MIRA INFORM REPORT

 

 

Report No. :

312263

Report Date :

20.03.2015

 

IDENTIFICATION DETAILS

 

Name :

SMILE CORPORATION

 

 

Registered Office :

Shiomi SIF Bldg 4F, 2-8-10 Shiomi Kotoku Tokyo 135-0052

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

Jun 1977

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is engaged in wholesale, import of packaging materials, foods, wine, and clothing.

 

 

No. of Employee :

136

 

 

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

 

Maximum Credit Limit :

YEN 3638.9 Million

 

 

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 and address

 

SMILE CORPORATION

 

REGD NAME:   KK Smile

MAIN OFFICE:  Shiomi SIF Bldg 4F, 2-8-10 Shiomi Kotoku Tokyo 135-0052 JAPAN

                                    Tel: 03-6743-7070     Fax: 03-5677-2302

  

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

E-Mail address:            fags@smilecorp.co.jp

 

 

ACTIVITIES

 

Wholesale, import of packaging materials, foods, wine, clothing.

 

 

BRANCHES

 

Osaka, Sapporo

 

 

OVERSEAS

 

Shanghai (subsidiary)

 

 

OFFICER(S)

 

IZUMI KAWAGUCHI, PRES      Atsushi Ohno, v pres

                        Tokuji Izumi, dir                         Takeshi Tezuka, dir

Kengo Tanaka, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 27,492 M

                                    PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 570 M

                                    TREND             UP                                WORTH            Yen 3,463 M

                                    STARTED         1977                             EMPLOYES      136

 

COMMENT

 

                        IMPORTER & WHOLESALER SPECIALIZING IN PACKAGING MATERIALS,

                        WINE & FOODS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR BUSINESS

ENGAGEMENTS.

 

                        MAX CREDIT LIMIT: YEN 3638.9 MILLION, 30 DAYS NORMAL TERMS

 

HIGHLIGHTS

 

The subject company was established originally as a packaging materials mfg company and in Apr 1995 merged KK Smile (100% owned by Seiyu Ltd), renamed as captioned and expanded business operations to import, export, wholesale of foods, wines, furniture, in addition to food packaging materials.  The subject wholesales packaging materials, including machinery & logistic equipment as a main line.  Also, in large part, designs, develops and manufactures (consigned to subsidiaries) original brand merchandise, in addition to foods, wines, office furniture, tableware, other items.  The office furniture import from Europe, Asia, Turkey.  Clients include supermarkets, chain stores, consumer coops, nationwide, in addition to Seiyu Ltd and group firms.  Strong business ties with Seiyu Ltd and group firms.  In Sept 2011, the firm became under the ownership of Senko Co Ltd (See REGISTRATION).

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2014 fiscal term amounted to Yen 27,492 million, a 3% up from Yen 26,723 million in the previous term,.  The recurring profit was posted at Yen 623 million and the net profit at Yen 376 million, respectively, compared with Yen 787 million recurring profit and Yen 615 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 640 million and the net profit at Yen 385 million, respectively, on a 4% rise in turnover, to Yen 28,500 million.   

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 638.9 million, on 30 days normal terms.

 

 

REGISTRATION

 

            Date Registered:  Jun 1977

            Legal Status:      Limited Company (Kabushiki Kaisha)

            Authorized:        4.6 million shares

            Issued:               3 MILLION shares

            Sum:                  Yen 570.5 million

Major shareholders (%): Senko Co Ltd* (94.9), Employees’ S/Holding Assn (1.9), Yoshiyuki Yagi (0.8), Izumi Kawaguchi (0.8), Atsushi Ohno (0.7)

            No. of shareholders: 12

 

*.. Senko Co Ltd, engaged in transportation of residential materials including those of prefab houses, Osaka, founded 1946, listed Tokyo S/E, capital Yen 20,521 million, sales Yen 333,881 million, operating profit Yen 12,122 million, recurring profit Yen 11,305 million, net profit Yen 6,503 million, total assets Yen 243,594 million, net worth Yen 67,820 million, employees 8,738, pres Yasuhisa Fukuda

 

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

 

 

OPERATION

 

Activities: Import, wholesale of packaging materials (25%): packaging tools, machinery & logistic equipment, others; designs, plans, develops, manufactures (on consignment to subsidiaries): original brand goods (51%); foods (15%): fruits & vegetables, livestock products, fishery products, wines (from France, Spain, Italy, Germany, UK, USA, etc); clothing for men, women, babies & children, clothing accessories, underwear, beddings; European-style office furniture, toasters (from Dualit, UK), tableware, cutlery, other general commodities, others (--9%).  (Breakdowns are all about).

(Import 20%). 

 

Clients: [Supermarkets, wholesalers, chain stores] Seiyu Ltd and group firms, Ryohin Kikaku, Askul Corp, Howay Industry Co Ltd, Ricoh group firms, Canon group firms,  Domino’s Pizza Japan Inc, other.

            No. of accounts: 300

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Shizuoka Sangyo, Maruto Shoji Co, Crown Package,   Sun Echo Engineering, Mitsui Bussan Packaging, Chuo Chemical Ind, Harada, other. 

 

 

            Payment record: No Cmplaints

 

 

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

 

            Bank References:

                        Mizuho Bank (Ikebukuro)

                        MUFG (Nish-Ikebukuro)

                        Relations: Satisfactory

 

 


FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

28,500

27,492

26,723

6,376

Recur. Profit

 

640

623

987

 

Net Profit

 

385

376

615

127

Total Assets

 

 

10,682

11,557

11,311

Current Assets

 

 

9,704

10,704

 

Current Liabs

 

 

6,745

8,041

 

Net Worth

 

 

3,463

3,118

2,605

Capital, Paid-Up

 

 

570

570

570

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

3.67

2.88

4.78

-6.15

    Current Ratio

 

..

143.87

133.12

..

    N.Worth Ratio

 

..

32.42

26.98

23.03

    R.Profit/Sales

 

2.25

2.27

3.69

..

    N.Profit/Sales

 

1.35

1.37

2.30

1.99

    Return On Equity

 

..

10.86

19.72

4.88

 

Notes: The 31/03/2012 fiscal term is for irregular 3 months due to the change in accounting term to Apr/Mar from the previous Jan/Dec.  Growth rates are adjusted on a 12-month basis.

Forecast (or estimated) figures for the 31/03/2015 fiscal term. 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.42

UK Pound

1

Rs.92.99

Euro

1

Rs.67.29

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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%)

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.