MIRA INFORM REPORT
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Report No. : |
326821 |
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Report Date : |
15.06.2015 |
IDENTIFICATION DETAILS
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Name : |
KOBE BUSSAN CO LTD |
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Registered Office : |
883 Naka-Isshiki Kakogun Hyogo-Pref 675-1177 |
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Country : |
Japan |
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Financials (as on) : |
31.10.2014 |
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Date of Incorporation : |
April 1991 |
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Com. Reg. No.: |
044630 |
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Legal Form : |
Limited Company |
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Line of Business : |
Operator of commercial-use supermarket chains (83%), “Kobe Cook” (1%),
“Cookinoventure” (16%) |
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No. of Employees : |
1,898 |
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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Maximum Credit Limit : |
Yen 3,213.3 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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 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.
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Source
: CIA |
Company
name
KOBE BUSSAN CO LTD
REGD NAME: KK
Kobe Bussan
MAIN OFFICE: 883
Naka-Isshiki Kakogun Hyogo-Pref 675-1177 JAPAN
Tel: 079-496-6610
Fax: 079-496-6620
URL: http://www.kobebussan.co.jp/
E-Mail address: store@kobebussan.co.jp
ACTIVITIES: Operator
of commercial-use supermarket chains
STORES: Tohoku
(25), Kanto (102), Chubu (54), Kansai (155), Chugoku (31),
Shikoku (17), Kyushu
(17). (Tot 570)
FACTORIES: China (2), Hong
Kong (--food processing yards)
CHIEF EXEC: HIROKAZU
NUMATA, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 214,028 M
PAYMENTSNO
COMPLAINTS CAPITAL Yen 64 M
TREND STEADY WORTH Yen 22,935 M
STARTED 1985 EMPLOYES 1,898
COMMENT: OPERATOR OF COMMERCIAL-USE SUPERMARKET
CHAINS. FINANCIALS SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARYBUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 3,213.3 MILLION, 30 DAYS NORMAL TERMS.
Unit: in Million Yen
Forecast (or estimated) figures for 31/10/2015
fiscal term
HIGHLIGHTS
The subject company is an operator of “commercial-use supermarket franchise chains” with great number of stores in industry. Products produced at own factories in China & S/E Asia. Affiliates restaurants chains (G Taste & Sakai) joined the consolidated subsidiary roaster in Feb 2013. Fostering electric power sale.
FINANCIAL
INFORMATION
The sales volume for Oct/2014 fiscal term amounted to Yen 214,028 million, a 19.2% up from Yen 179,499 million in the previous term. The acquisition of G Communication Group in the restaurant industry contributed to earnings. The recurring profit was posted at Yen 6,424 million and the net profit at Yen 2,601 million, respectively, compared with Yen 4,012 million recurring profit and Yen 2,929 million net profit, respectively, a year ago.
For the current term ending Oct 2015 the recurring profit is projected at Yen 5,500 million and the net profit at Yen 2,650 million, respectively, on a 4.2% rise in turnover, to Yen 223,000 million. Net increase of mainline commercial supermarkets is planned at around 25stores, the same number as the preceding term. Existing store sales will surpass the preceding term on the strength of low price products. Sales of electricity in the photovoltaic power generation business will also become profitable.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 3,213.3 million, on 30 days normal terms.
REGISTRATION
Date Registered:
Apr 1991
Regd No.:
(Hyogo-Kakogun)
044630
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 32
million shares
Issued:
8.8 million shares
Sum: Yen
64 million
Major
shareholders (%): Gyomu Super Japan Dream Foundation (25.0), Company’s Treasury Stock
(19.9), Shoji Numata (10.8), Mineko Numata (2.9), Masami Ogawa (2.9), Hirokazu
Numata (2.9), Kyodaigo Miso (2.1), Mineral Soft (1.9), M&U Asset Management
(1.5), Matsui Miso (0.9); foreign owners (5.6)
No. of shareholders: 3,475
Listed on the
S/Exchange (s) of: Tokyo.
Managements: Hirokazu Numata, pres; Yasuhiro
Tanaka, v pres; Tsutomu Nakashima, dir; Kazuo Asami, dir; Satoshi Nishida, dir;
Yasuhiro Yago, dir; Takumi Kobayashi, dir
Nothing detrimental is known as to the
commercial morality of executives.
Related companies: Kobe Bussan Foods (Hong Kong), Dalian Fulaixin Foods,
Kobebussan Foods Ltd (Anqin) (--China).
OPERATION
Activities: Operator of
commercial-use supermarket chains (83%), “Kobe Cook” (1%), “Cookinoventure”
(16%)
Imports from China account for 60-70% of
total vegetable imports.
Import sources are expanded to Egypt, etc
Clients: Consumers, franchisees,
other
No. of accounts:
Unavailable
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Imports from China & other S/E Asian subcontracted factories.
Also supplied from Nippon Meat Packers, Itoham Foods, Prima Meat
Packers, Marudai Foods, Snow Brand
Access, G7 Super Mart, Ocean System, Passport, other.
Payment record: No Complaints
Location: Business area in
Kakogun, Hyogo-Pref. Office premises at
the caption address are owned and maintained satisfactorily.
Bank References:
MUFG (Kobe-Chuo)
SMBC (Kakogawa)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated in million yen) |
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Terms Ending: |
31/10/2014 |
31/10/2013 |
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INCOME STATEMENT |
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Annual Sales |
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214,028 |
179,499 |
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Cost of Sales |
181,837 |
159,940 |
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GROSS PROFIT |
32,191 |
19,559 |
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Selling & Adm Costs |
27,013 |
17,602 |
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OPERATING PROFIT |
5,178 |
1,956 |
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Non-Operating P/L |
1,246 |
2,056 |
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RECURRING PROFIT |
6,424 |
4,012 |
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NET PROFIT |
2,601 |
2,929 |
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BALANCE SHEET |
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Cash |
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45,627 |
32,334 |
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Receivables |
11,047 |
9,896 |
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Inventory |
8,479 |
6,515 |
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Securities, Marketable |
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Other Current Assets |
1,122 |
3,038 |
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TOTAL CURRENT ASSETS |
66,275 |
51,783 |
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Property & Equipment |
33,568 |
30,339 |
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Intangibles |
543 |
668 |
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Investments, Other Fixed Assets |
7,771 |
8,183 |
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TOTAL ASSETS |
108,157 |
90,973 |
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Payables |
15,241 |
14,126 |
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Short-Term Bank Loans |
1,804 |
495 |
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Other Current Liabs |
6,870 |
4,523 |
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TOTAL CURRENT LIABS |
23,915 |
19,144 |
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Debentures |
983 |
1,311 |
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Long-Term Bank Loans |
53,582 |
43,393 |
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Reserve for Retirement Allw |
270 |
177 |
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Other Debts |
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6,472 |
6,180 |
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TOTAL LIABILITIES |
85,222 |
70,205 |
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MINORITY INTERESTS |
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Common
stock |
64 |
64 |
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Additional
paid-in capital |
8,216 |
8,196 |
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Retained
earnings |
13,738 |
11,614 |
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Evaluation
p/l on investments/securities |
16 |
(25) |
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Others |
3,938 |
3,997 |
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Treasury
stock, at cost |
(3,037) |
(3,078) |
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TOTAL S/HOLDERS` EQUITY |
22,935 |
20,768 |
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TOTAL EQUITIES |
108,157 |
90,973 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/10/2014 |
31/10/2013 |
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Cash
Flows from Operating Activities |
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8,656 |
430 |
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Cash
Flows from Investment Activities |
-7,284 |
-13,412 |
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Cash
Flows from Financing Activities |
10,977 |
8,316 |
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Cash,
Bank Deposits at the Term End |
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42,907 |
29,819 |
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ANALYTICAL RATIOS Terms ending: |
31/10/2014 |
31/10/2013 |
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Net
Worth (S/Holders' Equity) |
22,935 |
20,768 |
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Current
Ratio (%) |
277.13 |
270.49 |
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Net
Worth Ratio (%) |
21.21 |
22.83 |
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Recurring
Profit Ratio (%) |
3.00 |
2.24 |
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Net
Profit Ratio (%) |
1.22 |
1.63 |
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Return
On Equity (%) |
11.34 |
14.10 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.64.03 |
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|
1 |
Rs.99.27 |
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Euro |
1 |
Rs.71.90 |
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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Report Prepared
by : |
TPT |
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.