MIRA INFORM REPORT

 

 

Report Date :

26.03.2013

 

IDENTIFICATION DETAILS

 

Name :

SUMMIT AGRO INTERNTIONAL LTD

 

 

Registered Office :

Harumi Island Triton Square Office Tower 23F, 1-8-12 Harumi Chuoku Tokyo

104-6223

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

July 1982

 

 

Com. Reg. No.:

0100-01-020197 (Tokyo-Chuoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of crop protection products, environmental health  products, pet care products

 

 

No. of Employees :

94

 

 

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 Limited :

 Yen 271.2 Million

Status :

Satisfactory

Payment Behaviour :

Usually correct

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 and address

 

SUMMIT AGRO INTERNTIONAL LTD

REGD NAME:   Sumisho Agro International KK

MAIN OFFICE:  Harumi Island Triton Square Office Tower 23F, 1-8-12 Harumi Chuoku Tokyo

     104-6223 JAPAN

Tel: 03-6221-3000      Fax: 03-6221-3005

 

URL:                 http://www.summit-agro.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Import, export, wholesale of crop protection products, environmental health  products, pet care products

 

 

BRANCHES   

 

Nil

 

 

OVERSEAS   

 

USA, Europe, Korea, China, other (Tot 15)

 

 

OFFICERS

 

MICHIHARU MURAKAMI, PRES

Tatsuya Sudo, dir                      Akira Tokumitsu, dir

Kotaro Tameda, dir       

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 26,513 M

PAYMENTSREGULAR   CAPITAL           Yen 320 M

TREND SLOW               WORTH            Yen 1,300 M

STARTED         1982                 EMPLOYES      94

 


COMMENT    

 

TRADING FIRM SPECIALIZING IN CROP PROTECTION PRODUCTS, OWNED BY SUMITOMO CORPORATION.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 271.2 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

            The subject company was established on the basis of a division separated from Sumitomo Corporation (See REGISTRATION).  This is a trading firm specializing in crop protection products, hygienic insecticides, pet care products, others (See OPERATION).  Products are imported and exported using the network of Sumitomo Corp.  Clients include chemical makers, pharmaceutical makers, other

 

 

FINANCIAL INFORMATION

           

            The sales volume for Mar/2012 fiscal term amounted to Yen 26,513 million, a 6% down from Yen 28,127 million in the previous term.  Exports were hurt by the high Yen, reducing earnings in Yen terms.  The recurring profit was posted at Yen 936 million and the net profit at Yen 553 million, respectively, compared with Yen 795 million recurring profit and Yen 494 million net profit, respectively, a year ago.

 

            For the current term ending Mar 2013 the recurring profit is projected at Yen 950 million and the net profit at Yen 570 million, respectively, on a 9% rise in turnover, to Yen 28,900 million.  Business is seen expanding steadily.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 271.2 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Jul 1982

Regd No.:         0100-01-020197 (Tokyo-Chuoku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         25,600 shares

Issued:                6,400 shares

Sum:                   Yen 320 million

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

           

            *.. One of leading trading houses of Japan, Tokyo, founded 1919, listed Tokyo, Osaka, Nagoya, Fukuoka S/E’s, capital Yen 219,2270 million, sales Yen 8,273,043 million, operating profit Yen 219,857 million, recurring profit Yen 341,387 million, net profit Yen 250,669 million, total assets Yen 7,079,985 million, net worth Yen 1,695,986 million, employees 71,087, pres Kuniharu Nakamura

 

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

 

 

OPERATION

           

Activities: Imports, exports and wholesales crop protection products, environmental health products, pet care products: insecticides, fungicides, herbicides, seeds, household insecticides, animal health products (87%), communicable disease control materials (4%), pet care products, others (--9%)

Overseas trading ratio (79%)

 

Clients: [Mfrs, wholesalers] Iharabras, Earth Chemical Co, Mitsui Chemical Agro, Nichino America Inc, Nippon Soda Co, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Sumitomo Chemical, Nippon Soda Co, Mitsui Chemical Agro, Shin-Etsu Chemical Ind, Kumiai Chemical Ind, Nissan Chemical Ind, other

 

Payment record: Regular

 

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

 

Bank References:

SMBC (Tokyo)

MUFG (Jinbocho)

Relations: Satisfactory

 

 


FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

28,900

26,513

28,127

29,201

Recur. Profit

 

950

936

795

581

Net Profit

 

570

553

494

342

Total Assets

 

 

10,322

10,322

10,704

Current Assets

 

 

8,748

8,811

 

Current Liabs

 

 

8,953

9,073

 

Net Worth

 

 

1,300

1,196

1,030

Capital, Paid-Up

 

 

320

320

320

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

9.00

-5.74

-3.68

-0.52

    Current Ratio

 

..

97.71

97.11

..

    N.Worth Ratio

..

12.59

11.59

9.62

    R.Profit/Sales

 

3.29

3.53

2.83

1.99

    N.Profit/Sales

1.97

2.09

1.76

1.17

    Return On Equity

..

42.54

41.30

33.20

 

Notes: Forecast (or estimated) figures for the 31/03/2013 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.09

UK Pound

1

Rs.82.46

Euro

1

Rs.70.49

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.