MIRA INFORM REPORT

 

 

Report Date :

11.11.2013

 

IDENTIFICATION DETAILS

 

Name :

KONISHI BREWING CO LTD

 

 

Registered Office :

2-13 Higashi-Arioka Itami Hyogo-Pref 664-0845

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

May 1933

 

 

Com. Reg. No.:

1400-01-078332

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Brewing of sake (rice wine); import, wholesale of wines, beers

 

 

No. of Employees :

113

 

 

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 70.3 MILLION

Status :

Good

Payment Behaviour :

Regular

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

 

KONISHI BREWING CO LTD

 

 

REGD NAME

 

Konishi Shuzo KK

 

 

MAIN OFFICE

 

2-13 Higashi-Arioka Itami Hyogo-Pref 664-0845 JAPAN

Tel: 072-775-0524     Fax: 072-775-1894

 

*.. The is its restaurant and shop

 

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

E-mail:             (thru the URL)

 

 

ACTIVITIES

           

Brewing of sake (rice wine); import, wholesale of wines, beers

 

BRANCHES

 

Tokyo, Nagoya, Itami, Sapporo, Fukuoka

 

 

OVERSEAS

           

Australia

 

 

FACTORIES

 

At the caption address, Hiroshima (subsidiary); Australia (sake brewing)

 

 

OFFICER(S)

 

SHINTARO KONISHI, PRES

Fumio Yamano, mgn dir

Shigeharu Murata, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

           

FINANCES                    R/WEAK           A/SALES          Yen 4.858 M

PAYMENTS                  REGULAR         CAPITAL           Yen 100 M

TREND             SLOW              WORTH            Yen 1,565 M

STARTED                     1933                 EMPLOYES      113

 

 

COMMENT

 

BREWERYOF SAKE 

FINANCIAL SITUATION CONSIDERED RATJER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS

 

MAX CREDIT LIMIT: YEN 70.3 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

            The subject company was founded originally in 1550 by Shin’emon Konishi, on his account for making sake (rice wine), and was incorporated in 1933 as an independent entity.  This is a specialized brewer of sake (of a well-known “Shirayuki” brand), wine, shochu (liquor), vegetable pickles, other (See OPERATION).  Also imports wines & beer from Belgium, France, USA, other.  Operates 2 restaurants and shops.  Has a sake brewing factory in Australia.  Sake is exported.  In 1974 established a JV in New York.  In 1987, began trading with French wine company Unexpa Vins; in 1988 began trading with Sonoma Valley wins, a Californian company; in November began importing beers from Belgium.  In 1996, completed a sake making facility in Australia.  Clients include major food makers, liquor shops, other, nationwide.

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2013 fiscal term amounted to Yen 4,858 million, an 8% down from Yen 5,292 million in the previous term.  This is referred to the hike in materials, and also exports were hurt by the high Yen, reducing revenues in Yen terms.  The recurring loss was posted at Yen 270 million and the net profit at Yen 1,293 million, respectively, compared with Yen 293 million recurring loss and Yen 11 million net profit, respectively, a year ago.  This term’s profits include extraordinary profits.  .

 

For the current term ending Mar/2014 the recurring profit is projected at Yen 550 million and the net profit at Yen 500 million, respectively, on a 3% rise in turnover, to Yen 5,000 million. 

           

            The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements.  Max credit limit is estimated at Yen 70.3 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:          May 1933

Regd No.:                                 1400-01-078332 (Hyogo-Itami)

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  8 million shares

Issued:                         2 million shares

Sum:                            Yen 100 million

Major shareholders (%): Shin’emon Konishi (39), Shintaro Konishi (20), other

No. of shareholders:      93

 

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

 

 

OPERATION

 

Activities: Brews sake of “Shirayuki” brand, shochu (Ume liquid, fruit liquid), Konishi wines (60%); imports and wholesales beer, wines, operates 2 restaurants and liquor shops, real-estate managements, others (--40%).

 

 

Clients: [Mfrs, wholesalers] Kokubu Co, Nihon Shurui Hanbai Co, Mitsui Foods, Meidi-Ya, Izmic Corp, Mitsubishi Shokuhin Co, Yatani Shuhan Co, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Zen-Noh, YK Sakata Shoji, Nihon Yamamura Glass Co, Imamura Shoten, Toppan Printing Co, Shinnihon Ryutsu Co, Moortgat, other

 

Payment record: Regular

 

Location: Business area in Itami, Hyogo-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Shoko Chukin Bank (Kobe)

Ikeda Senshu Bank (Honmachi)

Relations: Satisfactory

 

 

 

FINANCES

(In Million Yen)

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

　

5,000

4,858

5,292

5,567

Recur. Profit

　

550

-270

-293

　

Net Profit

　

500

1,293

11

622

Total Assets

　

1,000

6,497

6,410

6,691

Current Assets

　

　

3,309

2,959

　

Current Liabs

　

　

856

1,482

　

Net Worth

　

　

1,565

272

690

Capital, Paid-Up

　

　

100

100

100

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.92

-8.20

-4.94

-3.57

    Current Ratio

 

..

386.57

199.66

..

    N.Worth Ratio

..

24.09

4.24

10.31

    R.Profit/Sales

 

11.00

-5.56

-5.54

..

    N.Profit/Sales

10.00

26.62

0.21

11.17

    Return On Equity

..

82.62

4.04

90.14

 

Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term. 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.29

UK Pound

1

Rs.101.36

Euro

1

Rs.84.59

 

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%)