MIRA INFORM REPORT

 

 

Report Date :

15.01.2011

 

IDENTIFICATION DETAILS

 

Name :

TAIYO BUSSAN KAISHA LTD

 

 

Registered Office :

Masonic 39 MT Bldg, 2-4-5 Azabudai Minatoku Tokyo 106-0041

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2010

 

 

Date of Incorporation :

April 1941

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, Export, Wholesale of agricultural & livestock products, foods, industrial materials

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

Yen (-) 65.8 Million

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 – 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

 

TAIYO BUSSAN KAISHA LTD

 

 

REGD NAME 

 

Taiyo Bussan KK

 

 

MAIN OFFICE

 

Masonic 39 MT Bldg, 2-4-5 Azabudai Minatoku Tokyo 106-0041 JAPAN

Tel: 03-5402-8181     Fax: 03-5402-8182

URL:                 http://www.taiyo-bussan.co.jp/

E-Mail address:            webmaster@taiyo-bussan.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of agricultural & livestock products, foods, industrial materials

 

 

BRANCHES

 

Fukuyama

 

 

OVERSEAS   

 

Seattle, Beijing, Guangzhou, Shanghai (--China), New Delhi, Kerala

 

 

CHIEF EXEC 

 

SHIGERU KASHIWABARA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        WEAK              A/SALES          Yen 40,443 M                                                   

PAYMENTS      REGULAR         CAPITAL           Yen 1,149 M

TREND             SLOW              WORTH            Yen (-) 279 M

STARTED         1941                 EMPLOYES      63

 

 

COMMENT    

 

TRADING HOUSE SPECIALIZING IN FARM PRODUCTS, FOODS & INDUSTRIAL MATERIALS. 

 

FINANCIAL SITUATION CONSIDERED WEAK BUT SHOULD BE GOOD FOR MODERATE ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN (-) 65.8 MILLION, 30 DAYS.  SECURED TERMS RECOMMENDED ON NEW TRANSACTIONS.

 

                        Forecast (or estimated) figures for 30/09/2011 fiscal term

 

 

HIGHLIGHTS

 

The subject company was established originally in 1936 by Masao Kashiwabara, on his account, in order to import agricultural products.  Incorporated in 1941, the firm has been succeeded by his descendants.  Shigeru is the founder’s son.  This is a midsize trading firm with imports of agricultural and livestock products as mainline.  Well-experienced in transactions with China from prewar days.  Has 3 rep offices in China: Beijing, Shanghai and Guanzhou.  Top-class importer of soybeans for foodstuff use.  In 1959, started imports of mutton from New Zealand.  In 1963 imported Chinese buckwheat under the Memorandum Agreement between Japan & China.  In 2004, listed on the JASDAQ.  Stressing business into India.  New business into India: introduction of key machines for construction area (50 ton trucks, 50 ton crawler cranes, tower cranes), introduction of key machines for earth moving site (wheel loader, concrete mixer, concrete batching plant, trailer chassis, entrance door).,

 

FINANCIAL INFORMATION

 

The sales volume for Sept/2010 fiscal term amounted to Yen 40,443 million, a 24.2% down from Yen 53,377 million in the previous term, hurt by the global economic meltdown.  Lost one large-lot buyer of soybeans due to its bankruptcy during the term.  Soybean prices declined and had to sell large stocks for oil mill use instead.  Sales declined in all segments.  By Divisions, Agricultural Products down 25.0% to Yen 11,075 million, due to the said lost large-lot soybean buyer; Foods down 31.4% to Yen 18,658 million, as sales of beef/chicken & other meat declined due to sluggish consumer spending; Living Materials down 35.2% to Yen 4,889 million, due to steel prices decline and reduced demand.  The operations continued in the red to register Yen 1,369 recurring loss and Yen 1,774 million net losses, respectively, compared with Yen 3,688 million recurring loss and Yen 3,508 million net losses, respectively, a year ago.  Wrote off: Yen 1,339 million for bankruptcy allowance (with regard to the bankrupted client).  Devaluation of stock inventories effected.

                       

For the current term ending Sept 2011 the operations are projected to come back to profitability to post Yen 192 million recurring profit and Yen 188 million net profit, respectively, on a 19.6% fall in turnover, to Yen 32,500 million.  Withdrew from unprofitable processed meat and some low-priced vegetable businesses.  High Yen continues to hurt sales in Yen terms.

 

The financial situation is considered WEAK but should be good for MODERATE business engagements.  Max credit limit is negative at Yen (-) 65.8 million, 30 days.  Recommends secured terms on new transactions.

 

 

REGISTRATION

           

Date Registered:          Apr 1941

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  20 million shares

Issued:                         8,388,197 shares

Sum:                            Yen 1,149 million

           

 

Major shareholders (%): Taiyo Fudosan (45.8), Hiroshi Kashiwabara (7.2), Aioi Ins (7.2), Sompo Japan Ins (4.4), Shigeru Kashiwabara (3.9), Citigroup Global Markets H26 (3.2), MUFG (2.1), Shoko Chukin Bank (2.1), Chuo Mitsui Trust & Banking (2.1), Yuko Ojiro (2.0); foreign owners (3.2)

 

No. of shareholders: 319

 

Listed on the S/Exchange (s) of: JASDAQ

 

Managements: Shigeru Kashiwabara, pres; Kunio Katoh, mgn dir; Shoo Fukunaka, dir

 

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

 

 

OPERATION

 

Activities: A trading house for import, export and wholesale of:

 

(Sales breakdown by divisions):

 

Agricultural Products Div (27%); soybeans, soybeans meal, corn, mung beans, canola, wheat, rice, peanuts;

 

Food Products Div (46%): beef, mutton, chicken, pork, duck meat, rabbit meat, marine products, fruits & vegetables, cooked products;

 

Living Materials Div (12%): raw silk, thrown silk, sewn products, woven silk products, tie dyes, embroideries, clothing accessories, cashmere, synthetic fiber, textile goods, steel materials, flooring materials, shaoxing, buckwheat, food-related equipment, machine parts, control apparatus parts, valves, cutting oil, metal rolls, chemical raw materials & products, general merchandise, supplements;

 

Industrial Materials Div (14%): automobile, automobile parts, trucks, bus, specially-equipped vehicles, engines, harbor equipment, construction machines, electricity & precision instrument, agriculture & mining machines, industrial machines & parts, wireless application products;

 

Import/Export (90%).

 

Clients: [Mfrs, wholesalers] Nissei Oilio, Ministry of Agriculture, Forestry & Fisheries, Nippon Meat Packers, Nichirei Fresh, Prima Meat Packers, Itoham Foods, Yokorei Co,    Trans Japan, other.

 

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Okaya Koki, Mitsubishi Fuso Truck & Bus Co, Mitsui & Co, Nichirei Fresh, Cargill, Mitsubishi Motors, other.

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Kyobashi)

Shoko Chukin Bank (H/O)

Relations: Satisfactory

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

30/09/2010

30/09/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

40,443

53,377

 

  Cost of Sales

40,494

55,544

 

      GROSS PROFIT

-50

-2,167

 

  Selling & Adm Costs

1,078

1,266

 

      OPERATING PROFIT

-1,128

-3,432

 

  Non-Operating P/L

-241

-256

 

      RECURRING PROFIT

-1,369

-3,688

　

      NET PROFIT

-2,774

-3,508

BALANCE SHEET

 

 

 

 

  Cash

　

868

696

 

  Receivables

 

274

752

 

  Inventory

 

5,597

6,003

 

  Securities, Marketable

49

49

 

  Other Current Assets

5,497

5,713

 

      TOTAL CURRENT ASSETS

12,285

13,213

 

  Property & Equipment

335

356

 

  Intangibles

 

4

5

 

  Investments, Other Fixed Assets

1,684

1,837

 

      TOTAL ASSETS

14,308

15,411

 

  Payables

 

1,239

2,028

 

  Short-Term Bank Loans

8,118

5,000

 

　

 

　

　

 

  Other Current Liabs

2,186

2,217

 

      TOTAL CURRENT LIABS

11,543

9,245

 

  Debentures

 

300

350

 

  Long-Term Bank Loans

2,543

3,370

 

  Reserve for Retirement Allw

65

66

 

  Other Debts

　

137

64

 

      TOTAL LIABILITIES

14,588

13,095

 

      MINORITY INTERESTS

 

 

 

Common stock

1,149

1,149

 

Additional paid-in capital

1,111

1,111

 

Retained earnings

(2,358)

416

 

Evaluation p/l on investments/securities

7

7

 

Others

 

(187)

(367)

 

Treasury stock, at cost

(1)

(1)

 

      TOTAL S/HOLDERS` EQUITY

(279)

2,315

　

      TOTAL EQUITIES

14,308

15,411

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

30/09/2010

30/09/2009

 

Cash Flows from Operating Activities

　

-2,860

3,488

 

Cash Flows from Investment Activities

166

-188

 

Cash Flows from Financing Activities

2,869

-3,779

　

Cash, Bank Deposits at the Term End

　

866

696

ANALYTICAL RATIOS            Terms ending:

30/09/2010

30/09/2009

 

 

Net Worth (S/Holders' Equity)

(279)

2,315

 

 

Current Ratio (%)

106.43

142.92

 

 

Net Worth Ratio (%)

-1.95

15.02

 

 

Recurring Profit Ratio (%)

-3.39

-6.91

 

 

Net Profit Ratio (%)

-6.86

-6.57

 

 

Return On Equity (%)

994.27

-151.53

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.30

UK Pound

1

Rs.71.73

Euro

1

Rs.60.40

 

 

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.