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MIRA INFORM REPORT
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Report No. : |
486982 |
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Report Date : |
19.01.2018 |
IDENTIFICATION DETAILS
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Name : |
KONISHI BREWING CO LTD |
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Registered Office : |
2-13 Higashi-Arioka Itami Hyogo-Pref 664-0845 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
May 1933 |
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Com. Reg. No.: |
1400-01-078332 (Hyogo-Itami) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Brewing of Sake (Rice Wine); Import, Wholesale of Wines, Beers |
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No. of Employees : |
112 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Maximum Credit Limit : |
Yen 2.2 Million |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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 (30.06.2017) |
Current Rating (30.09.2017) |
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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 2016 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 second country to ratify the TPP in December
2016; the United States signaled its withdrawal from the TPP on January 23,
2017, and as of April 2017 the agreement has not gone into effect.
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Source
: CIA |
Company
name & address
KONISHI BREWING CO LTD
REGD NAME: Konishi
Shuzo KK
MAIN OFFICE: 2-13
Higashi-Arioka Itami Hyogo-Pref 664-0845 JAPAN
Tel:
072-775-0524 Fax: 072-775-1894
URL: http//:www.konishi.co.jp
E-mail: (thru the URL)
ACTIVITIES: Brewing
of sake (rice wine); import, wholesale of wines, beers
BRANCHES: Tokyo,
Nagoya, Itami, Sapporo, Fukuoka
OVERSEAS: USA,
Australia (--subsidiaries)
FACTORIES: At
the caption address, Hiroshima (subsidiary); Australia (sake brewing)
OFFICER(S): SHINTARO
KONISHI, PRES Fumio Yamano, mgn dir
Akio Shoji, dir Tokuhiro
Yamamura, dir
Iwao Tsuji, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES R/WEAK A/SALES Yen 4.085 M
PAYMENTS SLOW BUT CORRECT CAPITAL Yen
100 M
TREND SLOW WORTH Yen 24 M
STARTED 1933 EMPLOYES 112
COMMENT: BREWERY OF SAKE FINANCIAL SITUATION CONSIDERED RATJER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS MAX CREDIT LIMIT: YEN 2.2 MILLION, 30 DAYS NORMAL TERMS
HIGHLIGHTS
The subject company was founded originally in 1550 by Shin’emon Konishi, on his account for making sake (rice wine), and was incorporated in 1933 as an independent entity. This is a specialized brewer of sake (of a well-known “Shirayuki” brand), wine, shochu (liquor), vegetable pickles, other (See OPERATION). Also imports wines & beer from Belgium, France, USA, other. Operates 2 restaurants and shops. Has a sake brewing factory in Australia. Sake is exported. In 1974 established a JV in New York. In 1987, began trading with French wine company Unexpa Vins; in 1988 began trading with Sonoma Valley wins, a Californian company; in November began importing beers from Belgium. In 1996, completed a sake making facility in Australia. Clients include major food makers, liquor shops, other, nationwide.
FINANCIAL
INFORMATION
The sales volume for Mar/2017 fiscal term amounted to Yen 4,085 million, a 7% down from Yen 4,410 million in the previous term. The operations continued in the red to post Yen 136 recurring loss and Yen 147 million net losses, respectively, compared with Yen 1 million recurring profit and Yen 50 million net losses, respectively, a year ago. .
For the current term ending Mar/2018 the recurring profit is projected at Yen 10 million and the net profit at Yen 5 million, respectively, on a 3% rise in turnover, to Yen 4,210 million.
The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements. Max credit limit is estimated at Yen 2.2 million, on 30 days normal terms.
REGISTRATION
Date Registered: May 1933
Regd No.:
1400-01-078332
(Hyogo-Itami)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized:
8 million
shares
Issued: 2
million shares
Sum: Yen
100 million
Major
shareholders (%): Shin’emon Konishi (39),
Shintaro Konishi (20), other
No. of shareholders: 93
Nothing detrimental is known as to the
commercial morality of executives.
OPERATION
Activities: Brews sake of “Shirayuki” brand, shochu (Ume liquid, fruit liquid), Konishi wines (60%); imports and wholesales beer, wines, operates 2 restaurants and liquor shops, real-estate managements, others (--40%).
Clients: [Mfrs, wholesalers] Kokubu Group Hosha, Nihon Shurui Hanbai Co, Mitsui Foods, Meidi-Ya, Izmic Corp, Mitsubishi Shokuhin Co, Yatani Shuhan Co, other
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Zen-Noh, Iida Shoji Co, Nihon Yamamura Glass Co, Toppan Printing, Shinnihon Ryutsu Co, Moortgat, other
Payment record: Slow but correct
Location: Business area in Itami, Hyogo-Pref. Office premises at the caption address are owned and maintained satisfactorily.
Bank References:
Shoko Chukin Bank (Kobe)
Ikeda Senshu Bank (Honmachi)
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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4,210 |
4,085 |
4,410 |
4,448 |
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Recur.
Profit |
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10 |
-186 |
1 |
.. |
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Net
Profit |
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5 |
-147 |
-50 |
-55 |
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Total
Assets |
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5,328 |
5,196 |
5,097 |
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Net
Worth |
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24 |
71 |
21 |
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Capital,
Paid-Up |
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100 |
100 |
100 |
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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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3.06 |
-7.37 |
-0.85 |
-4.57 |
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Current Ratio |
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.. |
.. |
.. |
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N.Worth Ratio |
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0.45 |
1.37 |
0.41 |
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N.Profit/Sales |
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0.12 |
-3.60 |
-1.13 |
-1.24 |
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 63.97 |
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1 |
INR 88.13 |
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Euro |
1 |
INR 78.35 |
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YEN |
1 |
INR 0.57 |
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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VIV |
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Report Prepared
by : |
TPT |
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
·
Company
background and operations size
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Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
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.