MIRA INFORM REPORT

 

 

Report No. :

305869

Report Date :

31.01.2015

 

IDENTIFICATION DETAILS

 

Name :

NATIONAL FEDERATION OF AGRICULTURAL COOPERATIVE ASSOCIATIONS

 

 

Registered Office :

JA Bldg, 1-3-1 Ohtemachi Chiyodaku Tokyo 100-0004

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015 (Estimated)

 

 

Date of Incorporation :

May 1972

 

 

Com. Reg. No.:

0100-05-000987 (Tokyo-Chiyodaku)

 

 

Legal Form :

Federation (Rengokai)

 

 

Line of Business :

Subject is a National Federation of Agriculture Cooperatives Association, Managing, Handling and Operating Rice, Crops, Livestock, Horticulture, Fertilizer, Oils/Fuels, Agricultural Machines & Equipment

 

 

No of Employees :

8,038

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 


 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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

 

NATIONAL FEDERATION OF AGRICULTURAL COOPERATIVE ASSOCIATIONS

 

 

REGD NAME

 

Zenkoku Nogyo Kyodo Kumiai Rengokai

 

 

MAIN OFFICE

 

JA Bldg, 1-3-1 Ohtemachi Chiyodaku Tokyo 100-0004 JAPAN

 

Tel: 03-6271-8111      Fax: 03-5218-2510

 

*.. The given Division Name is one of its Divisions

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Subject is a National Federation of Agriculture Cooperatives Association, Managing, Handling and Operating Rice, Crops, Livestock, Horticulture, Fertilizer, Oils/Fuels, Agricultural Machines & Equipment

 

 

BRANCHES

 

900 locations nationwide

 

 

OVERSEAS

 

China, Australia, Germany, Canada, USA, other 

 

 

OFFICERS

 

HITOMI NARIKIYO, REP

Geniichi Kamiide, rep    

Masanobu Yoshinaga, rep

                                   

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                                         A/SALES          Yen 5,194,075 M

PAYMENTSSlow but Correct                     CAPITAL           Yen 115,275 M*

TREND UP                                            WORTH            Yen 304,744 M

STARTED         1972                                         EMPLOYES      8,038

                                                *.. Investment from members/associate members

 

 

COMMENT    

 

NATIONAL FEDERATION OF AGRICULTURAL COOPERATIVES.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

                       

HIGHLIGHTS

           

The subject is a national federation of agricultural cooperatives.  It covers: rice, crops livestock, horticulture, fertilizer, oils/fuels, agricultural machines & equipment.  It has 1,148,058 members and 4,699 associate members under the Association. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 5,194,075 million, a 5% up from Yen 7,930,571 million in the previous term.  The net profit was posted at Yen 9,212 million, compared with Yen 10,711 million a year ago.

 

For the current term ending Mar 2015 the net profit is projected at Yen 9,400 million, on a 5% rise in turnover, to Yen 5,455,000 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:           May 1972

Regd No.:            0100-05-000987 (Tokyo-Chiyodaku)

Legal Status:       Federation (Rengokai)

Sum:                   Yen 115,275.7 million (Investments from members)

Major shareholders (%): 1,148,058 members and 4,699 associate members

 

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

 

 

OPERATION

           

Activities: This is a national federation of agriculture cooperatives association, managing, handling and operating: rice, crops, livestock, horticulture, fertilizer, oils/fuels, agricultural machines & equipment, other (--100%)

 

Clients: Agricultural associations, economic/agricultural associations, cooperatives, wholesale markets, supermarkets, dairy makers, trading firms, other 

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Agricultural cooperatives nationwide, Idemitsu Kosan (oils), Nissan Motor, Mitsubishi Chemical, Kubota, other

 

Payment record: Slow but Correct

 

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

 

Bank References:

Norin Chukin Bank (H/O)

Mizuho Bank (Tokyo)

Relations: Satisfactory

 


Finances

(In Million Yen)

 

Terms Ending:

 

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

5,455,000

5,194,075

4,930,571

4,915,782

Recur. Profit

 

..

..

..

..

Net Profit

 

9,400

9,212

10,711

11,405

Total Assets

 

 

N/A

1,225,241

1,279,257

Net Worth

 

 

304,744

295,532

284,821

Capital, Paid-Up

 

 

115,275

115,275

115,275

Div.Ttl in Million (¥)

 

 

3,399

0.00

3,399

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.02

5.34

0.30

-0.57

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

 

..

24.12

22.26

    N.Profit/Sales

 

0.17

0.18

0.22

0.23

 

Notes: Capitals are Investments from members & associate members

Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.76

UK Pound

1

Rs.93.13

Euro

1

Rs.70.03

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

MNL

 

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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