MIRA INFORM REPORT

 

 

Report Date :

11.08.2007

 

IDENTIFICATION DETAILS

 

Name :

MARUHA CORPORATION

 

 

Registered Office :

1-1-2 Ohtemachi Chiyodaku Tokyo 100-0342

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Mar 1943

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of sea-foods & general foods, cold storage & distribution

 

 

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 2868.2 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

name

 

MARUHA CORPORATION

 

 

REGD NAME

 

KK Maruha

 

 

MAIN OFFICE

 

1-1-2 Ohtemachi Chiyodaku Tokyo 100-0342 JAPAN

Tel        : 03-3216-0821

Fax       : 03-3216-0342

URL      : http://www.maruha.co.jp/

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

 

 

ACTIVITIES

 

Mfg of sea-foods & general foods, cold storage & distribution

 

 

BRANCHES

 

Sapporo, Osaka, Nagoya, Sendai, Hiroshima, Fukuoka, other (Tot 7)

 

 

OVERSEAS

 

Canada, Russia, Morocco, Spain, Thailand, China, New Zealand (--rep offices)

 

 

OFFICER(S)

 

YUJI IGARASHI, PRES & CEO               Eiihi Mori, v pres

Shigeru Itoh, s/mgn dir                           Toshio Hisayo, mgn dir

Hideo Miyabe, mgn dir                            Hiroshi Tanabe, mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 261,580 M

PAYMENTS      REGULAR                     CAPITAL           Yen 15,000 M

TREND             SLOW                          WORTH            Yen 21,440 M

STARTED         1943                             EMPLOYES      747

 

 

COMMENT

 

LEADING SEAFOOD COMPANY, OWNED BY MARUHA GROUP INC. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 2,868.2 MILLION, 30 DAYS NORMAL TERMS

 

Forecast (or estimated) figures for 31/03/2006 fiscal term

 

 

HIGHLIGHTS

 

A leading seafood company established originally in 1880 by Ikujiro Nakabe for selling fish to fishery markets in Osaka, on his account.  Owned by the Nakabe families, the management has been transferred to the present executives.  Originally a seafood processor, the firm has been orienting towards a general food processor, functioning almost similar to a general trading house with 59 overseas and 109 domestic subsidiaries & group firms under the Maruha Group Inc control.  Diversified into chilled, retort foods, feeds & bait, etc.  Produces fish paste in US.  Handles pet foods, too.  In Apr 2004, founded a holding company, Maruha Group Inc, at the caption address, and listed on Tokyo S/E under this name, and Maruha Corp was delisted.   This is the core of the Maruha Group Inc.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2007 fiscal term amounted to Yen 261,580 million, a 4% down from Yen 273,511 million in the previous term.  The recurring profit was posted at Yen 5,716 million and the net profit at Yen 3,683 million, respectively, compared with Yen 4,284 million recurring profit and Yen 1,400 million net profit, respectively, a year ago.  The firm partially withdrew from shrimp farming overseas and made changes in frozen food ingredients.

 

For the current term ending Mar 2008 the recurring profit is projected at Yen 6,300 million and net profit at Yen 3,800 million, respectively, on an 11% rise in turnover, to Yen 290,000 million.  Cold storage operations in Thailand will continue to contribute. 

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 2,868 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:            Mar 1943

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    120 million shares

Issued:                          30 million shares

Sum:                            Yen 15,000 million

Major shareholders (%): Maruha Group Inc*(100)

*.. Holding company formed in Apr/2004 with Maruha Corp, as core operating company,      listed Tokyo S/E, capital Yen 31,000 million, turnover Yen 737,510 million, recurring profit          Yen11,093 million, net profit Yen 1,617 million, total assets Yen 384,275 million, net worth Yen 48,442 million, employees 10,311, pres Yuji Igarashi, concurrently.

 

 

Consolidated financials are as attached.

 

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

 

           

OPERATION

 

Activities: Seafood & general foods mfg:

 

(Sales breakdown by divisions): Fish & shellfish (72%), canned foods, frozen, chilled foods, other processed foods (--17%), cold storage, warehousing, distribution (--3%), others (7%).

 

Clients: [Fish marts, fish markets] Osaka Uoichiba, Sanyu Koami, Daiei Taigen, Daito Gyorui, Maruha Pet Food, Mitsui Foods, other.

 

No. of accounts: 3,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Hayashikane Sangyo, Taikai Shoji, Hatanaka Shokuhin, other.

 

Payment record: Regular

 

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

 

 

Bank References

 

Mizuho Corporate Bank (H/O)

Norin Chukin Bank (Tokyo)

 

Relations: Satisfactory

 

 

FINANCES

 

(Non-Consolidated in Million Yen)

 

       Terms Ending:

31/03/2008

31/03/2007

31/03/2006

31/03/2005

Annual Sales

　

290,000

261,580

273,511

277,455

Recur. Profit

　

6,300

5,716

4,284

4,348

Net Profit

　

3,800

3,683

1,460

790

Total Assets

　

　

157,606

163,829

173,672

Current Assets

　

　

91,783

80,801

74,696

Current Liabs

　

　

79,099

96,302

　

Net Worth

　

　

21,440

24,606

24,522

Capital, Paid-Up

　

　

15,000

15,000

15,000

Div.P.Share(¥)

　

　

　

　

　

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

10.86

-4.36

-1.42

1.11

       Current Ratio

 

..

116.04

83.90

 

       N.Worth Ratio

..

13.60

15.02

14.12

       R.Profit/Sales

 

2.17

2.19

1.57

1.57

       N.Profit/Sales

1.31

1.41

0.53

0.28

       Return On Equity

..

17.18

5.93

3.22

Note: Forecast (or estimated) for the 31/03/2008 fiscal term.

 

 

SUPPLEMENTS:

CONSOLIDATED FINANCIALS OF THE PARENT, MARUHA GROUP INC.

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

737,510

719,275

 

  Cost of Sales

662,599

644,195

 

      GROSS PROFIT

74,910

75,080

 

  Selling & Adm Costs

62,772

64,418

 

      OPERATING PROFIT

12,137

10,661

 

  Non-Operating P/L

-1,044

1,423

 

      RECURRING PROFIT

11,093

12,084

　

      NET PROFIT

1,617

4,647

BALANCE SHEET

 

 

 

 

  Cash

　

14,941

37,617

 

  Receivables

 

73,644

56,765

 

  Inventory

 

85,274

78,389

 

  Securities, Marketable

7,663

2,223

 

  Other Current Assets

14,199

17,772

 

      TOTAL CURRENT ASSETS

195,721

192,766

 

  Property & Equipment

102,644

102,683

 

  Intangibles

 

12,432

5,850

 

  Investments, Other Fixed Assets

73,478

83,365

 

      TOTAL ASSETS

384,275

384,664

 

  Payables

 

29,180

26,688

 

  Short-Term Bank Loans

132,860

141,911

 

　

 

　

　

 

  Other Current Liabs

20,535

19,706

 

      TOTAL CURRENT LIABS

182,575

188,305

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

121,520

118,654

 

  Reserve for Retirement Allw

8,073

6,990

 

  Other Debts

　

10,056

8,816

 

      TOTAL LIABILITIES

322,224

322,765

 

      MINORITY INTERESTS

 

15,467

 

Common stock

31,000

25,000

 

Additional paid-in capital

7,190

10,160

 

Retained earnings

10,740

9,844

 

Evaluation p/l on investments/securities

2,943

5,475

 

Others

 

11,476

(3,803)

 

Treasury stock, at cost

(1,299)

(245)

 

      TOTAL S/HOLDERS` EQUITY

62,050

46,431

　

      TOTAL EQUITIES

384,275

384,664

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

2,821

3,531

 

Cash Flows from Investment Activities

-13,486

12,774

 

Cash Flows from Financing Activities

-13,090

-14,296

　

Cash, Bank Deposits at the Term End

　

14,355

37,298

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

62,050

46,431

 

 

Current Ratio (%)

107.20

102.37

 

 

Net Worth Ratio (%)

16.15

12.07

 

 

Recurring Profit Ratio (%)

1.50

1.68

 

 

Net Profit Ratio (%)

0.22

0.65

 

 

Return On Equity (%)

2.61

10.01

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. 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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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