MIRA INFORM REPORT
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Report Date : |
22.10.2014 |
IDENTIFICATION DETAILS
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Name : |
NICHIMO CO LTD |
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Registered Office : |
Tennozu Yusen Bldg, 2-2-20 Higashishinagawa Shinagawaku Tokyo 140-0002 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
August 1919 |
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Com. Reg. No.: |
0107-01-011833 |
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Legal Form : |
Limited Company |
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Line of Business : |
Trading house specializing in marine products |
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No. of Employees : |
1,092 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
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Source
: CIA |
Company
name and address
NICHIMO CO LTD
REGD NAME: Nichimo
KK
MAIN OFFICE: Tennozu
Yusen Bldg, 2-2-20 Higashishinagawa Shinagawaku Tokyo 140-0002
JAPAN
Tel:
03-3458-3020 Fax: 03-3458-3088
URL: http://www.nichimo.co.jp/
E-Mail address: home@nichimo.co.jp
ACTIVITIES
Import, export, wholesale of foods, industrial machinery,
chemicals, other
BRANCHES
Sapporo, Sendai, Osaka, Fukuoka, Nagoya, Sakai-Minato,
Shimonoseki,
Nagasaki, Amakusa, Kagoshima
OVERSEAS
China,
USA, Netherlands
CHIEF
EXEC
KAZUAKI
MATSUMOTO, PRES & CEO
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 103,620 M
PAYMENTSSLOW
BUT CORRECT CAPITAL Yen 4,411 M
TREND UP WORTH Yen 12,380 M
STARTED 1919 EMPLOYES 1,092
COMMENT
TRADING HOUSE SPECIALIZING IN MARINE PRODUCTS.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast (or estimated) figures for
31/03/2015 fiscal term
HIGHLIGHTS
An
old-established trading house founded in 1919.
Once noted for major producer of fishing nets and gears, as Nippon Gyomo
Sengu KK (Gyomo means fishing nets and Sengu means fishing gears), but later
spun off the production div as a separate company. Since then the subject focused on the trading
business, expanding into processed foods including ground fish and
food-processing machines and packaging materials, health foods. Stressing bio business & health
foods.
FINANCIAL
INFORMATION
The sales volume for Mar/2014
fiscal term amounted to Yen 103,620 million, a 3.6% up
from Yen 99,948 million in the previous term. Food sales, which flourished in the second
half, were benefitted from an upturn in the frozen fish market and high-price
crab sales. Operating profits contracted
due to deficits booked on an overseas subsidiary and the distribution
business. Operations plunged into the
red to post Yen 111 million recurring loss and Yen 197 million net loss,
respectively, compared with Yen 775 million recurring profit and Yen 728
million net profit, respectively, a year ago.
(Apr/Jun/2014
results): Sales Yen 25,050 million (up 2.7%), operating profit Yen 31 million
(previously Yen 176 million loss), recurring loss Yen 90 million (previously
Yen 168 million loss), net loss Yen 107 million (previously Yen 146 million
loss). (% & figures as compared with
the corresponding period a year ago).
For
the current term ending Mar 2015 the recurring profit is projected at Yen 700
million and the net profit at Yen 450 million, respectively, on a 1.5% fall in
turnover, to Yen 102,000 million.
The
financial situation is considered FAIR and good for ORDINARY business
engagements.
REGISTRATION
Date Registered: Aug
1919
Regd No.: 0107-01-011833
(Tokyo-Shinagawaku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 154,514,000 shares
Issued:
34,874,000 shares
Sum: Yen 4,411 million
Major shareholders (%): Company’s Treasury Stock (9.8),
Asahi Life Ins (7.9), TCSB (Mizuho Bank) (4.4), Nippon Suisan (3.1), Customers’
S/Holding Assn (2.8), Sompo Japan Nipponkoa Ins (2.3), CBNYDFA Int’l Small Cap
Value P (2.2), Tokyo Rope Mfg (1.3), Toyo Suisan (1.3), Master Trust Bank of
Japan T (1.2); foreign owners (5.2)
No. of shareholders: 3,441
Listed on the S/Exchange (s) of: Tokyo
Managements: Yukio Koike, ch; Kazuaki Matsumoto,
pres; Noboru Tanabe, s/mgn dir; Yoshitomo Yageta, mgn dir; Tadayoshi Koremura,
dir; Junichi Udagawa, dir; Yoshiyuki Tsuchida, dir
Nothing
detrimental is knows as to the commercial morality of executives.
Related companies: Nishi Nihon Nichimo, Nichimo One Man,
Nichimo Marifarm, Nor Eastern Trawl Systems, Nichimo (Holland) BV, Nichimo
Foods, other
OPERATION
Activities: Trading house specializing in marine
products:
(Sales breakdown by Divisions):
Marine Div (17%): fishing nets & gears, ship
equipment & machinery;
Food Div (61%): Surimi (fish paste), fresh &
frozen fish, processed/value added foods;
Machinery Div (9%): food processing machinery &
equipment;
Material Supply Div (10%): synthetic resin, packaging
materials, agricultural materials;
Distribution Div (3%): logistics & distribution
services.
Clients: [Fishery coops, wholesalers] Ensui Co,
National Federation of Fishery Processors Coops, Hokkaido Federation of Fishery
Processors Coops, Haneuo Shokuhin, Tenmalu Co, Toppan Kenso Products, other.
No. of
accounts: 2,000
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Riken Technos,
Daitou Suisan Co, Next Co, American Seafood Co, Nishi Nihon Nichimo, Riken
Technos Corp, other.
Payment record: slow
but correct
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactorily.
Bank References:
Mizuho
Bank (Marunouchi)
Norin
Chukin Bank (H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME STATEMENT |
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Annual Sales |
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103,620 |
99,948 |
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Cost of Sales |
95,025 |
91,899 |
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GROSS PROFIT |
8,594 |
8,048 |
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Selling & Adm Costs |
8,364 |
7,239 |
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OPERATING PROFIT |
229 |
808 |
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Non-Operating P/L |
-340 |
-33 |
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RECURRING PROFIT |
-111 |
775 |
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NET PROFIT |
-197 |
728 |
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BALANCE SHEET |
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Cash |
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3,637 |
5,870 |
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Receivables |
16,255 |
14,548 |
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Inventory |
18,941 |
18,789 |
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Securities, Marketable |
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Other Current Assets |
1,102 |
431 |
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TOTAL CURRENT ASSETS |
39,935 |
39,638 |
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Property & Equipment |
8,181 |
8,741 |
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Intangibles |
1,255 |
1,646 |
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Investments, Other Fixed Assets |
8,627 |
7,804 |
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TOTAL ASSETS |
57,998 |
57,829 |
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Payables |
11,667 |
11,013 |
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Short-Term Bank Loans |
19,190 |
17,985 |
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Other Current Liabs |
3,691 |
4,689 |
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TOTAL CURRENT LIABS |
34,548 |
33,687 |
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Debentures |
4,300 |
3,500 |
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Long-Term Bank Loans |
4,799 |
5,154 |
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Reserve for Retirement Allw |
886 |
520 |
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Other Debts |
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1,085 |
830 |
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TOTAL LIABILITIES |
45,618 |
43,691 |
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MINORITY INTERESTS |
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Common
stock |
4,411 |
4,411 |
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Additional
paid-in capital |
22 |
22 |
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Retained
earnings |
9,978 |
10,346 |
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Evaluation
p/l on investments/securities |
1,253 |
725 |
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Others |
(2,203) |
(287) |
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Treasury
stock, at cost |
(1,081) |
(1,080) |
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TOTAL S/HOLDERS` EQUITY |
12,380 |
14,137 |
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TOTAL EQUITIES |
57,998 |
57,829 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash
Flows from Operating Activities |
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-2,241 |
121 |
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Cash
Flows from Investment Activities |
-1,293 |
1,622 |
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Cash
Flows from Financing Activities |
1,666 |
984 |
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Cash,
Bank Deposits at the Term End |
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3,199 |
5,601 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
12,380 |
14,137 |
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Current
Ratio (%) |
115.59 |
117.67 |
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Net
Worth Ratio (%) |
21.35 |
24.45 |
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Recurring
Profit Ratio (%) |
-0.11 |
0.78 |
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Net
Profit Ratio (%) |
-0.19 |
0.73 |
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Return
On Equity (%) |
-1.59 |
5.15 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.30 |
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1 |
Rs.99.16 |
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Euro |
1 |
Rs.78.59 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
PDT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.