MIRA INFORM REPORT
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Report No. : |
323599 |
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Report Date : |
23.05.2015 |
IDENTIFICATION DETAILS
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Name : |
NIPPON SUISAN KAISHA LTD |
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Registered Office : |
Nishi-Shimbashi Square, 1-3-1 Nishi-Shimbashi Minatoku Tokyo 105-0003 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
March 1943 |
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Legal Form : |
Limited Company |
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Line of Business : |
Seafood & Frozen Seafood Processor. |
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No. of Employees : |
8,389 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
NIPPON SUISAN
KAISHA LTD
REGD
NAME
Nihon Suisan KK
MAIN
OFFICE
Nishi-Shimbashi Square, 1-3-1 Nishi-Shimbashi Minatoku Tokyo 105-0003
JAPAN
Tel: 03-6206-7000 Fax:
03-6206-7243
E-Mail address: product@nissui.co.jp
ACTIVITIES: Seafood & frozen seafood processor
BRANCHES: Osaka, Nagoya, Sapporo, Sendai, Niigata,
Hiroshima, Fukuoka, other (Tot 18)
FACTORIES: Miyagi, Tsukuba, Kashima, Hachioji, Aichi,
Himeji, Tobata, Saga (tot 9)
OVERSEAS: USA (5), Canada, Europe (5), Asia/Oceania
(7), S America (8), other
CHIEF EXEC: NORIO HOSOMI, PRES & CEO
Yen Amount: In million Yen,
unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 638,435 M
PAYMENTS REGULAR CAPITAL Yen 23,729 M
TREND STEADY WORTH Yen 104225 M
STARTED 1943 EMPLOYES 8,389
COMMENT: SEAFOOD
INDUSTRY. FINANCIAL SITUATION CONSIDERED
FAIR AND GOO FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million
Yen
Forecast (or
estimated) figures for 31/03/2016 fiscal term
HIGHLIGHTS
This is the major player in seafood industry and leading frozen food
processor. Oriented toward becoming food
company specializing in seafood. Also
engaged in cold storage business.
Strengthening foods processing functions. Aiming to form global SCM network thru
aggressive M&A activities. Produces
fish paste in US. Clients are major
chain stores, department stores, supermarkets, food processors, etc, nationwide.
FINANCIAL
INFROMATION
The sales volume for Mar/2015 fiscal term amounted to Yen 638,435
million, a 5.7% up from Yen 604,249 million in the previous term. Price hikes in fish & products, coupled
with rising fuel oil costs, were not transferred to clients. The recurring profit was posted at Yen 21,392
million and the net profit at Yen 10,277 million, respectively, compared with
Yen 12,360 million recurring profit and Yen 3,754 million net profit,
respectively, a year ago.
For the current term ending Mar 2016 the recurring profit is projected
at Yen 18,500 million and the net profit at Yen 10,500 million, respectively,
on a 0.4% fall in turnover, to Yen 636,000 million.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date Registered: Mar
1943
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 1,000 million shares
Issued:
277,210,277 shares
Sum: Yen
23,729 million
Major shareholders
(%): Japan Trustee Services T (6.7), Master Trust Bank of Japan, T (6.3),
Mizuho Bank (3.8), Mochida Pharmaceutical (2.8), Northern Trust (AVFC)
Nontreaty (1.9), Sompo Japan Nipponkoa Ins (1.6), Evergreen (1.5), Chuo Gyorui
(1.5), CGML PB Client Account Collateral (1.3), Mizuho Trust & Banking
(1.3); foreign owners (29.5)
No. of
shareholders: 33,335
Listed on the
S/Exchange (s) of: Tokyo
Managements: Norio Hosomi,
pres; Kunihiko Koike, s/mgn dir; Akiyo Matono, mgn dir; Yoichi Sekiguchi, dir;
Shinsuke Ohki, dir; Naoto Ihara, dir; Takeshi Wakizaka, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Nissui Pharmaceutical, Nippon Cookery, Nissui
Logistics Corp, other.
OPERATION
Activities: Manufactures
& processes food products centering in marine commodities:
(Sales Breakdown
by Divisions):
Seafood Div (4２%): fresh &
frozen seafood product, including fish, fish oils, and feeds, with operations
including fishing, aquaculture, purchasing, processing and sales on globally
distributed production & purchasing bases;
Processed Food Div
(47%): frozen, canned other processed products such as fish sausages, cakes,
pastes, chilled foods and refined foods;
Distribution
Services Div (2%): logistic services, including preservation, transportation of seafood products,
under temperature-controlled conditions;
Pharmaceuticals
Div (5%): medicines, growth media, reagents for diagnostic tests, health
supplements;
Others (４%): shipbuilding, ship-repair, ferry services, nautical machinery mfg, others.
Overseas operations (３１％)
Clients: [Chain stores,
food processors] Daiei Inc, Daisui Inc, Jusco, Aeon Corp, Nissui Service, Nacx
Nakamura Corp, Logistic Systems, Mitsubishi Foods, Asahi Foods, Nippon Access,
Ryoshoku Ltd, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Nippon Cookery, Hachinohe Kanzume (Kanzume means canned foods),
Yokohama Trading, Nissui Singapore, Unisea Inc, Mogami Foods, other.
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
Mizuho Bank (H/O)
MUFG (Tokyo)
Relations: Satisfactory
FINANCES
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FINANCES: (Consolidated in million yen) |
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Terms Ending: |
31/03/2015 |
31/03/2014 |
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INCOME STATEMENT |
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Annual Sales |
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638,435 |
604,249 |
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Cost of Sales |
505,715 |
480,237 |
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GROSS PROFIT |
132,720 |
124,011 |
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Selling & Adm Costs |
114,609 |
110,080 |
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OPERATING PROFIT |
18,110 |
13,931 |
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Non-Operating P/L |
3,282 |
-1,571 |
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RECURRING PROFIT |
21,392 |
12,360 |
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NET PROFIT |
10,277 |
3,754 |
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BALANCE SHEET |
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Cash |
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10,455 |
6,849 |
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Receivables |
73,192 |
73,260 |
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Inventory |
113,199 |
101,892 |
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Securities, Marketable |
300 |
513 |
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Other Current Assets |
34,576 |
27,203 |
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TOTAL CURRENT ASSETS |
231,722 |
209,717 |
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Property & Equipment |
113,667 |
109,432 |
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Intangibles |
14,229 |
15,766 |
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Investments, Other Fixed Assets |
99,675 |
96,728 |
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TOTAL ASSETS |
459,293 |
431,643 |
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Payables |
33,234 |
33,074 |
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Short-Term Bank Loans |
139,941 |
127,887 |
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Other Current Liabs |
39,152 |
35,286 |
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TOTAL CURRENT LIABS |
212,327 |
196,247 |
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Debentures |
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Long-Term Bank Loans |
114,399 |
128,259 |
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Reserve for Retirement Allw |
17,746 |
15,318 |
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Other Debts |
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10,596 |
8,087 |
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TOTAL LIABILITIES |
355,068 |
347,911 |
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MINORITY INTERESTS |
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Common stock |
23,729 |
23,729 |
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Additional paid-in capital |
13,758 |
13,758 |
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Retained earnings |
28,081 |
19,637 |
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Evaluation p/l on
investments/securities |
13,426 |
6,588 |
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Others |
25,491 |
20,278 |
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Treasury stock, at cost |
(260) |
(258) |
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TOTAL S/HOLDERS` EQUITY |
104,225 |
83,732 |
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TOTAL EQUITIES |
459,293 |
431,643 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2015 |
31/03/2014 |
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Cash Flows from Operating Activities |
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22,838 |
18,121 |
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Cash Flows from Investment
Activities |
-12,135 |
-11,688 |
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Cash Flows from Financing Activities |
-7,860 |
-11,879 |
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Cash, Bank Deposits at the Term End |
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17,074 |
13,801 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net Worth (S/Holders' Equity) |
104,225 |
83,732 |
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Current Ratio (%) |
109.13 |
106.86 |
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Net Worth Ratio (%) |
22.69 |
19.40 |
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Recurring Profit Ratio (%) |
3.35 |
2.05 |
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Net Profit Ratio (%) |
1.61 |
0.62 |
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Return On Equity (%) |
9.86 |
4.48 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.63.57 |
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|
1 |
Rs.99.67 |
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Euro |
1 |
Rs.70.93 |
INFORMATION DETAILS
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Analysis Done by
: |
SAN |
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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.