MIRA INFORM REPORT

 

 

Report Date :

14.05.2013

 

IDENTIFICATION DETAILS

 

Name :

Tree of Life Co Ltd

 

 

Registered Office :

6-3-8 Jingumae Shibuyaku Tokyo 150-0001

 

 

Country :

Japan

 

 

Financials (as on) :

31.08.2012

 

 

Date of Incorporation :

December, 1967

 

 

Com. Reg. No.:

0110-01-012165 (Tokyo-Shibuyaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, wholesale, retail of aromatherapy products; retail of herbal products; operates herbal life college; travel agency

 

 

No. of Employees :

630

 

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

 

 

COMPANY NAME

 

TREE OF LIFE CO LTD

 

REGD NAME:               KK Seikatsu No Ki (Seikatsu is Life; Ki is tree in Japanese)

 

MAIN OFFICE:              6-3-8 Jingumae Shibuyaku Tokyo 150-0001 JAPAN

     Tel: 03-3409-1781     Fax: 03-3400-4988

 

URL:                 http://www.treeoflife.co.jp/

 

E-Mail address:            intl@treeoflife.co.jp

 

 

ACTIVITIES:                 Import, wholesale, retail of aromatherapy products; retail of herbal products; operates herbal life college; travel agency

 

License:                       Tokyo-Metrop Governor No. 3-5559 for travel agency

 

STORES:                     100 direct-run stores nationwide (mostly attached with tea house, herb gallery & healing parlor), including in-shop stores in department stores.

 

 

HERBAL LIFE COLLEGES:  18 schools centering in greater-Tokyo region

 

OVERSEAS:                Tree of Life (Private) Ltd (Sri Lanka) (Head Office, Tree of Life Hotel & Travel Agency, owned by Tadashi Shigenaga); Kaohsiung (Taiwan).

 

FACTORYIES:              Gunma (Herbal garden), Saitama (Herbal Life College)

 

 

OFFICER(S):                 TADASHI SHIGENAGA, PRES

Ryoichi Udagawa, mgn dir

Akira Ogura, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY:      FINANCES        FAIR                             A/SALES          Yen 7,017 M

PAYMENTS       NO COMPLAINTS          CAPITAL           Yen 10 M

TREND              STEADY                       WORTH            Yen 2,842 M

STARTED          1967                             EMPLOYES      630

 

 

COMMENT:     

 

IMPORTER, WHOLESALER AND RETAILER OF AROMATHERAPY & HERBAL PRODUCTS; TRAVEL AGENCY. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGGEMENTS

MAX CREDIT LIMIT: YEN 269.3 MILLION, 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS:

 

The subject company was established originally in 1955 by father of T Shigenaga, on his account, and was incorporated in 1967.  The firm, owned and managed by the Shigenaga family, specializes in importing and wholesaling aromatherapy products and retailing herbal products, operating a total of 100 direct-run stores nationwide.  Goods are also retailed online and through mail-order houses.  Also, manufactures and processes them, on consignment, into own brand, including OEM products.  Owns herbal farm garden in Gunma-Pref; also operates herbal life colleges & classes, totaling 18 schools, restaurants, tea houses, herb galleries at most of its stores.  Goods are imported from Europe, USA, Sri Lanka, China, other.  Operates Tree of Life Hotel in Sri Lanka, too.  Travel agency division acts as marketing office in Japan.  Clients are major department stores, amusement parks, food wholesalers, cosmetics & toiletries mfrs, food processors, hotels, travel agents, etc, nationwide.

           

 

FINANCIAL INFORMATION:

 

The sales volume for Aug/2012 fiscal term amounted to Yen 7,017 million, a 2% up from Yen 6,877 million in the previous term.  The recurring profit was posted at Yen 294 million and the net profit at Yen 204 million, respectively, compared with Yen 431 million recurring profit and Yen 280 million net profit, respectively, a year ago.

 

For the current term ending Aug 2013 the recurring profit is projected at Yen 3000 million and the net profit at Yen 2200 million, respectively, on an 11% rise in turnover, to Yen 7,800 million.  Weaker Yen will contribute to increase sales amount in Yen terms.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 269.3 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:                       Dec 1967

Regd No.:                                 0110-01-012165 (Tokyo-Shibuyaku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  800 shares

Issued:                         200 shares

Sum:                             Yen 10 million

Major shareholders (%): Tree of Life Holdings Co (100)

 

* Holding companies owned by the Shigenagas.

           

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

 

 

OPERATION:

 

Activities: Imports and wholesales aromatherapy products: botanical essential oils, aroma oils, mist spray, massage oils, natural essence shampoo, conditioners, other skin-care & hair-care products (--70%);

Retails (including online & mail order catalog sales) herbal products: herbal teas, herbal   shampoo, herbal extracts, herb candies, herbal supplements, pet foods, others (--30%). 

 

Operates a total 100 direct-run stores nationwide, and one in Kaohsiung (Taiwan).

Owns herbal farm garden in Gunma-Pref.

Operates herbal colleges (culture schools), classes, totaling 18 schools; galleries and travel agency, too.

 

Clients: [Department stores, theme parks, hotels, mail order houses, consumers] Consumers (55%), Oriental Land, Aeon Forest, Tokyu Hands, Takashimaya, Uchino Co, Senshukai, Loft, Matsuzakaya, Kataoka Bussan, JTB Traveland, Askul, Isetan, Hankyu Department Stores, Amazon Japan, Watashi No Heya Living, other.

No. of accounts: 1,000 (Wholesale div only)

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Imports from France, Germany, UK, Italy, USA, Sri Lanka, China, Chile, India, Ghana, Taiwan, other.

 

Payment record: No Complaints

 

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

 

Bank References:

                        MUFG (Aoyama)

                        Shoko Chukin Bank (Shibuya)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

       Terms Ending:

31/08/2013

31/08/2012

31/08/2011

31/08/2010

Annual Sales

　

7,800

7,017

6,877

6,754

Recur. Profit

　

300

294

431

　

Net Profit

　

220

204

280

362

Total Assets

　

　

4,784

4,981

4,662

Current Assets

　

　

3,485

3,581

　

Current Liabs

　

　

941

1,038

　

Net Worth

　

　

2,832

2,779

2,555

Capital, Paid-Up

　

　

10

10

10

Div.P.Share(¥)

　

　

　

　

　

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

11.16

2.04

1.82

7.29

    Current Ratio

 

..

370.35

344.99

..

    N.Worth Ratio

..

59.20

55.79

54.80

    R.Profit/Sales

 

3.85

4.19

6.27

..

    N.Profit/Sales

2.82

2.91

4.07

5.36

    Return On Equity

..

7.20

10.08

14.17

 

Notes: Forecast (or estimated) figures for the 31/08/2013 fiscal term.

 

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.