MIRA
INFORM REPORT
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Report Date : |
17.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
MITSUI BUSSAN SOLVENT & COATING CO LTD |
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Registered Office : |
Dai 10 Chuo Bldg, 1-5-6 Nihombashi-Honcho Chuoku
Tokyo 103-0023 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
March, 1991 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, Export, Wholesale of
Solvents, Paints, Coatings, Resins, Adhesives |
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 346.5 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
Name
MITSUI BUSSAN
SOLVENT & COATING CO LTD
REGD NAME
Mitsui Bussan Solvent & Coating KK
MAIN OFFICE
Dai 10 Chuo Bldg, 1-5-6 Nihombashi-Honcho Chuoku Tokyo 103-0023 JAPAN
Tel: 03-3516-1800 Fax:
03-3516-1847
URL: http://www.mitsui-solco.co.jp
E-Mail address: TKZC@TKZSC.xm.mitsui.co.jp
ACTIVITIES
Import, export, wholesale of solvents, paints, coatings,
resins, adhesives
BRANCHES
Osaka, Nagoya, Fukuoka
OFFICERS
HIROYASU TAKAHASHI, PRES
Yasutoshi Hirabe, dir
Hiroyuki Guji, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 78,250 M
PAYMENTS REGULAR CAPITAL Yen 340 M
TREND STEADY WORTH Yen 1,469 M
STARTED 1991 EMPLOYES 108
COMMENT
TRADING
FIRM HANDLING SOLVENTS, COATINGS, RESINS, AND OTHER INDUSTRIAL CHEMICALS,
WHOLLY OWNED BY MITSUI & CO LTD.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 346.5 MILLION, 30 DAYS NORMAL
TERMS. .
HIGHLIGHTS
The subject company was established on the basis of a chemical division separated from Mitsui & Co Ltd, Tokyo. A trading house handling solvents, coatings, resins, adhesives, and other industrial chemicals. In Jun 1999, merged a sister company, Mitsui Fuller Ltd, adding new products of adhesives. 25% of sales are imports & exports. Stressing operations in China and other S/E Asian countries, utilizing the parent’s overseas offices & networks.
The firm will merge effective
01/Apr/2009 with a sister company, Bussan Chemicals Co Ltd, with the subject as
a survival entity, announced by Mitsui & Co Ltd. The merger aims to streamline & restructure redundant group
operations in order to strengthen chemical products sales. Sales are targeted at Yen 140,000 million
for the initial one year, according to Mitsui & Co.
FINANCIAL INFORMATION
The sales volume for Mar/2008
fiscal term amounted to Yen 78,250 million, an 11% up from Yen 70,713 million
in the previous term. Rising costs of
chemical materials continued. Imports
& exports were robust. Hike in the
costs was passed on to clients. The
recurring profit was posted at Yen 1,182 million and the net profit at Yen 694
million, respectively, compared withy Yen 1,047 million recurring profit and
Yen 668 million net profit, respectively, a year ago.
For the current term ending Mar
2008 the recurring profit is projected at Yen 1,150 million and the net profit
at Yen 680 million, respectively, on a 0.3% fall in turnover, to Yen 78,000
million. With natural resource prices,
including crude oil prices, continuing to fall, business is seen slackening and
not as strong as before. The first half
of the year performed well but the outlook for the second half is bracing for
downturn. Slowing economies in emerging
countries will likely affect earnings.
The financial situation is considered
FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 346.5 million, on 30 days
normal terms.
REGISTRATION
Date
Registered: Mar 1991
Legal
Status: Limited Company
(Kabushiki Kaisha)
Authorized: 27,200 shares
Issued: 6,800 shares
Sum: Yen 340 million
Major
shareholders (%): Mitsui & Co Ltd*(100)
*.. Top-ranked general trading house vying with Mitsubishi
Corp, founded 1947, listed Tokyo,
Osaka, Nagoya, NASDAQ S/E’s, capital Yen 337,544 million, sales Yen 17,009,056
million, operating profit Yen 374,828 million, recurring profit Yen 402,004
million, net profit Yen 410,061 million, total assets Yen 9,690,879 million,
net worth Yen 2,183,660 million, employees 42,621, pres Shoei Utsuda
Consolidated Financials are as attached (See SUPPLEMENTS)
Nothing detrimental is known as to the commercial morality
of executives.
OPERATION
Activities:
Imports, exports and wholesales solvents (toluene/xylene, MEK, MIBK, IPA,
methanol, butanol, acetic ether, butyl acetate, glycol ether, N-hexane, other);
paints & coatings, resins, adhesives, other industrial chemicals (--100%).
Clients
[Chemical traders, wholesalers, chemical mfrs] Mitsui & Co,
Moriroku Co, SK Kaken, Miyako Kosan Co, Sanyu Industrial, Koyo Trading,
other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers
[Chemical mfrs, wholesalers]
Mitsui Chemical, Mitsui & Co, Kyowa Hakko Kogyo, SK Kaken, Daicel Chemical
Ind, Asahi Kasei Chemicals, other.
Payment
record: Regular
Location: Business
area in Tokyo. Office premises at the
caption address are leased and maintained satisfactorily.
Bank References
SMBC (H/O)
MUFG (Shimbashi)
Relations: Satisfactory
FINANCES: (In Million Yen)
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Terms Ending: |
31/03/2009 |
31/03/2008 |
31/03/2007 |
31/03/2006 |
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Annual
Sales |
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78,000 |
78,250 |
70,713 |
58,249 |
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Recur.
Profit |
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1,150 |
1,182 |
1,047 |
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Net
Profit |
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680 |
694 |
668 |
623 |
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Total
Assets |
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26,667 |
27,837 |
20,722 |
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Current
Assets |
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25,735 |
26,518 |
19,242 |
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Current
Liabs |
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24,831 |
25,668 |
18,510 |
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Net
Worth |
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1,469 |
1,682 |
1,726 |
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Capital,
Paid-Up |
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340 |
340 |
340 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
-0.32 |
10.66 |
21.40 |
19.23 |
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Current Ratio |
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.. |
103.64 |
103.31 |
103.95 |
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N.Worth Ratio |
.. |
5.51 |
6.04 |
8.33 |
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R.Profit/Sales |
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1.47 |
1.51 |
1.48 |
.. |
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N.Profit/Sales |
0.87 |
0.89 |
0.94 |
1.07 |
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Return On Equity |
.. |
47.24 |
39.71 |
36.10 |
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Notes: Forecast (or estimated) figures for the 31/03/2009
fiscal term.
SUPPLEMENTS
CONSOLIDATED
FINANCIALS OF THE PARENT, MITSUI & CO LTD
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2008 |
31/03/2007 |
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INCOME STATEMENT |
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Annual Sales |
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17,009,056 |
15,271,649 |
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Cost of Sales |
16,020,979 |
14,405,358 |
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GROSS PROFIT |
988,077 |
866,291 |
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Selling & Adm Costs |
613,249 |
557,391 |
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OPERATING PROFIT |
374,828 |
308,900 |
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Non-Operating P/L |
27,176 |
21,240 |
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RECURRING PROFIT |
402,004 |
330,140 |
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NET PROFIT |
410,061 |
301,502 |
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BALANCE SHEET |
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Cash |
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899,264 |
800,032 |
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Receivables |
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2,125,640 |
2,199,614 |
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Inventory |
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739,721 |
696,470 |
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Securities, Marketable |
7,114 |
11,670 |
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Other Current Assets |
1,439,375 |
1,365,990 |
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TOTAL CURRENT ASSETS |
5,211,114 |
5,073,776 |
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Property & Equipment |
1,746,050 |
1,677,806 |
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Intangibles |
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128,504 |
104,445 |
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Investments, Other Fixed Assets |
2,005,211 |
2,957,285 |
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TOTAL ASSETS |
9,090,879 |
9,813,312 |
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Payables |
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464,547 |
658,747 |
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Short-Term Bank Loans |
776,620 |
371,865 |
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Other Current Liabs |
2,353,445 |
2,779,590 |
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TOTAL CURRENT LIABS |
3,594,612 |
3,810,202 |
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Debentures |
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Long-Term Bank Loans |
2,944,383 |
2,887,528 |
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Reserve for Retirement Allw |
32,754 |
33,209 |
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Other Debts |
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691,495 |
733,407 |
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TOTAL LIABILITIES |
7,263,244 |
7,464,346 |
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MINORITY INTERESTS |
243,976 |
236,687 |
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Common
stock |
337,544 |
323,213 |
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Additional
paid-in capital |
432,245 |
417,900 |
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Retained
earnings |
1,397,312 |
1,072,234 |
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Evaluation
p/l on investments/securities |
140,440 |
258,922 |
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Others |
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(118,751) |
41,478 |
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Treasury
stock, at cost |
(5,130) |
(3,468) |
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TOTAL S/HOLDERS` EQUITY |
2,183,660 |
2,110,279 |
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TOTAL EQUITIES |
9,690,879 |
9,811,312 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2008 |
31/03/2007 |
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Cash
Flows from Operating Activities |
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415,791 |
239,275 |
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Cash
Flows from Investment Activities |
-104,778 |
-418,027 |
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Cash
Flows from Financing Activities |
-185,129 |
272,289 |
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Cash,
Bank Deposits at the Term End |
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899,264 |
800,032 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
2,183,660 |
2,110,279 |
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Current
Ratio (%) |
144.97 |
133.16 |
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Net
Worth Ratio (%) |
22.53 |
21.51 |
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Recurring
Profit Ratio (%) |
2.36 |
2.16 |
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Net
Profit Ratio (%) |
2.41 |
1.97 |
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Return
On Equity (%) |
18.78 |
14.29 |
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FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.47.33 |
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UK Pound |
1 |
Rs.73.92 |
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Euro |
1 |
Rs.66.69 |
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)