MIRA INFORM REPORT

 

 

Report Date :

12.11.2014

 

IDENTIFICATION DETAILS

 

Name :

FRESH SYSTEM INC

 

 

Registered Office :

Kanda-Izumicho Bldg, 1 Kanda-Izumicho Chiyodaku Tokyo 101-0024

 

 

Country :

     Japan

 

 

Financials (as on) :

     31.12.2013

 

 

Date of Incorporation :

March 2002

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Trading firm for import, export and wholesale of fresh/frozen/cooked vegetables, fruits, flowers, other

 

 

No of Employees :

275

 

 

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 171.4 million

Status :

Satisfactory

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 & ADDRESS

 

FRESH SYSTEM INC

 

REGD NAME:   KK Fresh System

MAIN OFFICE:  Kanda-Izumicho Bldg, 1 Kanda-Izumicho Chiyodaku Tokyo 101-0024 JAPAN

                                    Tel: 03-5821-7676     

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg, processing of vegetables, fruits, flowers

 

 

BRANCHES   

 

Kawasaki, Kobe, Nagoya, Kawaguchi, Sapporo, other (Tot 15)

 

 

FACTORIES

 

(group firms)

 

 

OFFICERS

 

TATSUO HORIUCHI, PRES        Nobuo Shirahama, s/mgn dir

Hideyuki Sakata, mgn dir           Akihiro Shimoto, dir

Katsunari Iida, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                                         A/SALES          Yen 31,576 M

PAYMENTS      SLOW BUT CORRECT               CAPITAL           Yen 100 M

TREND             UP                                            WORTH            Yen 1,197 M     

STARTED         2002                                         EMPLOYES      275

 

COMMENT    

 

TRADING FIRM SPECIALIZING IN VEGETABLES, FRUITS, OTHER.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: ESTIMATED AT YEN 171.4 MILLION, ON 30 DAYS

NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company is a trading firm, with mfg division, for import, export and wholesale of vegetables, fruits, flowers (raw or cooked), owned by Fresh MD Holdings Inc (See REGISTRATION).  This is a group of three companies: Fresh System Inc, Fresh Remix Corp and Fresh Trade Services, owned by Fresh MD Holdings Inc.  Clients include food makers, food stores, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Dec/2013 fiscal term amounted to Yen 31,576 million, a 4% up from Yen 30,390 million in the previous term.  The operations plunged into the red due to increased prices of vegetables & fruits.  The recurring loss was posted at Yen 164 million and the net losses at Yen 159 million, respectively, compared with Yen 245 million recurring profit and Yen 60 million net profit, respectively, a year ago.

 

For the current term ending Dec 2014 the operations is projected to come back to profitability to post Yen 160 million recurring profit and Yen 70 million net profit, respectively, on a 3% rise in turnover, to Yen 32,500 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 171.4 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:                       Mar 2002

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              8,000 shares

Issued:                                     2,000 shares

Sum:                                        Yen 100 million

Major shareholders (%):           Fresh MD Holdings Inc* (100)

 

*.. Holding Company of 3 group firms (Fresh System Inc, Fresh Remix Corp and Fresh Trade Services), Tokyo, founded 2006, capital Yen 3,119 million, sales Yen 916 million, net profit Yen 367 million, employees 28, pres Tatsuo Horiuchi, concurrently

 

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

 

 

OPERATION

           

Activities:                                 Trading firm for import, export and wholesale of fresh/frozen/cooked vegetables, fruits, flowers, other (--100%)

 

Clients:                                    [Mfrs, wholesalers] Dole Japan, Sumifru Corp, Toka Osaka Co, Itochu Fresh, Nagoya Seika Co, other 

No. of accounts:                       350

Domestic areas of activities:      Nationwide

Suppliers:                                [Mfrs, wholesalers] Dole Japan, Sumifru Corp, KI Fresh Access, Itochu Fresh, other

 

Payment record:                       Slow but correct

 

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

 

Bank References:

Mizuho Bank (Koenji)

SMBC (Koishikawa)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/12/2014

31/12/2013

31/12/2012

31/12/2011

Annual Sales

　

32,500

31,576

30,390

26,604

Recur. Profit

　

160

-164

145

　

Net Profit

　

70

-159

60

50

Total Assets

　

　

15,734

14,076

11,931

Current Assets

　

　

4,022

3,804

　

Current Liabs

　

　

4,850

4,305

　

Net Worth

　

　

1,197

1,362

1,512

Capital, Paid-Up

　

　

100

100

100

Div.P.Share(¥)

　

　

　

　

　

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

2.93

3.90

14.23

6.51

    Current Ratio

　

..

82.93

88.36

..

    N.Worth Ratio

　

..

7.61

9.68

12.67

    R.Profit/Sales

　

0.49

-0.52

0.48

..

    N.Profit/Sales

　

0.22

-0.50

0.20

0.19

    Return On Equity

　

..

-13.28

4.41

3.31

 

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

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.55

UK Pound

1

Rs.97.53

Euro

1

Rs.76.48                  

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

SMN

 

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.