MIRA INFORM REPORT
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Report No. : |
316030 |
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Report Date : |
16.04.2015 |
IDENTIFICATION DETAILS
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Name : |
MARUHA NICHIRO CORPORATION |
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Registered Office : |
3-2-20 Toyosu Kotoku Tokyo 135-8608 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
March 1943 |
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Com. Reg. No.: |
0106-01-01040697 |
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Legal Form : |
Limited Company |
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Line of Business : |
Seafood company: Seafoods (60%), foods (37%), storage & distribution
(2%), others (1%) |
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No. of Employees : |
12,110 |
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 : |
Regular |
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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.
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. Since the
complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami
disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused
the economy to contract during the 2nd and 3rd quarters of 2014. The economy
has largely recovered in the three years since the disaster, but reconstruction
in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a
longstanding debate on restructuring the economy and reining in Japan's huge
government debt, which amounts to more than 240% 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 2015, although the government
in 2014 decided to postpone the final phase of the increase until 2017 to give
the economy time to recover from the 2014 increase. 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 & 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
PAYMENTS REGULAR 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.
Unit: In Million
Yen. Financials are those of Maruha
Nichiro Holdings Inc
Forecast figures
for the 31/03/2015 fiscal term.
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 term that ended Mar 2015 the recurring profit was 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 suffered from drop in unit prices. The impact of suspension of operations at
some frozen food product factories due to contamination with a pesticide
remained. Final results are yet to be
released.
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: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
Mizuho Bank (H/O)
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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244,286 |
221,847 |
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Cost of Sales |
222,755 |
202,076 |
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GROSS PROFIT |
21,530 |
19,700 |
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Selling & Adm Costs |
16,037 |
14,665 |
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OPERATING PROFIT |
4,492 |
5,035 |
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Non-Operating P/L |
1,339 |
431 |
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RECURRING PROFIT |
5,831 |
5,466 |
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NET PROFIT |
3,715 |
2,944 |
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BALANCE SHEET |
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Cash |
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5,821 |
6,350 |
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Receivables |
42,328 |
38,875 |
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Inventory |
10,378 |
10,107 |
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Securities, Marketable |
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Other Current Assets |
8,591 |
6,364 |
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TOTAL CURRENT ASSETS |
67,118 |
61,696 |
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Property & Equipment |
744 |
723 |
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Intangibles |
857 |
965 |
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Investments, Other Fixed Assets |
9,502 |
8,467 |
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TOTAL ASSETS |
78,221 |
71,851 |
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Payables |
32,324 |
30,876 |
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Short-Term Bank Loans |
949 |
779 |
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Other Current Liabs |
6,231 |
6,845 |
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TOTAL CURRENT LIABS |
39,504 |
38,500 |
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Debentures |
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Long-Term Bank Loans |
52 |
84 |
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Reserve for Retirement Allw |
2,076 |
1,605 |
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Other Debts |
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171 |
277 |
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TOTAL LIABILITIES |
41,803 |
40,466 |
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MINORITY INTERESTS |
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Common stock |
6,800 |
6,800 |
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Additional paid-in capital |
1,700 |
1,700 |
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Retained earnings |
27,671 |
24,563 |
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Evaluation p/l on
investments/securities |
458 |
177 |
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Others |
568 |
(1,078) |
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Treasury stock, at cost |
(780) |
(777) |
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TOTAL S/HOLDERS` EQUITY |
36,417 |
31,385 |
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TOTAL EQUITIES |
78,221 |
71,851 |
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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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1,716 |
5,792 |
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Cash Flows from Investment
Activities |
-208 |
-2,980 |
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Cash Flows from Financing Activities |
-506 |
-1,641 |
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Cash, Bank Deposits at the Term End |
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9,638 |
8,198 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net Worth (S/Holders' Equity) |
36,417 |
31,385 |
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Current Ratio (%) |
169.90 |
160.25 |
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Net Worth Ratio (%) |
46.56 |
43.68 |
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Recurring Profit Ratio (%) |
2.39 |
2.46 |
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Net Profit Ratio (%) |
1.52 |
1.33 |
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Return On Equity (%) |
10.20 |
9.38 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.40 |
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1 |
Rs.92.15 |
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Euro |
1 |
Rs.66.48 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
TPT |
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.