MIRA INFORM REPORT

 

 

Report Date :

07.02.2014

 

IDENTIFICATION DETAILS

 

Name :

MERCIAN CORPORATION

 

 

Registered Office :

4-10-2 Nakano Nakanoku Tokyo164-0001

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

December 1934

 

 

Com. Reg. No.:

0100-01-034939 (Tokyo-Nakanoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

·         Manufacturer of Mercian wines, other alcoholic beverages, pharmaceuticals & chemicals, fish & animal feeds, catering to fishing farms, moist pellets & extruded pellets fish feeds

Subject is also distributor of imported wines, liquors, including brandy, scotch, bourbon, Chinese beers

 

 

No. of Employees :

579

 

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

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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

 

MERCIAN CORPORATION

 

 

REGD NAME

 

Mercian KK

 

 

MAIN OFFICE

 

4-10-2 Nakano Nakanoku Tokyo164-0001 JAPAN

 

Tel: 03-6837-7004

 

*.. Moved to the caption address in Apr 2013 from the one as given

 

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

 

KIYOSHI YOKOYAMA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 48,117 M

PAYMENTSREGULAR   CAPITAL           Yen 20,972 M

TREND SLOW              WORTH            Yen 37,534 M

STARTED         1934                 EMPLOYES      579

 

 

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, and sales expanded.  Moved to the caption address in Apr 2013.

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2012 fiscal term amounted to Yen 48,117 million, a 4% down from Yen 50,027 million.  The recurring profit was posted at Yen 1,464 million and the net profit at Yen 5,563 million, respectively, compared with Yen 449 million recurring profit and Yen 5,214 million net losses, respectively, a year ago.

 

For the term that ended Dec 2013 the recurring profit is projected at Yen 1,500 million and the net profit at Yen 5,600 million, respectively, on a 3% rise in turnover, to Yen 49,500 million,  Final results are yet to be released.

 

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

 

 

REGISTRATION

 

Date Registered:       Dec 1934

Regd No.:                  0100-01-034939 (Tokyo-Nakanoku)

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 S/E, capital Yen 102,045 million, sales Yen 1,096,214 million, recurring profit Yen 55,714 million, net profit Yen 59,668 million, total assets Yen 2,797,759 million, net worth Yen 1,052,104 million, employees 39,782, pres Seiji Miyake

 

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:

31/12/2013

31/12/2012

31/03/2012

31/03/2011

Annual Sales

 

49,500

48,117

50,027

60,844

Recur. Profit

 

1,500

1,464

449

-656

Net Profit

 

5,600

5,563

5,214

-746

Total Assets

 

 

52,876

52,381

52,578

Current Assets

 

 

39,286

36,297

30,501

Current Liabs

 

 

12,801

13,239

18,028

Net Worth

 

 

37,534

37,055

31,901

Capital, Paid-Up

 

 

20,972

20,972

20,972

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.87

-3.82

-17.78

668.33

    Current Ratio

 

..

306.90

274.17

169.19

    N.Worth Ratio

..

70.98

70.74

60.67

    R.Profit/Sales

 

3.03

3.04

0.90

-1.08

    N.Profit/Sales

11.31

11.56

10.42

-1.23

    Return On Equity

..

14.82

14.07

-2.34

 

 Notes: Forecast (or estimated) figures for the 31/12/2013 fiscal term


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.50

UK Pound

1

Rs.101.92

Euro

1

Rs.84.50

 

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.