MIRA INFORM REPORT

 

 

Report Date :

29.06.2012

 

IDENTIFICATION DETAILS

 

Name :

MERCIAN CORPORATION

 

 

Registered Office :

Ajinomoto-Kyobashi Bldg, 1-5-8 Kyobashi Chuoku Tokyo 104-8205

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

December 1934

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Alcoholic beverage producer

 

 

No. of Employees :

1,264

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

Regular

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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

 

MERCIAN CORPORATION

 

 

REGD NAME

 

Mercian KK

 

 

MAIN OFFICE

 

Ajinomoto-Kyobashi Bldg, 1-5-8 Kyobashi Chuoku Tokyo 104-8205 JAPAN

Tel: 03-3231-8900     Fax: 03-3231-8539

 

URL:                 http://www.mercian.co.jp/

E-Mail address:            webmaster@mercian.co.jp

 

 

ACTIVITIES  

 

Alcoholic beverage producer

 

 

BRANCHES

 

Sapporo, Sendai, Kawasaki, Tomakomai, other (Tot 20)

 

 

FACTORIES

 

Kawasaki, Yatsushiro, Fujisawa, Katsunuma, Karuizawa, Tomakomai,

Nagareyama, Iwata

 

 

CHIEF EXEC 

 

TOHRU SUZUKI, PRES              Hiroshi Tsunekawa, dir

Hiroki Takanashi, dir                   Osamu Wada, dir

Kazuhiro Tsukahara, dir              Kiyoshi Yokoyama, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 50,027 M

PAYMENTS      REGULAR         CAPITAL           Yen 20,972 M

TREND SLOW              WORTH            Yen 37,055 M

STARTED         1934                 EMPLOYES      1,264

 

 

COMMENT    

 

ALCOHOLIC BEVERAGE PRODUCER. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company is a comprehensive alcoholic beverage producer in close ties with Ajinomoto, nation’s largest seasoning mfr known for monosodium glutamate, Tokyo.  Ranked second in wine production, known for Mercian Wines, and fourth in whisky.  Also distributor of imported wines, liquors, including brandy, scotch, bourbon, Chinese beers.  Japanese sake and feeds are the two earning sources.  Actively engaged in pharmaceuticals.  The firm’s network consists of five branch offices, eight factories and tow research facilities in Japan, as well as one representative office and five production facilities overseas.  In Nov 2006, went into business tie-up with Kirin Breweries and in July 2007 became consolidated subsidiary of Kirin Holdings Co Ltd.

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2011 fiscal term amounted to Yen 50,027 million, an 18% down from Yen 60,844 million in the previous term.  The recurring profit was posted at Yen 449 million and the net profit at Yen 5,214 million, respectively, compared with Yen 656 million recurring profit and Yen 10,746 million net losses, respectively, a year ago.

 

For the current term ending Dec 2012 the recurring profit is projected at Yen 600 million and the net profit at Yen 5,500 million, respectively, on a 10% rise in turnover, to Yen 55,000 million.  Mercian aims to expand its wine sales in retail stores, as well as in restaurants & bars.  Kirin Holdings Co group company will add new products specifically designed for drinking with ice.  It is also launching a marketing campaign for its Franzia brand of California wine, which is offered at restaurants.  The number of retail stores handling its wines will be increased by 30% to 5,000 shops this year.

 

The financial situation is considered maintained FAIR and should be good for ORDINARY business engagements. 

 

REGISTRATION

 

Date Registered:  Dec 1934

Legal Status:   Limited Company (Kabushiki Kaisha)

Authorized:      500 million shares

Issued:             145,270,303 shares

Sum:                Yen 20,972 million

Major shareholders (%): Kirin Holdings Co Ltd* (100)

 

*.. Kirin Holdings Co Ltd, second-ranked brewer of beer including low & no malt beer, in Terms of market share, Tokyo, founded 1907, listed Tokyo, Osaka, Nagoya, Sapporo, Fukuoka S/E’s, capital Yen 102,045 million, sales Yen 2,071,774 million, recurring profit Yen 136,818 million, net profit Yen 7,407 million, total assets Yen 3,854,254 million, net worth Yen 1,047,845 million, employees 40,348, pres Seiji Miyake

 

Consolidated Financials are attached (See SUPPLEMENTS)

 

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

 

           

OPERATION

 

Activities: Manufactures Mercian wines, other alcoholic beverages (--82%), pharmaceuticals & chemicals (12%), fish & animal feeds, catering to fishing farms, moist pellets & extruded pellets fish feeds, others (6%), others (1%).

 

Clients: [Wholesalers] Nihon Shurui Hambai, Ajinomoto, Sanyu Koami, Kokubu Ltd, Ryoshoku Liquor, Itochu Shokuhin, Meidi-Ya, other.

           

No. of accounts: 2,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Zen-Noh, Dentsu Ltd, Toppan Printing, Mitsubishi Corp, other.

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Corporate Bank (Uchisaiwaicho)

MUFG (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/12/2012

31/12/2011

31/12/2010

31/12/2009

Annual Sales

　

55,000

50,027

60,844

71,919

Recur. Profit

　

600

449

-656

-1,582

Net Profit

　

5,500

5,214

-10,746

-1,597

Total Assets

　

　

52,381

52,578

66,385

Current Assets

　

　

36,297

30,501

37,614

Current Liabs

　

　

13,239

18,028

22,836

Net Worth

　

　

37,055

31,901

38,175

Capital, Paid-Up

　

　

20,972

20,972

20,972

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

9.94

-17.78

-15.40

-12.89

    Current Ratio

 

..

274.17

169.19

164.71

    N.Worth Ratio

..

70.74

60.67

57.51

    R.Profit/Sales

 

1.09

0.90

-1.08

-2.20

    N.Profit/Sales

10.00

10.42

-17.66

-2.22

    Return On Equity

..

14.07

-33.69

-4.18

 

 Notes: Forecast (or estimated) figures for the 31/12/2012 fiscal term

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, KIRIN HOLDINGS CO LTD

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/12/2011

31/12/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

2,071,774

2,177,802

 

  Cost of Sales

1,218,851

1,314,809

 

      GROSS PROFIT

852,922

862,992

 

  Selling & Adm Costs

710,058

711,380

 

      OPERATING PROFIT

142,864

151,612

 

  Non-Operating P/L

-6,046

-10,643

 

      RECURRING PROFIT

136,818

140,969

　

      NET PROFIT

7,407

11,394

BALANCE SHEET

 

 

 

 

  Cash

　

76,218

51,463

 

  Receivables

 

406,448

415,268

 

  Inventory

 

192,982

187,812

 

  Securities, Marketable

　

　

 

  Other Current Assets

82,417

72,545

 

      TOTAL CURRENT ASSETS

758,065

727,088

 

  Property & Equipment

763,833

739,235

 

  Intangibles

 

816,261

658,357

 

  Investments, Other Fixed Assets

516,095

524,517

 

      TOTAL ASSETS

2,854,254

2,649,197

 

  Payables

 

146,955

169,036

 

  Short-Term Bank Loans

85,517

181,786

 

　

 

　

　

 

  Other Current Liabs

482,947

328,873

 

      TOTAL CURRENT LIABS

715,419

679,695

 

  Debentures

 

365,487

320,070

 

  Long-Term Bank Loans

468,999

262,720

 

  Reserve for Retirement Allw

65,516

66,882

 

  Other Debts

　

190,938

160,793

 

      TOTAL LIABILITIES

1,806,359

1,490,160

 

      MINORITY INTERESTS

 

 

 

Common stock

102,045

102,045

 

Additional paid-in capital

81,417

81,412

 

Retained earnings

801,856

821,519

 

Evaluation p/l on investments/securities

11,116

7,252

 

Others

 

54,732

149,793

 

Treasury stock, at cost

(3,271)

(2,985)

 

      TOTAL S/HOLDERS` EQUITY

1,047,895

1,159,036

　

      TOTAL EQUITIES

2,854,254

2,649,197

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/12/2011

31/12/2010

 

Cash Flows from Operating Activities

　

196,792

218,025

 

Cash Flows from Investment Activities

-361,658

-140,917

 

Cash Flows from Financing Activities

193,214

-140,197

　

Cash, Bank Deposits at the Term End

　

70,847

45,278

ANALYTICAL RATIOS            Terms ending:

31/12/2011

31/12/2010

 

 

Net Worth (S/Holders' Equity)

1,047,895

1,159,036

 

 

Current Ratio (%)

105.96

106.97

 

 

Net Worth Ratio (%)

36.71

43.75

 

 

Recurring Profit Ratio (%)

6.60

6.47

 

 

Net Profit Ratio (%)

0.36

0.52

 

 

Return On Equity (%)

0.71

0.98

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.56.92

UK Pound

1

Rs.88.91

Euro

1

Rs.71.25

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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

----

NB

New Business

----

 

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.