MIRA INFORM REPORT

 

 

Report No. :

298734

Report Date :

05.01.2015

 

IDENTIFICATION DETAILS

 

Name :

TFB FACTORIES LTD. 

 

 

Registered Office :

ERVIC Ningo-cho 2F., 1-2-5, Nihonbashi-ningyo-cho, Chuo-ku, Tokyo 103-0013

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

28.05.1999

 

 

Com. Reg. No.:

0100-01-064668 (Tokyo)

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

·         Engaged in Sales & Marketing for Imported Petfoods

Engaged in Manufacturing for Pet Treats

Engaged in Import & Distribution for Live Tropical Fish

Engaged as Exporter for Petfoods

Engaged in Import & sales for Processed Food Product

 

 

No of Employees :

20

 


 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

US$ 15,000

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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

 

TFB FACTORIES LTD.

 

 

Company OUTLINE

 

Company name:            TFB FACTORIES LTD.

Name in local language: TFB FACTORIES K.K.

Office address:              ERVIC Ningo-cho 2F., 1-2-5, Nihonbashi-ningyo-cho, Chuo-ku,

Tokyo 103-0013

Country:                        Japan

Office tel:                                  03-5651-1779

Office fax:                      03-5651-1789

Website:                       www.tfb-co.jp 

Business type:              Trader/Manufacturer 

Industry:                       Pet food, aquarium fish, food products

Established:                  May 28, 1999

Capital:                                     Jp. 282,000,000 yen

Employees:                   20

Corporate formation:       Private Limited Company

Corporation No.:             0100-01-064668 (Tokyo Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

Paid in capital :                          Jp. 282,000,000 yen

Number of authorized shares :     15,000 shares

Shares issued :                         4,978 shares

Number of shareholder :              2

 

Name of shareholders                                         Number of shares (%)

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

Bush’s Pet Foods Pty. Ltd. (Australia)                             n. a.

Nippon Pet Food K.K.                                                    n. a.

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

Activity                          Product/Service Description

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

Trading                          Pet food and food products

Trading                          Aquarium fish

Manufacturing                Pet food

 

 

COMPANY MANAGEMENT

 

President                      Mr. Hisashi Takahashi

Nationality:                    Japan

 

Chairman                      Mr. Takashi Asai

Nationality:                    Japan

 

Director                         Mr. Naoki Tachibana

Nationality:                    Japan

 

Director                         Mr. Toru Tsuchiya

Nationality:                    Japan

 

 

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

 

*Key Personnel*

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

Mr. Hisashi Takahashi

President and representative director

Born on October 18, 1968

Home address: 4-21-5, Shibamata, Katsushika-ku, Tokyo 125-0052

 

 

FINANCIALS

 

Currency: (local currency - Jp. yen)

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

 Year |         Sales            |       Net Income    

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

2008

4,480,000,000

97,190,000

2009

5,000,000,000

70,000,000

2010

3,628,000,000

n. a.

2011

3,500,000,000

n. a.

2012

3,500,000,000

loss 464,475,000

2013

3,500,000,000

n. a.

 


FINANCIAL DESCRIPTION

 

*Book Closing*

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

September 30th

 

*Financials*

==========

As a private limited company, no official financial statement is required to be disclosed publicly.

 

Available financial statement is B/S for 2012 only.

 

Balance Sheet

 

Unit: thousands of JP yen

 

                          

9/30/2012

Current Assets  

636,433 

Fixed assets           

820,712 

Total Assets       

1,457,145 

 

 

 

 

Current liabilities     

869,234 

Fixed liabilities      

538,692 

Shareholders' equity    

49,219 

 Paid up capital      

318,200 

 Capital reserves      

54,200 

 Retained earnings    

-307,505 

 Treasury stock        

-15,676 

Total Liabilities & Net Assets     

1,457,145 

 

 

*Bank Details*

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

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

Branch :            Nihonbashi-chuo

 

Bank Name :     Bank of Yokohama, Ltd.

Branch :            Tokyo

 

Bank Name :     Chiba Bank, Ltd.

Branch :            Fukagawa

 


*Credit Opinion*

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

The subject is a Tokyo-based joint venture between Bush’s Pet Foods Pty. Ltd. and Nippon Pet Food K.K., of which breakdown of the shareholding is not disclosed.

 

The profile of the Japanese parent is as follows:

 

Address: Tennouzu First Tower 5F., 2-2-4, Higashi-shinagawa, Shinagawa-ku, Tokyo

Date of foundation: December 24, 1963

Capital paid-in: JPY100 million

President: Mr. Naoki Miyahara

 

Nippon Pet Food K.K. was originally founded with the business assets of Kyodo Shiryo Co., Ltd., which used to be a public listed company, now a subsidiary of Feed One Holdings Co., Ltd.(#2060) as of October 2014.

 

As for the performance of the subject, a huge amount of loss was posted for Sep. 2012 term.

 

Other recent net income data have not been disclosed. The retained losses have not been recovered yet since then.

 

It would be advisable to research the financial status of Australian parent to make sure who it is.

 

Our standard suggestion would be up to US$ 15,000 on terms of 90 days.

 

 

LOCAL BRANCHES & MANAGEMENT

 

Branch name:                Osaka branch

Branch address:            4F, 17-1, Enoki-cho, Suita-shi, Osaka pref.

Branch tel:                    06-6310-9760

Branch fax:                    06-6310-9761

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

Branch name:                Direct shop

Branch address:            1777-1, Oshitate, Inaki-shi, Tokyo

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

 

*Main Products & Services*

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

·         Engaged in Sales & Marketing for Imported Petfoods

Engaged in Manufacturing for Pet Treats

Engaged in Import & Distribution for Live Tropical Fish

Engaged as Exporter for Petfoods

Engaged in Import & sales for processed food product

 

FACTORY FACILITIES & MANUFACTURING CAPABILITIES

 

Toyama plant: 1046, Nishi-takagi, Imizu-shi, Toyama pref.

 

Kobe distribution center: 2F, 4-1-1, Yasaka-dai, Suma-ku, Kobe-shi, Hyogo

 

 

ORGANIZATION STRUCTURE

 

*Address*

=========

Registered address is the same as the operational address.

 

The quoted address is for Kobe distribution center.

 

*Company History*

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

Date                 Development

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

May 28, 1999                Incorporated under the name of “Tokyo Food Boeki Ltd.” with an

investment of JPY 20 million as a joint venture between Bush’s Pet

Foods Pty., Ltd. (Australia) and Nippon Pet Food K.K.

2001                             Increased the capital to JPY 24 million.

2003                             Increased the capital to JPY 52 million.

                                                Started importing pet foods from China.

2005                             Founded a joint venture with a Chinese firm.

                                                Started importing coffee and coffee beans.

2006                             Started a retail business.

2007                             Increased the capital to JPY 68 million.

December 2008             Took the current company name.

2009                             Merged a subsidiary, “Good Ream Ltd.”

May 2009                      Increased the capital to JPY 100 million.

September 2009            Increased the capital to JPY 282 million.

                                                Capital association with “APB JUNAX Pty. Ltd.” in Australia.

2010                             Founded a joint venture in Thailand.

2011                             Started a joint venture in Indonesia.

September 2012            Increased the capital to JPY 318.2 million.

August 2013                  Decreased the capital to JPY 282 million.

 

 

TRADE REFERENCES

 

*Suppliers*

==========

APB JUNAX Pty. Ltd.

Dalian Zhongliang Livestock & Poultry Co., Ltd.

Kurose Pet Food Co., Ltd.

Nakamura Sogyo Co., Ltd.

R.S. Cannery Co., Ltd.

 

*Customers*

==========

Nippon Pet Food K.K.

Cainz Corp.

Joyful Honda Corp.

Doggy Man Hayashi Inc.

Yamahisa Corp.

 

 

SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

 

Company name:            APB JUNAX PTY LTD

Country:                        Australia

Status:                         Affiliate

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

Company name:            Dalian Zhongliang Livestock & Poultry Co., Ltd.

Country:                        China

Status:                          Affiliate

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

Company name:            RS CANNERY CO LTD

Country:                        Thailand

Status:                         Affiliate

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

Company name:            PT JATI PETFOOD

Country:                        Indonesia

Status:                          Affiliate

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

Company name:            Japan Pet Communications Co., Ltd.

Country:                        Japan

Status:                          Affiliate


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.29

UK Pound

1

Rs.98.39

Euro

1

Rs.76.31

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

MNL

 

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.