MIRA INFORM REPORT

 

 

Report Date :

06.05.2013

 

IDENTIFICATION DETAILS

 

Name :

AJINOMOTO TRADING INC

 

 

Registered Office :

Tradepia Odaiba 11F, 2-3-1 Daiba Minatoku Tokyo 135-0091

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

August, 1954

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, wholesale of foods, machinery, specialty chemicals

 

 

No. of Employees :

85

 

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 466.6 million

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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

 

AJINOMOTO TRADING INC

 

 

REGD NAME 

 

Ajinomoto Trading KK

 

 

MAIN OFFICE

 

Tradepia Odaiba 11F, 2-3-1 Daiba Minatoku Tokyo 135-0091 JAPAN

Tel: 03-3528-4411     Fax: 03-3528-4421

 

URL:                 http://www.shin-com.co.jp/

E-Mail address: info@shin-com.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of foods, machinery, specialty chemicals

 

 

BRANCHES   

 

Nil

 

 

OVERSEAS   

 

Taiwan, Thailand

 

 

OFFICER(S)  

 

TETSUHIKO YOSHIKAWA, PRES

Takashi Funakoshi, dir              

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 24,551 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 200 M

TREND             UP                                WORTH            Yen 1,404 M

STARTED         1954                             EMPLOYES      85

 

 

COMMENT    

 

TRADING FIRM SPECIALIZING IN FOODS, MACHINERY, OTHER, OWNED AJINOMOTO CO INC. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 466.6 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a trading division separated from Ajinomoto Co Inc, largest seasoning mfr, Tokyo (See REGISTRATION).  This is a trading firm specializing in import, export and wholesale of foods, machinery, specialty chemicals, other.  Machinery and equipment are exported for supply to the parent’s mfg factories overseas.  Has a subsidiary in Thailand for importing foods manufactured on consignment.  The firm is planning to expand business in Brazil, and strengthening China business.    

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 24,551 million, a 12% up from Yen 21,997 million in the previous term.  Exports of machinery/equipment for Ajinomoto plants overseas increased.  Business in China increased.  The recurring profit was posted at Yen 152 million and the net profit at Yen 164 million, respectively, compared with Yen 115 million recurring profit and Yen 171 million net profit, respectively, a year ago.  .

 

For the term that ended Mar 2013 the recurring profit was projected t Yen 160 million and the net profit at Yen 170 million, respectively, on a 6% rise in turnover, to Yen 26,000 million.  Weaker Yen may have contributed to raise revenues in Yen terms.  Final results are yet to be released. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 466.6 million, on 30 days normal terms.      

 

 

REGISTRATION

 

Date Registered:                       Aug 1954

Legal Status:                          Limited Company (Kabushiki Kaisha)

Authorized:                            1.6 million shares

Issued:                                   400,000 shares

Sum:                                      Yen 200 million

Major shareholders (%):           Ajinomoto Co Inc*(96.7), Shigenari Suzuki (2.2), Akio Ishiwata (1.1)

No. of shareholders:                 3

 

* Largest food seasoning mfr, Tokyo, founded 1925, listed Tokyo S/E, capital Yen 79,863 million, sales Yen 1,197,313 million, operating profit Yen 72,584 million, recurring profit Yen 75,919 million, net profit Yen 41,754 million, total assets Yen 1,042,716 million net worth Yen 610,276 million, employees 28,245, pres Masatoshi Ito

           

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

 

 

OPERATION

 

Activities: Imports, exports and wholesales:

 

(Sales Breakdown by Divisions):

Food Division (50%): shrimps (frozen peeled shrimps, deep fried shrimps, shrimps for Sushi, etc), chickens, salmon, frozen wheat flour processed foods (roux, béchamel sauce), health foods, other; Main import sources: Thailand, Vietnam, China, Peru, New Zealand, Norway & USA:

Machinery & Materials Procurement Div (20%): Exports machinery & materials for new construction and expansion of overseas plants that manufacture Ajinomoto products;

Specialty Chemicals Div (20%): luckskin (amino acid applied products used as raw materials for coating the surface of synthetic leather; Patented product WASA-ACE (antibacterial, antifungal agent that uses wasabi (Japanese horse radish) as raw materials; Resist ink for printed circuit boards, other.

Medical & Ophthalmic Instruments Div (10%): digital refractor, LCD chart, slit lamp, other

(Breakdowns are all about)

 

Clients: [Mfrs, wholesalers] Exports to Ajinomoto plants in Thailand, Brazil, Peru, Malaysia, Indonesia, China, other.

Domestically: Ajinomoto Co, Ajinomoto Fine Techno, Ajinomoto Frozen Foods Co, Dainippon Printing, other

            No. of accounts: 200 (Domestic)

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Ajinomoto Co, DIC, Ajinomoto Fine Techno, NOF Corp,

Tsukiji Suisan, Toho Chemical Ind, Ryusyo Ind, Ebara Corp, Leica Corp, other.

 

Payment record: No Complaints

 

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

 

Bank References:

MUFG (Tsukiji)

Mizuho Bank (Tsukiji)

Relations: Satisfactory

 

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

26,000

24,551

21,997

19,824

Recur. Profit

 

160

152

115

191

Net Profit

 

170

164

171

52

Total Assets

 

 

6,162

5,530

5,277

Current Assets

 

 

5,807

5,056

4,802

Current Liabs

 

 

4,572

4,064

3,981

Net Worth

 

 

1,404

1,284

1,127

Capital, Paid-Up

 

 

200

200

200

Div.P.Share(¥)

 

 

 

 

 

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

5.90

11.61

10.96

-23.93

    Current Ratio

 

..

127.01

124.41

120.62

    N.Worth Ratio

..

22.78

23.22

21.36

    R.Profit/Sales

 

0.62

0.62

0.52

0.96

    N.Profit/Sales

0.65

0.67

0.78

0.26

    Return On Equity

..

11.68

13.32

4.61

 

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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.95

UK Pound

1

Rs.83.80

Euro

1

Rs.70.49

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.