MIRA INFORM REPORT

 

 

Report No. :

321615

Report Date :

07.05.2015

 

IDENTIFICATION DETAILS

 

Name :

S & B FOODS INC

 

 

Registered Office :

18-6 Nihombashi-Kabutocho Chuoku Tokyo 103-0026

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

April, 1940

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Spices, Seasonings, Curries, Instant Seasonings

 

 

No. of Employees :

1,655

 

 

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 :

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

 

S & B FOODS INC

 

REGD NAME:               S. B. Shokuhin KK

 

MAIN OFFICE:              18-6 Nihombashi-Kabutocho Chuoku Tokyo 103-0026 JAPAN

Tel: 03-3668-0551     Fax: 03-3667-7842

 

                                    *.. The is its Spice Center in Tokyo     -

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Mfr of spices, seasonings, curries, instant seasonings

 

 

BRANCHES

 

18 locations nationwide

 

 

OVERSEAS

 

Worldwide (USA, Europe, China, Asia, other)

 

 

FACTORIES

 

Saitama, Nagano, Miyagi; China, Vietnam

 

 

CHIEF EXEC

 

MASAYA YAMAZAKI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES                      Yen 123,976 M

PAYMENTSNO COMPLAINT      CAPITAL                       Yen 1,744 M

TREND STEADY                       WORTH                        Yen 31,484 M

STARTED         1940                             EMPLOYES                 1,655

 

 

COMMENT    

 

MFR OF SPICES, CURRIES, OTHER 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

Unit: In Million Yen

Forecast figures for the 31/03/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is the leading mfr of instant seasonings, including curry. Started out as maker of spices, and diversified into snacks, cooked rice and other foods in sterilized retort pouch packs. Maintains around 60% market share in spice, and high volume shares of curry roux and pasta sauces.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 123,976 million, a 1.1% down from Yen 125,415 million in the previous term.  The recurring profit was posted at Yen 3,919 million and the net profit at Yen 2,054 million, respectively, compared with Yen 3,308 million recurring profit and Yen 1,726 million net profit, respectively, a year ago.

 

For the term that ended Mar 2015 the recurring profit was projected at Yen 4000 million and the net profit at Yen 2,300 million, respectively, on a 1.6% fall in turnover, to Yen 122,000 million.  Sales will fall out due to the pullout from unprofitable retort-pouch curry products.  Final results are yet to be released.

 

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

 

 

REGISTRATION

           

Date Registered:　       Apr 1940

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  17.6 million shares

Issued:                         6,977,117 shares

Sum:                            Yen 1,744 million

Major shareholders (%): Hoei Kogyo (8.7), Yamazaki Kyodaikai (8.6), Bank of Tokyo Mitsubishi UFJ (4.9),  Norin Chukin Bank (4.9),Tokyo Tomin Bank (3.5), SECOM General Insurance (2.5), Dai Nippon Printing (2.4), Dai-ichi Life Ins (1.7), Sumitomo Mitsui Banking (1.7); foreign owners (0.2)

 

No. of shareholders:     6,533

 

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

 

Managements: Akihiro Yamazaki, ch; Masaya Yamazaki, pres; Toshiaki Ogiwara, rep dir; Tetsuya Sato, v pres; Hiroyuki Ogata, mgn dir; Yoshio Tanno, mgn dir; Kazunori Shimada, dir; Osamu Hagiwara, dir; Tetsuji Araki, dir; Kazutomo Taniwaki, dir

 

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

 

Related companies: S&B Garlic Foods, S&B Spice Ind, other.

 

 

OPERATION

           

Activities: Manufactures foods* (92%), others (2%)

(Foods): spice, spice seasoning, curry sauce mix, stew sauce mix, retort food, aseptic rice, chilled food, fresh herb and related products. 

 

Clients: [Mfrs, wholesalers] Mitsubishi Foods, Golden Foods, Kokubu & Co, Mitsui & Co, Nippon Access Inc, Itochu Corp, FR Foods, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] S&B Trading, S&B Garlic Foods, other

 

Payment record: No Complaints

 

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

 

Bank References:

            Norin Chukin Bank (H/O)

            MUFG (Nihombashi)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

　

　

  Annual Sales

　

123,976

125,415

　

  Cost of Sales

71,069

71,744

　

      GROSS PROFIT

52,906

53,670

　

  Selling & Adm Costs

48,485

50,066

　

      OPERATING PROFIT

4,421

3,604

　

  Non-Operating P/L

-502

-296

　

      RECURRING PROFIT

3,919

3,308

　

      NET PROFIT

2,054

1,726

BALANCE SHEET

　

　

  Cash

　

18,360

17,479

　

  Receivables

22,455

24,592

　

  Inventory

7,532

10,160

　

  Securities, Marketable

　

　

　

  Other Current Assets

9,028

7,333

　

      TOTAL CURRENT ASSETS

57,375

59,564

　

  Property & Equipment

27,612

26,405

　

  Intangibles

532

622

　

  Investments, Other Fixed Assets

15,022

11,987

　

      TOTAL ASSETS

100,541

98,578

　

  Payables

10,256

10,998

　

  Short-Term Bank Loans

23,995

26,403

　

　

　

　

　

  Other Current Liabs

13,894

12,400

　

      TOTAL CURRENT LIABS

48,145

49,801

　

  Debentures

　

　

　

  Long-Term Bank Loans

10,339

8,774

　

  Reserve for Retirement Allw

7,240

6,179

　

  Other Debts

　

3,333

3,610

　

      TOTAL LIABILITIES

69,057

68,364

　

      MINORITY INTERESTS

　

　

Common stock

1,744

1,744

　

Additional paid-in capital

5,337

5,344

　

Retained earnings

27,719

25,850

　

Evaluation p/l on investments/securities

1,324

1,257

　

Others

(4,518)

(3,858)

　

Treasury stock, at cost

(122)

(123)

　

      TOTAL S/HOLDERS` EQUITY

31,484

30,214

　

      TOTAL EQUITIES

100,541

98,578

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

6,725

4,789

　

Cash Flows from Investment Activities

-4,368

-1,258

　

Cash Flows from Financing Activities

-1,502

-1,523

　

Cash, Bank Deposits at the Term End

　

18,341

17,462

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

31,484

30,214

　

Current Ratio (%)

119.17

119.60

　

Net Worth Ratio (%)

31.31

30.65

　

Recurring Profit Ratio (%)

3.16

2.64

　

Net Profit Ratio (%)

1.66

1.38

　

　

Return On Equity (%)

6.52

5.71

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.64

UK Pound

1

Rs.96.81

Euro

1

Rs.71.51

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIT

 

               

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.