MIRA INFORM REPORT

 

 

Report Date :

04.08.2014

 

IDENTIFICATION DETAILS

 

Name :

YUKIGUNI MAITAKE CO LTD

 

 

Registered Office :

89 Yokawa Minami-Uonuma City Niigata-Pref 949-6695

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

Jul 1983

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Grow, Wholesale of “Maitake” Mushroom

 

 

No of Employees :

1,196

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow But Correct

 

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

 

Source : CIA

 

 


COMPANY NAME

 

YUKIGUNI MAITAKE CO LTD

 

 

REGD NAME

 

Yukiguni Maitake KK (Yukiguni means Snow Country)

 

 

MAIN OFFICE

 

89 Yokawa Minami-Uonuma City Niigata-Pref 949-6695 JAPAN

Tel: 025-778-0111    

Fax: 025-778-0112     -

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Grow, wholesale of “Maitake” mushroom

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya, Sendai, Hiroshima, other (Tot 7)

 

 

FACTORIES

 

Niigata (6)

 

 

CHIEF EXEC

 

KATSURO SUZUKI, PRES

 

 

Yen Amount

 

In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        R/WEAK                       A/SALES          Yen 28,829

PAYMENTSSLOW BUT CORRECT         CAPITAL           Yen 1,605

TREND UP                                WORTH            Yen 2,636

STARTED         1983                             EMPLOYES      1,196

 

 

COMMENT

 

“MAITAKE” MUSHROOM GROWER 

FINANCIAL SITUATION COSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

                       

           

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

26,520

907

692

(%)

5,917

(Consolidated)

31/03/2012

26,042

-3,767

-2,504

-1.80

2,672

 

31/03/2013

26,509

-1,124

-1,795

1.79

910

 

31/03/2014

28,829

1,124

1,356

8.75

2,636

 

31/03/2015

29,500

1,400

900

2.33

..

Unit: In Million Yen

Forecast figures for the 31/03/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is a “Maitake” mushroom grower and wholesaler, Niigata, maintaining majority share of market.  Has fully-equipped large-scale production facilities in Niigata.  Distribution not handled via agricultural cooperatives but made directly to retailers nationwide.  Improper accounting in past years was found.  Financial situation will worsen further due to prior period adjustment,

.

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 28,829 million, an 8.8% up from Yen 26,509 million in the previous term.  Sales of Bunashimeji mushroom rallied, thank to launch of new products and completion of production expansion.  Unit prices of Eryingi & Maitake mushrooms rose by 10%.  Operations came back to profitability to post Yen 1,124 million recurring profit and Yen 1,356 million net profit, respectively, compared with Yen 1,124 million recurring loss and Yen 1,795 million net losses, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 1,400 million and the net profit at Yen 900 million, respectively, on a 2.3% rise in turnover, to Yen 29,500 million.  Sales of Maitake mushrooms, which account for a high market share, as well as Bunashimeji and Eryingi mushrooms, will show a growth. 

 

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements. 

 

 

REGISTRATION

           

     Date Registered:            Jul 1983

Legal Status:               Limited Company (Kabushiki Kaisha

Authorized:                  120 million shares

Issued:                         38,890,375 shares

Sum:                            Yen 1,605 million

 

Major shareholders (%): Ohdaira Shoji (32.2), Yoshinobu Ohdaira (20.0), Company’s Treasury Stock (8.3), Daiwa House Industry (4.6), Takeshi Wakai (2.4), Masao Ohdaira (2.3), Hideko Ohdaira (1.2), Yoichi Ohdaira (0.9), Yasuo Ohdaira (0.8), Yoshitomi Ohdaira (0.7); foreign owners (0.1)

 

No. of shareholders:    7,686

 

Listed on the S/Exchange (s) of: Tokyo (Second Section)

 

Managements: Katsuro Suzuki, pres, Koichi Ueno, v pres; Mitsugu Higashi, dir; Masanao Otsuka, dir

 

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

 

Related companies: Yukiguni Bio Foods, Totaku Co, Yukiguni Shoji, Imamachi Kosan, other.

 

 

OPERATION

           

Activities:         Grows and wholesales mushrooms (77%), bean sprouts & cut vegetables (15%), others (8%)

Clients:            [Mfrs, wholesalers] Yukijirushi Maitake Nishinippon, Hokkaido CGC, Totaku Co,

Initio Foods, Life Corporation, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers:        [Mfrs, wholesalers] Totaku Co, Yukiguni Agri, Mori Sangyo, other

 

Payment record: Slow But Correct

 

 

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

 

 

Bank References

 

Daishi Bank (Nagaoka)

Mizuho Bank (Niigata)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

 

  Annual Sales

 

28,829

26,509

 

  Cost of Sales

20,016

19,769

 

      GROSS PROFIT

8,812

6,740

 

  Selling & Adm Costs

6,836

6,951

 

      OPERATING PROFIT

1,976

-211

 

  Non-Operating P/L

-852

-913

 

      RECURRING PROFIT

1,124

-1,124

 

      NET PROFIT

1,356

-1,795

BALANCE SHEET

 

 

 

 

  Cash

 

968

2,254

 

  Receivables

 

1,992

2,256

 

  Inventory

 

3,052

3,523

 

  Securities, Marketable

 

 

 

  Other Current Assets

918

790

 

      TOTAL CURRENT ASSETS

6,930

8,823

 

  Property & Equipment

26,170

26,723

 

  Intangibles

 

476

465

 

  Investments, Other Fixed Assets

2,988

2,404

 

      TOTAL ASSETS

36,564

38,415

 

  Payables

 

83

1,171

 

  Short-Term Bank Loans

16,387

13,599

 

 

 

 

 

 

  Other Current Liabs

4,913

5,379

 

      TOTAL CURRENT LIABS

21,383

20,149

 

  Debentures

 

1,110

2,115

 

  Long-Term Bank Loans

10,332

13,494

 

  Reserve for Retirement Allw

1

82

 

  Other Debts

 

1,101

1,664

 

      TOTAL LIABILITIES

33,927

37,504

 

      MINORITY INTERESTS

 

 

 

Common stock

1,605

1,605

 

Additional paid-in capital

2,262

2,262

 

Retained earnings

(115)

(1,471)

 

Evaluation p/l on investments/securities

1

4

 

Others

 

397

24

 

Treasury stock, at cost

(1,514)

(1,514)

 

      TOTAL S/HOLDERS` EQUITY

2,636

910

 

      TOTAL EQUITIES

36,564

38,415

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

 

2,379

974

 

Cash Flows from Investment Activities

-337

-2,003

 

Cash Flows from Financing Activities

-2,523

1,200

 

Cash, Bank Deposits at the Term End

 

944

1,379

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

 

Net Worth (S/Holders' Equity)

2,636

910

 

 

Current Ratio (%)

32.41

43.79

 

 

Net Worth Ratio (%)

7.21

2.37

 

 

Recurring Profit Ratio (%)

3.90

-4.24

 

 

Net Profit Ratio (%)

4.70

-6.77

 

 

Return On Equity (%)

51.44

-197.25

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.85

UK Pound

1

Rs.102.68

Euro

1

Rs.81.46

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

SHG

 

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.