MIRA INFORM REPORT

 

 

Report Date :

27.09.2014

 

IDENTIFICATION DETAILS

 

Name :

UNION SHOJI CO LTD

 

 

Registered Office :

15 Nominamicho Nishiku Nagoya 452-0847

 

 

Country :

Japan

 

 

Financials (as on) :

30.11.2013

 

 

Date of Incorporation :

August, 1951

 

 

Com. Reg. No.:

1800-01-048408 (Nagoya-Nishiku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, Wholesale of Confectionary Ingredients (Almonds, Nuts, Other)

 

 

No. of Employees :

81

 

 

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

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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

 

UNION SHOJI CO LTD

 

REGD NAME:    Union Shoji KK

 

MAIN OFFICE:  15 Nominamicho Nishiku Nagoya 452-0847 JAPAN

Tel: 052-501-4321     Fax: 052-501-4325

 

URL:                 http://www.union-shoji.jp

E-Mail address:            info@union-shoji.jp

 

 

ACTIVITIES

 

Import, wholesale of confectionary ingredients (almonds, nuts, other)

 

 

BRANCHES

 

Tokyo

 

 

OVERSEAS

 

New Princess Corp (USA) (subsidiary)

 

 

FACTORIES

 

At the caption address (processing/sorting/packaging)

 

 

OFFICER(S)

 

AKIHIKO ITOH, PRES                Keizo Okada, mgn dir                

Masaki Inagaki, dir                                 Toru Odawara, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 15,166 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 60 M

TREND UP                                WORTH                        Yen 2,197 M

STARTED         1951                             EMPLOYES      81

 

 

COMMENT

 

IMPORTER AND WHOLESALER SPECIALIZING IN CONFECTIONARY AND BAKING INGREDIENTS. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established on the basis of a purchasing division separated from Aichi-Pref Bakery Co-Op, Nagoya, in order to advance into import and wholesale of ingredients for baking & confectionary mfg.  This is a trading firm specializing in confectionery ingredients, such as almonds, cashew nuts, walnuts, pistachios, prunes, other dried (sweetened) fruits, other.  Also handles packaging materials and baking/confectionary processing equipment & machinery.  Goods are imported from USA centrally, other from India, Italy, etc.  Operates almond farms in California, USA.  Goods are processed (into various types), sorted, packaged, etc at its own yard.  Clients include major bakeries & confectionary & food processors, nationwide. 

 

(Brief history): In Feb 1963, started imports of raisins from USA.  In Oct the same year, founded raisin processing yard at the caption address.  In Sept 1991, established USA subsidiary.  In Oct 1993, joined in operation of almonds farms in USA. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Nov/2013 fiscal term amounted to Yen 15,166 million, a 6% up from Yen 14,279 million in the previous term.  The net profit was posted at Yen 195 million, compared with Yen 63 million a year ago.

 

For the current term ending Nov 2014 the net profit is projected at Yen 210 million, on a 5% rise in turnover, to Yen 15,900 million.

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.

 

 

REGISTRATION

 

      Date Registered:                Aug 1951

Regd No.:                                 1800-01-048408 (Nagoya-Nishiku)

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  480,000 shares

Issued:                         120,000 shares

Sum:                            Yen 60 million

Major shareholders (%): Akihiko Itoh (52.5), Choeiken* (8.3)

                                    *.. Subsidiary restaurant owned by Itoh family

No. of shareholders:    10

 

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

 

 

OPERATION

 

Activities: Imports and wholesales confectionery and baking ingredients: almonds, cashew nuts, macadamia nuts, pistachios, coconuts, hazel nuts, walnuts (--60%), raisins, prunes, fondants, dried pineapples, dried fruits mix, packaging materials, baking & confectionary mfg machinery, others (--40%). 

 

Goods are processed at its factory into various types/sizes: sliced, powdered, extra-fined, seasoned (filled with liqueur, wine, etc), pasted, smashed, etc before shipment to mfrs.  Operates almond farms in Calif, USA.  

 

Clients: [Confectionary/bakeries, wholesalers, food processors], Yamazaki Baking (10%), Fuji Baking, Shikishima Baking, Lotte Co, Juchheim, Otsuka Pharmaceutical, Tivoli Co, Nissin Cisco, Bourbon Corp, Meito Sangyo, Toyota Tsusho Corp, Mitsubishi Corp, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Growers, wholesalers] Blue Diamond Growers, American National Raisin Packing Co, Sun-Maid Growers, other.  Also imports from USA, Italy, India, etc.  Domestically supplied from Mitsubishi Corp, Asahi Denka, Kyowa Hakko Kirin Co, Toshoku Ltd, Miyoshi Oil & Fat, J Oil Mills, Toyota Tsusho Corp, NOF Corp, ADEKA, Oriental Yeast Co, Fuji Oil, Kewpie Corp, other.

(Suppliers number to about 600, according to the firm).

 

Payment record: No Complaints

 

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

 

Bank References:

            Bank of Nagoya (H/O)

            Shoko Chukin Bank (Nagoya)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

30/11/2014

30/11/2013

30/11/2012

30/11/2011

Annual Sales

　

15,900

15,166

14,279

14,490

Recur. Profit

　

　

　

　

237

Net Profit

　

210

195

63

103

Total Assets

　

　

6,681

9,764

9,652

Current Assets

　

　

6,681

6,815

6,722

Current Liabs

　

　

6,267

6,459

6,406

Net Worth

　

　

2,197

2,080

2,017

Capital, Paid-Up

　

　

60

60

60

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

4.84

6.21

-1.46

8.49

    Current Ratio

　

..

106.61

105.51

104.93

    N.Worth Ratio

　

..

32.88

21.30

20.90

    R.Profit/Sales

　

..

..

..

1.64

    N.Profit/Sales

　

1.32

1.29

0.44

0.71

    Return On Equity

　

..

8.88

3.03

5.11

 

Notes: Forecast (or estimated) figures for the 30/11/2014 fiscal term.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.57

UK Pound

1

Rs.100.42

Euro

1

Rs.78.45

 

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%)

 

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.