MIRA INFORM REPORT

 

 

Report Date :

20.01.2014

 

IDENTIFICATION DETAILS

 

Name :

TOYO SUISAN KAISHA LTD

 

 

Registered Office :

2-13-40 Konan Minatoku Tokyo 108-8501

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

April, 1948

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of noodles, marine foods, chilled foods

 

 

No. of Employees :

4,275

 

 

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

 

Maximum Credit Limit :

Yen 13,627.5 million

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 & ADDRESS

 

TOYO SUISAN KAISHA LTD

 

REGD NAME:   Toyo Suisan KK

MAIN OFFICE:  2-13-40 Konan Minatoku Tokyo 108-8501 JAPAN

                        Tel: 03-3458-5111          -

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of noodles, marine foods, chilled foods, other

 

 

BRANCHES   

 

Otaru, Sendai, Utsunomiya, Nagoya, Kobe, Osaka, other (Tot28)

 

 

FACTORIES  

 

Otaru, Sendai, other

 

 

CHIEF EXEC 

 

KAZUO OBATA, PRES

 

 

Yen Amount

 

In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 344,527 M

PAYMENTS      REGULAR         CAPITAL           Yen 18,969 M

TREND             UP                    WORTH            Yen 209,172 M

STARTED         1948                 EMPLOYES      4,275

 

 

COMMENT    

 

MFR OF INSTANT NOODLES, MARINE FOODS, OTHER 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 13,627.5 MILLION, 30 DAYS NORMAL TERMS

 

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

315,337

32,545

18,506

(%)

170,288

(Consolidated)

31/03/2011

305,911

27,191

12,415

-2.99

172,807

 

31/03/2012

320,988

26,989

16,119

4.93

186,665

 

31/03/2013

344,527

31,997

17,280

7.33

209,172

 

31/03/2014

370,000

32,000

20,000

7.39

..

Unit: In Million Yen

Forecast figures for the 31/03/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is the second-ranked producer of instant noodles, known for “Maruchan” brand.  Started off as exporter of frozen tuna to US after World War II, and later, entered refrigeration business.  Diversified into frozen foods, instant noodles, and fish paste products.  Maintains overwhelming market share in US & Mexico.  The company will make all-out efforts for sales volume growth of “Seimen” through more frequent bargain sales.  It will possibly tap into South America, with Texas plant becoming operational in Apr 2014..

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 344,527 million, a 7.3% up from Yen 320,988 million in the previous term.   The recurring profit was posted at Yen 31,997 million and the net profit at Yen 17,280 million, respectively, compared with Yen 26,989 million recurring profit and Yen 16,119 million net profit, respectively, a year ago. 

 

(Apr/Sept/2013 results): Sales Ye 176,310 million (up 11.4%), operation profit Yen 13,891 million (up 3.6%), recurring profit Yen 14,537 million (up 3.6%), net profit Yen 11,810 million (up 59.2%).  (% compared with the corresponding period a year ago).

           

For the current term ending Mar 2014 the recurring profit is projected at Yen 32,000 million and the net profit at Yen 20,000 million, on a 7.4% rise in turnover, to Yen 370,000 million.  Affiliation of major seasonings firm Shimaya will send up overall sales by Yen 12 billion.  Overseas sales of instant noodles will grow, backed by weaker Yen.  Marine foods will enjoy improved profit margin, with a rise in salmon market price. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 13,627.5 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:      Apr 1948

Legal Status:                 Limited Company (Kabushiki Kaisha

Authorized:                    427 million shares

Issued:                          110,881,044 shares

Sum:                              Yen 18,969 million

 

Major shareholders (%): Company’s Treasury Stock (7.8), Japan Trustee Services T (4.3), Northern Trust (AVFC) American (3.6), Master Trust Bank of Japan T (3.5), SMBC (2.6), Northern Trust (AVFC) Re US Tax EP (2.5), Employees’ S/Holding Assn (1.8), Towa Shokuhin Kenkyu Shinkokai (1.8), SSBT OD05 Omnibus Acc Treaty (1.8), State Street Bank & Trust 505225 (1.5); foreign owners (42.7)

 

No. of shareholders: 4,319

 

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

 

Managements: Tadasu Tsutsumi, ch; Kazuo Obata, pres; Koji Yoshino, s/mgn dir; Masaya Imamura, s/mgn dir; Hiroyuki Mitsunami, mgn dir; Kazuo Yamamoto, mgn dir; Isao Yoshimura, mgn dir; Kenji Sugawara, dir; Masaharu Oikawa, dir; Tadasi Fujitani, dir; Hisao Ichishima, dir

 

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

 

 

OPERATION

           

Activities: Manufactures marine foods (9%), instant noodles (Overseas) (21%), instant noodles (Domestic) (34%), chilled foods (18%), processed foods (5%), refrigerated foods (4%), others (9%)

Overseas Sales Ratio (21%)

           

Clients: [Mfrs, wholesalers] Mitsui & Co, Kokubu Ltd, Mitsubishi Foods, Japan Co-Ops, Kato Sangyo, other

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Yutaka Foods, Fukushima Foods, Nippon Denpun, Shuetsu, other

 

Payment record: Regular

 

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

 

Bank References:

                        SMBC (H/O)

                        MUFG (Tokyo)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

 

344,527

320,988

 

  Cost of Sales

214,908

202,610

 

      GROSS PROFIT

129,619

118,378

 

  Selling & Adm Costs

99,995

92,863

 

      OPERATING PROFIT

29,623

25,514

 

  Non-Operating P/L

2,374

1,475

 

      RECURRING PROFIT

31,997

26,989

 

      NET PROFIT

17,280

16,119

BALANCE SHEET

 

 

 

 

  Cash

 

50,496

43,207

 

  Receivables

 

45,948

48,746

 

  Inventory

 

20,174

20,837

 

  Securities, Marketable

27,501

17,001

 

  Other Current Assets

5,242

4,405

 

      TOTAL CURRENT ASSETS

149,361

134,196

 

  Property & Equipment

102,262

97,581

 

  Intangibles

 

2,349

2,051

 

  Investments, Other Fixed Assets

20,917

17,586

 

      TOTAL ASSETS

274,889

251,414

 

  Payables

 

21,711

21,997

 

  Short-Term Bank Loans

212

325

 

 

 

 

 

 

  Other Current Liabs

25,244

24,543

 

      TOTAL CURRENT LIABS

47,167

46,865

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

 

 

 

  Reserve for Retirement Allw

16,232

15,626

 

  Other Debts

 

2,318

2,258

 

      TOTAL LIABILITIES

65,717

64,749

 

      MINORITY INTERESTS

 

 

 

Common stock

18,969

18,969

 

Additional paid-in capital

22,516

22,516

 

Retained earnings

171,426

158,052

 

Evaluation p/l on investments/securities

2,185

322

 

Others

 

2,221

(5,065)

 

Treasury stock, at cost

(8,145)

(8,129)

 

      TOTAL S/HOLDERS` EQUITY

209,172

186,665

 

      TOTAL EQUITIES

274,889

251,414

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

 

33,367

19,510

 

Cash Flows from Investment Activities

-19,958

-31,089

 

Cash Flows from Financing Activities

-4,565

-4,691

 

Cash, Bank Deposits at the Term End

 

51,341

39,402

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

209,172

186,665

 

 

Current Ratio (%)

316.66

286.35

 

 

Net Worth Ratio (%)

76.09

74.25

 

 

Recurring Profit Ratio (%)

9.29

8.41

 

 

Net Profit Ratio (%)

5.02

5.02

 

 

Return On Equity (%)

8.26

8.64

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.35

UK Pound

1

Rs.100.21

Euro

1

Rs.83.52

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.