MIRA INFORM REPORT
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Report Date : |
29.10.2014 |
IDENTIFICATION DETAILS
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Name : |
FUJI SEAL INTERNTIONAL INC |
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Registered Office : |
Shin-Osaka Front Bldg, 4-1-9 Miyahara Yodogawaku Osaka 532-0003 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
October 1958 |
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Com. Reg. No.: |
1200-01-002503 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufactures shrinkage labels (58%), adhesive labels (22%), soft pouch
(5%), machinery (7%), other labels (1%), others (7%). |
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No of Employees : |
3,630 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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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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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 : |
No Complaints |
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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 & address
FUJI
SEAL INTERNTIONAL INC
REGD
NAME
KK Fuji Seal
International
MAIN
OFFICE
Shin-Osaka Front
Bldg, 4-1-9 Miyahara Yodogawaku Osaka 532-0003 Japan
Tel:
06-6350-1080
Fax: 06-6350-3053
*.. The is its Tokyo Head Office -
URL: http://www.fujiseal.co.jp
E-Mail address: (thru the URL)
ACTIVITIES: Mfg
of labels, pouches, plastic films, other
BRANCHES: Tokyo
(as given), Nagoya, Sapporo, Fukuoka (Tot 4)
OVERSEAS: USA,
Europe, Asia, Oceania, Pago
FACTORIES: Tsukuba,
Yuki (Ibaraki), Nabari (Mie), Hyogo (Technical Center);
USA, Europe, Asia, other
CHIEF EXEC: SHIGEKO
OKAZAKI, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 121,015 M
PAYMENTSNO
COMPLAINTS CAPITAL Yen 5,990 M
TREND UP WORTH Yen
72,078 M
STARTED 1958 EMPLOYES 3,630
COMMENT: MFR OF LABELS, POUCHES, OTHER FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 4,806.3 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast figures for the 31/03/2015 fiscal term.
HIGHLIGHTS
This is the pioneer in development of shrink-wrap labels. Ranks top as specialist in the industry, with
the 50%-plus market share. Has
production bases overseas. Highly
competitive in wrapping films for cup noodles and heat-resistant labels for hot
beverage containers. New product such as
soft pouches expanding.
FINANCIAL
INFORMATION
The sales volume for Mar/2014 fiscal term amounted to Yen 121,015 million, a 22.3% up from Yen 98,947 million in the previous term. Shrink label production was brought forward to occur ahead of the extremely hot summer. Improved plant operating rates and distribution cost cuts provided synergic benefits, offsetting price cuts in Europe and the deficit in Asia. The recurring profit was posted at Yen 10,047 million and the net profit at Yen 5,410 million, respectively, compared with Yen 8,279 million recurring profit and Yen 5,179 million net profit, respectively, a year ago.
(Apr/Jun/204 results): sales Yen 34,519 million (up 12.3%), operating profit Yen 3,191 million (up 7.2%), recurring profit Yen 3,345 million (up 4.3%), net profit Yen 2,155 million (up 2.1%). (% as compared with the corresponding period a year ago).
For the current term ending Mar 2015 the recurring profit is projected at Yen 10,100 million and the net profit at Yen 5,900 million, respectively, on a 6.6% rise in turnover, to Yen 129,000 million. The Swiss firm will continue to improve. The firm will broaden machinery services, targeting market expansion in Asia.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 4,806.3 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Oct 1958
Regd
No.:
1200-01-002503
(Osaka-Yodogawaku)
Legal Status: Limited
Company (Kabushiki Kaisha
Authorized:
100 million shares
Issued: 30,080,978
shares
Sum: Yen
5,990 million
Major
shareholders (%): Soho Co (10.3), Master Trust Bank of Japan T (6.1), Company’s Treasury
Stock (5.3), Fuji Seal Packaging Foundation (4.9), Northern Trust (AVFC) (3.4),
Shigeko Okazaki (2.4), Nomura Trust, Trust Acct (2.9), Masaaki Fujio (2.9),
Hiroko Fujio (2.9), Japan Trustee Services T (2.9); foreign owners (34.8)
No.
of shareholders: 2,670
Listed on the S/Exchange (s) of: Tokyo
Managements: Shigeko Okazaki,
pres; Takato Sonoda, dir; Takayuki Ueda, dir; Yasuhiro Shibata, dir; Koji
Arima, dir; Shin’ichiro Kose, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Fuji Seal, Fuji Tack, Fuji Flex, other.
OPERATION
Activities: Manufactures
shrinkage labels (58%), adhesive labels (22%), soft pouch (5%), machinery (7%),
other labels (1%), others (7%).
Overseas
Sales Ratio (43%)
Clients: Mfrs of:
beverages, foods, medicals, cosmetics, toiletries, battery, other
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] Fuji Tack, Fuji Flex,
Fuji Astec, other (--group firms)
Payment record: No Complaints
Location: Business area in
Osaka. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
MUFG (Osaka)
Mizuho Bank
(Semba)
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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121,015 |
98,947 |
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Cost of Sales |
95,424 |
78,312 |
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GROSS PROFIT |
25,591 |
20,634 |
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Selling & Adm Costs |
15,987 |
12,885 |
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OPERATING PROFIT |
9,603 |
7,749 |
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Non-Operating P/L |
444 |
530 |
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RECURRING PROFIT |
10,047 |
8,279 |
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NET PROFIT |
5,410 |
5,179 |
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BALANCE SHEET |
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Cash |
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9,261 |
10,734 |
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Receivables |
29,224 |
25,878 |
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Inventory |
13,705 |
11,158 |
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Securities, Marketable |
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Other Current Assets |
4,530 |
3,882 |
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TOTAL CURRENT ASSETS |
56,720 |
51,652 |
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Property & Equipment |
53,280 |
41,025 |
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Intangibles |
1,487 |
1,491 |
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Investments, Other Fixed Assets |
7,765 |
6,267 |
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TOTAL ASSETS |
119,252 |
100,435 |
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Payables |
13,279 |
11,708 |
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Short-Term Bank Loans |
3,835 |
1,381 |
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Other Current Liabs |
15,653 |
15,210 |
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TOTAL CURRENT LIABS |
32,767 |
28,299 |
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Debentures |
5,000 |
5,000 |
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Long-Term Bank Loans |
3,549 |
4,429 |
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Reserve for Retirement Allw |
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Other Debts |
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5,858 |
4,363 |
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TOTAL LIABILITIES |
47,174 |
42,091 |
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MINORITY INTERESTS |
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Common
stock |
5,990 |
5,990 |
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Additional
paid-in capital |
6,233 |
6,233 |
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Retained
earnings |
57,328 |
53,357 |
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Evaluation
p/l on investments/securities |
535 |
345 |
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Others |
5,372 |
(4,118) |
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Treasury
stock, at cost |
(3,380) |
(3,464) |
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TOTAL S/HOLDERS` EQUITY |
72,078 |
58,343 |
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TOTAL EQUITIES |
119,252 |
100,435 |
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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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9,636 |
6,668 |
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Cash
Flows from Investment Activities |
-11,518 |
-14,792 |
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Cash
Flows from Financing Activities |
-602 |
8,287 |
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Cash,
Bank Deposits at the Term End |
|
9,085 |
19,604 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
72,078 |
58,343 |
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Current
Ratio (%) |
173.10 |
182.52 |
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Net
Worth Ratio (%) |
60.44 |
58.09 |
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Recurring
Profit Ratio (%) |
8.30 |
8.37 |
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Net
Profit Ratio (%) |
4.47 |
5.23 |
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Return
On Equity (%) |
7.51 |
8.88 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.35 |
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|
1 |
Rs.98.93 |
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Euro |
1 |
Rs.77.92 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
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Report Prepared
by : |
TPT |
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 |
|
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 |
-- |
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.