MIRA INFORM REPORT

 

 

Report Date :

06.01.2011

 

IDENTIFICATION DETAILS

 

Name :

SC FOODS CO LTD

 

 

Registered Office :

Shiba NBF Tower 3F, 1-1-30 Shibadaimon Minatoku Tokyo 105-0012

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

January 1989

 

 

Com. Reg. No.:

(Tokyo-Minatoku) 051771

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, wholesale of Foods, Meat, Beverages

 

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 955.4 Million

Status :

Satisfactory

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 – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

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

 

SC FOODS CO LTD

 

 

REGD NAME 

 

Sumisho Foods KK

 

 

MAIN OFFICE

 

Shiba NBF Tower 3F, 1-1-30 Shibadaimon Minatoku Tokyo 105-0012 JAPAN

Tel: 03-5405-8001     Fax: 03-5405-7081

 

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)  

 

·         Tetsuro Tajima, Pres                       

·         Kentaro Ishimoto, dir

·         Shigetoshi Nakamura, dir

 

Yen Amount:    In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES                      Yen 54,562 M

PAYMENTS                  REGULAR         CAPITAL                       Yen 800 M

TREND             SLOW              WORTH                        Yen 2,845 M

STARTED                     1989                 EMPLOYES                  149

 

 

COMMENT

 

TRADING HOUSE SPECIALIZING IN FOODSTUFFS, WHOLLY OWNED BY SUMITOMO CORPORATION. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

MAX CREDIT LIMIT: YEN 955.4 MILLION, 30 DAYS NORMAL TERMS

 

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 30% of the products are shipped to the parent, Sumitomo Corp.

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 54,562 million, a 13% decline from Yen 62,872 million in the previous term, largely due to the rising Yen against foreign currencies.  Demand for meat decreased.  Consumer spending was sluggish.  The recurring profit was posted at Yen 1,334 million and the net profit at Yen 774 million, respectively, compared with Yen 1,223 million recurring profit and Yen 724 million net profit, respectively, a year ago.

 

For the current term ending Mar 2011 the recurring profit is projected at Yen 1,400 million and the net profit at Yen 780 million, respectively, on a 6% rise in turnover, to Yen 58,000 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 2,845 million, on 30 days normal terms.

 

 

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)

 

*.. Nation’s leading general trading house, Tokyo, founded 1919, listed Tokyo, Osaka, Nagoya, Fukuoka S/E’s, capital Yen 219,279 million, turnover Yen 7,778,863 million, operating profit Yen 120,517 million, recurring profit Yen 223,256 million, net profit Yen 155,199 million, employees 54,190, 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] Sumitomo Corp (approx 30%), QP Corp, Kagome Co, Marine Foods, Katoh Sangyo, Sanko Trading, Kato Bros Honey, 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, 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:

31/03/2011

31/03/2010

31/03/2009

31/03/2008

Annual Sales

　

58,000

54,562

62,872

60,185

Recur. Profit

　

1,400

1,334

1,223

　

Net Profit

　

780

774

724

568

Total Assets

　

　

13,439

15,513

16,923

Current Assets

　

　

12,833

14,877

　

Current Liabs

　

　

10,256

12,541

　

Net Worth

　

　

2,845

2,596

2,349

Capital, Paid-Up

　

　

800

800

800

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

6.30

-13.22

4.46

2.86

    Current Ratio

 

..

125.13

118.63

..

    N.Worth Ratio

..

21.17

16.73

13.88

    R.Profit/Sales

 

2.41

2.44

1.95

..

    N.Profit/Sales

1.34

1.42

1.15

0.94

    Return On Equity

..

27.21

27.89

24.18

 

Notes: Forecast (or estimated) figures for the 31/03/2011 fiscal term.

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, SUMITOMO CORPORATION

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

7,767,163

10,749,996

 

  Cost of Sales

6,987,651

9,814,764

 

      GROSS PROFIT

779,512

935,232

 

  Selling & Adm Costs

658,995

671,840

 

      OPERATING PROFIT

120,517

263,392

 

  Non-Operating P/L

102,739

56,243

 

      RECURRING PROFIT

223,256

319,635

　

      NET PROFIT

155,199

215,078

BALANCE SHEET

 

 

 

 

  Cash

　

813,833

511,350

 

  Receivables

 

1,204,927

1,304,030

 

  Inventory

 

676,840

840,088

 

  Securities, Marketable

5,259

18,963

 

  Other Current Assets

611,065

700,416

 

      TOTAL CURRENT ASSETS

3,311,924

3,374,847

 

  Property & Equipment

1,124,379

1,055,149

 

  Intangibles

 

392,940

400,555

 

  Investments, Other Fixed Assets

2,308,555

2,187,605

 

      TOTAL ASSETS

7,137,798

7,018,156

 

  Payables

 

921,003

830,356

 

  Short-Term Bank Loans

453,361

792,169

 

　

 

　

　

 

  Other Current Liabs

945,540

957,178

 

      TOTAL CURRENT LIABS

2,319,904

2,579,703

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

2,938,465

2,821,287

 

  Reserve for Retirement Allw

19,166

20,003

 

  Other Debts

　

165,605

138,264

 

      TOTAL LIABILITIES

5,443,140

5,559,257

 

      MINORITY INTERESTS

 

 

 

Common stock

219,279

219,279

 

Additional paid-in capital

288,564

291,256

 

Retained earnings

1,252,336

1,127,138

 

Evaluation p/l on investments/securities

74,491

18,955

 

Others

 

(138,929)

(196,587)

 

Treasury stock, at cost

(1,083)

(1,142)

 

      TOTAL S/HOLDERS` EQUITY

1,694,658

1,458,899

　

      TOTAL EQUITIES

7,137,798

7,018,156

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

510,425

348,779

 

Cash Flows from Investment Activities

-59,381

-161,517

 

Cash Flows from Financing Activities

-150,103

-5,844

　

Cash, Bank Deposits at the Term End

　

813,833

511,350

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

1,694,658

1,458,899

 

 

Current Ratio (%)

142.76

130.82

 

 

Net Worth Ratio (%)

23.74

20.79

 

 

Recurring Profit Ratio (%)

2.87

2.97

 

 

Net Profit Ratio (%)

2.00

2.00

 

 

Return On Equity (%)

9.16

14.74

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.20

UK Pound

1

Rs.70.27

Euro

1

Rs.59.99

 

 

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.