MIRA INFORM REPORT

 

 

Report Date :

22.11.2014

 

IDENTIFICATION DETAILS

 

Name :

KOBE TEA CO LTD

 

 

Registered Office :

16-2 Sumiyoshi-Hamacho Nadaku Kobe 658-0042

 

 

Country :

Japan  

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

October 1955

 

 

Com. Reg. No.:

1400-01-001791 (Kobe-Nadaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing and processing of teas

 

 

No of Employees :

21

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

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 & ADDRESS

 

KOBE TEA CO LTD

 

REGD NAME:   Kobe Kocha KK

MAIN OFFICE:  16-2 Sumiyoshi-Hamacho Nadaku Kobe 658-0042 JAPAN

                                    Tel: 078-851-7281     Fax: 078-851-3100

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg, processing of teas

 

 

BRANCHES   

 

Tokyo

 

 

FACTORIES  

 

At the caption address (processing/sorting/packaging/other)

 

 

OFFICER(S)

           

YOSHIHISA GESHI, PRES        

Yoshihiro Arita, s/mgn dir

Kunio Okuno, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        R/WEAK                                   A/SALES          Yen 424 M

PAYMENTSSLOW BUT CORRECT                     CAPITAL           Yen 20 M

TREND SLOW                                       WORTH            Yen268 M

STARTED         1955                                         EMPLOYES      21

 

COMMENT    

 

MFR/PROCESSING OF TEAS. 

FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established originally in 1925 by Shinji Sudo as an      agent dealer of Mitsui & Co.  Incorporated in 1955, the firm has been succeeded by his descendants.  Specializes in mfg, processing, sorting of teas.  Tea leaves are imported and are processed into tea bags, bagged teas, canned teas, other.  Imports from India, other, thru general trading houses.  Clients include tea houses, department stores, and chain stores, nationwide.

 

           

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 424 million, a 6% down from Yen 452 million in the previous term.  The recurring profit was posted at Yen 1 million and the net profit at Yen 1 million, respectively, compared with Yen 2 million recurring profit and Yen 1 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 5 million and the net profit at Yen 3 million, respectively, on a 5% rise in turnover, to Yen 445 million.

           

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements. 

 

 

REGISTRATION

 

Date Registered:                                   Oct 1955

Regd No.:                                 1400-01-001791 (Kobe-Nadaku)

Legal Status:    　            Limited Company (Kabushiki Kaisha)

Authorized:      　            80,000 shares

Issued:             　            40,000 shares

Sum:                　            Yen 20 million

Major shareholders (%):                                   Saeko Sudo (30), Kazue Arita (30), Yoshihisa Geshi (15),

No. of shareholders:                 6

           

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

 

 

OPERATION

 

Activities: Manufactures, processes and wholesales teas: tea bags, bagged teas, canned teas, tea leaves, other: teas (80%), green teas, oolong teas (20%).

 

Tea leaves are imported from India, other, mainly thru general trading houses.

 

Clients: [Tea houses, wholesalers] UCC Ueshima Coffee, Ryohin Keikaku

Co, Kokubu & Co, Toho Food Service, Tokyo Seafoods, other

No. of accounts: 300

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsui & Co, UCC Ueshima Coffee, Tokyo

Seafoods, Agri Import & Export Ltd, other.

Imports tea leaves from India, other

 

Payment record: Slow but correct

 

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

 

Bank References:

Banshu Shinkin Bank (Sannomiya)

Shoko Chukin Bank (Kobe)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

　

445

424

452

512

Recur. Profit

　

5

1

2

26

Net Profit

　

3

1

1

24

Total Assets

　

　

488

497

526

Current Assets

　

　

332

393

434

Current Liabs

　

　

18

26

32

Net Worth

　

　

268

267

267

Capital, Paid-Up

　

　

20

20

20

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

4.95

-6.19

-11.72

-7.08

    Current Ratio

　

..

1,844.44

1,511.54

1,356.25

    N.Worth Ratio

　

..

54.92

53.72

50.76

    R.Profit/Sales

　

1.12

0.24

0.44

5.08

    N.Profit/Sales

　

0.67

0.24

0.22

4.69

    Return On Equity

　

..

0.37

0.37

8.99

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.85

UK Pound

1

Rs.97.01

Euro

1

Rs.77.62                         

 

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%)

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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.