MIRA INFORM REPORT

 

 

Report Date :

13.06.2013

 

IDENTIFICATION DETAILS

 

Name :

MEIJI CO LTD

 

 

Registered Office :

1-2-10 Shinsuna Kotoku Tokyo 136-0075

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

December 1917

 

 

Com. Reg. No.:

0106-01-028138 (Tokyo-Kotoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of confectioneries, dairy products, healthcare foods

 

 

No. of Employees :

7009

 

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 :

---

 

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 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

japan ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war 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 are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. The new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

Source : CIA

 

 

Company name

 

MEIJI CO LTD

 

 

REGD NAME

 

KK Meiji

 

 

MAIN OFFICE

 

1-2-10 Shinsuna Kotoku Tokyo 136-0075 JAPAN

 

Tel: 03-5653-6301

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Mfg of confectioneries, dairy products, healthcare foods, other

 

 

BRANCHES

           

Sapporo, Sendai, Nagoya, Osaka, Hiroshima, Fukuoka, other (Tot 42)

 

 

OVERSEAS   

 

Bangkok, Melbourne, Hanoi, Ho-chiming, Taipei, Shanghai

 

 

FACTORIES  

 

Sapporo, Asahikawa, Osaka, Gunma, Ibaraki, other (Tot 31)

 

 

OFFICERS

 

KAZUO KAWAMURA, PRES      Koichi Yoshioka, dir

Sachihiko Mizoguchi, dir             Naoki Katoh, dir

Sadaaki Komura, dir                   Yoshio Baba, dir                       

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                 A/SALES          Yen 1,001,551 M

PAYMENTS                  REGULAR         CAPITAL           Yen 33,646 M

TREND             UP                    WORTH            Yen 219,619 M

STARTED                     1917                 EMPLOYES      7,009

 

 

COMMENT

           

MFR OF CONFECTIONERIES, DAIRY PRODUCTS, OTHER.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established in 1917 as Meiji Dairy Sugar Co Ltd.  The firm thereafter split into two firms: Meiji Dairies & Meiji Seika.  The subject was renamed as captioned and in 2009, the three formed a holding company, Meiji Holdings Co Ltd (See REGISTRATION) and became its subsidiaries.  The subject specializes in mfg confectioneries, dairy products, healthcare foods, OTC drugs, other.  In 2011, merged Meiji Seika Pharma and made it a subsidiary.  Goods are distributed to milk/ice cream stores, confectionery stores, others, nationwide.

 

 

FINANCIAL INFORMATION

 

 

                        Unit: Million Yen

                        Forecast figures for the 31/03/2013 fiscal term

           

The sales volume for Mar/2012 fiscal term amounted to Yen 986,319 million, a 39% up from Yen 707,500 million in the previous term.  This is attributed to the said merger of Meiji Seika Pharma.  The recurring profit was posted at Yen 10,884 million and the net profit at Yen 190 million, respectively, compared with Yen 17,456 million recurring profit and Yen 6,034 million net profit, respectively, a year ago.

 

For the term that ended Mar 2013 the recurring profit is projected at Yen 11,500 million and the net profit at Yen 230 million, respectively, on a 1.5% rise in turnover, to Yen 1,001,551 million.  Final results are yet to be released except the sales of Yen 1,001,550 million.  Results of dairy business (especially yogurt & probiotic yogurt products) drove the entire segment.  Improved product mix contributed to segment.  Sales of sports nutrition and enteral formula were steady.  New product joined a lineup of health foods.

 

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

 

 

REGISTRATION

 

Date Registered:  Dec 1917

Regd No.:         0106-01-028138 (Tokyo-Kotoku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         800 shares

Issued:                328,500,000 shares

Sum:                   Yen 33,646 million

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

 

*.. Holding company of Meiji Group firms, founded 2009, listed Tokyo S/E, capital Yen 30,000 million, sales Yen 1,126,520 million, operating profit Yen 25,859 million, recurring profit Yen 29,131 million, net profit Yen 16,646 million, total assets Yen 785,514 million, net worth Yen 320,609 million, employees 15,338, pres Shigetaro Asano

 

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

 

 

OPERATION

           

Activities: Manufactures confectioneries, dairy products, healthcare foods, OTC drugs, --80%), others (20%).

 

(Business Units):

 

Confectionery Business Unit: confectioneries, ice cream, sweets, institutional foodstuffs:

 

Dairy Business Unit: fresh dairy, processed dairy foods, dairy products for business-use;

 

Health & Nutritional Business Unit: infant formula & baby foods, beauty & healthcare products, sports nutrition, frozen food products, enteral formula & nursing care products, OTC drugs;

 

Others: feedstuffs, warehousing, transportation, real estate management, other

 

Clients: Confectionery stores, chain stores, department stores, other 

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsubishi Corp, Nihon Tetra Pack, Toyo Seikan, Dainippon Printing, other

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Kyobashi)

Resona Bank (Tokyo-Chuo)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

986,319

707,500

 

  Cost of Sales

685,375

499,139

 

      GROSS PROFIT

300,943

208,361

 

  Selling & Adm Costs

289,451

190,371

 

      OPERATING PROFIT

11,491

17,989

 

  Non-Operating P/L

-607

-533

 

      RECURRING PROFIT

10,884

17,456

　

      NET PROFIT

190

6,034

BALANCE SHEET

 

 

 

 

  Cash

　

5,082

13,033

 

  Receivables

 

133,064

74,552

 

  Inventory

 

77,488

44,348

 

  Securities, Marketable

　

　

 

  Other Current Assets

　

　

 

      TOTAL CURRENT ASSETS

235,240

144,371

 

  Property & Equipment

261,418

183,754

 

  Intangibles

 

7,689

6,694

 

  Investments, Other Fixed Assets

　

　

 

      TOTAL ASSETS

565,233

385,644

 

  Payables

 

97,433

62,818

 

  Short-Term Bank Loans

64,609

65,909

 

　

 

　

　

 

  Other Current Liabs

　

　

 

      TOTAL CURRENT LIABS

281,697

183,105

 

  Debentures

 

15,000

20,000

 

  Long-Term Bank Loans

21,998

12,800

 

  Reserve for Retirement Allw

10,581

3,690

 

  Other Debts

　

　

　

 

      TOTAL LIABILITIES

345,613

232,133

 

      MINORITY INTERESTS

 

 

 

Common stock

33,646

33,646

 

Additional paid-in capital

59,821

31,977

 

Retained earnings

124,313

85,856

 

Evaluation p/l on investments/securities

2,327

912

 

Others

 

　

　

 

Treasury stock, at cost

0

0

 

      TOTAL S/HOLDERS` EQUITY

219,619

153,510

　

      TOTAL EQUITIES

565,233

385,644

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

19,806

30,948

 

Cash Flows from Investment Activities

-35,689

-14,895

 

Cash Flows from Financing Activities

1,981

-7,618

　

Cash, Bank Deposits at the Term End

　

4,784

13,033

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

219,619

153,510

 

 

Current Ratio (%)

83.51

78.85

 

 

Net Worth Ratio (%)

38.85

39.81

 

 

Recurring Profit Ratio (%)

1.10

2.47

 

 

Net Profit Ratio (%)

0.02

0.85

 

 

Return On Equity (%)

0.09

3.93

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.58.27

UK Pound

1

Rs.91.16

Euro

1

Rs.77.50

 

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.