MIRA INFORM REPORT

 

 

Report Date :

12.03.2011

 

IDENTIFICATION DETAILS

 

Correct Name :

MARUHA NICHIRO MEAT AND PRODUCTS INC 

 

 

Registered Office :

1-1-1 Ohtemachi Chiyodaku Tokyo 100-0004

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

December 2007

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, wholesale of meat, meat products, fish meal

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

Yen 615.7 Million

 

 

Status :

Moderate

 

 

Payment Behaviour :

Regular

 

 

Litigation :

----

 

 

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, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

Japan

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

MARUHA NICHIRO MEAT AND PRODUCTS INC

 

 

REGD NAME 

 

KK Maruha Nichiro Chikusan (Chikusan means meat products in Japanese)

 

 

MAIN OFFICE

 

1-1-1 Ohtemachi Chiyodaku Tokyo 100-0004 JAPAN

Tel: 03-3216-0807     Fax: 03-3216-0710

URL:                 www.maruha-nichiro.co.jp  (Of the parent)

E-mail:             info@maruha-nichiro.co.jp            

 

 

Head office

 

2-20 3-Chome Toyosu Koto-Ku, Tokyo 135 0061, Japan

 

 

ACTIVITIES  

 

Import, wholesale of meat, meat products, fish meal

 

 

BRANCHES   

 

Ibaraki, Hokkaido, Fukuoka, other

 

 

FACTORIES  

 

(subcontracted) Thailand, China

 

 

OFFICER(S)  

 

HIDEO MIYABE, PRES

Takashi Mayuzumi, mgn dir

Tsutomu Umeki, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES                    FAIR                 A/SALES          Yen 39,167 M

PAYMENTS                  REGULAR         CAPITAL           Yen 1,000 M

TREND             SLOW              WORTH            Yen 1,659 M

STARTED                     2007                 EMPLOYES      50

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN MEAT & PRODUCTS, WHOLLY OWNED BY MARUHA NICHIRO HOLDINGS INC 

 

FINANCIAL SITUATION CONSIDERED FARI AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

MAX CREDIT LIMIT: YEN 615.7 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a meat trading division separated from Maruha Nichiro Holdings Inc (See REGISTRATION).  This is a trading firm specializing in import, export and wholesale of meat & meat products.  Goods are imported from contracted partner suppliers in USA, Canada, Australia, Mexico, other (See OPERATION).  Imports processed foods from subcontracted factories in Thailand and China.  Clients include meat product processors, food stores, other.

 

 

FINANCIAL INFORMATION

 

Financials are consolidated by the parent, Maruha Nichiro Holdings Inc, and disclosed in digested form.

 

The sales volume for Mar/2010 fiscal term amounted to Yen 39,167 million, a 9% down from Yen 43,147 million in the previous term.  Business was affected substantially by the global economic downturn.  Meat prices declined due to overstock inventories domestically.  Consumer spending was sluggish.  High Yen hurt both imports & exports, reducing revenues in Yen terms.  The operations plunged into the red to register Yen 574 million recurring loss, resulting in Yen 353 million net loss, compared with Yen 174 million recurring profit and Yen 46 million net profit, respectively, a year ago.

 

For the current term ending Mar 2011 the operations are expected to come back to profitability as projected at Yen 150 million and the net profit at Yen 45 million, respectively, on a similar turnover, to Yen 39,500 million.  Meat sales volume will rise mainly in pork, but sales will struggle due to the continued trends toward low-price products.  Ham & sausages will be hit by sharp drops in sales volume and prices due to tough competition among leading markers.  Imported pork prices will be lower than anticipated on the strength of the high Yen.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 615.7 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:          Dec 2007

Legal Status:   　         Limited Company (Kabushiki Kaisha)

Authorized:      　         80,000 shares

Issued: 　                     20,000 shares

Sum:                　         Yen 1,000 million

Major shareholders (%): Maruha Nichiro Holdings Inc* (100)

 

*.. Maruha Nichiro Holdings Inc, Holding Company of Maruha Group firms, formed 2004, listed Tokyo S/E’s, capital Yen 31,000 million, sales Yen 828,715 million, operating profit Yen 10,763 million, recurring profit Yen 7,751 million, net profit Yen 1,586 million, total assets Yen 499,142 million, net worth Yen 65,925 million, employees 14,271, pres Toshio Kushiro

 

Consolidate Financials are attached (See SUPPLMENTS)

           

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

 

 

OPERATION

 

Activities: Imports meat & meat products: beef, port, poultry, duck, fish meal, animal feed, other (--100%).

 

Goods are imported from contracted partners:

 

Beef: from Australia, Mexico, USA, other;

 

Pork: from Canada, USA, Denmark, Mexico, Chile, other

 

Poultry: from Brazil, other;

 

Ducks: from Taiwan, other;

 

Fish meal: from North & South Americas, S/E Asia, Africa, other

 

Clients: [Food processors, chain stores] Hayashikane Sangyo, Meiji Kenko Ham, Takizawa Ham, Tokyu Store, Marubeni Nisshin Feed, other.

            No. of accounts: 500

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Westward Seafoods, Danish Crown, Seaboard Food Corp, Olymel SEC, HACCP, other.

Imports from Australia, Mexico, USA, Canada, Denmark, Chile, Brazil, Taiwan, other.

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Corporate Bank (H/O)

MUFG (Shin-Marunouchi)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2011

31/03/2010

31/03/2009

31/03/2008

Annual Sales

　

39,500

39,167

43,147

0

Recur. Profit

　

150

-574

174

　

Net Profit

　

45

-353

46

　

Total Assets

　

　

8,338

9,951

　

Current Assets

　

　

6,960

8,512

　

Current Liabs

　

　

4,359

4,595

　

Net Worth

　

　

1,659

2,038

　       1,992

Capital, Paid-Up

　

　

1,000

1,000

　

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

0.85

-9.22

- - -

 - - -

    Current Ratio

 

..

159.67

185.24

..

    N.Worth Ratio

..

19.90

20.48

..

    R.Profit/Sales

 

0.38

-1.47

0.40

..

    N.Profit/Sales

0.11

-0.90

0.11

#DIV/0!

    Return On Equity

..

-21.28

2.26

..

 

Notes: The 31/03/2008 fiscal term is the initial accounting term since the inception and business was is not reported resulted.

 

Forecast (or estimated for the 31/03/2011 fiscal term

 

 

 

 

 

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, MARUHA NICHIRO HOLDINGS INC

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

828,715

897,452

 

  Cost of Sales

720,427

781,440

 

      GROSS PROFIT

108,287

116,012

 

  Selling & Adm Costs

97,524

100,475

 

      OPERATING PROFIT

10,763

15,537

 

  Non-Operating P/L

-3,012

-7,456

 

      RECURRING PROFIT

7,751

8,081

　

      NET PROFIT

1,586

-6,282

BALANCE SHEET

 

 

 

 

  Cash

　

25,458

22,485

 

  Receivables

 

91,678

93,858

 

  Inventory

 

180,792

129,748

 

  Securities, Marketable

3,156

0

 

  Other Current Assets

(49,078)

20,748

 

      TOTAL CURRENT ASSETS

252,006

266,839

 

  Property & Equipment

147,922

149,312

 

  Intangibles

 

26,808

28,446

 

  Investments, Other Fixed Assets

74,647

76,862

 

      TOTAL ASSETS

501,383

521,459

 

  Payables

 

32,033

35,426

 

  Short-Term Bank Loans

186,526

204,486

 

　

 

　

　

 

  Other Current Liabs

35,306

35,967

 

      TOTAL CURRENT LIABS

253,865

275,879

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

128,194

129,122

 

  Reserve for Retirement Allw

26,890

25,283

 

  Other Debts

　

12,985

13,265

 

      TOTAL LIABILITIES

421,934

443,549

 

      MINORITY INTERESTS

 

 

 

Common stock

31,000

31,000

 

Additional paid-in capital

35,780

44,722

 

Retained earnings

6,340

(2,424)

 

Evaluation p/l on investments/securities

(346)

(1,415)

 

Others

 

6,734

6,081

 

Treasury stock, at cost

(59)

(54)

 

      TOTAL S/HOLDERS` EQUITY

79,449

77,910

　

      TOTAL EQUITIES

501,383

521,459

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

39,041

15,512

 

Cash Flows from Investment Activities

-8,989

-8,686

 

Cash Flows from Financing Activities

-26,824

-7,369

　

Cash, Bank Deposits at the Term End

　

24,492

21,289

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

79,449

77,910

 

 

Current Ratio (%)

99.27

96.72

 

 

Net Worth Ratio (%)

15.85

14.94

 

 

Recurring Profit Ratio (%)

0.94

0.90

 

 

Net Profit Ratio (%)

0.19

-0.70

 

 

Return On Equity (%)

2.00

-8.06

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.21

UK Pound

1

Rs.72.55

Euro

1

Rs.62.43

 

 

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

 

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.