MIRA INFORM REPORT

 

 

Report Date :

23.10.2008

 

IDENTIFICATION DETAILS

 

Name :

GODO SHUSEI CO LTD

 

 

Registered Office :

6-2-10 Ginza Chuoku Tokyo 104-0061

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2007

 

 

Date of Incorporation :

July 2003

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Producer of Alcoholic Beverages with Mainline “Shochu” (distilled liquor/sake)

 

 

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 :

1,433.6 MILLION

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

--

 

 

name & address

 

GODO SHUSEI CO LTD

REGD NAME:    Godo Shusei KK

MAIN OFFICE:  6-2-10 Ginza Chuoku Tokyo 104-0061 JAPAN

                                    Tel: 03-3575-2711     Fax: 03-3575-2717

 

URL:                 http://www.oenon.jp/

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Producer of alcoholic beverages with mainline “shochu” (distilled liquor/sake)

 

 

BRANCHES

 

Hokkaido, Hachinohe, Sendai, Matsudo (2), Shizuoka, Nagoya, Osaka, Hiroshima, Fukuoka

 

 

FACTORY(IES)   

 

Asahikawa, Hachinohe, Matsudo, Shimizu

 

 

OFFICER(S)

 

YUKIO NAGAI, PRES               

Shinobu Tochisawa, s/mgn dir

Toshiro Akino, s/mgn dir            

Masahiro Okiishi, mgn dir

Mutsuo Naganuma, dir              

Hisao Kojima, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 45,848 M

PAYMENTS      REGULAR         CAPITAL           Yen 2,000 M

TREND             STEADY           WORTH            Yen 15,780 M

STARTED         2003                 EMPLOYES      683

 

 

COMMENT

 

PRODUCER OF SHOCHU (DISTILLED LIQUOR/SAKE), WHOLLY OWNED BY OENON HOLDINGS INC.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 1,433.6 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

  This is midsize distiller of alcoholic beverages with mainline “Shochu” (distilled liquor/sake). Originally set up in 1924 thru amalgamation of 4 sake brewers in Hokkaido.  In July 2003, formed a holding company, Oenon Holdings Inc, and became its wholly owned subsidiary.  Yukio Nagai is concurrently pres of the Holding Inc.  Produces refined sake & confection-use Western liquors, enzyme-based medicines, wine, liqueur, foods (vinegar, spices, seasonings), other.  Has strong foothold in Hokkaido but expanding into nationwide operations.  Used to be listed on Tokyo, Osaka & Nagoya S/E’s but when the Holdings Inc established, the firm was delisted.  Starting up Tomakomai Plant (Hokkaido) in Apr 2009 to raise alcohol production capacity by 70%, thereby solving supply shortage.  In Jan 2008, absorbed a sister firm, Godo Trading Co, to streamline operations.

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2007 fiscal term amounted to Yen 45,848 million, a 6% up from Yen 43,121 million in the previous term.  Consigned production of private brand “Chuhai” (distilled liquor) for major mass-volume retailers exceeded expectations.  Own brand “Shochu” also grew.  The profits, however, deteriorated to post Yen 296 million recurring profit and Yen 143 million net losses, respectively, for the term, compared with Yen 644 million recurring profit and Yen 82 million net losses, respectively, a year ago.  Soaring materials (wheat, rice, other) costs and fuel oils ate into profits.  The firm will cut costs by improving transport efficiency.

 

For the current term ending Dec 2008 the recurring profit is projected at Yen 320 million and the net profit at Yen 500 million, respectively, on a 9% rise in turnover, to Yen 50,000 million.  The said merger will contribute to sales growth.  Own-brand shochu & OEM production will continue to grow. 

           

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,433.6 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  July 2003

Legal Status:     　Limited Company (Kabushiki Kaisha)

Authorized:        　160,000 shares

Issued:              　40,000 shares

Sum:                　Yen 2,000 million

           

Major shareholders (%):Oenon Holdings Inc*(100)

           

* Holding company & midsize distiller of alcoholic beverages, with Godo Shusei Co Ltd as major player in the group, formed 2003, capital Yen 6,946 million, listed Tokyo, Osaka S/E’s, sales Yen 77,439 million, operating profit Yen 1,434 million, recurring profit yen 1,493 million, net profit Yen 727 million, total assets Yen 60,182 million, net worth Yen 17,175 million, employees 1,070, pres Ukiah Nagai, concurrently.  The Group consists of 13 companies.

Consolidated Financials are as attached (See SUPPLEMENTS)

 

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

 

 

OPERATION

 

Activities: Produces & distills alcoholic beverages:

 

(Sales Breakdown by Divisions):

Alcoholic Beverages (87%): shochu (distilled sake/liquors), confection-use liquors, wine, cocktail drinks, refined sake, sake compounds, processed liquor, other;

Foods (7%): seasonings, spices, vinegar, starch for processing (comgrits), other;

Pharmaceuticals & Chemicals (4%): enzyme-based medicines, diagnostic medicines, drug substances, health foods, other.

Others (2%)

 

 

Clients

 

Sake stores, wholesalers, chain stores, pharmaceuticals, other

No. of accounts: 1,000 – 2,000

Domestic areas of activities: Nationwide

 

 

Suppliers

 

Mfrs, wholesalers, other

 

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned by the owner, Oenon Holdings Inc, and maintained satisfactorily.

 

 

Bank References

           

Mizuho Bank (Ginza)

North Pacific Bank (Tokyo)

Relations: Satisfactory

 

 

 

FINANCES: (In Million Yen)

 

       Terms Ending:

31/12/2008

31/12/2007

31/12/2006

31/12/2005

Annual Sales

　

50,000

45,848

43,121

45,133

Recur. Profit

　

320

296

644

　

Net Profit

　

500

-143

-82

616

Total Assets

　

　

32,104

31,376

　

Current Assets

　

　

21,044

19,479

　

Current Liabs

　

　

13,270

12,185

　

Net Worth

　

　

15,780

16,013

　

Capital, Paid-Up

　

　

2,000

2,000

2,000

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

9.06

6.32

-4.46

5.43

       Current Ratio

 

..

158.58

159.86

..

       N.Worth Ratio

..

49.15

51.04

..

       R.Profit/Sales

 

0.64

0.65

1.49

..

       N.Profit/Sales

1.00

-0.31

-0.19

1.36

      Return On Equity

..

-0.91

-0.51

..

 

Notes: Forecast (or estimated) figures for the 31/12/2008 fiscal term. 

 

SUPPLEMENTS:

 

CONSOLIDATED FINANCIALS OF THE PARENT, OENON HOLDINGS INC

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/12/2007

31/12/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

77,439

72,966

 

  Cost of Sales

55,873

52,126

 

      GROSS PROFIT

21,566

20,840

 

  Selling & Adm Costs

20,132

18,424

 

      OPERATING PROFIT

1,434

2,415

 

  Non-Operating P/L

59

-59

 

      RECURRING PROFIT

1,493

2,356

　

      NET PROFIT

727

883

BALANCE SHEET

 

 

 

 

  Cash

　

1,724

2,306

 

  Receivables

 

21,047

19,015

 

  Inventory

 

9,694

8,429

 

  Securities, Marketable

　

　

 

  Other Current Assets

1,528

1,057

 

      TOTAL CURRENT ASSETS

33,993

30,807

 

  Property & Equipment

23,500

21,980

 

  Intangibles

 

809

1,491

 

  Investments, Other Fixed Assets

3,180

4,031

 

      TOTAL ASSETS

61,482

58,309

 

  Payables

 

6,880

6,050

 

  Short-Term Bank Loans

5,749

5,003

 

　

 

　

　

 

  Other Current Liabs

15,937

14,897

 

      TOTAL CURRENT LIABS

28,566

25,950

 

  Debentures

 

3,984

3,984

 

  Long-Term Bank Loans

3,670

3,949

 

  Reserve for Retirement Allw

1,212

1,272

 

  Other Debts

　

4,196

3,739

 

      TOTAL LIABILITIES

41,628

38,894

 

      MINORITY INTERESTS

 

 

 

Common stock

6,946

6,946

 

Additional paid-in capital

5,577

5,577

 

Retained earnings

4,614

4,344

 

Evaluation p/l on investments/securities

413

619

 

Others

 

2,356

1,975

 

Treasury stock, at cost

(53)

(47)

 

      TOTAL S/HOLDERS` EQUITY

19,853

19,414

　

      TOTAL EQUITIES

61,482

58,309

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/12/2007

31/12/2006

 

Cash Flows from Operating Activities

　

2,264

3,562

 

Cash Flows from Investment Activities

-2,268

-2,579

 

Cash Flows from Financing Activities

-588

-2,098

　

Cash, Bank Deposits at the Term End

　

1,709

2,301

ANALYTICAL RATIOS            Terms ending:

31/12/2007

31/12/2006

 

 

Net Worth (S/Holders' Equity)

19,853

19,414

 

 

Current Ratio (%)

119.00

118.72

 

 

Net Worth Ratio (%)

32.29

33.30

 

 

Recurring Profit Ratio (%)

1.93

3.23

 

 

Net Profit Ratio (%)

0.94

1.21

 

 

Return On Equity (%)

3.66

4.55


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.95

UK Pound

1

Rs.79.56

Euro

1

Rs.63.65

 

 

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