MIRA INFORM REPORT

 

 

Report Date :

12.01.2013

 

IDENTIFICATION DETAILS

 

Name :

TOWA FOODS CO LTD

 

 

Registered Office :

3-2-1 Higashi-3-jokita Shiranukacho-Nishishoro Shiranukagun Hokkaido, 088-0573

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

Oct 1972

 

 

Com. Reg. No.:

4600-01-001207 (Hokkaido-Shiranukagun)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Processing of marine foods

 

 

No. of Employees :

40

 

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

 

Status :

Satisfactory

Payment Behaviour :

No complaints

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

(31.03.2012)

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 & ADDRESS

 

TOWA FOODS CO LTD

 

REGD NAME:    Towa Shokuhin KK

 

MAIN OFFICE:  3-2-1 Higashi-3-jokita Shiranukacho-Nishishoro Shiranukagun Hokkaido

                        088-0573JAPAN

                        Tel: 01547-5-2014     Fax: 01547-5-2329

 

URL:                 http://www.kk-kyokuichi.co.jp/ (of the parent, Kyokuichi Co Ltd)

 

E-Mail address: soumu@kk-kyokuichi.co.jp

 

ACTIVITIES

 

Processing of marine foods

 

BRANCHES

 

Nil

 

FACTORIES

 

At the caption address, other (total 6)

 

OFFICER(S)  

 

TOSHIAKI IWATA, PRES                       Takeshi Nakagawa, rep ch                                                         

Yasushi Sumiya, v ch                             Shin’ichi Matsuda, s/mgn dir

Shin’ichi Matsuda, s/mgn dir                   Tsutomu Sugimoto, mgn dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES                    FAIR                 A/SALES          Yen 12,273 M

PAYMENTS                  REGULAR         CAPITAL           Yen 43 M

TREND             SLOW              WORTH            Yen 590 M

STARTED                     1972                 EMPLOYES      40

 

 

 

COMMENT

 

MARINE FOOD PROCESSOR, WHOLLY OWNED BY KYOKUICHI CO LTD. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

HIGHLIGHTS

 

The subject company was established by Takeshi Nakagawa in order to make most of his experience in the subject line of business.  Later accepted the capital participation of Kyokuichi Co Ltd, a wholesaler of marine foods, Asahikawa, Hokkaido, and became its wholly owned subsidiary.  The is a specialized mfr and processor of marine foods: herring roe, salmon roe, smoked salmon, whale meat, trout, other marine products, dried, salted, etc.  Materials are imported through trading houses. 

 

FINANCIAL IFNORMTION   

 

Financials are only partially disclosed as from the Mar/2010 fiscal term.

 

The sales volume for Mar/2012 fiscal term amounted to Yen 12,273 million, a 7% down from Yen 13,141 million in the previous term.  The net profit was posted at Yen 116 million, compared with Yen 720 million net losses a year ago.

 

For the current term ending Mar 2013 the net profit is projected at Yen 120 million, on a 3% rise in turnover, to Yen 12,700 million.

 

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

 

REGISTRATION

 

Date Registered:  Oct 1972

Regd No.:         4600-01-001207 (Hokkaido-Shiranukagun)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         348,000 shares

Issued:                47,000 shares

Sum:                   Yen 43.5 million

Major shareholders (%): Kyokuichi Co Ltd* (100)

 

*.. Wholesaler of marine products, Asahikawa, Hokkaido, founded 1949, capital Yen 100 million, turnover Yen 46,347 million, net profit Yen 81 million, employees 158, pres Yasushi Sumiya

 

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

 

OPERATION

 

Activities: Processes and wholesales marine products (dried, salted, preserved): whale meat, salmon roe, herring roe, trout, including canned/bottled marine foods (--100%)  Materials are imported through trading houses.

 

 

Clients: [Fish dealers, specialty stores, fishery coops] Kyokuichi, Sansui, Hokkaido Fishery Federation, Kushiro Fishery Assoc, Niigata Reizo, Sento Gyorui, Nichirei Corp, Dia Fresh Foods, Benirei, other

No. of accounts: 500

Domestic areas of activities: Centered in Hokkaido

 

Suppliers: [Mfrs, wholesalers] Kyokuichi, Sansui, Hokkaido Fishery Federation, Toyota Tsusho Corp, Mitsubishi Corp, Kyodo Suisan, Niigata Reizo, Nichirei Corp, Muroran Uoichiba, Marubeni Corp, other.

 

Payment record: Regular

 

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

 

Bank References:

Hokkaido Bank (Kushiro)

Mizuho Bank (Kushiro)

Relations: Satisfactory

 

FINANCES: (In Million Yen)

 

 

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

12,700

12,273

13,141

12,071

Recur. Profit

 

 

 

 

 

Net Profit

 

120

116

-720

2

Total Assets

 

 

5,693

N/A

N/A

Net Worth

 

 

590

509

1,229

Capital, Paid-Up

 

 

43

43

43

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.48

-6.61

8.86

-17.67

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

10.36

..

..

    N.Profit/Sales

0.94

0.95

-5.48

0.02

Notes: Financials are only partially disclosed as from the 31/03/2010 fiscal term.

Forecast figures for the 31/03/2013 fiscal term

 

           

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.53

UK Pound

1

Rs.88.05

Euro

1

Rs.72.29

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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.