MIRA INFORM REPORT

 

 

Report No. :

324198

Report Date :

10.06.2015

 

IDENTIFICATION DETAILS

 

Name :

NICHIREI FOODS INC

 

 

Registered Office :

Nichirei Higashiginza Bldg, 6-19-20 Tsukiji Chuoku Tokyo 104-0045

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

January 2005

 

 

Com. Reg. No.:

091394

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is Manufactures, Imports, Exports and Wholesales of Processed Foods

 

 

No. of Employee :

1,527

 

 

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

 

Maximum Credit Limits :

YEN 4,272.3 MILLION

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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

 

NICHIREI FOODS INC

 

REGD NAME:               KK Nichirei Foods

 

MAIN OFFICE:              Nichirei Higashiginza Bldg, 6-19-20 Tsukiji Chuoku Tokyo 104-0045 JAPAN

                                                Tel: 03-3248-2179     Fax: 03-3248-2140

 

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

E-Mail address:            info@nichireifoods.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of processed foods

 

 

BRANCHES

 

Sapporo, Sendai, Osaka, Nagoya, Fukuoka, other (Tot 25)

 

 

OVERSEAS

 

Thailand, Vietnam, China, Brazil, Australia, USA

 

 

FACTORIES

 

Funabashi, other (Tot 8)

 

 

OFFICER(S)

 

YASUHIRO IKEDA, PRES                     Kenji Sato, S/mgn dir

Yoshifumi Kaneko, dir               Kunio Otani, dir

Motoharu Hayama, dir

 

Yen Amount:                             In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 180,302 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 15,000 M

TREND SLOW                           WORTH            Yen 32,494 M

STARTED         2005                             EMPLOYES      1,527

 

 

COMMENT

 

MFR OF PROCESSED FOODS, WHOLLY OWNED BY NICHIREI CORP

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 4,272.3 MILLION, 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

 

The subject company was established on the basis of Processed Foods Division separated from Nichirei Corp, general processed foods company, at the caption address (See REGISTRATION).  Specializes in mfg processed foods: frozen foods & vegetables, retort-pouched foods, acerola products, other.  Sales account for about 35% of the total group sales.  Goods are also imported and exported.  Clients include leading general trading houses, food mfrs, other, nationwide.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 180,302 million, a 6.7% up from Yen 168,920 million in the previous term.  The recurring profit was posted at Yen 5,240  million and the net profit at Yen 1,253 million, respectively, compared with Yen 5,936 million recurring profit and Yen 1,615 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 6,000 million and the net profit at Yen 1,350 million, respectively, on a 5 % rise in turnover, to Yen 189,500 million.  Even though they have achieved increase in income and profit for three terms in a row, the devaluation of the yen is causing a considerable decrease in profits

 .

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 4,272.3 million, on 30 days normal terms.

 


 

REGISTRATION

 

Date Registered:                       Jan 2005

Regd No.:                    (Tokyo-Chuoku) 091394

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  120 million shares

Issued:                         30 million shares

Sum:                            Yen 15,000 million

Major shareholders (%):           Nichirei Corp* (100)

 

*.. General processed food company based on cold storage operations, at the caption address, founded 1942, listed Tokyo S/E, capital Yen 30,307 million, turnover Yen 511,189 million, operating profit Yen 15,789 million, recurring profit Yen 14,443 million, net profit Yen 8,898 million, total assets Yen 322,607 million, net worth Yen 133,456 million, employees 12,970, pres Kunio Otani

           

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

 

 

OPERATION

 

Activities: Manufactures, imports, exports and wholesales processed foods: frozen foods & vegetables, acerola-based beverages, retort-pouch foods, canned foods, health foods, other (--100%).

 

Clients: [Mfrs, wholesalers] Mitsubishi Corp, Marubeni Corp, Itochu Foods, Mitsui & Co, Asahi Foods, Takase Bussan, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Surapon Nichirei Foods Co, Zen-Noh, Chiba Chikusan Kogyo, other

 

Payment record: No Complaints

 

Location: Business area in Tokyo.  Office premises at the caption address are owned by the parent, Nichirei Corp, and maintained satisfactorily.

 

Bank References:

            Mizuho Bank (Ohtemachi)

            MUFG (H/O)

            Relations: Satisfactory

 


 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

189,500

180,302

168,920

162,718

Recur. Profit

 

5,300

5,240

5,936

5,240

Net Profit

 

600

1,253

1,615

3,432

Total Assets

 

 

86,643

74,952

71,956

Current Assets

 

 

48,435

43,307

41,324

Current Liabs

 

 

48,340

41,586

39,668

Net Worth

 

 

32,494

31,609

30,350

Capital, Paid-Up

 

 

15,000

15,000

15,000

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.10

6.74

3.81

4.89

    Current Ratio

 

..

100.20

104.14

104.17

    N.Worth Ratio

 

..

37.50

42.17

42.18

    R.Profit/Sales

 

2.80

2.91

3.51

3.22

    N.Profit/Sales

 

0.32

0.69

0.96

2.11

    Return On Equity

 

..

3.86

5.11

11.31

 

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

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.94

UK Pound

1

Rs.98.27

Euro

1

Rs.72.37

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

SDA

 

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.