MIRA INFORM REPORT

 

 

Report Date :

30.07.2014

 

IDENTIFICATION DETAILS

 

Name :

MARUHA NICHIRO CORPORATION

 

 

Registered Office :

3-2-20 Toyosu Kotoku Tokyo 135-8608

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

March, 1943

 

 

Com. Reg. No.:

0106-01-01040697 (Tokyo-Kotoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha

 

 

Line of Business :

Import, export, wholesale of fish, seafood, chemical foods, fish farming, other

 

 

No. of Employees

12,110

 

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 :

Satisfactory

 

 

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 and address

 

MARUHA NICHIRO CORPORATION (Renamed in Apr 2014 after merger of group firms)

REGD NAME:    KK Maruha Nichiro

MAIN OFFICE:  3-2-20 Toyosu Kotoku Tokyo 135-8608 JAPAN

Tel: 03-6833-4312     Fax: 03-6833-0164     -

 

URL:                 http://www.maruha-nichiro.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Import, export, wholesale of fish, seafood, chemical foods, fish farming, other

 

 

BRANCHES

 

30 branches nationwide

 

 

OVERSEAS

 

Canada, Netherlands, Spain, Morocco, Chile, China (4), Thailand

 

 

FACTORIES

 

At the caption address, Yubari, Ishinomaki, Yamagata (2), Tochigi, Gunma, Hiroshima

 

 

CHIEF EXEC 

 

SHIGERU ITO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 851,708 M

PAYMENTSSLOW BUT CORRECT         CAPITAL           Yen 15,000 M

TREND UP                                WORTH            Yen 90,876 M

STARTED         1943                             EMPLOYES      12,110

 

 

COMMENT    

 

SEAFOOD COMPANY

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

Results:

31/03/2011

823,399

15,083

3,606

(%)

71,671

(Consolidated)

31/03/2012

816,121

14,878

3,385

-0.88

73,737

 

31/03/2013

809,789

13,250

5,448

-0.78

82,679

 

31/03/2014

851,708

13,954

3,191

5.18

90,876

 

31/03/2015

850,000

10,000

5,000

-0.20

..

Unit: In Million Yen.  Financials are those of Maruha Nichiro Holdings Inc

Forecast figures for the 31/03/2015rm.

 

 

HIGHLIGHTS

 

The subject company was established originally in 1880 by Ikujiro Nakabe for selling fishery products in Osaka, on his account.  In 2004 merged with Nichiro Corp and formed Maruha Nichiro Holdings Inc in Oct 2007.  In Apr 2014 the subject firm merged six firms in the same group and renamed as captioned and listed on the Tokyo S/E.  Merged six companies are: Maruha Nichiro Holdings Inc, Maruha Nichiro Seafood Inc, Maruha Nichiro Foods Inc, Maruha Nichiro eat & Products Inc, Maruha Nichiro Management Inc, and AQLI Foods Corporation.  The aim of the merger, as the firm says, is to accelerate growth and advance the Maruha Nichiro Group toward the future by shifting to a simple group management system centered on an operating holding company and displaying the overall strength the Group even than ever.  The subject is a holding company of the Group which concentrate on trading fish, seafood, fish farming, fish breeding, chemical fish, foods, livestock feedstuffs, other. Fishes are imported from USA, Canada, Spain, other.  Farm-raised tune is imported from Spain, Tunisia, Australia, other.  Clients include fish markets, wholesalers, shops, other.

 

 

FINANCIAL INFORMATION

 

Financials are those of the Maruha Nichiro Holdings Inc.

 

The sales volume for Mar/2014 fiscal term amounted to Yen 851,708 million, a 5.2% up from Yen 809,769 million in the previous term.  Yayoi Shokuhin, purchased in the preceding term added Yen 8 billion to sales and Yen 400 million to operating profit for the full term.  Seafood sales fared well, thanks to rise in market prices of shrimp, prawn, etc.  The recurring profit was posted at Yen 13,954 million and the net profit at Yen 3,191 million, respectively, compared with Yen 13,250 million recurring profit and Yen 5,448 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 10,000 million and the net profit at Yen 5,000 million, respectively, on a 0.2% fall in turnover, to Yen 850,000 million.  In the seafood business, sales will suffer from drop in unit prices.  The impact of suspension of operations at some frozen food product factories due to contamination with a pesticide will remain.

 

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

 

 

REGISTRATION

 

      Date Registered:　            Mar 1943

      Regd No.:                           0106-01-01040697 (Tokyo-Kotoku)

Legal Status:               Limited Company (Kabushiki Kaisha

Authorized:                              1,170 million shares

Issued:                        502,414,430 shares

Sum:                            Yen 15,000 million

 

Major shareholders (%): Taitoh Trading (10.4), Norin Chukin Bank (3.7), Mizuho Bank (3.2), Master Trust Bank of Japan T (2.7), Japan Trustee Services T (2.5), Tokio Marine & Nichido Fire ins (2.1), Toyo Seikan Group Holdings (1.7), Nippon Life Ins (1.6), Yamaguchi Bank (1.2), Japan Trustee Services T5 (0.9); foreign owners (8.5)

 

No. of shareholders: 77,852

 

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

 

Managements: Michiro Sakai, ch; Shigeru Ito, pres; Jun’ichiro Yoneoka, s/mgn dir; adaaki Yokote, s/mgn dir; Atsushi Watanabe, s/mgn dir; Naoki Oshikubo, s/mgn dir; Hiroshi Imamura, mgn dir; Masayuki Nakajima, mgn dir; Nobutaka Okamoto, mgn dir; Masato Tajima, mgn dir; Kazutoshi Mitamura, dir; Hiroshi Okazaki, dir

 

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

 

Related companies: Daito Gyorui Co, Maruha Nichiro Logistics, Yayoi Sunfoods, other.

 

 

OPERATION

 

Activities: Seafood company: seafoods (60%), foods (37%), storage & distribution (2%), others (1%)

 

Overseas Sales Ratio (13%)

 

Clients: [Mfrs, wholesalers] Uoichi Co, Daito Gyorui Co, Shokuryu Co, Taiyo A&F Co, etc

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Koyo Marine Products, Daito Gyorui Co, Taiyo A&F Co, Westward Seafood, other.

Imports from: USA, Canada, Spain, Tunisia, Australia, other

 

Payment record: Slow but Correct

 

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

 

Bank References:

Mizuho Bank (^)

Norin Chukin Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

 

Annual Sales

 

851,708

809,789

 

Cost of Sales

742,507

700,009

 

GROSS PROFIT

109,200

109,779

 

Selling & Adm Costs

98,574

97,782

 

OPERATING PROFIT

10,626

11,996

 

Non-Operating P/L

3,328

1,254

 

RECURRING PROFIT

13,954

13,250

 

NET PROFIT

3,191

5,448

BALANCE SHEET

 

 

 

 

Cash

 

13,952

14,247

 

Receivables

 

98,198

103,164

 

Inventory

 

134,303

118,186

 

Securities, Marketable

 

 

 

Other Current Assets

13,493

17,533

 

TOTAL CURRENT ASSETS

259,946

253,130

 

Property & Equipment

138,500

138,692

 

Intangibles

 

22,290

21,697

 

Investments, Other Fixed Assets

54,497

49,406

 

TOTAL ASSETS

475,233

462,925

 

Payables

 

29,157

33,405

 

Short-Term Bank Loans

178,823

172,113

 

 

 

 

 

 

Other Current Liabs

36,070

38,976

 

TOTAL CURRENT LIABS

244,050

244,494

 

Debentures

 

 

 

 

Long-Term Bank Loans

111,619

105,800

 

Reserve for Retirement Allw

20,694

22,209

 

Other Debts

 

7,994

7,742

 

TOTAL LIABILITIES

384,357

380,245

 

MINORITY INTERESTS

 

 

 

Common stock

15,000

31,000

 

Additional paid-in capital

45,683

29,683

 

Retained earnings

15,257

13,695

 

Evaluation p/l on investments/securities

2,552

2,416

 

Others

 

12,452

5,941

 

Treasury stock, at cost

(68)

(56)

 

TOTAL S/HOLDERS` EQUITY

90,876

82,679

 

TOTAL EQUITIES

475,233

462,925

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

 

8,708

26,585

 

Cash Flows from Investment Activities

-12,471

-11,773

 

Cash Flows from Financing Activities

3,748

-16,153

 

Cash, Bank Deposits at the Term End

 

13,932

14,090

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

 

Net Worth (S/Holders' Equity)

90,876

82,679

 

 

Current Ratio (%)

106.51

103.53

 

 

Net Worth Ratio (%)

19.12

17.86

 

 

Recurring Profit Ratio (%)

1.64

1.64

 

 

Net Profit Ratio (%)

0.37

0.67

 

 

Return On Equity (%)

3.51

6.59

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.102.04

Euro

1

Rs.80.74

                

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

SDA

               

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.