MIRA INFORM REPORT

 

 

Report No. :

332737

Report Date :

17.07.2015

 

IDENTIFICATION DETAILS

 

Name :

KIBUN FOODS INC

 

 

Registered Office :

2-1-7 Kaigan Minatoku Tokyo 105-0022

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2016

 

 

Date of Incorporation :

September 1947

 

 

Com. Reg. No.:

0100-01-041880

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is manufactures fish products (cakes/paste), paste products, processed meat, cooked foods, delicatessen, beverages (non-alcoholic), seasonings, agricultural products

 

 

No. of Employees :

1,309

 

 

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 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 second-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

 

Source : CIA

 

Company name

 

KIBUN FOODS INC

 

 

REGD NAME

 

KK Kibun Shokuhin (Shokuhin means foods)

 

 

Address

 

2-1-7 Kaigan Minatoku Tokyo 105-0022 JAPAN

Tel: 03-6891-2600     Fax: 03-6891-2705

 

*.. Registered at: 5-15-1 Ginza Chuoku Tokyo

 

 

URL

 

http//:www.kibun.co.jp

 

 

E-mail

 

(thru the URL)   

 

 

ACTIVITIES

 

Mfg of fish cake (Surimi), fish paste, delicatessen foods, beverages, seasonings

 

 

BRANCHES

 

Sapporo, Sendai, Maebashi, Nagoya, Osaka, Hiroshima, other (Tot 18)

 

 

OVERSEAS

 

USA, Hong Kong, China, Singapore, Taiwan, Thailand (-- subsidiaries)

FACTORIES

 

Eniwa, Tokyo, Funabashi, Yokohama, Shizuoka, Osaka, Saga, Okayama

 

 

OFFICER(S)

 

MASAHITO HOASHI, PRES                   Tohru Shiki, rep dir

Hiroshi Tsutsumi, mgn dir                      Tadahiko Mitsui, mgn dir                       

Wataru Yuge, mgn dir                Jun’ichi Kawashima, dir

Yen Amount:                             In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 55,761 M

PAYMENTSREGULAR   CAPITAL           Yen 4,425 M

TREND SLOW               WORTH            Yen 13,150 M

STARTED         1947                 EMPLOYES      1,309

 

 

COMMENT

 

MFR OF FISH CAKES & PASTE (SURIMI), BEVERAGES, SEASONINGS 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

 

HIGHLIGHTS

           

The subject company was established by Kunihito Hoashi originally in 1938 for selling fish products, on his account.  Incorporated in 1947, the firm has been succeeded by his descendants.  Masahito is the third generation master who took the pres office in Jan 1980.  This is a specialized mfr of fish cakes, pastes (as called Surimi in Japanese).  Also makes delicatessen foods, beverages, seasoning, etc.  Subsidiaries (8 domestic) are engaged in mfg meat products, agricultural products, fish products, and chemicals.  In 2002, went into business tie-up with Maruha Corp (now Maruha Nichiro Holdings Inc), subsequently in 2004, went into capital and business tie-ups with Kikkoman Corp, world’s largest soy sauce brewery, Chiba.  Clients include major food processors, food chains, and supermarkets, nationwide.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 55,761 million, a9% down from Yen 60,982 million in the previous term.  Soymilk operations were transferred to a subsidiary and sales decreased.  Weaker Yen increased material purchase costs.  The recurring profit was posted at Yen 1,668 million and the net profit at Yen 52 million, respectively, compared with Yen 3,243 million recurring profit and Yen 231 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 1,700 million and the net profit at Yen 250 million, respectively, on a 5% rise in turnover, to Yen 58,550 million.

           

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

 

 

REGISTRATION

 

Date Registered:             Sept 1947

Regd No.:            0100-01-041880 (Tokyo-Chuoku)

Legal Status:     Limited Company (Kabushiki Kaisha)

Authorized:       35 million shares

Issued:              8,851,600 shares

Sum:                 Yen 4,425.8 million

Major shareholders (%): Masahito Hoashi (25), Kifu Sangyo* (10), Mizuho Bank (4.7), Kikkoman Corp (2.9)

  * Holding company owned by the Hoashi family

No. of shareholders: 438

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

 

 

OPERATION

 

Activities: Manufactures fish products (cakes/paste), paste products (--80%), processed meat, cooked foods, delicatessen, beverages (non-alcoholic), seasonings, agricultural products, other (--20%).

 

Clients: [Supermarkets, food chains, food processors] Ito-Yokado, Aeon Retail, Seven-Eleven Japan, Family Mart, Daiei Inc, Seiyu GK, Uny Co, Maruetsu Inc, Life Corporation, other.

            No. of accounts: 800

Domestic areas of activities: Nationwide

Suppliers: [Fish firms, wholesalers] Maruha Nichiro Holdings, Food Chemiphar, Kewpie Egg Co, Yamaichi Suisan, Kikkoman Beverages, Ise Foods Inc, Totai Co, Ginpo Pack Co, Sanshu Shokuhin, other

 

Payment record: Regular

 

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

 

Bank References:

                        Mizuho Bank (Tsukiji)

                        SMBC (Shimbashi)

                        Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2016

31/03/2015

31/03/2014

31/03/2013

Annual Sales

 

58,550

55,761

60,982

68,590

Recur. Profit

 

1,700

1,668

3,243

1,408

Net Profit

 

250

52

231

1,134

Total Assets

 

 

47,966

53,144

59,019

Current Assets

 

 

10,459

9,250

10,728

Current Liabs

 

 

17,842

19,793

72,542

Net Worth

 

 

13,150

13,978

14,142

Capital, Paid-Up

 

 

4,425

4,425

4,425

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.00

-8.56

-11.09

-0.27

    Current Ratio

 

..

58.62

46.73

14.79

    N.Worth Ratio

 

..

27.42

26.30

23.96

    R.Profit/Sales

 

2.90

2.99

5.32

2.05

    N.Profit/Sales

 

0.43

0.09

0.38

1.65

    Return On Equity

 

..

0.40

1.65

8.02

 

Notes: Forecast (or estimated) figures for the 31/03/2016 fiscal term. 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.50

UK Pound

1

Rs.99.17

Euro

1

Rs.69.39

 

INFORMATION DETAILS

 

Analysis Done by :

TRS

 

 

Report Prepared by :

ASH

 

               

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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