MIRA INFORM REPORT

 

 

Report Date :

20.07.2007

 

IDENTIFICATION DETAILS

 

Name :

NIPPON RICH CO LTD

 

 

Registered Office :

5-27-5 Sendagaya Shibuyaku Tokyo 5-27-5

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Jul 1982

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Wholesale of frozen roll dough, pasta, other frozen processed foods

 

 

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 214.2 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

--

 

 

name

 

NIPPON RICH CO LTD

 

 

REGD NAME

 

Nippon Rich KK

 

 

MAIN OFFICE

 

5-27-5 Sendagaya Shibuyaku Tokyo 5-27-5 JAPAN

Tel        : 03-3355-9221

Fax       : 03-3356-0313

URL      : http://www.nippn.co.jp (Of the parent, Nisshin Seifun Group Inc)

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

 

 

ACTIVITIES

 

Wholesale of frozen roll dough, pasta, other frozen processed foods

 

 

BRANCHES

 

Sapporo

 

 

OFFICERS

 

HARUKI KOTERA, PRES

Michiyuki Sakamura, mgn dir

Hiroshi Murai, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 11,383 M

PAYMENTS      REGULAR                     CAPITAL           Yen 30 M

TREND             STEADY                       WORTH            Yen 872 M

STARTED         1982                             EMPLOYES      18

 

 

 

 

 

COMMENT

 

WHOLESALER OF FROZEN FOODS, WHOLLY OWNED BY NISSHIN SEIFUN GROUP INC. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY           BUSINESS ENGAGEMENTS.  CONSIDERED GOOD FOR PROPOSED CREDIT ENGAGEMENTS: US$1,000,000 / O/A terms.

                       

MAX CREDIT LIMIT: YEN 214.2 MILLION, 30 DAYS NORMAL TERMS. 

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a trading division separated from Nisshin Seifun Group Inc (See REGISTRATION).  The firm is a trading firm for import and wholesale of frozen roll dough, pasta, other frozen prepared foods from Korea, China, etc.  Clients are fast food stores centrally.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2006 fiscal term amounted to Yen 11,383 million, a 2% up from Yen 11,146 million in the previous term.  The net profit was posted at Yen 58 million, up from Yen 27 million a year ago.

 

For the term ended Mar 2007 the net profit was projected at Yen 55 million, on a 5% rise in  turnover, to Yen 12,000 million.  Final results are yet to be released.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 214.2 million, on 30 days normal terms.  The proposed amount is considered well within the firm’s financial capacities. 

 

 

REGISTRATION

 

Date Registered:            Jul 1982

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    240,000 shares

Issued:                          60,000 shares

Sum:                            Yen 30 million

Major shareholders (%): Nisshin Seifun Group Inc*(100)

*.. Largest flour miller, at the caption address, founded 1907, listed Tokyo, Osaka S/E’s, capital Yen 17,117 million, turnover Yen 418,190 million, recurring profit Yen 22,816 million, net profit Yen 12,303 million, total assets Yen 408,437 million, net worth Yen 270,973 million, employees 5,212, pres Hiroshi Hasegawa.

 

Consolidated financials are as attached.

 

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

 

 

OPERATION

 

Activities: Imports and wholesales frozen roll dough, pasta, frozen prepared foods, others (--100%).

 

 

Clients: [Fast food chains, bakeries, wholesalers] Duskin Co (43%), Nacx Nakamura Corp (2%), RY Food Service, Mitsui Foods Co, Itoh Bakery, other. 

 

No. of accounts: 300

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] 90% supplied from the parent, Nisshin Seifun Group Inc.  Also imports from China, Korea, other.

 

Payment record: Regular

 

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

 

 

Bank References

 

SMBC (Shinjuku-Dori)

Mizuho Corporate Bank (Shinjuku)

 

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

        Terms Ending:

31/03/2007

31/03/2006

31/03/2005

31/03/2004

Annual Sales

　

12,000

11,383

11,146

10,438

Recur. Profit

　

　

　

　

　

Net Profit

　

55

58

27

25

Total Assets

　

　

2,850

2,679

　

Current Assets

　

　

2,729

2,569

　

Current Liabs

　

　

1,921

1,814

　

Net Worth

　

　

872

813

　

Capital, Paid-Up

　

　

30

30

30

Div.P.Share(¥)

　

　

50.00

50.00

50.00

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

5.42

2.13

6.78

2.76

       Current Ratio

 

..

142.06

141.62

..

       N.Worth Ratio

..

30.60

30.35

..

       R.Profit/Sales

 

..

..

..

..

       N.Profit/Sales

0.46

0.51

0.24

0.24

       Return On Equity

..

6.65

3.32

..

 

Note: Financials are only partially disclosed.

Forecast (or estimated) for the 31/03/2007 fiscal term.

 

Attachments:

 

CONSOLIDATED FINANCIALS OF THE PARENT, NISSHIN SEIFUN GROUP INC.

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

239,575

227,421

 

  Cost of Sales

184,572

172,721

 

      GROSS PROFIT

55,003

54,699

 

  Selling & Adm Costs

48,673

47,414

 

      OPERATING PROFIT

6,329

7,285

 

  Non-Operating P/L

249

335

 

      RECURRING PROFIT

6,578

7,620

　

      NET PROFIT

4,146

4,837

BALANCE SHEET

 

 

 

 

  Cash

　

12,064

9,601

 

  Receivables

 

30,401

27,325

 

  Inventory

 

19,138

15,263

 

  Securities, Marketable

46

5

 

  Other Current Assets

3,886

4,291

 

      TOTAL CURRENT ASSETS

65,535

56,485

 

  Property & Equipment

73,166

71,774

 

  Intangibles

 

851

822

 

  Investments, Other Fixed Assets

72,600

74,877

 

      TOTAL ASSETS

212,152

203,958

 

  Payables

 

13,403

11,625

 

  Short-Term Bank Loans

19,357

25,489

 

　

 

　

　

 

  Other Current Liabs

20,553

14,967

 

      TOTAL CURRENT LIABS

53,313

52,081

 

  Debentures

 

8,098

8,498

 

  Long-Term Bank Loans

22,849

15,093

 

  Reserve for Retirement Allw

2,676

2,586

 

  Other Debts

　

23,044

24,588

 

      TOTAL LIABILITIES

109,980

102,846

 

      MINORITY INTERESTS

 

1,710

 

Common stock

12,240

12,240

 

Additional paid-in capital

11,387

11,057

 

Retained earnings

52,097

49,269

 

Evaluation p/l on investments/securities

25,686

28,367

 

Others

 

2,284

87

 

Treasury stock, at cost

(1,522)

(1,619)

 

      TOTAL S/HOLDERS` EQUITY

102,172

99,401

　

      TOTAL EQUITIES

212,152

203,958

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

5,834

8,593

 

Cash Flows from Investment Activities

-7,984

-8,740

 

Cash Flows from Financing Activities

3,839

-2,283

　

Cash, Bank Deposits at the Term End

　

12,024

9,601

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

102,172

99,401

 

 

Current Ratio (%)

122.92

108.46

 

 

Net Worth Ratio (%)

48.16

48.74

 

 

Recurring Profit Ratio (%)

2.75

3.35

 

 

Net Profit Ratio (%)

1.73

2.13

 

 

Return On Equity (%)

4.06

4.87

 

 

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/normal.

 

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