MIRA INFORM REPORT

 

 

Report Date :

17.06.2014

 

IDENTIFICATION DETAILS

 

Name :

ITOCHU FOOD SALES AND MARKETING CO LTD

 

 

Registered Office :

Shin-Aoyama Bldg West Tower 21F, 1-1-1 Minamiaoyuama Minatoku Tokyo

107-0062

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

January 1973

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of foods, food materials, beverages

 

 

No. of Employees

172

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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

 

ITOCHU FOOD SALES AND MARKETING CO LTD

 

REGD NAME:   Itochu Shokuryo KK

MAIN OFFICE:  Shin-Aoyama Bldg West Tower 21F, 1-1-1 Minamiaoyuama Minatoku Tokyo

107-0062 JAPAN

Tel: 03-5771-6371      Fax: 03-5414-5367

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Import, export, wholesale of foods, food materials, beverages, other

 

 

BRANCHES   

 

Nagoya, Osaka, Kyoto, Fukuoka, Sapporo, Saitama

 

 

OVERSEAS   

 

Worldwide (using the networks of the parent, Itochu Corp)

 

 

FACTORIES

 

(subsidiary)

 

 

OFFICERS

 

TAKASHI KOYAMA, PRES                    Hirotaka Isaka, ch

Taisuke Saito, s/mgn dir                        Shigeto Tamaoki, mgn dir

Hidei Kondo, mgn dir                Koichiro Takiaki, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 184,286 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 400 M

TREND UP                                WORTH            Yen 14,400 M   

STARTED         1973                             EMPLOYES      172

 

 

COMMENT    

 

TRADING FIRM SPECIALIZING IN FOOD & FOOD MATERIALS, OWNED BY

ITOCHU CORP.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established on the basis of a food division separated from Itochu Corp (See REGISTRATION).  This is a trading firm specializing in import, export and wholesale of foods, food materials, oil & fat, beverages, other (See OPERATION).  Goods are imported and exported worldwide thru networks of the parent, Itochu Corp.  Clients include food makers, wholesalers, other, nationwide.

 

 

FINANCIAL INFORMATION

           

Financials are consolidated by the parent, Itochu Corp, and only partially disclosed.

 

The sales volume for /2013 fiscal term amounted to Yen 184,286 million, a 27% up from Yen 144,486 million in the previous term.  Absorbed a sister company during the term.  The net profit was posted at Yen 1,124 million, compared with Yen 602 million a year ago.  The foodstuffs division sales represent 27% of total sales of the parent, Itochu Corp.

 

For the term that ended Mar 2014 the net profit is projected at Yen 1,200 million, on a 5% rise in turnover, to Yen 193,500 million.  Final results are yet to be released.

 

The financial situation is considered FAIR and good for ORDINARY business

engagements. 

 

 

 

 

 

REGISTRATION

 

Date Registered:             Jan 1973

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         3.2 million shares

Issued:                800,000 shares

Sum:                   Yen 400 million

      Major shareholders (%): Itochu Corp* (100)

*.. One of big 5 general trading firms, Tokyo, founded 1949, listed Tokyo S/E, capital Yen 202,241 million,sales Yen 1,4586,820 million, operating profit Yen 279,094 million, recurring profit Yen 373,808 million, netprofit Yen 310,267 million, total assets Yen 7,848,440 million, net worth Yen 2,522,823 million, employees 104,543, pres Masahiro Okafuji

 

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

 

 

OPERATION

           

Activities: Imports, exports and wholesales: sugar, beverage materials, oil & fat, confectionery raw materials, cereal, rice, other (--100%)

 

Clients: [Mfrs, wholesalers] Meiji Food Materia Co, Nippon Access Inc, Pasco Shkishima Corp, Coca Cola Business Service, Yamazaki Baking Co, other  

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Itochu Corp, Zen-Noh Corp, Kato Kagaku Co, Daiichi Togyo Co, Fuji Oil Co, other

 

Payment record: No complaints

 

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

 

Bank References:

Mizuho Bank (Uchisaiwaicho)

Relations: Satisfactory

 


 

FINANCES

 

 (In Million Yen)

Terms Ending:

 

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

193,500

184,286

144,786

99,654

Recur. Profit

 

..

..

..

..

Net Profit

 

1,200

1,124

602

555

Total Assets

 

 

N/A

N/A

N/A

Net Worth

 

 

14,400

13,276

12,674

Capital, Paid-Up

 

 

400

400

400

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

5.00

27.28

45.29

2.16

    Current Ratio

..

..

..

    N.Worth Ratio

..

..

..

    N.Profit/Sales

0.62

0.61

0.42

0.56

 

Notes: Financials are consolidated by the parent, Itochu Corp, and only partially disclosed.

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

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.01

UK Pound

1

Rs.101.99

Euro

1

Rs.81.25

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.