MIRA INFORM REPORT

 

 

Report Date :

06.09.2014

 

IDENTIFICATION DETAILS

 

Name :

MIZKAN GROUP CORPORATION

 

 

Registered Office :

2-6 Nakamuracho Handa City Aichi-Pref 475-0873

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2014

 

 

Date of Incorporation :

July 1977

 

 

Com. Reg. No.:

1800-01-092088

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is a holding company of Mizkan Group firms, in the line of mfg vinegar, processed foods

 

 

No. of Employees

125

 

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 Limits :

Yen 1,977.6 million

Status :

Satisfactory

Payment Behaviour :

No complaints

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

 

MIZKAN GROUP CORPORATION

 

REGD NAME:    KK Mizkan Group Honsha

MAIN OFFICE:  2-6 Nakamuracho Handa City Aichi-Pref 475-0873 JAPAN

Tel: 0569-21-3331      Fax: 0569-24-5000

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

holding Company of Mizkan group firms

 

 

BRANCHES   

 

Tokyo, Nagoya, Osaka, Hiroshima, Niigata, other (Tot 22)

 

 

OVERSEAS   

 

Mizkan America Inc, Mizkan Asia Pacific Pte Ltd (Singapore), Mizkan (Thailand) Co Ltd,

Mizkan UK Ltd (UK), 4 firm in China (--subsidiaries)

 

 

FACTORIES

 

Tochigi, Takebayashi (2), Handa, Osaka, Miki (2), other (Tot 9);

Singapore, Thailand, USA, UK, China, other

 

 

OFFICERS

 

KAZUHIDE MATAZAEMON NAKANO VIII, PRES & CEO

Miwa Nakano, rep dir      Fuji Nakano, honorary ch Yukio Nonoyama, s/mgn dir       Kenji Hasegawa, s/mgn dir

Hiroshi Koike, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 107,600 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 100 M

TREND UP                                WORTH            Yen 22,882 M

STARTED         1977                             EMPLOYES      125

 

 

COMMENT    

 

HOLDING COMPANY OF MIZKAN GROUP FIRMS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 1,977.6 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established originally in 1804 by Matazaemon Nakano (The First) in order to make vinegar from sake lees, the first of the kind in Japan.  Present Kazuhide is the 8th generation master.  This is a group holding Company founded 1977 to integrate management and operations.  Manages 9 subsidiaries domestically and 8 overseas (mfg bases).   In 2012 the firm bought and acquired Sarson’s Malt Vinegar, Hay wards; and in 2013 Branston Pickle, all of UK.  The core company is Mizkan Co Ltd in the line of mfg vinegar, other.  Goods are all shipped to group firms in the line of wholesaling and retailing.

 

 

FINANCIAL INFORMATION

           

The group sales volume for Feb/2014 fiscal term amounted to Yen 107,600 million, a 1% up from Yen 106,200 million in the previous term.  The net profit was posted at Yen 4,716 million, compared with Yen 3,158 million.

 

For the current term ending Feb 2015 the net profit is projected at Yen 5,000 million, on a 5% rise in turnover, to Yen 113,000 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,977.6 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Jul 1977

Regd No.:         1800-01-092088 (Aichi-Handa)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         800,000 shares

Issued:                200,000 shares

Sum:                   Yen 100 million

Major shareholders (%): Nakano families (100)

No. of shareholders: Unavailable

 

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

 

 

OPERATION

 

Activities: Holding company of Mizkan Group firms, in the line of mfg vinegar, processed foods, other (--100%)

 

Clients: [Mfrs, wholesalers] Mizkan Co, Mizkan Sammi, Mizkan Asset, Mizkan Logitec, Mizkan Tatebayashi, other

No. of accounts: 300

Domestic areas of activities: Nationwide

Suppliers: Mizkan Co Ltd

 

Payment record           No complaints

 

Location: Business area in Handa, Aichi-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

MUFG (Nagoya)

Mizuho Bank (Nagoya-Chuo)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

Terms Ending:

　

28/02/2015

28/02/2014

28/02/2013

Annual Sales

　

113,000

107,600

106,200

Recur. Profit

　

..

..

..

Net Profit

　

5,000

4,716

3,158

Total Assets

　

　

N/A

N/A

Net Worth

　

　

29,400

24,684

Capital, Paid-Up

　

　

100

100

Div.P.Share(¥)

　

　

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

    S.Growth Rate

　

5.02

1.32

- - -

    Current Ratio

　

　

..

..

    N.Worth Ratio

　

　

..

..

    N.Profit/Sales

　

4.42

4.38

2.97

 

Notes: Financials are only partially disclosed.  The figures are those of the group total sales earnings.

Forecast (or estimated) figures for the 28/02/2015 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.44

UK Pound

1

Rs.98.64

Euro

1

Rs.78.20

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIS

 

               

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.