MIRA INFORM REPORT
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Report Date : |
11.11.2014 |
IDENTIFICATION DETAILS
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Name : |
S ISHIMITSU & CO LTD |
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Registered Office : |
4-40 Iwaya-Minamimachi Nadaku Kobe 657-0856 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
May 1951 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, Wholesale of Coffee Beans, Cocoa, Teas, Fruits, Frozen Foods. |
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No. of Employees : |
215 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
S ISHIMITSU & CO LTD
REGD NAME: Ishimitsu
Shoji KK
MAIN OFFICE: 4-40
Iwaya-Minamimachi Nadaku Kobe 657-0856 JAPAN
Tel:
078-891-7791 Fax: 078-882-1007
URL: http://www.ishimitsu.co.jp
E-Mail address: info@ishimitsu.co.jp
ACTIVITIES
Import, wholesale of
coffee beans, cocoa, teas, fruits, frozen foods
BRANCHES
Tokyo, Nagoya,
Fukuoka, Sapporo, Osaka
CHIEF
EXEC
SHIGERU MORIMOTO,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 34,607 M
PAYMENTSSLOW BUT
CORRECT CAPITAL Yen 623 M
TREND STEADY WORTH Yen 7,569 M
STARTED 1951 EMPLOYES 215
COMMENT
IMPORTER OF COFFEE BEANS, COCOA, OTHER FOODS.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
Unit: In Million Yen
Forecast
(or estimated) figures for 31/03/2015 fiscal term
HIGHLIGHTS
The subject
company was established originally in 1906 by Sueo Ishimitsu in Los Angeles as
a grocery store, on his account. Opened
Kobe office for purchasing and importing Japanese foods. In 1951 incorporated as S Ishimitsu & Co
Ltd. This is a trader specializing in
importing coffee beans as a mainstay item, other cocoa, teas, canned foods/fruits,
other. Highly competitive in
commercial-use coffee, maintaining top-ranked position. Also deals in frozen and non-frozen
goods. Coffee beans are imported from
coffee beans producing countries world over.
Also exports Japanese foods to S/E Asian countries.
FINANCIAL
INFORMATION
The sales volume
for Mar/2014 fiscal term amounted to Yen 34,607 million, a 6.2% up from Yen
32,589 million in the previous term. The
recurring profit was posted at Yen 233 million and the net profit at Yen 159
million, respectively, compared with Yen 9 million recurring profit and Yen 127
million net losses, respectively, a year ago.
(Apr/Jun/2014
results): Sales Yen 8,471 million (up 1.9%), operating loss Yen 205 million
(previously Yen 140 profit), recurring loss Yen 228 million (previously Yen 115
million profit), net loss Yen 154 million (previously Yen 39 million
profit). (% & figures as compared
with the corresponding period a year ago).
For the current term
ending Mar 2015 the recurring profit is projected at Yen 55 million and the net
profit at Yen 11 million, on a 6.9% rise in turnover, to Yen 36,993million.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date
Registered: May 1951
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 22.4
million shares
Issued: 8
million shares
Sum: Yen
623 million
Major
shareholders (%): Employees’ S/Holding Assn (4.6), Company’s Treasury Stock (3.6), SMBC
(3.1), Teruo Ishimitsu (2.9), Takae Komazawa (2.7), Nichibei Coffee Co (2.5),
Toho Co (2.5), Minato Bank (2.5), Marubeni Corp (2.4), Terunobu Ishimitsu
(2.2); foreign owners (0.3)
No.
of shareholders: 5,756
Listed on the S/Exchange (s) of: JASDAQ
Managements: Shigeru
Morimoto, pres; Tetsuro Kusaba, s/mgn dir; Kiyofumi Yamane, mgn dir; Tomonari
Ueno, dir; Akio Nakano, dir; Tomohiro Ishiwaki, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Tokyo Allied Coffee Roasters, US Foods Co,
other
OPERATION
Activities: Imports and
wholesales: coffee & beverages (31%), foods (59%)
Overseas
Sales Ratio (9%)
Coffee beans and coffee are imported from: Mexico, Hawaii, Guatemala,
Honduras, Columbia, Peru, Brazil,
Ethiopia, Yemen, Vietnam, Indonesia, Kenya, Tanzania, other.
Clients: [Wholesalers,
mfrs] Nichibei Coffee, Pokka Corp, Dart Coffee, Tokyo Allied Coffee Roasters,
Kirin Beverage, Japan Consumers’ Coops, other.
Exports Japanese
foods to S/E Asian countries
No. of accounts:
500
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Mitsui & Co, Mitsubishi Corp, Itochu Corp, Sumitomo Corp,
Kansai Allied Coffee Roasters, MCC Foods, Marubeni Corp, Ajinomoto, other.
Imports from the
above listed companies. Foods are imported from China.
Payment record: Slow bur correct
Location: Business area in
Kobe. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
SMBC (Kobe)
MUFG (Kobe)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME STATEMENT |
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Annual Sales |
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34,607 |
32,589 |
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Cost of Sales |
30,502 |
28,445 |
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GROSS PROFIT |
4,104 |
4,143 |
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Selling & Adm Costs |
3,825 |
3,733 |
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OPERATING PROFIT |
279 |
409 |
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Non-Operating P/L |
-46 |
-400 |
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RECURRING PROFIT |
233 |
9 |
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NET PROFIT |
159 |
-127 |
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BALANCE SHEET |
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Cash |
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1,839 |
2,674 |
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Receivables |
6,240 |
6,231 |
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Inventory |
6,229 |
4,198 |
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Securities, Marketable |
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Other Current Assets |
(789) |
215 |
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TOTAL CURRENT ASSETS |
13,519 |
13,318 |
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Property & Equipment |
2,709 |
2,830 |
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Intangibles |
75 |
68 |
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Investments, Other Fixed Assets |
3,024 |
3,014 |
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TOTAL ASSETS |
19,327 |
19,230 |
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Payables |
3,129 |
3,127 |
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Short-Term Bank Loans |
1,772 |
936 |
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Other Current Liabs |
2,973 |
3,168 |
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TOTAL CURRENT LIABS |
7,874 |
7,231 |
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Debentures |
230 |
370 |
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Long-Term Bank Loans |
2,875 |
3,203 |
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Reserve for Retirement Allw |
107 |
119 |
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Other Debts |
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671 |
727 |
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TOTAL LIABILITIES |
11,757 |
11,650 |
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MINORITY INTERESTS |
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Common
stock |
623 |
623 |
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Additional
paid-in capital |
357 |
357 |
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Retained
earnings |
6,402 |
6,320 |
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Evaluation
p/l on investments/securities |
59 |
32 |
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Others |
235 |
354 |
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Treasury
stock, at cost |
(107) |
(107) |
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TOTAL S/HOLDERS` EQUITY |
7,569 |
7,579 |
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TOTAL EQUITIES |
19,327 |
19,230 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash
Flows from Operating Activities |
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-1,252 |
1,196 |
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Cash Flows
from Investment Activities |
157 |
-27 |
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Cash
Flows from Financing Activities |
227 |
-1,474 |
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Cash,
Bank Deposits at the Term End |
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1,731 |
2,574 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
7,569 |
7,579 |
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Current
Ratio (%) |
171.69 |
184.18 |
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Net
Worth Ratio (%) |
39.16 |
39.41 |
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Recurring
Profit Ratio (%) |
0.67 |
0.03 |
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Net
Profit Ratio (%) |
0.46 |
-0.39 |
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Return
On Equity (%) |
2.10 |
-1.68 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.52 |
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|
1 |
Rs.97.39 |
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Euro |
1 |
Rs.76.16 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.