MIRA INFORM REPORT

 

 

Report No. :

329965

Report Date :

02.07.2015

 

IDENTIFICATION DETAILS

 

Name :

TAKASAGO INTERNATIONAL CORPORATION

 

 

Registered Office :

Nissei Aroma Square 17F, 5-37-1 Kamata Otaku Tokyo 144-8721

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

February 1951

 

 

Com. Reg. No.:

0108-01-006894

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of flavors, fragrances, aroma chemicals, fine chemicals

 

 

No of Employees :

3,136

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

YEN 3,558.8 MILLION

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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 four times since 2008. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 2014 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. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

 

Company name

 

TAKASAGO INTERNATIONAL CORPORATION

 

 

REGD NAME

 

Takasago Koryo Kogyo KK

 

 

MAIN OFFICE

 

Nissei Aroma Square 17F, 5-37-1 Kamata Otaku Tokyo 144-8721 JAPAN

Tel: 03-5744-0511     Fax: 03-5744-0512     -

 

URL:                 http://www.takasago.com

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of flavors, fragrances, aroma chemicals, fine chemicals

 

 

BRANCHES   

 

Osaka, Nagoya, Fukuoka, other (Tot 8)

 

 

OVERSEAS   

 

Asia/Pacific, Americas, Europe, Middle East, Africa, other (Tot 28 subsidiaries)

 

 

FACTORIES

 

Hiratsuka, Shizuoka, Ibaraki (2) (Domestic 4); worldwide (20)

 

 

CHIEF EXEC 

 

SATOSHI MASUMURA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 131,653 M

PAYMENTS      REGULAR         CAPITAL           Yen 9,248 M

TREND UP                    WORTH            Yen 80,050 M

STARTED         1951                 EMPLOYES      3,136

 

 

COMMENT    

 

MFR OF SPICES, FRAGRANCES, FINE CHEMICALS, OTHER 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 3,558.8 MILLION, 30 DAYS NORMAL TERMS

                       

                        Unit: In Million Yen

Forecast figures for the 31/10/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is the largest producer of fragrance in Japan and among major players in the world.  Engaged in fragrances for perfumes, cosmetics; food flavorings for soft drinks, confectionery; and aromatic fine chemicals, including menthol and pharmaceutical intermediates.  Operating under worldwide production system.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 131,653 million, a 0.5% up from Yen 131,036 million in the previous term.  The recurring profit was posted at Yen 3,893 million and the net profit at Yen 2,549 million, respectively, compared with Yen 5,940 million recurring profit and Yen 3,025 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 3,300 million and the net profit at Yen 2,600 million, respectively, on a 7.9% rise in turnover, to Yen 142,000 million.    

 

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 3,558.8 million, on 30 days normal terms.

 

 

 

REGISTRATION

           

      Date Registered:　            Feb 1951

     Regd No.:                            0108-01-006894 (Tokyo-Otaku)

Legal Status:               Limited Company (Kabushiki Kaisha

Authorized:                              300 million shares

Issued:                         100,761,988 shares

Sum:                            Yen 9,248 million

 

Major shareholders (%): Japan Trustee Services Bank (11.9), Nippon Life Ins (7.7), MUFG (4.7), Credit Suisse Sec Euro PB Omnibus (4.5), Kyoei Fire & Marine Ins (3.7), Nakae Sangyo (3.5), Master Trust Bank of Japan (3.2), Mizuho Bank (3.0), Kiyo Bank (2.3), Employees’ S/Holding Assn (2.0); foreign owners (15.5)

 

No. of shareholders: 4,733

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Satoshi Masumura, pres; Haruo Nakanishi, v pres; Yoshiaki Suda, s/mgn dir; Hiroyuki Matsumoto, mgn dir; Masayuki Mita, mgn dir; Hironori Kasamatsu, mgn dir; Takashi Matsuo, mgn dir; Hisaya Fujiwara, mgn dir

 

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

 

Related companies: Takasago International Corporation, other.

 

 

OPERATION

           

Activities: Manufactures: flavorings (60%), fragrances (25%), aroma chemicals (8%), fine chemicals (6%), others (1%)

Overseas Sales Ratio (47%)

           

Clients: [Mfrs, wholesalers] Takasago International Corp, Lion Corp, Kao Corp, Fuji

Flavor, Morinaga Milk Ind, other  

              No. of accounts: 500

              Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Takasago Chemical, Takasago Food Products, Mitsubishi Corp, Takasago Coffee,

 Iwata Bussan, other

Payment record: Regular

 

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

 

Bank References:

                        MUFG (Yaesudori)

                        Mizuho Bank (Yaesuguchi)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

 

　

　

  Annual Sales

　

131,653

131,036

　

  Cost of Sales

91,036

91,460

　

      GROSS PROFIT

40,616

39,576

　

  Selling & Adm Costs

37,471

34,171

　

      OPERATING PROFIT

3,144

5,404

　

  Non-Operating P/L

749

536

　

      RECURRING PROFIT

3,893

5,940

　

      NET PROFIT

2,549

3,025

BALANCE SHEET

 

 

　

　

  Cash

　

19,247

15,632

　

  Receivables

 

28,736

28,759

　

  Inventory

 

36,341

34,144

　

  Securities, Marketable

　

　

　

  Other Current Assets

4,316

3,978

　

      TOTAL CURRENT ASSETS

88,640

82,513

　

  Property & Equipment

56,044

45,692

　

  Intangibles

 

1,837

2,193

　

  Investments, Other Fixed Assets

24,124

18,955

　

      TOTAL ASSETS

170,645

149,353

　

  Payables

 

12,947

11,706

　

  Short-Term Bank Loans

24,480

22,735

　

　

 

　

　

　

  Other Current Liabs

19,049

15,332

　

      TOTAL CURRENT LIABS

56,476

49,773

　

  Debentures

 

1,320

1,660

　

  Long-Term Bank Loans

21,667

17,071

　

  Reserve for Retirement Allw

5,750

6,414

　

  Other Debts

　

5,382

3,323

　

      TOTAL LIABILITIES

90,595

78,241

　

      MINORITY INTERESTS

 

　

　

Common stock

9,248

9,248

　

Additional paid-in capital

8,357

8,357

　

Retained earnings

47,334

45,777

　

Evaluation p/l on investments/securities

11,186

6,996

　

Others

 

4,544

1,349

　

Treasury stock, at cost

(619)

(616)

　

      TOTAL S/HOLDERS` EQUITY

80,050

71,111

　

      TOTAL EQUITIES

170,645

149,353

CONSOLIDATED CASH FLOWS

 

　

　

 

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

10,124

7,537

　

Cash Flows from Investment Activities

-13,649

-11,544

　

Cash Flows from Financing Activities

6,446

5,077

　

Cash, Bank Deposits at the Term End

　

19,247

15,632

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

 

Net Worth (S/Holders' Equity)

80,050

71,111

　

 

Current Ratio (%)

156.95

165.78

　

 

Net Worth Ratio (%)

46.91

47.61

　

 

Recurring Profit Ratio (%)

2.96

4.53

　

 

Net Profit Ratio (%)

1.94

2.31

　

　

Return On Equity (%)

3.18

4.25

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 63.62

UK Pound

1

Rs. 99.89

Euro

1

Rs. 70.77

 

INFORMATION DETAILS

 

Analysis Done by :

SAN

 

 

Report Prepared by :

ASH

 

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.