MIRA INFORM REPORT

 

 

Report Date :

24.09.2014

 

IDENTIFICATION DETAILS

 

Name :

DIRECT INTERNATIONAL CORPORATION

 

 

Registered Office :

Tsukiji Chuo Bldg 7F, 2-11-10 Tsukiji Chuoku Tokyo 104-0045

 

 

Country :

Japan

 

 

Financials (as on) :

31.10.2013

 

 

Date of Incorporation :

December, 1994

 

 

Com. Reg. No.:

0100-01-049828 (Tokyo-Chuoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import and wholesale of Raw/Frozen Fish

 

 

No. of Employees :

15

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

YEN (-) 155.4 MILLION

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

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 and Address

 

DIRECT INTERNATIONAL CORPORATION

 

REGD NAME:    KK Direct

 

MAIN OFFICE:  Tsukiji Chuo Bldg 7F, 2-11-10 Tsukiji Chuoku Tokyo 104-0045 JAPAN

Tel: 03-3540-5960      Fax: 03-3543-5914

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Import, wholesale of raw/frozen fish

 

 

BRANCHES

 

Nil

 

 

OVERSEAS

 

Russia (agent)

 

 

OFFICERS

 

MAKOTO KURAMITSU, PRES   Katsumi Yaguchi, mgn dir

Yoshitaka Fujiishi, dir                 Toshikazu Muramatsu dir

Mitsuko Kuramitsu, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 6,829 M

PAYMENTS      SLOW              CAPITAL           Yen 40 M

TREND UP                    WORTH            Yen (-) 557 M   

STARTED         1994                 EMPLOYES      15

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN RAW/FROZEN FISH.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: ESTIMATED AT YEN (-) 155.4 MILLION, ON 30 DAYS  NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company was established by Makoto Kuramitsu in order to make most of his experience in the subject line of business.  This is a trading firm specializing in import, export and wholesale of raw/frozen fish from Russia.  Fishes are imported from Russia, and exported to China and other Asian markets.  Clients include fishery makers, other

 

 

FINANCIAL INFORMATION

           

The sales volume for Oct/2013 fiscal term amounted to Yen 6,829 million, a 6% up from Yen 6,460 million in the previous term.  Unit prices were up for some fish, such as tuna, other.  The recurring profit was posted at Yen 107 million and the net profit at Yen 62 million, respectively, compared with Yen 115 million recurring profit and Yen 310 million net losses, respectively, a year ago.  The firm is obsessed with huge debts coming from derivative losses in the past.

 

For the current term ending Oct 2014 the recurring profit is projected at Yen 120 million and the net profit at Yen 70 million, respectively, on a 5% rise in turnover, to Yen 7,150 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen (-) 155.4 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:                      Dec 1994

Regd No.:                                 0100-01-049828 (Tokyo-Chuoku)

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                 3,200 shares

Issued:                         800 shares

Sum:                            Yen 40 million

       Major shareholders (%):     Makoto Kuramitsu (62.5), Takeshi Kuramitsu (12.5), Yoshitaka Fujiishi (12.5), Toshikazu Muramatsu (12.5)

      No. of shareholders:          4

 

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

 

 

OPERATION

           

Activities: Imports, exports and wholesales raw/frozen fish, squid, other (--100%)

Imports from Russia, South Pacific Ocean, Atlantic Ocean, other;

Exports to China, Asian markets, other

 

Clients: [Mfrs, wholesalers] Nippon Suisan Kaisha (11%), D Haiqing Food (9%), Yantai Food (6%), other 

No. of accounts: 300 (Domestic only)

Domestic areas of activities: Centered in the greater-Tokyo

 

Suppliers: [Mfrs, wholesalers] Grander International (21%), Nippon Suisan Kaisha (13%), D Haiqing Food (6%), other

 

Payment record: Slow

 

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

 

Bank References:

            Resona Bank (Tokyo-Chuo)

            MUFG (Tsukiji)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/10/2014

31/10/2013

31/10/2012

31/10/2011

Annual Sales

　

7,150

6,829

6,460

8,300

Recur. Profit

　

120

107

115

　

Net Profit

　

70

62

-310

-313

Total Assets

　

　

2,031

2,320

2,010

Current Assets

　

　

1,994

2,285

　

Current Liabs

　

　

1,642

1,928

　

Net Worth

　

　

-557

-619

-308

Capital, Paid-Up

　

　

40

40

40

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

4.70

5.71

-22.17

19.99

    Current Ratio

　

..

121.44

118.52

..

    N.Worth Ratio

　

..

-27.42

-26.68

-15.32

    R.Profit/Sales

　

1.68

1.57

1.78

..

    N.Profit/Sales

　

0.98

0.91

-4.80

-3.77

 

Notes: Forecast (or estimated) figures for the 31/10/2014 fiscal term.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.87

UK Pound

1

Rs.99.63

Euro

1

Rs.78.23

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

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.