MIRA INFORM REPORT

 

 

Report No. :

333279

Report Date :

23.07.2015

           

IDENTIFICATION DETAILS

 

Name :

LUPICIA CO LTD

 

 

Registered Office :

Daikan’yama Hamada Bldg, 8-13 Daikan’yamacho Shibuyaku Tokyo 150-0034

 

 

Country :

Japan

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

August, 1994

 

 

Com. Reg. No.:

0110-01-027990

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Imports, retails and wholesales teas: black teas, green teas, oolong teas, flavored teas, herbal teas, others (--100%).

 

 

No. of Employee :

280

 

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 – 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

 

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 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 and address

 

LUPICIA CO LTD

REGD NAME:   KK Lupicia

MAIN OFFICE:  Daikan’yama Hamada Bldg, 8-13 Daikan’yamacho Shibuyaku Tokyo 150-0034 JAPAN

Tel: 03-5428-5551     Fax: 03-5428-5715

 

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

E-Mail address: info@lupicia.co.jp

 

 

ACTIVITIES

 

Import, processing, retail, wholesale of teas

 

 

SHOPS

 

120 stores, including franchisees, nationwide from Hokkaido down to Kyushu

 

 

OVERSEAS

 

USA, Taiwan, Australia, Singapore, Paris (--stores)

 

 

FACTORIES

 

Tochigi, Shiga (blending, sorting, packaging, etc)

 

 

OFFICER(S)

 

HIROKI MIZUKUCHI, PRES        Masayoshi Mizukuchi, ch

Akira Itoh, v pres                       Yoko Niina, dir

Akihide Nakai, mgn dir               Kaori Morishige, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY          

 

FINANCES        FAIR                             A/SALES          Yen 9,005 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 217 M

TREND             STEADY                       WORTH            Yen 3,614 M

STARTED         1994                             EMPLOYES      280

 

 

COMMENT

 

IMPORTER AND RETAILER OF TEAS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established by Masaki Mizukuchi in order to make most of his experience in the subject line of business.  Hiroki is the founder’s son, who took the pres office in Aug 2001.  This is a retailer of teas, operating 120 stores, including franchisees, nationwide, and 5 stores overseas.  The firm increased the capital to Yen 217.35 million in Apr 2014.  Teas are imported from India, Sri Lanka, China, Africa, Germany, France, Italy, Kenya, other.  Teas are blended, sorted, and packaged at the own factory (Tochigi & Shiga).  Goods are also wholesaled.  Operates Lupicia tea school.

 

 

FINANCIAL INFORMATION

 

The sales volume for Jun/2014 fiscal term amounted to Yen 9,005 million, a 3% up from Yen 8,723 million in the previous term.  Tea drinkers are increasing, particularly from health benefits.  The recurring profit was posted at Yen 536 million and the net profit at Yen 268 million, respectively, compared with Yen 549 million recurring profit and Yen 260 million net profit, respectively, a year ago.

 

For the term that ended Jun 2015 the recurring profit was projected at Yen 545 million and the net profit at Yen 275 million, respectively, on a 3% rise in turnover, to Yen 9,250 million.  Final results are yet to be released.

 

Financial situation is considered FAIR and good for ORDINARY business engagements.

 

 

REGISTRATION

 

Date Registered:           Aug 1994

Regd No.:                     0110-01-027990 (Tokyo-Shibuyaku)

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                   173880 shares

Issued:                         43,470 shares

Sum:                            Yen 217,352,000

Major shareholders (%): Lupicia Holdings (33), Masaki Mizukuchi (15), Hiroyoshi Mizukuchi (15), Employees’

S/Holding Assn (13)

No. of shareholders:      20

 

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

 

 

OPERATION

 

Activities: Imports, retails and wholesales teas: black teas, green teas, oolong teas, flavored teas, herbal teas, others (--100%).

 

(Retail 70%; wholesale 30%).

 

Clients: [Consumers, restaurants, chain stores] Individual consumers (70%) Lupicia On

Line (17%), Lupicia Trading, Skylark, Itoham Foods Inc, Chiyoda, 21 Seiki Group, Lupicia Gourmand Co, Lupicia Taipei, other.

No. of accounts: 300

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Imports from Hario, Lupicia Taiwan, other from India, Sri               China, Africa, Germany, France, Italy, Kenya, etc.

Domestically from Tosco Trading Inc, Ogawa & Co, Kawaguchi Can, Lupicia Taipei, Mistake Farm, Hiranoya Bussan Co, Marushichi Suzuki Shoten, other.

 

Payment record: No Complaints

 

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

 

Bank References:

Resona Bank (Shibuya)

Mizuho Bank (Shinjuku)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

30/06/2015

30/06/2014

30/06/2013

30/06/2012

Annual Sales

 

9,250

9,005

8,723

8,091

Recur. Profit

 

545

536

549

205

Net Profit

 

275

268

260

137

Total Assets

 

 

8,484

8,340

7,578

Current Assets

 

 

3,456

3,280

3,230

Current Liabs

 

 

2,380

2,399

4,347

Net Worth

 

 

3,614

3,346

2,545

Capital, Paid-Up

 

 

217

217

30

Div.Ttl in Million (¥)

 

 

0.00

0.00

32.8

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

2.72

3.23

7.81

14.18

    Current Ratio

 

..

145.21

136.72

74.30

    N.Worth Ratio

 

..

42.60

40.12

33.58

    R.Profit/Sales

 

5.89

5.95

6.29

2.53

    N.Profit/Sales

 

2.97

2.98

2.98

1.69

    Return On Equity

 

..

7.42

7.77

5.38

 

Notes: Forecast (or estimated) figures for the 30/06/2015 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.53

UK Pound

1

Rs.99.19

Euro

1

Rs.69.60

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

SDA

 

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.