MIRA INFORM REPORT

 

 

 

Report Date :

15.10.2008

 

IDENTIFICATION DETAILS

 

Name :

TOKYO SENPAKU KAISHA (TSK LINE)

 

 

Registered Office :

Yusen Bldg 9F, 2-3-2 Marunouchi Chiyodaku Tokyo 100-0005

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

July 1949

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Container ship operator

 

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 1,182.6 Million

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

name & address

 

TOKYO SENPAKU KAISHA (TSK LINE)

REGD NAME:    Tokyo Sempaku KK

MAIN OFFICE:  Yusen Bldg 9F, 2-3-2 Marunouchi Chiyodaku Tokyo 100-0005 JAPAN

                        Tel: 03-6212-4720     Fax: 03-6212-4798

                       

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

E-mail:              info@tskline.co.jp

 

 

ACTIVITIES  

 

Container ship operator

 

 

BRANCHES

 

16 domestic; 16 overseas (including Taipei, Singapore, Malaysia)   (agents/terminals)

 

 

OFFICERS

 

TAKATAKE NARAOKA, PRES              

Ryoichi Nakajima, s/mgn dir

Kiyoahi Sato, mgn dir                            

Hisao Suto, dir                                                              

Yasuaki Uematsu, dir                            

Atsushi Kono, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 86,259 M

PAYMENTS      REGULAR                     CAPITAL           Yen 1,899 M

TREND             STEADY                       WORTH            Yen 2,092 M

STARTED         1949                             EMPLOYES      84

 

 

COMMENT

 

CONTAINER SHIP OWNER & OPERATOR, WHOLLY OWNED BY NIPPON YUSEN KAISHA LTD (NYK LINE).

 FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

 BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 1,182.6 MILLION, 30 DAYS NORMAL TERMS.  .

 

 

 

 

 

HIGHLIGHTS

           

The subject company was established as a ship owner and operator trading mainly in Asian region.  In Aug 2002, went under the control of Nippon Yusen Kaisha Ltd (see REGISTRATION) and become its wholly owned subsidiary.  At the same time delisted from Tokyo S/E.  This is an owner and operator of container ships (a total of 20 ships) trading within Asia, extending from Sakhalin in the north to Indonesia in the south and to the Middle East in the west.  In Apr 2008, opened a new service line ICS Service (India-China Service).

 

 

FINANCIAL INFORMATION

           

Financials are consolidated by the parent, Nippon Yusen Kaisha, and released only in digested figures.

 

The sales volume for Mar/2008 fiscal term amounted to Yen 86,259 million, a 10% up from Yen 78,452 in the previous term.  The operations continued in the red to post Yen 1,004 million recurring loss and Yen 1,314 million net losses, respectively, compared with Yen 1,662 million recurring loss and Yen 1,074 million net losses, respectively, a year ago.  The steep hike in fuel oils was a hard blow to eat into profits.  The freight rates hikes could not catch up with the fuel oil cost operation cost surge.

 

For the current term ending Mar 2009 the operations are projected to come back to profitability but still limited to a minimum amount post-taxes, on a 7% rise in turnover, to Yen 92,500 million.  Freight Conference’s freight rates revision upward will lead to increased earnings and profitability. 

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,182.6 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered: Jul 1949

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:          9.6 million shares

Issued:                3,798,000 shares

Sum:                  Yen 1,899 million

           

 

Major shareholders (%)

 

Nippon Yusen Kaisha Ltd*(100)

 

* . Nation’s largest shipping company, Tokyo, founded 1885, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 88,531 million, turnover Yen 2,584,626 million, recurring profit Yen 198,480 million, net profit Yen 114,139 million, total assets Yen 2,286,013 million, net worth Yen 637,962 million, employees 31,369, pres Koji Miyahara. Consolidated Financials are as attached (See SUPPLEMENTS)

                       

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

 

 

 

OPERATION

 

Activities: Container ship owner and operator operating a total of 20 container ships in the routes as under (--100%):

 

(Trading ranges):

 

The north-south trunk route in East Asia, linking North Asia, including Japan, with major ports in Southeast Asia;

The east-west trunk route connecting East Asia with West Asia, including the Middle East, India and Pakistan;

Feeder routes supplementing the above-mentioned trunk routes.

 

 

Clients

 

[Cargo owners, wholesalers, mfrs] Mitsubishi Corp, Mitsui & Co, Toyota Motors, Toyota Tsusho Corp, Mitsubishi Motors, Itochu Corp, Suzuki Motor, Daihatsu Motor, other. 

No. of accounts: 300

Domestic areas of activities: Nationwide

 

 

Suppliers

 

[Wholesalers, ship agencies] Marubeni Corp, Itochu Petroleum, NYK Trading Corp, other.

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned by the parent, Nippon Yusen Kaisha, Ltd, and maintained satisfactorily.

 

 

Bank References

 

MUFG (H/O)

Mizuho Corporate Bank (H/O)

Relations: Satisfactory

 

 

FINANCES: (In Million Yen)

 

       Terms Ending:

31/03/2009

31/03/2008

31/03/2007

31/03/2006

Annual Sales

　

92,500

86,259

78,452

77,495

Recur. Profit

　

0

-1,004

-1,662

634

Net Profit

　

0

-1,314

-2,074

-103

Total Assets

　

　

13,039

13,904

14,800

Current Assets

　

　

11,224

11,534

12,312

Current Liabs

　

　

10,282

9,393

8,205

Net Worth

　

　

2,092

3,669

5,817

Capital, Paid-Up

　

　

1,899

1,899

1,899

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

7.24

9.95

1.23

..

       Current Ratio

 

..

109.16

122.79

150.05

       N.Worth Ratio

..

16.04

26.39

39.30

       R.Profit/Sales

 

0.00

-1.16

-2.12

0.82

       N.Profit/Sales

0.00

-1.52

-2.64

-0.13

      Return On Equity

..

-62.81

-56.53

-1.77

 

Notes: Forecast (or estimated) figures for the 31/03/2009 fiscal term. 

 

 

SUPPLEMENTS:

 

CONSOLIDATED FINANCIALS OF THE PARENT, NIPPON YUSEN KAISHA LTD

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2008

31/03/2007

INCOME STATEMENT

 

 

 

  Annual Sales

　

2,584,626

2,164,279

 

  Cost of Sales

2,128,849

1,840,784

 

      GROSS PROFIT

455,777

323,495

 

  Selling & Adm Costs

253,698

218,553

 

      OPERATING PROFIT

202,079

104,942

 

  Non-Operating P/L

-3,599

2,592

 

      RECURRING PROFIT

198,480

107,534

　

      NET PROFIT

114,139

65,037

BALANCE SHEET

 

 

 

 

  Cash

　

120,193

92,285

 

  Receivables

 

256,204

232,252

 

  Inventory

 

54,357

38,639

 

  Securities, Marketable

2,457

2,265

 

  Other Current Assets

168,856

174,530

 

      TOTAL CURRENT ASSETS

602,067

539,971

 

  Property & Equipment

1,131,945

946,328

 

  Intangibles

 

65,415

71,146

 

  Investments, Other Fixed Assets

486,586

577,966

 

      TOTAL ASSETS

2,286,013

2,135,411

 

  Payables

 

215,613

197,015

 

  Short-Term Bank Loans

287,955

285,187

 

　

 

　

　

 

  Other Current Liabs

271,498

214,848

 

      TOTAL CURRENT LIABS

775,066

697,050

 

  Debentures

 

211,266

167,334

 

  Long-Term Bank Loans

487,975

417,231

 

  Reserve for Retirement Allw

18,618

20,076

 

  Other Debts

　

114,051

133,033

 

      TOTAL LIABILITIES

1,606,976

1,434,724

 

      MINORITY INTERESTS

 

 

 

Common stock

88,531

88,531

 

Additional paid-in capital

97,212

97,188

 

Retained earnings

401,044

312,605

 

Evaluation p/l on investments/securities

85,668

136,954

 

Others

 

7,920

66,297

 

Treasury stock, at cost

(1,339)

(858)

 

      TOTAL S/HOLDERS` EQUITY

679,036

700,717

　

      TOTAL EQUITIES

2,286,013

2,135,441

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2008

31/03/2007

 

Cash Flows from Operating Activities

　

199,525

86,229

 

Cash Flows from Investment Activities

-292,510

-178,043

 

Cash Flows from Financing Activities

146,829

97,363

　

Cash, Bank Deposits at the Term End

　

115,963

87,709

ANALYTICAL RATIOS            Terms ending:

31/03/2008

31/03/2007

 

 

Net Worth (S/Holders' Equity)

679,036

700,717

 

 

Current Ratio (%)

77.68

77.47

 

 

Net Worth Ratio (%)

29.70

32.81

 

 

Recurring Profit Ratio (%)

7.68

4.97

 

 

Net Profit Ratio (%)

4.42

3.01

 

 

Return On Equity (%)

16.81

9.28

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.48.68

UK Pound

1

Rs.84.37

Euro

1

Rs.65.70

 

 

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%)

 

 

 

 

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