MIRA INFORM REPORT

 

 

Report No. :

318958

Report Date :

29.04.2015

 

IDENTIFICATION DETAILS

 

Name :

MEIDI-YA CO LTD

 

 

Registered Office :

Kayabacho 1-Chome Heiwa Bldg, 1-8-1 Nihombashi-Kayabacho Chuoku Tokyo 103-0025

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2015

 

 

Date of Incorporation :

April, 1911

 

 

Com. Reg. No.:

0200-01-029171 (Yokohama-Nakaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Supermarket Chain Operator, Import of Liquor, Foodstuffs.

 

 

No. of Employees :

356

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limits :

Yen 407.8 Million

 

 

Status :

Moderate

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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. 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.

 

Source : CIA

 

 

Company Name and address

 

MEIDI-YA CO LTD

 

REGD NAME:               KK Meidi-Ya

 

MAIN OFFICE:              Kayabacho 1-Chome Heiwa Bldg, 1-8-1 Nihombashi-Kayabacho Chuoku Tokyo

                                                103-0025 JAPAN

                                                Tel: 03-3271-1111     Fax: 03-3273-6360

 

                                                *.. Registered at: 5-76 Onoecho Nakaku Yokohama

 

URL:                             http://www.meidi-ya.co.jp/

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES

 

Supermarket chain operator, import of liquor, foodstuffs

 

 

BRANCHES

 

Yokohama, Nagoya, Kobe, Fukuoka, other (Tot 30)

 

 

STORE(S)

           

Tokyo (6), Yokohama, Nagoya, Kyoto, Kobe, Sendai, other; Amsterdam (Tot 25)

 

 

OFFICERS

           

MOTOICHI YONEI, PRES           Masahiro Morioka, v pres

Hirotsune Sakano, s/mgn dir      Yoshimi Kikuchi, mgn dir

Toshio Yokoyama, dir                Kenzo Isono, advisor

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

           

FINANCES        FAIR                             A/SALES                      Yen 26,319 M

PAYMENTSSLOW BUT CORRECT         CAPITAL                       Yen 270 M

TREND UP                                WORTH                        Yen 4,4,99 M

STARTED         1911                             EMPLOYES                  356

 

 

COMMENT    

 

FOODSTUFF SUPERMARKET CHAIN OPERATOR; IMPORTER OF WINES, OTHER LIQUOR. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 407.8 MILLION, 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

 

The subject company was established originally in 1885 when Kei Isono started a ship chandler business in Yokohama, on his account.  Incorporated in 1911 the firm has been succeeded by his descendants.  Motoichi Yonei is the 7th generation master, who took the pres office in May 2004 when the former pres, Keiichi Isono was promoted to the ch.  This is a foodstuff supermarket chain operator and importer of wines, other foodstuffs, having changed the mainstay from foodstuff trading business until Apr 2005.  In Apr 2005, the firm founded JV trading firm, Meidi-Ya Corporation (now Mitsubishi Shokuhin Co Ltd) (see REGISTRATION), jointly with Mitsubishi Corp.  By the merger the domestic wholesale operations were transferred to the JV firm, including staff members, and the subject transformed itself into a specialized foodstuff supermarket chain operator and importer of liquor, foodstuffs, other. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Feb/2014 fiscal term amounted to Yen 26,319 million, a 3% up from Yen 25,520 million in the previous term.  The operations continued in the red for 3 consecutive terms to post Yen 258 million net losses for the term, compared with Yen 408 million net losses a year ago. 

 

For the term that ended Feb 2015 the operations were expected to come back profitability to post Yen 150 million net profit, on a 3% rise in turnover, to Yen 27,150 million.  Final results are yet to be released.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 407.8 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:                       Apr 1911

Regd No.:                    0200-01-029171 (Yokohama-Nakaku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  21.6 million shares

Issued:                         5.4 million shares

Sum:                            Yen 270 million

Major shareholders (%): Isono Fudosan*(26%), Chuotei Tokyo*(5), Meidi-Ya Shokuhin Factory*(5), Chuotei Osaka*(5), Chuotei Kobe*(5).                     

*.. Group subsidiaries

 

No. of shareholders:     35

 

Mitsubishi Shokuhin Co Ltd, largest processed food wholesaler, originally Mitsubishi Corp’s marketing firm dealing in canned seafoods, Tokyo, integrated 3 group firms in Apr 2012 including Meidi-Ya Corporation, founded 1925, listed Tokyo S/E, capital Yen 10,630 million, sales Yen 2,388,326 million, operating profit Yen 15,684 million, recurring profit Yen 17,172 million, net profit Yen 9,657 million, total assets Yen 706,558 million, net worth Yen 135,227 million, employees 5,365, pres Takeshi Inoue.

 

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

 

 

OPERATION

 

Activities: Operates foodstuff supermarket chain of 25 stores nationwide, including one in Amsterdam; imports liquor & foodstuffs; supplies liquor & foodstuffs to ships (ship chandler); restaurant operation attached:.

 

(Operations consist of the Three Main Divisions):

 

Retail Div (48%): Operates 20 stores of a wide variety of foodstuffs, wines, beers, other liquor, canned goods, spices, vegetables, fruits, food additives, other;

Merchandise Div (38.3%): Imports the goods from world over (as exclusive agent);

Overseas Supply Div (Yokohama) (10.1%): ship chandler business as originally started, supplying ship machinery, equipment, tackles, liquor, cigarettes (bonded stores included), victuals, etc at major ports worldwide.  Singapore Office is the center of this operation.  The division also handles products of A. W. Chesterton, USA & Sponge-Jet Inc USA, as sole distributor agent from 1976.

Other Div (3.6%)

 

Clients: [Food processors, wholesalers, consumers] Mitsubishi Shokuhin Co (50%), Nippon Meat Packers Inc, Itoham Foods Inc, Kirin Brewery Co, other

No. of accounts: 800 (including clients through Mitsubishi Shokuhin Co).

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsubishi Shokuhin Co, Kirin Brewery, Ajinomoto, Nestle Japan, House Foods, Kagome Co, Nikka Whisky Distilling, Meidi-Ya Shokuhin Factory, other.

Imports from USA, China, other

 

Payment record: Slow but correct

 

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

 

Bank References:

            MUFG (H/O)

            Mitsubishi UFJ Trust Bank (H/O)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

28/02/2015

28/02/2014

28/02/2013

29/02/2012

Annual Sales

 

27,150

26,319

25,520

25,650

Recur. Profit

 

 

-360

 

 

Net Profit

 

150

-258

-408

-1,223

Total Assets

 

 

17,473

15,757

15,426

Current Assets

 

 

6,084

5,124

5,517

Current Liabs

 

 

8,502

6,019

6,254

Net Worth

 

 

4,499

4,744

4,706

Capital, Paid-Up

 

 

270

270

270

Div.Ttl in Million (¥)

 

 

0.00

6

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

3.16

3.13

-0.51

-0.42

    Current Ratio

 

..

71.56

85.13

88.22

    N.Worth Ratio

 

..

25.75

30.11

30.51

    R.Profit/Sales

 

..

-1.37

..

..

    N.Profit/Sales

 

0.55

-0.98

-1.60

-4.77

    Return On Equity

 

..

-5.73

-8.60

-25.99

 

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

 

 

 

 

 

           

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.33

UK Pound

1

Rs.96.52

Euro

1

Rs.68.93

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

               

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.