise in turnover, to Yen 5,300
million. Demand continues strong for herbal
products. 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 119.0
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 (2.5) * Holding company owned by the Shigenagas.
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 85 direct-run
stores nationwide, and one in Kaohsiung (Taiwan).
Owns herbal farm garden in
Gunma-Pref.
Operates
herbal colleges (culture schools), classes, totaling 17 schools, galleries, and
travel agency, too.
Clients
[Department stores, theme parks,
hotels, mail order houses, consumers] Consum-ers (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 France, Germany, UK, Italy, USA, Sri Lanka, China,
Chile, India, other.
Payment
record: Regular
Location: Business area in Tokyo. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References
MUFG (Aoyama)
Shoko Chukin (Shibuya)
Relations: Satisfactory
FINANCES: (In Million Yen)
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Terms Ending: |
31/08/2008 |
31/08/2007 |
31/08/2006 |
31/08/2005 |
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Annual
Sales |
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5,300 |
4,946 |
4,335 |
3,634 |
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Recur.
Profit |
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620 |
600 |
586 |
413 |
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Net
Profit |
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280 |
271 |
250 |
200 |
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Total
Assets |
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3,841 |
3,456 |
3,192 |
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Current
Assets |
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2,742 |
2,391 |
1,029 |
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Current
Liabs |
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930 |
671 |
632 |
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Net
Worth |
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1,479 |
1,208 |
971 |
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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 |
7.16 |
14.09 |
19.29 |
13.03 |
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Current Ratio |
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.. |
294.84 |
356.33 |
162.82 |
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N.Worth Ratio |
.. |
38.51 |
34.95 |
30.42 |
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R.Profit/Sales |
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11.70 |
12.13 |
13.52 |
11.36 |
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N.Profit/Sales |
5.28 |
5.48 |
5.77 |
5.50 |
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Return On Equity |
.. |
18.32 |
20.70 |
20.60 |
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Notes: Forecast (or estimated) figures for the 31/08/2008
fiscal term.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.42.78 |
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UK Pound |
1 |
Rs.85.51 |
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Euro |
1 |
Rs.67.90 |
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. |
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%)