MIRA INFORM REPORT

 

 

Report Date :

12.08.2011

 

IDENTIFICATION DETAILS

 

Name :

SC FOODS CO LTD

 

 

Registered Office :

Harumi Island Triton Square Office Tower 16F, 1-8-12 Harumi Chuoku Tokyo

104-0053

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Year of Establishment :

January 1989

 

 

Com. Reg. No.:

(Tokyo-Minatoku) 051771

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, wholesale of foods, meat, beverages, other

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Regular

Litigation :

--

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31st, 2011

 

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name and address

 

SC FOODS CO LTD

REGD NAME:    Sumisho Foods KK

MAIN OFFICE:  Harumi Island Triton Square Office Tower 16F, 1-8-12 Harumi Chuoku Tokyo

                        104-0053 JAPAN

                        Tel: 03-6369-0111     Fax: 03-6369-0201

                       

URL:                 http://www.scfoods.co.jp/

E-Mail address: sumishoku@scfoods.co.jp

 

 

ACTIVITIES

 

Import, wholesale of foods, meat, beverages, other

 

BRANCHES   

 

Osaka

 

FACTORIES  

 

(subcontracted: China, Vietnam)

 

OFFICER(S)  

 

HIROFUMI NORIMOTO, PRES              

Shoichi Kato, dir

Norikazu Kanazawa, dir

 

Yen Amount:    In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES                      Yen 53,344 M

PAYMENTS      REGULAR         CAPITAL                       Yen 800 M

TREND SLOW              WORTH                        Yen 3,128 M

STARTED         1989                 EMPLOYES                  152

 

COMMENT    

 

TRADING HOUSE SPECIALIZING IN FOODSTUFFS, WHOLLY OWNED BY

SUMITOMO CORPORATION. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS

 

 

HIGHLIGHTS

 

The subject company was established on the basis of a foodstuff division separated from Sumitomo Corporation, a leading general trading house, Tokyo (See REGISTRATION).  This is a trading house specializing in importing and wholesaling a variety of foodstuffs: flour, beans, sources, spices, food additives, pickles, dairy products, rice, marine products, frozen fruits, processed marine foods, coloring agents, mineral water, wines, etc.  Goods are mostly imported from subcontracted factories in China, Vietnam, etc.  In Feb 2006, merged a sister company, SC Fresh Meat Co, to integrate operations.  About 50% of the products are supplied from the parent, Sumitomo Corp.  Clients include meat packers, chain stores, food processors, other, nationwide.

 

 

FINANCIAL INFORMATION 

 

The sales volume for Mar/2011 fiscal term amounted to Yen 53,344 million, a 2% down from Yen 54,562 million in the previous term.  This is referred largely to the high Yen against foreign currencies.  Earnings & profits were eroded in Yen terms.  Supply chains were distracted in the northern area by the Mar 11 Earthquake, causing supply shortage, delayed supply, distracted supply.  Consumer demand & spending substantially declined in the area.  The recurring profit was posted at Yen 1,194 million and the net profit at Yen 685 million, respectively, compared with Yen 1,334 million recurring profit and Yen 685 million net profit, respectively, a year ago.

 

For the current term ending Mar 2012 the recurring profit is projected at Yen 1,200 million and the net profit at Yen 700 million, respectively, on a 5% rise in turnover, to Yen 56,000 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:  Jan 1989

Regd No.:         (Tokyo-Minatoku) 051771

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         64,000 shares

Issued:                16,000 shares

Sum:                   Yen 800 million

Major shareholders (%): Sumitomo Corp*(100)

 

*.. One of general trading houses, Tokyo, founded 1919, listed Tokyo, Osaka, Nagoya,

Fukuoka S/E’s, capital Yen 219,279 million, turnover Yen 8,349,371 million, operating profit Yen 183,485 million, recurring profit Yen 183,485 million, net profit Yen 200,222 million, total assets Yen 7,230,502 million, net worth Yen 1,682,090 million, employees 64,886, pres Susumu Kato

Consolidated Financials are attached (See SUPPLEMENTS)

 

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

 

 

OPERATION

 

Activities: Imports and wholesales foodstuff materials: flour, sources, spices, pickles, dairy products, rice, marine products, others (--30%), frozen fruits, canned & bottled foods, processed marine foods, mineral water, wines, pasta, processed beans, chestnuts, processed Chinese foods, others (--70%).  (% is all about)

 

Clients: [Wholesalers, food processors] QP Corp, Kagome Co, Marine Foods, Katoh Sangyo, Sanko Trading, Kato Bros Honey, Ito-Yokado, Summit Corp, Life Corp, Marudai Foods, Itoham Foods Inc, other.

No. of accounts: 2,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Imports from subcontracted factories in China, Vietnam, etc.  Also supplied from Sumitomo Corp (about 50%), QP Corp, and some other domestic suppliers.

 

Payment record: Regular

 

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

 

Bank References:

SMBC (Shimbashi)

MUFG (Jimbocho)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2012

31/03/2011

31/03/2010

31/03/2009

Annual Sales

　

56,000

53,344

54,562

62,872

Recur. Profit

　

1,200

1,194

1,334

1,223

Net Profit

　

700

685

774

724

Total Assets

　

　

13,095

13,439

15,513

Current Assets

　

　

12,335

12,833

14,877

Current Liabs

　

　

9,558

10,256

12,541

Net Worth

　

　

3,128

2,845

2,596

Capital, Paid-Up

　

　

800

800

800

Div. Total Million \

　

　

590

587

590

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.98

-2.23

-13.22

4.46

    Current Ratio

 

..

129.05

125.13

118.63

    N.Worth Ratio

..

23.89

21.17

16.73

    R.Profit/Sales

 

2.14

2.24

2.44

1.95

    N.Profit/Sales

1.25

1.28

1.42

1.15

    Return On Equity

..

21.90

27.21

27.89

 

Notes: Forecast (or estimated) figures for the 31/03/2012 fiscal term.

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, SUMITOMO CORPORATION

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

8,349,371

7,757,382

 

  Cost of Sales

2,101,656

2,236,191

 

      GROSS PROFIT

6,247,715

5,521,191

 

  Selling & Adm Costs

6,064,230

5,395,822

 

      OPERATING PROFIT

183,485

125,369

 

  Non-Operating P/L

96,978

96,599

 

      RECURRING PROFIT

280,463

221,968

　

      NET PROFIT

200,222

165,365

BALANCE SHEET

 

 

 

 

  Cash

　

704,313

814,288

 

  Receivables

 

1,511,442

1,512,678

 

  Inventory

 

698,810

670,220

 

  Securities, Marketable

5,239

5,259

 

  Other Current Assets

569,502

532,780

 

      TOTAL CURRENT ASSETS

3,489,306

3,535,225

 

  Property & Equipment

813,435

838,272

 

  Intangibles

 

348,993

341,679

 

  Investments, Other Fixed Assets

2,578,768

2,391,868

 

      TOTAL ASSETS

7,230,502

7,107,044

 

  Payables

 

1,026,160

1,045,833

 

  Short-Term Bank Loans

850,435

945,821

 

　

 

　

　

 

  Other Current Liabs

466,481

480,873

 

      TOTAL CURRENT LIABS

2,343,076

2,472,527

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

850,435

945,821

 

  Reserve for Retirement Allw

18,811

20,062

 

  Other Debts

　

2,336,090

2,031,412

 

      TOTAL LIABILITIES

5,548,412

5,469,822

 

      MINORITY INTERESTS

 

 

 

Common stock

219,279

219,279

 

Additional paid-in capital

288,868

289,117

 

Retained earnings

1,068,193

916,013

 

Evaluation p/l on investments/securities

　

　

 

Others

 

106,803

213,896

 

Treasury stock, at cost

(1,053)

(1,083)

 

      TOTAL S/HOLDERS` EQUITY

1,682,090

1,637,222

　

      TOTAL EQUITIES

7,230,502

7,107,044

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

219,502

503,829

 

Cash Flows from Investment Activities

-469,378

-51,566

 

Cash Flows from Financing Activities

155,879

-151,302

　

Cash, Bank Deposits at the Term End

　

704,313

814,288

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

1,682,090

1,637,222

 

 

Current Ratio (%)

148.92

142.98

 

 

Net Worth Ratio (%)

23.26

23.04

 

 

Recurring Profit Ratio (%)

3.36

2.86

 

 

Net Profit Ratio (%)

2.40

2.13

 

 

Return On Equity (%)

11.90

10.10

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.27

UK Pound

1

Rs.73.34

Euro

1

Rs.64.58

 

 

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

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

--

NB

                                       New Business

 

--

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.