MIRA INFORM REPORT
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Report No. : |
356711 |
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Report Date : |
22.12.2015 |
IDENTIFICATION DETAILS
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Name : |
MEIJI SHIPPING CO LTD |
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Registered Office : |
32 Akashicho Chuoku Kobe |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
May, 1911 |
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Com. Reg. No.: |
1400-01-011266 (Kobe-Chuoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Ship Owning/Operating, Office Leasing, Hotel Business, Other |
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No. of Employees : |
564 |
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 : |
Good |
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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.
ECGC Country Risk Classification List – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 an
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. Scarce in many
natural resources, Japan has long been dependent on imported raw materials.
Since the complete shutdown of Japan’s nuclear reactors after the earthquake
and tsunami disaster in 2011, Japan's industrial sector has become even more
dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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.
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 of that year disrupted
manufacturing. The economy has largely recovered in the four years since the
disaster, although reconstruction in the affected Tohoku region has lagged, in
part due to a shortage of labor in the construction sector. Japan enjoyed a
sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s
“Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of
monetary easing, “flexible” fiscal policy, and structural reform. Abe’s
government has replaced the preceding administration’s plan to phase out
nuclear power with a new policy of seeking to restart nuclear power plants that
meet strict new safety standards, and emphasizing nuclear energy’s importance
as a base-load electricity source. Japan joined the Trans-Pacific Partnership
(TPP) 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 first-place China, which surpassed Japan in 2001, and third-place
India, which edged out Japan in 2012. While seeking to stimulate and reform the
economy, the government must also devise a strategy for reining in Japan's huge
government debt, which amounts to more than 230% of GDP. To help raise
government revenue, Japan adopted legislation in 2012 to gradually raise the
consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8%
implemented in April 2014. That increase had a contractionary effect on GDP,
however, so PM Abe in late 2014 decided to postpone the final phase of the
increase until April 2017 to give the economy more time to recover. Led by the
Bank of Japan’s aggressive monetary easing, Japan is making progress in ending
deflation, but demographics - low birthrate and an aging, shrinking population
- pose major long-term challenges for the economy.
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Source
: CIA |
Company
Name and address
MEIJI SHIPPING CO LTD
REGD NAME: Meiji
Kaiun KK
MAIN OFFICE: 1-18-11
Kamimeguro Meguroku Tokyo 153-0051 JAPAN
Tel: 03-3792-0811
*.. Registered at: 32 Akashicho
Chuoku Kobe -
URL: http://www.meiji-shipping.com
E-Mail address: (thru the URL)
ACTIVITIES
Ship
owning/operating, office leasing, hotel business, other
BRANCHES
Kobe, Hokkaido,
Okinawa, other
OVERSEAS
Philippines,
Singapore, Iloilo, India (2)
CHIEF
EXEC
KAZUYA UCHIDA, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 31,940 M
PAYMENTSREGULAR CAPITAL Yen
1,800 M
TREND UP WORTH Yen
29,992 M
STARTED 1911 EMPLOYES 564
COMMENT
SHIP OWNING AND OPERATING
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast
figures for the 31/03/2016 fiscal term.
HIGHLIGHTS
This is the
leading mfr is a ship owner and operator of ocean-going vessels. Has associations with Mitsui OSK Lines. Leasing vessels include tankers (up to
VLCCs), car carriers and bulk carriers on long- & medium-term basis. Operates office building leasing and hotel
businesses as sidelines. Hotels are in
Okinawa, Hokkaido and Kobe, and building leasing in Tokyo & Kobe. It aims to stabilize earnings from early on
by taking diversification strategy beyond ocean-going shipping operations.
FINANCIAL
INFORMATION
The sales volume
for Mar/2015 fiscal term amounted to Yen 31,940 million, a 13.4% up from Yen
28,151 million in the previous term. The
weaker Yen helped. Acquisition of the
Windsor Hotel TOYA contributed. The
recurring profit was posted at Yen 5.601 million and the net profit at Yen
2,446 million, respectively, compared with Yen 6,855 million recurring profit
and Yen 1,414 million net profit, respectively, a year ago.
For the current
term ending Mar 2016 the recurring profit is projected at Yen 3,800 million and
the net profit at Yen 3,500 million, respectively, on an 8.01% rise in turnover,
to Yen 34,500 million. The Hotel TOYA will contribute fully.
The financial
situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date Registered: May 1911
Regd No.: 1400-01-011266 (Kobe-Chuoku)
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized: 144 million shares
Issued:
36 million shares
Sum:
Yen 1,800 million
Major shareholders
(%):
Meiji Tochi Tetemono (14.8), Mitsui Sumitomo Ins (6.9), Tokio Marine &
Nichido Fire Ins (6.9), Mitsui OSK Lines (6.8), Meikai Kosan (6.4), SMBC (4.9),
Mitsui Eng. & Shipbuilding (3.3), Yamakin (Japan) Co (2.9), Chuo Sogo
Service Co (2.8), Pack Trading (2.8); foreign owners (1.7)
No. of
shareholders: 4,521
Listed
on the S/Exchange (s) of: Tokyo
Managements: Kazuya Uchida,
pres; Jun Ushijima, s/mgn dir; Takaya Uchida, s/mgn dir; Nobuo Tsuchiya, mgn
dir; Shigeru Yoshida, dir; Toshiro Mizuno, dir; Hirotaka Sasahara, dir;
Masatsugu Takahashi, dir; Masayuki Nibu, dir; Kikuhiko Motoyama, dir
Nothing detrimental is known as to the
commercial morality of executives.
Related
companies: Tohmei Shipping, MMS, The Windsor Hotel HOYA Resort & Spa, other.
OPERATION
Activities: Overseas shipping
(65%), Hotel management (33%), Real estate leasing, other (2%)
Overseas
Sales Ratio (39%)
Clients: [Mfrs,
wholesalers] Mitsui OSK Lines, other
No. of accounts:
Limited
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] Mitsui Engineering
& Shipbuilding, other
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
SMBC (H/O)
Mizuho Bank (Uchisaiwaicho)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2015 |
31/03/2014 |
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INCOME STATEMENT |
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Annual Sales |
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31,940 |
28,151 |
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Cost of Sales |
25,930 |
23,084 |
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GROSS PROFIT |
6,009 |
5,067 |
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Selling & Adm Costs |
3,217 |
2,543 |
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OPERATING PROFIT |
2,792 |
2,524 |
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Non-Operating P/L |
2,809 |
4,331 |
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RECURRING PROFIT |
5,601 |
6,855 |
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NET PROFIT |
2,446 |
1,414 |
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BALANCE SHEET |
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Cash |
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10,763 |
9,683 |
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Receivables |
694 |
491 |
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Inventory |
718 |
569 |
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Securities, Marketable |
5 |
5 |
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Other Current Assets |
2,954 |
2,370 |
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TOTAL CURRENT ASSETS |
15,134 |
13,118 |
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Property & Equipment |
118,089 |
116,460 |
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Intangibles |
78 |
86 |
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Investments, Other Fixed Assets |
10,267 |
7,383 |
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TOTAL ASSETS |
143,568 |
137,047 |
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Payables |
1,088 |
862 |
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Short-Term Bank Loans |
19,608 |
24,564 |
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Other Current Liabs |
6,008 |
5,718 |
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TOTAL CURRENT LIABS |
26,704 |
31,144 |
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Debentures |
3,790 |
4,274 |
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Long-Term Bank Loans |
74,952 |
70,666 |
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Reserve for Retirement Allw |
250 |
232 |
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Other Debts |
|
7,880 |
7,683 |
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TOTAL LIABILITIES |
113,576 |
113,999 |
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MINORITY INTERESTS |
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Common
stock |
1,800 |
1,800 |
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Additional
paid-in capital |
21 |
20 |
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Retained
earnings |
7,171 |
6,353 |
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Evaluation
p/l on investments/securities |
628 |
419 |
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Others |
20,910 |
14,995 |
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Treasury
stock, at cost |
(538) |
(540) |
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TOTAL S/HOLDERS` EQUITY |
29,992 |
23,047 |
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TOTAL EQUITIES |
143,568 |
137,047 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2015 |
31/03/2014 |
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Cash
Flows from Operating Activities |
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9,959 |
11,370 |
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Cash
Flows from Investment Activities |
-5,062 |
-323 |
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Cash
Flows from Financing Activities |
-4,667 |
-9,272 |
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Cash,
Bank Deposits at the Term End |
|
10,412 |
9,272 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
29,992 |
23,047 |
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Current
Ratio (%) |
56.67 |
42.12 |
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Net
Worth Ratio (%) |
20.89 |
16.82 |
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Recurring
Profit Ratio (%) |
17.54 |
24.35 |
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Net
Profit Ratio (%) |
7.66 |
5.02 |
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Return
On Equity (%) |
8.16 |
6.14 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.32 |
|
|
1 |
Rs.98.99 |
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Euro |
1 |
Rs.72.13 |
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YEN |
1 |
Rs.0.55 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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Report Prepared
by : |
NIT |
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.