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MIRA INFORM REPORT
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Report No. : |
490812 |
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Report Date : |
20.02.2018 |
IDENTIFICATION DETAILS
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Name : |
SOJITZ FOODS CORPORATION |
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Registered Office : |
Roppongi T-Cube Bldg 16F, 3-1-1 Roppongi Minatoku Tokyo 106-0032 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
Jan., 1983 |
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Com. Reg. No.: |
0104-01-058924 (Tokyo-Minatoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import and wholesale of foodstuffs from raw materials to finished
products. |
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No. of Employees : |
253 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Maximum Credit Limit : |
Yen 3,256.2 Million |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II 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 have significantly eroded under the dual pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2017 stood as the fourth-largest economy in the world after first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. For three postwar decades, overall real economic growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which entailed considerable 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.
Japan enjoyed an 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. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the necessity of addressing its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to another recession, so Prime Minister ABE has twice postponed the next increase, now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Japan was the first country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP in January 2017, and in November 2017 the remaining 11 countries agreed on the core elements of a modified agreement, which they renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
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Source
: CIA |
Company
name and address
SOJITZ FOODS CORPORATION
REGD NAME: Sojitz
Shokuryo KK
MAIN OFFICE: Roppongi
T-Cube Bldg 16F, 3-1-1 Roppongi Minatoku Tokyo 106-0032 JAPAN
Tel:
03-5574-3300 Fax: 03-6697-3080
*.. Your given Nissho Iwai Meat & Agriproducts
Corporation was absorbed by the subject in Apr/2010.
URL: http//:www.sojitz-foods.com
E-mail: info@sojitz-foods.com
ACTIVITIES
Import, wholesale
of foodstuffs from raw materials to finished products
BRANCHES
Osaka, Shizuoka,
Shimizu, Nagoya, Sendai, Sapporo, Fukuoka, other
OVERSEAS
Bangkok, China (3)
(--subsidiaries) (Also used the parent’s overseas offices totaling 91 locations
overseas)
FACTORIES
(Subcontracted)
OFFICER(S)
YUZURU KAMIOKA,
PRES Mikio Kitagawa,
dir
Koichi Watanabe,
dir Kazuhiko Inoue, dir
Naoki
Yokoyama, dir
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 138,383 M
PAYMENTS REGULAR CAPITAL Yen 412 M
TREND SLOW WORTH Yen
14,982 M
STARTED 1983 EMPLOYES 253
COMMENT
TRADING FIRM
SPECIALIZING IN FOODSTUFFS, WHOLLY OWNED BY SOJITZ CORP
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS
MAX CREDIT LIMIT:
YEN 3,256.2 MILLION, 30 DAYS NORMAL TERMS
HIGHLIGHTS
The subject company
was established by the then Nissho Iwai Corporation (now Sojitz Corp) as Nissho
Iwai Foods Sales Corp. When the parent
merged with Nichimen Corp in Apr 2003 to become Sojitz Corporation (See REGISTRATION), the subject renamed as captioned. In Apr 2005,
absorbed part of foods operations of the parent. This is a trading firm specializing in import
and wholesale of foodstuffs from raw materials to finished products (see OPERATION). Processed/finished foods are imported mainly from S/E Asia. Clients include bakeries, food processors,
chain stores, other, nationwide.
FINANCIAL
INFORMATION
The sales volume for Mar/2017 fiscal term amounted to Yen 138,383 million, a 12% fall from Yen 157,354 million in the previous term. The recurring profit was posted at Yen 2.611 million and the net profit at Yen 1,781 million, respectively, compared with Yen 2,498 million recurring profit and Yen 1,698 million net profit, respectively, a year ago.
For the current term ending Mar 2018 the recurring profit is projected at Yen 22,700 million and the net profit at Yen 1,800 million, respectively, on a 3% rise in turnover, to Yen 142,540 million.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 3,256.2 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Jan 1983
Regd
No.: 0104-01-058924 (Tokyo-Minatoku)
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized: 3 million shares
Issued: 824,000 shares
Sum:
Yen 412 million
Major
shareholders (%): Sojitz Corporation* (100)
* Sixth-ranked
general trading house, born by the merger of former Nissho Iwai Corp & Nichimen
Corp in 2003, listed Tokyo S/E, capital Yen 160,339 million, sales Yen
1,555,349 million, operating profit Yen 51.618 million, recurring profit Yen
57,955 million, net profit Yen 40,760 million, total assets Yen 2,322,301
million, net worth Yen 579,123 million, employees 16,998, pres Masayoshi
Fujimoto
Nothing detrimental is known as to the
commercial morality of executives.
OPERATION
Activities: Imports and
wholesales a wide range of foodstuffs: livestock (40%), foods (20%), sugar,
sugar products (20%), others (20%)
(Handling items): sugar,
glycosylate, wheat flour, grains, oil & fats, dairy foods, starch, rice,
fruits & vegetables (fresh & dried), meat & livestock products,
fish & marine products, processed foods, confectionery & grocery, spices,
canned foods, frozen foods, health foods, teas, coffee, food additives, beers,
whiskies, feeds, fertilizers, other.
Clients: [Food
processors, chain stores, wholesalers] Lotteria, Green House Foods, Zensho
Holdings, CGC Japan, Nitto Best Corp, Hinode Tsusho, Ito Ham Foods Inc, other
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Sojitz Corp (20%), Mitsui Sugar, Fuji Nihon Seito, Hokuren
Federation of Agricultural Coops, Zen-Noh, Nestle Japan, Nichirei Fresh, J-Oil
Mills, Nihon Denpun, Nippon Flour Mills, Showa Sangyo, Kato Kagaku, Nippon Meat
Packers, other
Payment
record: Regular
Location: Business area in Tokyo. Office premises at the caption address are leased
and maintained satisfactorily.
Bank
References:
MUFG
(Tokyo)
Mizuho
Bank (Uchisaiwaicho)
Relations:
Satisfactory
FINANCES
(In
Million Yen)
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Terms Ending: |
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31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual
Sales |
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142,540 |
138,383 |
157,354 |
159,319 |
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Recur.
Profit |
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2,700 |
2,611 |
2,498 |
2,512 |
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Net
Profit |
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1,800 |
1,781 |
1,698 |
1,370 |
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Total
Assets |
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38,257 |
40,134 |
51,555 |
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Net
Worth |
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14,982 |
13,720 |
13,992 |
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Capital,
Paid-Up |
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412 |
412 |
412 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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3.00 |
-12.06 |
-1.23 |
4.36 |
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Current Ratio |
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.. |
.. |
.. |
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N.Worth Ratio |
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39.16 |
34.19 |
27.14 |
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N.Profit/Sales |
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1.26 |
1.29 |
1.08 |
0.86 |
Notes: Forecast (or estimated) figures for the
31/03/2018 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.91 |
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1 |
INR 90.31 |
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Euro |
1 |
INR 80.71 |
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Yen |
1 |
INR 0.60 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIS |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.