MIRA INFORM REPORT
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Report Date : |
26.02.2011 |
IDENTIFICATION DETAILS
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Name : |
ITOCHU CHEMICAL FRONTIER CORPORATION |
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Registered Office : |
Itochu Bldg 16F, 2-5-1 Kita-Aoyama
Minatoku |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
October 1979 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, Export, Wholesale of
industrial chemicals, pharmaceuticals, feeds |
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 1,624.0 Million |
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Status : |
Satisfactory |
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Payment
Behaviour : |
Regular |
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Litigation : |
---- |
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 – June 30, 2010
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Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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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 |
Company name
ITOCHU CHEMICAL FRONTIER CORPORATION
REGD NAME
Itochu Chemical Frontier KK
MAIN OFFICE
Itochu Bldg 16F,
2-5-1 Kita-Aoyama Minatoku
Tel:
03-3497-4510 Fax: 03-3497-4520
E-Mail address: info@itcche.co.jp
ACTIVITIES
Import,
export, wholesale of industrial chemicals, pharmaceuticals, feeds, other
BRANCHES
OVERSEAS
Covered by overseas
offices of Itochu Corp (--
OFFICER(S)
SHINICHIRO
MAKIDA, PRES Nobuyuki Mitsui, v pres
Masayoshi Tamura, s/mgn dir Yoshihiro Wakabayashi, mgn dir
Toshinari Hidekuma, mgn dir Akira Shimizu, dir
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 126,857 M
PAYMENTS REGULAR CAPITAL Yen 1,100 M
TREND SLOW WORTH Yen
7,396 M
STARTED 1979 EMPLOYES 230
COMMENT
TRADING HOUSE SPECIALIZING IN INDUSTRIAL CHEMICALS, OWNED BY
ITOCHU CORP.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 1,624.0
MILLION, 30 DAYS NORMAL TERMS.
HIGHLIGHTS
The subject company
was established on the basis of the Fine Chemical Division spun off from Itochu
Corp, leading general trading house,
FINANCIAL INFORMATION
Financials are
consolidated by the parent, Itochu Corp.
The sales volume for
Mar/2010 fiscal term amounted to Yen 126,857 million, a 2% down from Yen
129,948 million in the previous term.
Amid the global recession, sales of automobile and construction
machinery slowed. In addition, high Yen
hurt export revenues & profits in Yen terms. In the second half, however, various
government stimulus packages succeeded in spurring a global economic recover,
which supported a recovery in demand for tires, natural rubber, pulp,
chemicals, and such petrochemicals as the raw materials for plastics. The recurring profit was posted at Yen 3,597
million and the net profit at Yen 1,539 million, respectively, compared with
Yen 2,531 million recurring profit and Yen 1,591 million net profit,
respectively, a year ago.
For the current term
ending Mar 2011 the recurring profit is projected at Yen 3,700 million and the
net profit at Yen 1,600 million, respectively, on an 8% rise in turnover, to
Yen 137,000 million. Demand is recovering,
centering in China & S/E Asian countries.
Exports revived. High Yen still
continues to hurt earnings, but export volumes are increasing. Pharmaceutical-related & health
food-related products will grow amid ballooning elderly population at home.
The financial
situation is considered maintained FAIR and good for ORDINARY business
engagements. Max credit limit is
estimated at Yen 1,624.0 million, on 30 days normal terms.
REGISTRATION
Date Registered: Oct
1979
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 4 million shares
Issued: 1,097,000 shares
Sum: Yen 1,100 million
Major shareholders (%): Itochu Corp*(95.5), Ando (4),
No. of shareholders: 3
*.. One of big 5 general
trading houses, at the caption address, founded 1949, listed Tokyo, Osaka,
Nagoya, Fukuoka, Sapporo S/E’s, capital Yen 202,241 million, turnover Yen
10,306,799 million, operating profit Yen 147,414 million, recurring profit Yen
154,986 million, net profit Yen 128,153 million, total assets Yen 5,476,847
million, net worth Yen 1,098,419 million, employees 62,372 million, pres
Masahiro Okafuji
Consolidated
Financials are attached (See SUPPLEMENTS)
Nothing detrimental
is known as to the commercial morality of executives.
OPERATION
Activities: A trading house for import, export and wholesale of industrial
chemicals, pharmaceuticals, feeds, agrochemicals, other (--100%):
(Handling items by divisions):
Functional Polymers Div:
Acrylic Business Unit (acrylic chain products, ethanol amines,
phenyl-maleimide, SAP & hygienic products);
Polyurethane & Plastic Raw Materials
Business Units (polyurethane
chain products, raw materials for unsaturated polyester resins, rubber
chemicals, amines);
Solvent-Phenol Business Units (solvents, Heptane, hexane, ethyl acetate,
phenol chain products, epoxy chain products, other organic chemicals);
Performance Products Div:
Silicone Business Unit (silicones, silence coupling agents, and raw
materials);
Additives & Coatings Business Unit (catalysts, pigments, plastic additives,
iodine & its derivatives, functional monomers, paints);
Specialty Adhesives & Resins Business
Unit (BMI, EVA, paper
chemicals, adhesives, petroleum resins, functional plastics, resin additives,
special film, polyimide film, color filter, LCD, IT related products, touch
screen ferrite materials);
Functional Chemicals Business Unit (super absorbent polymer, m-xylene sulfuric
acid & sodium derivatives, optical monomer & polymers, release &
masking films for electrical materials, functional monomer & organic
intermediates for photosensitive materials);
Water Treatment & Friction Materials
Business Unit (water
treatment chemicals, environmental/ecology related chemicals, chemicals for oil
wells, raw materials for friction parts, inorganic compound);
Pharma-Life Science Div:
Pharmaceutical Business Unit (pharmaceuticals, active pharmaceutical
ingredients, pharmaceutical intermediates, excipients);
Life Science Business Unit (quasi-drugs, cosmetics, health foods,
functional foods, food additives, dairy product, veterinary medicine, feed,
feed additives, cosmetics, agricultural chemicals, household & public
hygiene products, horticulture & home gardening products, other).
Clients: [Mfrs, wholesalers] Sumitomo Chemical, Nippon Shokubai, Mitsubishi
Chemical, Kurita Water Ind, Teijin Ltd, Kansai Paint, Toray, DIC, The Intec,
Nippon Paint, Nitto Denko, other
No. of accounts: 2,000
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs, wholesalers] Kurita Water Ind, New STI Technology, GE Toshiba
Silicon, Mitsubishi Gas Chemical, Showa Denko, Nippon Paint, Sumitomo Seika
Chemicals, Nippon Shokubai, Sanyo Chemical Ind, Mitsubishi Pharma Corp,
Momentive Performance Materials Japan, other
Payment record: Regular
Location: Business area in
Bank References:
Mizuho
Corporate Bank (H/O)
SMBC (
Relations:
Satisfactory
FINANCES
(In Million Yen)
|
Terms Ending: |
31/03/2011 |
31/03/2010 |
31/03/2009 |
31/03/2008 |
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Annual
Sales |
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137,000 |
126,857 |
129,948 |
165,068 |
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Recur.
Profit |
|
3,700 |
3,597 |
2,531 |
3,080 |
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Net
Profit |
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1,600 |
1,539 |
1,591 |
1,799 |
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Total
Assets |
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48,769 |
39,706 |
55,929 |
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Current
Assets |
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43,923 |
35,144 |
50,445 |
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Current
Liabs |
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40,317 |
32,145 |
47,033 |
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Net
Worth |
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|
7,396 |
6,310 |
6,703 |
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Capital,
Paid-Up |
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|
1,100 |
1,100 |
1,100 |
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Div.P.Share(¥) |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
8.00 |
-2.38 |
-21.28 |
6.90 |
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Current Ratio |
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.. |
108.94 |
109.33 |
107.25 |
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N.Worth Ratio |
.. |
15.17 |
15.89 |
11.98 |
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R.Profit/Sales |
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2.70 |
2.84 |
1.95 |
1.87 |
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N.Profit/Sales |
1.17 |
1.21 |
1.22 |
1.09 |
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Return On Equity |
.. |
20.81 |
25.21 |
26.84 |
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Note: Forecast
(or estimated) for the 31/03/2011 fiscal term.
SUPPLEMENTS
CONSOLIDATED FINANCIALS OF THE PARENT, ITOCHU CORP
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2010 |
31/03/2009 |
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INCOME STATEMENT |
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Annual Sales |
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10,306,799 |
12,065,109 |
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Cost of Sales |
9,382,433 |
11,004,588 |
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GROSS PROFIT |
924,366 |
1,060,521 |
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Selling & Adm Costs |
776,952 |
784,857 |
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OPERATING PROFIT |
147,414 |
275,664 |
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Non-Operating P/L |
7,574 |
-67,406 |
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RECURRING PROFIT |
154,988 |
208,258 |
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NET PROFIT |
128,153 |
165,390 |
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BALANCE SHEET |
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Cash |
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475,674 |
628,820 |
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Receivables |
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1,287,821 |
1,135,031 |
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Inventory |
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476,066 |
509,503 |
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Securities, Marketable |
7,140 |
9,214 |
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Other Current Assets |
646,780 |
655,626 |
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TOTAL CURRENT ASSETS |
2,893,481 |
2,938,194 |
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Property & Equipment |
666,351 |
560,774 |
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Intangibles |
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308,427 |
280,817 |
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Investments, Other Fixed Assets |
1,608,588 |
1,412,307 |
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TOTAL ASSETS |
5,476,847 |
5,192,092 |
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Payables |
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1,217,599 |
1,041,740 |
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Short-Term Bank Loans |
229,236 |
538,161 |
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Other Current Liabs |
545,723 |
568,216 |
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TOTAL CURRENT LIABS |
1,992,558 |
2,148,117 |
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Debentures |
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Long-Term Bank Loans |
2,107,589 |
1,934,421 |
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Reserve for Retirement Allw |
43,314 |
54,697 |
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Other Debts |
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22,033 |
17,502 |
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TOTAL LIABILITIES |
4,165,494 |
4,154,737 |
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MINORITY INTERESTS |
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Common
stock |
202,241 |
202,241 |
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Additional
paid-in capital |
137,506 |
137,171 |
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Retained
earnings |
900,397 |
796,882 |
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Evaluation
p/l on investments/securities |
40,544 |
13,686 |
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Others |
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33,352 |
(109,914) |
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Treasury
stock, at cost |
(2,687) |
(2,711) |
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TOTAL S/HOLDERS` EQUITY |
1,311,353 |
1,037,355 |
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TOTAL EQUITIES |
5,476,847 |
5,192,092 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2010 |
31/03/2009 |
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Cash
Flows from Operating Activities |
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295,376 |
276,854 |
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Cash
Flows from Investment Activities |
-196,318 |
-326,033 |
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Cash
Flows from Financing Activities |
-258,987 |
258,322 |
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Cash,
Bank Deposits at the Term End |
|
475,674 |
628,820 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2010 |
31/03/2009 |
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Net
Worth (S/Holders' Equity) |
1,311,353 |
1,037,355 |
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Current
Ratio (%) |
145.21 |
136.78 |
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Net
Worth Ratio (%) |
23.94 |
19.98 |
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Recurring
Profit Ratio (%) |
1.50 |
1.73 |
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Net
Profit Ratio (%) |
1.24 |
1.37 |
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Return
On Equity (%) |
9.77 |
15.94 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.37 |
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|
1 |
Rs.73.25 |
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Euro |
1 |
Rs.62.68 |
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 |
|
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 |
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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 |
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.