MIRA INFORM REPORT

 

 

Report Date :

07.02.2013

 

IDENTIFICATION DETAILS

 

Name :

MITSUTOMO LTD

 

 

Registered Office :

Minami Sakae Bldg, 1-22-16 Sakae Nakaku Nagoya 460-0008

 

 

Country :

Japan

 

 

Financials (as on) :

31.05.2012

 

 

Date of Incorporation :

September  1982

 

 

Com. Reg. No.:

1800-01-036152 (Nagoya-Nishiku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of dairy products, cake/baking materials

 

 

No. of Employees :

25

 

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 :

Slow

Litigation :

Clear

 

 

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 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

JAPAN - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

Source : CIA


Company name and address

 

MITSUTOMO LTD

REGD NAME:    KK Mitsutomo

MAIN OFFICE:  Minami Sakae Bldg, 1-22-16 Sakae Nakaku Nagoya 460-0008 JAPAN

Tel: 052-204-1661     Fax: 052-204-1664

 

URL:                 http://www.mitsutomoltd.com/

E-Mail address: mitsutomo@mitsutomoltd.com

 

 

ACTIVITIES

 

Import, export, wholesale of dairy products, cake/baking materials

 

BRANCHES

 

Tokyo, Osaka

 

 

OFFICER(S)

 

JUN’ICHI SAEKI, PRES

Hisatoshi Yasuda, s/mgn dir

Tokuzo Hayakawa, dir               

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    WEAK              A/SALES          Yen 5,008 M

PAYMENTS      SLOW              CAPITAL           Yen 50 M

TREND             UP                    WORTH            Yen (-) 662 M

STARTED                     1982                 EMPLOYES      25

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN DAIRY PRODUCTS. 

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

 

                       

HIGHLIGHTS

           

            The subject company was established by Jun’ichi Saeki in order to make most of his experience in the subject line of business.  This is a trading firm specializing in importing, exporting and     wholesaling foodstuff materials: eggs, egg products, dairy products, confectionery & bake making materials, other.  Goods are imported from China, India, Australia, New Zealand, Europe, USA, Venezuela, etc.  Clients are bakeries, confectionery mfrs, other.

           

 

FINANCIAL INFORMATION

 

            The sales volume for May/2012 fiscal term amounted to Yen 5,008 million, a 62% up from Yen 3,080 million in the previous term.  Imports increased.  The recurring profit was posted at Yen 406 million, while the profits deteriorated to register Yen 686 million net losses for the term.  Wrote off Yen 1,642 million as extraordinary losses for the term.  This compares with Yen 350 million recurring profit and Yen 241 million net profit, respectively, a year ago.

 

For the current term ending May 2013 the operations are projected to come back to profitability to post Yen 420 million recurring profit and Yen 420 million net profit, respectively, on a 3% rise in turnover, to Yen 5,150 million.

           

            The financial situation is considered WEAK but should be good for MODERATE business engagements. 

 

 

REGISTRATION

 

Date Registered:  Sept 1982

Regd No.:         1800-01-036152 (Nagoya-Nishiku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         160,000 shares

Issued:                40,000 shares

Sum:                   Yen 50 million

Major shareholders (%): Jun’ichi Saeki (100)

 

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

 

 

OPERATION

           

Activities: Imports, exports and wholesales foodstuffs materials, confectionery raw materi-   als, egg products, others (--100%).

 

(Handling items):

Eggs, egg powder, frozen eggs, frozen egg yolk, frozen egg while;

Silicon baking sheet, baking net, silicon forcing bags, cake/break trays;

Dairy products, lactin, casein, powdered cheese, other dairy products.

 

 

Clients: [Bakeries, cake mfrs] Itochu Corp, Nippon Suisan, Shikishima Baking, Taiyo

Kagaku, Shoei Foods, Fuji Baking, Furuta Confectionery, other.

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Imports from USA, China, India, Australia, New Zealand,      Europe, Venezuela, other. 

Also domestically supplied from Andoh Keiran Ton’ya, Meggle Japan, other.

 

Payment record: Slow

 

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

 

Bank References:

Mizuho Bank (Nagoya)

MUFG (Yanagibashi)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/05/2013

31/05/2012

31/08/2011

31/08/2010

Annual Sales

 

5,150

5,008

3,080

3,935

Recur. Profit

 

420

406

350

-160

Net Profit

 

420

-686

241

-159

Total Assets

 

 

3,037

2,636

2,926

Current Assets

 

 

2,189

2,274

2,685

Current Liabs

 

 

1,064

1,988

2,049

Net Worth

 

 

-662

24

84

Capital, Paid-Up

 

 

50

50

50

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.84

62.60

-21.73

-24.44

    Current Ratio

 

..

205.73

114.39

131.04

    N.Worth Ratio

..

-21.80

0.91

2.87

    R.Profit/Sales

 

8.16

8.11

11.36

-4.07

    N.Profit/Sales

8.16

-13.70

7.82

-4.04

 

Notes: Accounting term changed to Jun/May from Sept/Aug from the 31/05/2012 fiscal term

Forecast (or estimated) figures for the 31/05/2013 fiscal term.

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.08

UK Pound

1

Rs.83.12

Euro

1

Rs.72.02

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.