MIRA INFORM REPORT

 

 

Report No. :

318765

Report Date :

23.04.2015

 

IDENTIFICATION DETAILS

 

Name :

CARGILL JAPAN LTD.

 

 

Registered Office :

Kokusai Bldg., 3-1-1, Marunouchi, Chiyoda-ku, Tokyo 100-0005

 

 

Country :

Japan

 

 

Financials (as on) :

31.05.2014

 

 

Date of Incorporation :

16.11.1946

 

 

Com. Reg. No.:

0100-01-034873

 

 

Legal Form :

Private Company

 

 

Line of Business :

Trading of foods and foodstuffs.

 

 

No of Employees :

307

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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

 

CARGILL JAPAN LTD.

 

 

OUTLINE

 

Country:                                    Japan

Company name:                        CARGILL JAPAN LTD.

Name in local language:             CARGILL JAPAN, K.K. 

Office address:                         Kokusai Bldg., 3-1-1, Marunouchi, Chiyoda-ku, Tokyo 100-0005

Office tel:                                  03-3285-0800

Website:                                   www.cargill.co.jp

Business type:                          Trader 

Industry:                                   Food and foodstuffs

Established:                              November 16, 1946

Capital:                                     Jp. 2,800,000,000 yen

Employees:                              307

Corporate formation:                 Private

Corporation No.:                       0100-01-034873 (Tokyo Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

Paid in capital :                         Jp. 2,800,000,000 yen

Number of authorized shares :   200,000 shares

Shares issued :                         62,405 shares

Number of shareholder :                        2

 

Name of shareholders                          Number of shares (%)

--------------------------------------------------------------------------------------------

Cargill Asia Pacific Ltd.                         50,000 shares (80.12)

Cargill, Inc.(USA)                                   12,405 shares (19.88)

---------------------------------------------------------------------------------------------

Total                                                     62,405 shares (100.0)

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

Activity                         Product/Service Description

-------------------------------------------------------------------------------

Trading                                     Foods

Trading                                     Foodstuffs

 

 

COMPANY MANAGEMENT

 

President                                  Mr. Hiroto Sasaki (*)

Nationality:                                Japan

 

Managing Director                     Mr. Anri Hamatani (*)

Nationality:                                Japan

 

Director                                    Mr. Tatsuo Ishii

Nationality:                                Japan

 

Director                                    Mr. Miyoji Saito

Nationality:                                Japan

 

Auditor                                     Mr. Kenichi Nagaya

Nationality:                                Japan

 

Note: The names of director(s) and auditor(s) are phonetically spelt.

      (*) = representative directors

 

 

*Key Personnel*

==============

Mr. Hiroto Sasaki

President and representative director

Home address: 2-2-23, Oyamadai, Setagaya-ku, Tokyo 158-0086

 

 

FINANCIALS

 

Currency: (local currency - Jp. yen)

-------------------------------------------------------------------------------------

 Year |          Sales                     |      Net Income    

-------------------------------------------------------------------------------------

2009

234,591,000,000

4,685,000,000

2010

176,572,000,000

1,699,000,000

2011

173,586,000,000

4,927,000,000

2012

182,278,000,000

1,800,000,000

2013

178,721,000,000

3,796,000,000

2014

164,019,000,000

1,208,000,000

 

 

FINANCIAL DESCRIPTION

 

*Book Closing*

============

May 31st

 

 

*Financials*

==========

Balance Sheet

Unit: millions of JP yen

                           

5/31/2012

5/31/2013

5/31/2014

Current assets  

96,031

105,589

102,869

Fixed assets           

24,495

13,045

12,882

 Tangible assets      

272

199

179

 Intangible assets    

20

11

10

 Investments & others  

24,203

12,835

12,693

Total Assets       

120,526

118,634

115,751

　

　

　

　

Current liabilities     

31,995

34,478

30,193

Fixed liabilities      

341

433

383

Shareholders' equity    

87,807

82,802

84,010

 Paid up capital      

2,800

2,800

2,800

 Retained earnings    

85,007

80,002

81,210

Valuation & adjustment 

383

921

1,165

Total Net Assets       

88,190

83,723

85,175

Total Liabilities & Net Assets      

120,529

118,634

115,751

Income Statement

Unit : millions of JP yen

                          

5/31/2012

5/31/2013

5/31/2014

Sales          

182,278

178,721

164,019

Cost of goods sold      

172,742

170,760

156,948

Gross profit(loss)    

9,536

7,961

7,071

Sales/administrative expenses  

6,217

5,751

5,800

Operating profit(loss)    

3,319

2,210

1,271

Non operating income        

386

3,718

1,026

Non operating expenses       

4

6

1

Ordinary profit(loss)      

3,701

5,922

2,296

Special profits                

7

240

32

Special losses             

368

13

3

Pretax profit                

3,340

6,149

2,325

Taxes & adjustment           

1,539

2,354

1,117

Net profit      

1,801

3,795

1,208

 

 

*Bank Details*

============

Bank Name :     Sumitomo Mitsui Banking Corp.

Branch :            Nihonbashi

 

Bank Name :     J.P. Morgan Bank, Corp.

Branch :            Tokyo

 

Bank Name :     Bank of Tokyo-Mitsubishi UFJ, Ltd.

Branch :            Hibiya

 

 

*Credit Opinion*

=============

The subject is a Tokyo-based subsidiary of Cargill Group.

 

The ultimate parent corporation, Cargill, Inc., was founded in 1865 in Minnesota, USA, and now one of the grain major companies, of which sales is US$ 134,872 million and Net Income; US$ 1,870 million for May 2014 term.

 

As for the subject itself a steady performance has been maintained for years.

 

Negative factors are not observed in particular at present thought a weaker currency may be against for imported foods and materials.

 

 

LOCAL BRANCHES & MANAGEMENT

 

Branch name:                Kansai branch

Branch address:            Isogami-dori, Chuo-ku, Kobe-shi

----------------------------------------------------------------------------------------------------

 

Four overseas branches are in London(UK), Bangkok(Thailand),Vancouver(Canada) and Winnipeg(Canada)

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

 

*Main Products & Services*

======================

Trading of foods and foodstuffs.

Its business is being conducted by the following four segments:

-       Food materials

-       Processed foods

-       Food engineering

-       Eggs and meats

 

 

ORGANIZATION STRUCTURE

 

*Address*

=========

Registered address is the same as the operational address.

 

 

*Company History*

================

Date                             Development

-----------------------------------------------------------------------------------------------

November 16, 1946       Incorporated under the name of “Tokyo Shokuhin(Foods) Co., Ltd.” as

a member of Mitsui Group.

May 1949                      Public listed on the TSE.

1956                             Cargill Japan Ltd. was founded by Cargill, Inc.(USA)

1961                             Renamed as “Toshoku Co., Ltd.”

December 18, 1997       Filed a protection of assets with the Tokyo District Court under the

business rehabilitation law. The debt amount was JPY 639.7 billion.

March 1998                   Unlisted from the TSE.

November 1998             Business rehabilitation program started, backed by Cargill Japan Ltd.

2000                                         Relocated the head office to the current address.

February 2004               Completed the rehabilitation.

June 2007                     Merged with Cargill Japan Ltd. and was renamed as the current name

of “Cargill Japan Ltd.”

 

 

TRADE REFERENCES

 

*Suppliers*

==========

Cargill Group companies worldwide

Nisshin Seifun Group Inc.

Tokuyama Corporation

J-Oil Mills, Inc.

Mitsui Sugar Co., Ltd.

Tsuji Seiyu Co., Ltd.

 

 

*Customers*

==========

The Ministry of Agriculture and Forestry

Kewpie Corporation

Nichiwa Sangyo Co., Ltd.

Ito-en Co., Ltd.

Meiji Co., Ltd.

Showa Sangyo Co., Ltd.

Nippon Corn Starch Co., Ltd.

Sanwa Denpun Kogyo Co., Ltd.

Nisshin OiliO Group Ltd.

 

 

SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

 

Company name:            Kenmin Shokuhin Co., Ltd.

Country:                        Japan

Status:                                      Subsidiary   

----------------------------------------------------------------------------------------------------

Company name:            Tokyo Shokuryo Co., Ltd.

Country:                        Japan

Status:                                      Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            Nippon Tank Terminal Co., Ltd.

Country:                        Japan

Status:                                      Subsidiary  

----------------------------------------------------------------------------------------------------

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.82

UK Pound

1

Rs.93.85

Euro

1

Rs.67.59

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

TPT

 

               


 

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.