MIRA INFORM REPORT

 

 

Report Date :

01.08.2014

 

IDENTIFICATION DETAILS

 

Name :

POKKA SAPPORO FOOD & BEVERAGE LTD

 

 

Registered Office :

Nagoya Hirokoji Place 6F, 4-2-29 Sakae Nakaku Nagoya 460-0008

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

March 2012

 

 

Com. Reg. No.:

1800-01-104778

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturing of foods & beverages, confectionery

 

 

No. of Employees

1,045

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

Yen 1,865.4 Million

Status :

Moderate

Payment Behaviour :

Slow but 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 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy

 

Source : CIA

 


Company name and address

 

POKKA SAPPORO FOOD & BEVERAGE LTD

 

REGD NAME:    Pokka Sapporo Food & Beverage KK

MAIN OFFICE:  Nagoya Hirokoji Place 6F, 4-2-29 Sakae Nakaku Nagoya 460-0008 JAPAN

Tel: 052-249-5583      Fax: 052-249-9690

 

                        *.. The is its Tokyo Head Office

 

URL:                 http://www.pokkasapporo-fb.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIEs  

 

Mfg of foods & beverages, confectionery

 

 

BRANCHES   

 

Tokyo, Nagoya, Osaka, other (Tot 8)

 

 

OVERSEAS 

 

Singapore, Hong Kong, Malaysia

 

 

FACTORIES

 

Nagoya, Gunma, Toyoda, other (Tot 5)

 

 

OFFICERS

 

KIWAMUKUNIHIRO, PRES        Koji Yamauchi, s/mgn dir

Yuji Ihiguro, mgn dir                   Shin’ichi Masaya, mgn dir

Teruji Tsuyuki, dir                       Takeshi Kimoto, dir

                       

Yen Amount:     In million Yen, unless otherwise stated


 

SUMMARY    

 

FINANCES        FAIR                             A/SALES         Yen 83,225 M

PAYMENTSSLOW BUT CORRECT         CAPITAL          Yen 5,431 M

TREND UP                                WORTH           Yen 25,073 M  

STARTED         2012                             EMPLOYES       1,045

 

 

COMMENT    

 

MFR OF FOOD, BEVERAGE, CONFECTIONERY, OTHER.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: ESTIMATED AT YEN 1,865.4 MILLION, ON 30 DAYS  NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company was established jointly by Pokka Corp and Sapporo Beverage Corp in Jan 2013.  It belongs under Sapporo Holdings Ltd (See REGISTRATION).  This is a specialized mfr of food, beverage, confectionery, other.  Also operate coffee shop chains named “Café de Crie”, not only in Japan but also overseas (Singapore, Hong Kong and Malaysia).  Clients include food mfrs, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Dec/2013 fiscal term (initial accounting term from the inception) amounted to Yen 83,225 million, a 29% up from Yen 64,391 million (results of the old Pokka Corporation) in the previous term.  The recurring profit was posted at Yen 333 million and the net profit at Yen 18,134 million, respectively, compared with Yen 1,921 million recurring profit and Yen 1,156 million net profit, respectively, a year ago.   Integration costs and extraordinary losses ate into profits.

 

For the current term ending Dec 2014 the recurring profit is projected at Yen 2,000 million and the net profit at Yen 1,300 million, respectively, on a 5% rise in turnover, to Yen 87,500 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,865.4 million, on 30 days normal terms.

 


 

REGISTRATION

 

Date Registered:        Mar 2012

Regd No.:                  1800-01-104778 (Nagoya-Nakaku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         434,523 shares

Issued:                108,631 shares

Sum:                   Yen 5,481,568,000.00

 

Major shareholders (%): Sapporo Holdings Ltd* (100)

 

*.. Fourth-ranked mfr of alcoholic beverages in Japan, Tokyo, founded 1949, listed Tokyo S/E, capital Yen 53,886 million, sales Yen 509,834 million, operating profit Yen 15,344 million, recurring profit Yen 15,130 million, net profit Yen 9,451 million, total assets Yen 589,998 million, net worth Yen 142,822 million, employees 7,434, pres Tsutomu Kamijo

 

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

 

 

OPERATION

 

Activities: Manufactures food (basically soup), beverage (based on lemon), confectionery, operation of coffee chain shops (domestically & overseas), other (--100%)

 

Clients: [Mfrs, wholesalers] Kokubu & Co, Mitsubishi Foods, Mitsui Foods, Kato Sangyo Co, Nippon Access Inc, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Daiwa Can Co, Yoshino Kogyosho, Toyo Seikan Co, Dynapac Co, Fuji Seal International Inc, other

 

Payment record: Slow but correct

 

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

 

Bank References:

Mizuho Bank (Ohtemachi)

SMBC (Nagoya)

Relations: Satisfactory


 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/12/2014

31/12/2013

31/12/2012

Annual Sales

 

87,500

83,225

64,391

Recur. Profit

 

2,000

333

1,921

Net Profit

 

1,300

-18,134

1,156

Total Assets

 

 

68,604

35,983

Current Assets

 

 

35,956

607

Current Liabs

 

 

34,583

818

Net Worth

 

 

25,073

35,164

Capital, Paid-Up

 

 

5,431

10

Div.P.Share(¥)

 

 

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

    S.Growth Rate

 

5.14

29.25

0.73

    Current Ratio

 

..

103.97

74.21

    N.Worth Ratio

 

..

36.55

97.72

    R.Profit/Sales

 

2.29

0.40

2.98

    N.Profit/Sales

 

1.49

-21.79

1.80

    Return On Equity

 

..

-72.32

3.29

 

Notes: The 31/12/2012 figures are those of the former Pokka Corporation.

Forecast (or estimated) figures for the 31/12/2014 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.25

UK Pound

1

Rs.101.92

Euro

1

Rs.80.70

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIS

 

               

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.