MIRA INFORM REPORT

 

 

Report Date :

13.05.2013

 

IDENTIFICATION DETAILS

 

Name :

CARGILL JAPAN LIMITED

 

 

Registered Office :

Fuji Bldg, 3-2-3 Marunouchi Chiyodaku Tokyo 100-0005

 

 

Country :

Japan

 

 

Financials (as on) :

31.05.2013

 

 

Date of Incorporation :

November 1946

 

 

Com. Reg. No.:

(Tokyo-Chiyodaku) 034873

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Trading house specializing in foodstuffs

 

 

No. of Employees :

324

 

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 – 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 small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. 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. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan 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 and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 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 2012. The new government will continue a longstanding debate 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

 

CARGILL JAPAN LIMITED

 

 

REGD NAME

 

Cargill Japan KK

 

MAIN OFFICE

 

Fuji Bldg, 3-2-3 Marunouchi Chiyodaku Tokyo 100-0005 JAPAN

Tel: 03-5224-5600     Fax: 03-5224-5930

                       

URL:                             http://www.cargill.com/

E-Mail address:                        info@cargill.com

 

 

ACTIVITIES

 

Trading house specializing in foodstuffs

 

 

BRANCHES   

 

Osaka, Kobe, Okayama

 

 

OVERSEAS   

 

Los Angeles, New York, Portland (--USA), Sao Paolo, Vancouver, London, Milan, Melbourne,Shanghai, Beijing (--China), Singapore, Bangkok, Jakarta

 

 

OFFICER(S)  

 

HIROTO SASAKI, PRES

Hideyo Suzuki, ch

Anri Hamaya, dir                       

 

Yen Amount:    In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 182,278 M

PAYMENTS      No  Complaints         CAPITAL           Yen 2,800 M

TREND             UP                                WORTH            Yen 88,189 M

STARTED                     1946                             EMPLOYES      324

 

 

COMMENT

 

TRADING HOUSE SPECIALIZING IN FOODSTUFFS, WHOLLY OWNED BY CARGIL INC GROUP, USA. 

           

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY  BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

 

The subject company was established originally as Tokyo Food Products Co Ltd as a trading house specializing in foodstuffs.  Renamed as Toshoku Ltd in Jan 1961.  In Dec 1997, Toshoku Ltd went into financial difficulties and filed for court protection under the Corporate Reorganization Law.  Reported liabilities were Yen 639,700 million.  In Mar 1998 received the order of commencement of the Corporate Reorganization Proceedings.  In Oct 1998, Cargill Inc, USA became the Toshoku’s sponsor company.  In Jun 2000, Court approval was granted for the Reorganization Plan, and elected Hideyo Suzuki as president.  In Sept 2000, decreased the capital to Yen 0 from the previous Yen 30,360 million, and increased to Yen 2,800 million.  On June 01 2007, merged with Cargill Japan Ltd into its subsidiary and renamed as captioned.   This is a specialized trading house of foodstuffs with 4 core divisions: Grain & Oil Div, Food Material Div, Processed Food Div, and Food Engineering Div.

 

 

FINANCIAL INFORMATION

 

The sales volume for May/2012 fiscal term amounted to Yen 182,278 million, a 5% up from Yen 173,586 million in the previous term.  The recurring profit was posted at Yen 3,701 million and net profit at Yen 1,800 million, respectively, compared with Yen 5,862 million recurring profit and Yen 4,927 million net profit, respectively, a year ago.

 

For the current term ending May 2013 the recurring profit is projected at Yen 5,800 million and the net profit at Yen 4,900 million, respectively, on a 7% rise in turnover, to Yen 195,000 million.  Weaker Yen will contribute to increase sales figures in Yen terms.

 

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

 

 

REGISTRATION

 

Date Registered:  Nov 1946

Regd No.:         (Tokyo-Chiyodaku) 034873

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         200,000 shares

Issued:                56,000 shares

Sum:                   Yen 2,800 million

Major shareholders (%): Cargill Asia Pacific Ltd (80.1), Cargill Inc (19.9)

Number of shareholders: 2

 

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

 

 

OPERATION

 

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

 

(Sales Breakdown by Divisions):

 

Grain & Oil Div (54%): wheat, barley, rice, wheat & other cereal flour, pre-mixed products, raw materials for grain teas, oil seeds (canola, soybeans, cottonseeds, sesame seeds, etc), Animal/vegetable oils & fats (soybean oil, canola oil, palm oil, safflower oil, cottonseed oil, fish oil, etc), mayonnaise & other oil based products, feed grains, food, com, feed materials (soybean meal, fishmeal, etc), raw materials of starch & its products, grits & sweeteners;

 

Food Materials Div (13%): cocoa beans & products (cocoa butter, cocoa liquor, cocoa powder, etc), dried edible beans (small red beans, kidney beans, etc), nuts (groundnuts, almonds, cashew nuts, etc), cereals, dairy products, refined sugar, beet sugar & non-centrifugal sugar, raw sugar, coffee beans, chicory, other;

 

Processed Food Div (14%): canned/bottled foods, frozen/dried/salted vegetables, fruits & spice, wine ingredients, juice materials, meat (pork, beef & chicken), processed meat products, teas & laver, other;

 

Food Engineering Div, others (19%): crude & refined ethanol, shelled egg & egg-related

products, organic & inorganic chemicals, food additives, crude solar salt, packaging materials, etc.

 

Overseas trading ratio: about 50%.

 

Clients: [Food processors, wholesalers] Kokubu Ltd, QP Corp, Key Coffee Inc, Meiji  Cacao, Mitsui Foods, Kyodo Shiryo, Nichiwa Sangyo, Tokan Co, Ministry of Agriculture,           Itoen Ltd, Kewpie Co, Showa Sangyo Co, other.

            No. of accounts: 1,000

 

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Cargill group firms, Key Coffee, UCC Ueshima Coffee, Nissin            Food Products, Nissin Oillio Group, Hokuren Federation of Agricultural Coops, Marubeni Corp, J Oil Mills, Mitsui Sugar, other.

 

Payment record: No  Complaints 

 

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


 

Bank References:

SMBC (Nihombashi)

MUFG (Marunouchi)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

Terms Ending:

31/05/2013

31/05/2012

31/05/2011

31/05/2010

Annual Sales

 

195,000

182,278

173,586

176,572

Recur. Profit

 

5,800

3,701

5,862

2,635

Net Profit

 

4,900

1,800

4,927

1,699

Total Assets

 

 

120,525

113,545

106,243

Current Assets

 

 

98,031

89,044

95,606

Current Liabs

 

 

31,995

26,884

24,369

Net Worth

 

 

88,189

86,127

81,394

Capital, Paid-Up

 

 

2,800

2,800

2,800

Div.P.Share(¥)

 

 

 

 

 

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

6.98

5.01

-1.69

-24.73

    Current Ratio

 

..

306.39

331.22

392.33

    N.Worth Ratio

..

73.17

75.85

76.61

    R.Profit/Sales

 

2.97

2.03

3.38

1.49

    N.Profit/Sales

2.51

0.99

2.84

0.96

    Return On Equity

..

2.04

5.72

2.09

 

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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.54

UK Pound

1

Rs.84.19

Euro

1

Rs.71.11

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.