MIRA INFORM REPORT

 

 

Report Date :

27.11.2008

 

IDENTIFICATION DETAILS

 

Name :

NIKKO BOEKI COMPANY

 

 

Registered Office :

Kanda Chuo Bldg 5F, 3-20 Kanda-Nishikicho Chiyodaku Tokyo 101-0054

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

December 1970

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, Export, Wholesale of Steel Products, Steel Raw Materials, Stainless Steel Products, Steel Structures

 

 

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

 

Maximum Credit Limit :

Yen 374.2 Million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

name & address

 

NIKKO BOEKI COMPANY

DIVISION COMPANY OF KANEMATSU TRADING CORPORATION

REGD NAME:    Kanematsu Trading KK

MAIN OFFICE:  Kanda Chuo Bldg 5F, 3-20 Kanda-Nishikicho Chiyodaku Tokyo 101-0054

                                    JAPAN

                                    Tel: 03-5283-3630     Fax: 03-5281-1500

 

URL:                 http://www.e-kgt.com

E-Mail address:            (thru URL)

 

 

ACTIVITIES  

 

Import, export, wholesale of steel products, steel raw materials, stainless steel products, steel structures

 

 

BRANCHES   

 

Osaka, Nagoya, Sapporo

 

 

OFFICERS

 

MASAMI SENOH, PRES                                   

Kazuhiro Yamamoto, mgn dir

Yasumi Suzuki, mgn dir

Hirofumi Udai, dir (Rep dir of Nikko Boeki Company)

Hiroyuki Harita, dir

 

Yen Amount:    In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 70,868 M

PAYMENTS      REGULAR                     CAPITAL           Yen 360 M

TREND             STEADY                       WORTH            Yen 1,146 M

STARTED         1970                             EMPLOYES      70

                                   

 

COMMENT    

 

INTRA-COMPANY DIVISION COMPANY OF KANEMATSU TRADING CORPO    RATION, WHOLLY OWNED BY KANEMATSU CORPORATION.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDIANRY

BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 374.2 MILLION, 30 DAYS NORMAL TERMS.  .

 

 

HIGHLIGHTS

 

The subject company (Nikko Boeki Company) is an intra-company division company of Kanematsu Trading Corporation, wholly owned by Kanematsu Corporation (See REGISTRATION).  Nikko Boeki Company was established originally in 1960 by Shingo Mochizuki and was in Oct 2006 merged into Kanematsu Trading Corporation to exist as its intra-company division company as Nikko Boeki Company.  This intra-company handles export business of stainless steel & products, with Hirofumi Udai as its intra-company president.  Kanematsu Trading Corporation is a trading house, wholly owned by Kanematsu Corp, specializing in import, export and wholesale of steel products, stainless steel products, construction materials, others. 

 

(Brief History of Nikko Boeki Company):

Founded in 1960 by Shingo Mochizuki for exporting stainless steel to India, USA, Brazil,     Hong Kong and Pakistan.  In 1995, was taken over by Kanematsu Corp to become its wholly owned subsidiary, managed by Hirofumi Udai.  Exports to Asian countries accounted for about     65% of total sales.  And was absorbed by Kanematsu Trading Corporation in Oct 2006. 

           

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2008 fiscal term amounted to Yen 70,868 million, a 3% down from Yen 73,133 million in the previous term.  This is referred to transfer of part of operations to another division of Kanematsu Trading Corp.  The recurring profit was posted at Yen 496 million and the net profit at Yen 289 million, respectively, compared with Yen 308 million recurring profit and Yen 166 million net profit, respectively, a year ago.  .

 

For the current term ending Mar 2009 the recurring profit is projected at Yen 500 million and the net profit at Yen 290 million, respectively, on 4% rise in turnover, to Yen 74,000 million.  Sales in the first half 2008 was brisk thanks to robust exports of steel products.  The firm left earlier projections of earnings/profits unchanged.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 374.2 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered: Dec 1970

Legal Status:   Limited Company (Kabushiki Kaisha)

Authorized:      1.6 million shares

Issued:             720,000 shares

Sum:                 Yen 260 million

                                   

 

Major shareholders (%)

 

Kanematsu Corporation*(100)

 

*..Specialized trading house of foods & IT-related business, Tokyo, founded 1918 (originally as textile merchant in Osaka), listed Tokyo, Osaka S/E’s, capital Yen 27,781 million, turnover Yen 1,244,020 million, operating profit Yen 22,605 million, recurring profit Yen 18,747 million, net profit Yen 19,016 million, total assets Yen 503,456 million, net worth Yen 45,587 million, employees 4,544, pres Yoshihiro Miwa

Consolidated Financials are as attached

 

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

 

 

OPERATION

 

Activities: Imports, exports and wholesales steel products, steel raw materials, stainless   steel

products, construction materials, automobile, agricultural machines, steel mill

Machinery & equipment, others (--100%).

 

The Nikko Boeki Company handles: stainless steel sheets, coils, plates, pipes, tubes, other specialty steel products, as brought from previously.  Exports are centrally to Asian countries.

 

 

Clients

 

[Mfrs, wholesalers] Exports are to India, USA, Australia, Peru, Pakistan,

Thailand, Taiwan, Indonesia, Egypt, Russia as main markets, including other worldwide destinations in over 27 countries. 

No. of accounts: 500

Domestic areas of activities: Nationwide

 

 

Suppliers

 

[Mfrs, wholesalers] Nippon Steel, Sumitomo Metal Ind, Kanematsu Corp, Nisshin Steel, Sangyo Metal Ind, Aichi Steel, Kobe Steel, Nippon Metal Ind, other.

 

Payment record: Regular

 

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

           

 

Bank References

 

Mizuho Corporate Bank (Nihombashi)

MUFG (H/O)

Relations: Satisfactory


FINANCES

 

       Terms Ending:

31/03/2009

31/03/2008

31/03/2007

31/03/2006

Annual Sales

　

74,000

70,868

73,133

56,008

Recur. Profit

　

500

496

308

255

Net Profit

　

290

289

166

6

Total Assets

　

　

18,437

21,073

14,634

Current Assets

　

　

15,928

16,438

10,529

Current Liabs

　

　

14,875

15,498

9,672

Net Worth

　

　

1,146

1,152

650

Capital, Paid-Up

　

　

260

260

200

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

4.42

-3.10

30.58

-2.10

       Current Ratio

 

..

107.08

106.07

108.86

       N.Worth Ratio

..

6.22

5.47

4.44

       R.Profit/Sales

 

0.68

0.70

0.42

0.46

       N.Profit/Sales

0.39

0.41

0.23

0.01

      Return On Equity

..

25.22

14.41

0.92

 

 

SUPPLEMENTS:

 

CONSOLIDATED FINANCIALS OF THE PARENT, KANEMATSU CORPORATION

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2008

31/03/2007

INCOME STATEMENT

 

 

 

  Annual Sales

　

1,244,020

1,281,331

 

  Cost of Sales

1,153,692

1,177,619

 

      GROSS PROFIT

90,327

103,711

 

  Selling & Adm Costs

67,721

81,997

 

      OPERATING PROFIT

22,605

21,713

 

  Non-Operating P/L

-3,858

-4,458

 

      RECURRING PROFIT

18,747

17,255

　

      NET PROFIT

19

7

BALANCE SHEET

 

 

 

 

  Cash

　

74,758

65,778

 

  Receivables

 

188,605

205,639

 

  Inventory

 

71,860

84,942

 

  Securities, Marketable

14

　

 

  Other Current Assets

47,070

50,231

 

      TOTAL CURRENT ASSETS

382,307

406,590

 

  Property & Equipment

35,052

40,601

 

  Intangibles

 

2,939

3,549

 

  Investments, Other Fixed Assets

83,158

112,436

 

      TOTAL ASSETS

503,456

563,176

 

  Payables

 

131,594

153,283

 

  Short-Term Bank Loans

89,080

143,527

 

　

 

　

　

 

  Other Current Liabs

70,649

70,683

 

      TOTAL CURRENT LIABS

291,323

367,493

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

134,622

127,151

 

  Reserve for Retirement Allw

4,329

5,441

 

  Other Debts

　

10,943

14,324

 

      TOTAL LIABILITIES

441,217

514,409

 

      MINORITY INTERESTS

 

 

 

Common stock

27,781

27,781

 

Additional paid-in capital

27,644

27,646

 

Retained earnings

9,556

(9,496)

 

Evaluation p/l on investments/securities

1,576

3,853

 

Others

 

(3,673)

(390)

 

Treasury stock, at cost

(645)

(627)

 

      TOTAL S/HOLDERS` EQUITY

62,239

48,767

　

      TOTAL EQUITIES

503,456

563,176

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2008

31/03/2007

 

Cash Flows from Operating Activities

　

14,308

20,874

 

Cash Flows from Investment Activities

38,799

23,149

 

Cash Flows from Financing Activities

-43,892

-30,267

　

Cash, Bank Deposits at the Term End

　

74,437

65,471

ANALYTICAL RATIOS            Terms ending:

31/03/2008

31/03/2007

 

 

Net Worth (S/Holders' Equity)

62,239

48,767

 

 

Current Ratio (%)

131.23

110.64

 

 

Net Worth Ratio (%)

12.36

8.66

 

 

Recurring Profit Ratio (%)

1.51

1.35

 

 

Net Profit Ratio (%)

0.00

0.00

 

 

Return On Equity (%)

0.03

0.01

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.84

UK Pound

1

Rs.76.81

Euro

1

Rs.64.38

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. 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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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%)

 

 

 

 

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