MIRA INFORM REPORT

 

 

Report No. :

326705

Report Date :

15.06.2015

 

IDENTIFICATION DETAILS

 

Name :

NISSHIN OILLIO GROUP LTD

 

 

Registered Office :

1-23-1 Shinkawa Chuoku Tokyo 104-0033

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

March 1907

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of cooking oils, health foods, fine chemicals

 

 

No. of Employee :

2,660

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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 – 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

 

NISSHIN OILLIO GROUP LTD

 

 

REGD NAME

 

Nisshin Oillio Group KK

 

 

MAIN OFFICE

 

1-23-1 Shinkawa Chuoku Tokyo 104-0033 JAPAN

Tel: 03-3206-5005     Fax: 03-3555-6921     -

 

 

URL

 

http://www.nisshin-oillio.com

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of cooking oils, health foods, fine chemicals, other

 

 

BRANCHES

 

Osaka, Nagoya, Yokohama, other (Tot 23)

 

 

OVERSEAS

 

China, Taiwan, Malaysia, Singapore, Spain, Germany, USA

 

 

FACTORIES

 

Yokohama, Nagoya, Mizushima, Sakai (Tot 4)

 

 

CHIEF EXEC

 

TAKAO IMAMURA, PRES

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 329,267 M

PAYMENTSREGULAR   CAPITAL           Yen 16,332 M

TREND UP                    WORTH            Yen 128,287 M

STARTED         1907                 EMPLOYES      2,660

 

 

COMMENT

 

MFR OF COOKING OILS, HEALTH FOODS, OTHERS

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

                       

                        Unit: In Million Yen

Forecast figures for the 31/10/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is a Holding Company reorganized in Apr 2012, thru business combination among 3 operating companies and earned new name Nisshin Oillio Group Ltd.  Maintains largest share in household-use cooking oils.  Also has major subsidiary Settsu Oil Mills.  Putting emphasis more on Asian market.  .

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 329,267 million, a 2.3% down from Yen 337,148 million in the previous term.  The conversion of a JV in China to an equity-method firm reduced sales.  The recurring profit was posted at Yen 5,823 million and the net profit at Yen 3,447 million, respectively, compared with Yen 5,058 million recurring profit and Yen 2,276 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 7,000 million and the net profit at Yen 4,000 million, respectively, on a 3.3% rise in turnover, to Yen 340,000 million.  Sales volume of oils and fats will grow thanks to the easing impact from the consumption tax hike.  Sales of processed oils and fats overseas will remain steady.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 12,386.1 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　          Mar 1907

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              388,350,000 shares

Issued:                         173,339,287 shares

Sum:                            Yen 16,332 million

 

Major shareholders (%): Marubeni Corp (15.0), Master Trust Bank of Japan T (4.9), Company’s Treasury Stock (4.1), Japan Trustee Services T (4.0), Sompo Japan Nipponkoa Ins (3.4), Aioi Nissay Dowa Ins (2.7), Japan Trustee Services T9 (2.1), Japan Trustee Services T4 (2.1), MUFG (1.9), Kikkoman Corp (1.3); foreign owners (9.8)

 

No. of shareholders: 27,210

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Takao Imamura, pres; Akira Seto, s/mgn dir; Takashi Ishigami, s/mgn dir; Takashi Fujii, mgn dir; Hidetoshi Ogami, mgn dir; Nobuaki Yoshida, mgn dir; Takashisa Kuno, mgn dir; Takashi Narusawa, dir; Toshio Uehara, dir

 

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

 

Related companies: Settsu Oil Mills, Nisshin Trading, Nisshin Logistics, other.

 

 

OPERATION

           

Activities: Manufactures: oils & oil meals (66%), processed oils 6 fats (25%), health foods (2%), fine chemicals (4%), soy foods & materials (2%), others (1%)

Overseas Sales Ratio (22%)

           

Clients: [Mfrs, wholesalers] Mitsubishi Corp, Nisshin Trading, Marubeni Corp, CGC Ja     pan, Zen-Noh Corp, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Marubeni Corp, Mitsubishi Corp, Mitsui & Co, Zen-Noh Corp, Sumitomo Corp, Nisshin Logistics, Toyo Glass, other

 

Payment record: Regular

 

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

 

Bank References:

                        MUFG (H/O)

                        Mizuho Bank (Shinkawa)

                        Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

329,267

337,148

　

  Cost of Sales

279,946

286,532

　

      GROSS PROFIT

49,320

50,616

　

  Selling & Adm Costs

43,746

45,513

　

      OPERATING PROFIT

5,574

5,103

　

  Non-Operating P/L

249

-45

　

      RECURRING PROFIT

5,823

5,058

　

      NET PROFIT

3,447

2,276

BALANCE SHEET

　

　

  Cash

　

9,096

6,357

　

  Receivables

59,950

59,886

　

  Inventory

54,891

51,665

　

  Securities, Marketable

　

　

　

  Other Current Assets

6,944

8,311

　

      TOTAL CURRENT ASSETS

130,881

126,219

　

  Property & Equipment

77,509

78,077

　

  Intangibles

3,828

4,898

　

  Investments, Other Fixed Assets

29,407

23,592

　

      TOTAL ASSETS

241,625

232,786

　

  Payables

33,154

31,444

　

  Short-Term Bank Loans

14,141

17,459

　

　

　

　

　

  Other Current Liabs

21,891

29,805

　

      TOTAL CURRENT LIABS

69,186

78,708

　

  Debentures

20,000

10,000

　

  Long-Term Bank Loans

12,331

12,923

　

  Reserve for Retirement Allw

1,519

4,525

　

  Other Debts

　

10,301

7,299

　

      TOTAL LIABILITIES

113,337

113,455

　

      MINORITY INTERESTS

　

　

Common stock

16,332

16,332

　

Additional paid-in capital

26,072

26,072

　

Retained earnings

71,033

68,799

　

Evaluation p/l on investments/securities

6,781

3,401

　

Others

10,860

7,514

　

Treasury stock, at cost

(2,791)

(2,787)

　

      TOTAL S/HOLDERS` EQUITY

128,287

119,331

　

      TOTAL EQUITIES

241,625

232,786

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

12,705

12,711

　

Cash Flows from Investment Activities

-4,303

-8,934

　

Cash Flows from Financing Activities

-6,966

-15,751

　

Cash, Bank Deposits at the Term End

　

7,402

5,717

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

128,287

119,331

　

Current Ratio (%)

189.17

160.36

　

Net Worth Ratio (%)

53.09

51.26

　

Recurring Profit Ratio (%)

1.77

1.50

　

Net Profit Ratio (%)

1.05

0.68

　

　

Return On Equity (%)

2.69

1.91

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.03

UK Pound

1

Rs.99.27

Euro

1

Rs.71.90

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.