MIRA INFORM REPORT

 

 

Report Date :

03.03.2014

 

IDENTIFICATION DETAILS

 

Name :

JAPAN FOOD CORPORATION

 

 

Registered Office :

Mita Nitto Dai Bldg 7F, 3-11-36 Mita Minatoku Tokyo 108-0073

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

Marcj 1960

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, wholesale of meat products

 

 

No. of Employees :

245

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 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 exceeds 225% 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 and address

 

JAPAN FOOD CORPORATION

 

REGD NAME:    Japan Food KK

MAIN OFFICE:  Mita Nitto Dai Bldg 7F, 3-11-36 Mita Minatoku Tokyo 108-0073 JAPAN

                                    Tel: 03-5441-8500     Fax: 03-5441-8505

 

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

E-Mail address: info@japanfoodcorp.co.jp

 

 

ACTIVITIES  

 

Import, wholesale of meat products

 

 

BRANCHES   

 

Nishinomiya (Hyogo), Kawasaki, Koshigaya, other

 

 

OVERSEAS

 

Korea, Australia, China (2), China (2), USA

 

 

OFFICER(S)  

 

KAZUSHI OHTA, PRES              Taku Usui, mgn dir

Hitoshi Togawa, dir                     Koji Uchida, dir

Hajime touo, dir                         Kenichi Tamagawa, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 223,211 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 40 M

TREND             SLOW                          WORTH            Yen 14,420 M

STARTED                     1960                             EMPLOYES      245

 

COMMENT    

 

TRADING HOUSE SPECIALIZING IN MEAT PRODUCTS, WHOLLY OWNED

BY NIPPON MEAT PACKERS INC. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established on the basis of a trading division separated from Nippon Meat Packers Inc, nation’s top-ranked meat processor, Osaka (See REGISTRATION).  This is a trading house specializing in meat, meat products, processed foods, etc for supply to the parent centrally, and other meat packers.  It also handles farm & marine products.  Import sources are Australia, USA, Canada, UK, Korea, and other S/E Asian countries, mostly imported through general trading houses.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 223,211 million, a 3% down from Yen 229,336 million in the previous term.  The recurring profit was posted at Yen 2,705 million and the net profit at Yen 1,628 million, respectively, compared with Yen 2,117 million recurring profit and Yen 1,201 million net profits, respectively, a year ago.

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 2,800 million and the net profit at Yen 1,700 million, respectively, on a 3% rise in turnover, to Yen 230,000 million. 

 

The financial situation is considered FAIR and good for ORDINARY

Business engagements.

 

 

REGISTRATION

 

Date Registered:  Mar 1960

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         320,000 shares

Issued:                80,000 shares

Sum:                   Yen 40 million

Major shareholders (%): Nippon Meat Packers Inc*(100)

 

*.. Major comprehensive meat processor, Osaka, founded 1949, listed Tokyo S/E, capital

Yen 24,166 million, turnover Yen 1,022,839 million, operating profit Yen 28,021 million, recurring profitYen 28,031 million, net profit Yen 16,459 million, total assets Yen 617,106 million, net worth Yen 299,579 million, employees 15,725, pres Noboru Takezoe

 

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

 

OPERATION

 

Activities: Imports and wholesales meat (beef. pork, chicken, etc), meat products, processed foods (--95%), farm & marine products (--5%).

 

Clients: [Meat packers, food processors] Nippon Meat Packers, Prima Meat Packers, Meidi-Ya, Altac Foods, Minaminippon Ham, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Nippon Meat Packers, Itochu Corp, Mitsui & Co, Hannan Co, ZenchikuHambai, other.

Imports from Australia, USA, Canada, UK, Korea and other S/E Asian countries.

 

Payment record: No complaints

 

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

 

Bank References:

MUFG (Mita)

Hyakujushi Bank (Tokyo)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

230,000

223,211

229,336

212,050

Recur. Profit

 

2,800

2,705

2,117

2,297

Net Profit

 

1,700

1,628

1,201

1,090

Total Assets

 

 

77,382

72,125

69,698

Current Assets

 

 

5,535

70,636

68,189

Current Liabs

 

 

62,528

57,979

55,861

Net Worth

 

 

14,420

13,752

13,430

Capital, Paid-Up

 

 

40

40

40

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.04

-2.67

8.15

8.07

    Current Ratio

 

..

8.85

121.83

122.07

    N.Worth Ratio

..

18.63

19.07

19.27

    R.Profit/Sales

 

1.22

1.21

0.92

1.08

    N.Profit/Sales

0.74

0.73

0.52

0.51

    Return On Equity

..

11.29

8.73

8.12

 

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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.07

UK Pound

1

Rs.103.61

Euro

1

Rs.85.03

 

 

INFORMATION DETAILS

 

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.