MIRA INFORM REPORT
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Report Date : |
04.06.2011 |
IDENTIFICATION DETAILS
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Name : |
SUMIKIN BUSSAN CORPORATION |
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Registered Office : |
Sumikin Bussan Bldg, 1-10-9 Shinmachi
Nishiku Osaka 550-8602 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
April 1941 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, export and wholesale of iron & steel, textiles, foodstuffs, machinery, non-ferrous metals, others |
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 10,710.2 Million |
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Status : |
Good |
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Payment
Behaviour : |
Regular |
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Litigation : |
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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 – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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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 |
Company name
SUMIKIN BUSSAN
CORPORATION
(The Given Name, Sumikin Bussan Int’l Co Ltd, is for its overseas subsidiaries)
REGD NAME
Sumikin Bussan KK
MAIN OFFICE
Sumikin Bussan Bldg,
1-10-9 Shinmachi Nishiku
Osaka 550-8602 JAPAN
Tel: 06-6244-8001 Fax: 06-6244-8009
URL: http://www.sumikinbussan.co.jp/
E-Mail address: (through the URL)
ACTIVITIES
Import,
export and wholesale of iron & steel, textiles, foodstuffs, machinery,
non-ferrous metals, others
BRANCHES
Tokyo,
Nagoya, Sapporo, Osaka, Shizuoka, Fukuoka other (Tot 18)
OVERSEAS
China,
Taipei, Ho Chi Minh, Milan, Paris, other (Tot 7)
(Subsidiaries/affiliated): USA,
China, Thailand, Korea, Hong Kong,
Australia, Singapore, other (Tot 8)
CHIEF EXEC
GASHUN
AMAYA, PRES & CEO
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 790,900 M
PAYMENTS REGULAR CAPITAL Yen 12,335 M
TREND STEADY WORTH Yen
59,390 M
STARTED 1941 EMPLOYES 4,963
COMMENT
TRADING
HOUSE AFFILIATED TO SUMITOMO METAL IND.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 10,710.2 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated) figures for 31/03/2012 fiscal term
HIGHLIGHT
This is a trading firm affiliated to Sumitomo Metal Ind,
third ranking crude steel mfr, Osaka (see REGISTRATION). Specializes in import, export and wholesale
of iron & steel, textiles, foodstuffs as 3 mainline, and machinery,
nonferrous metals, etc. Steel products,
textiles and foodstuffs are the 3 mainlines.
Originated a specialized trader of steel products and has expanded into
other commodities following the takeover of Itoman
Co, a textile specialist trader, in 1993.
Employs internal company system: Steel Company, Machinery & Metals
Company, Textile Company and Foodstuffs Company. Has a coil center subsidiary in US. In textile division, has strength in apparel
and production in China. Focuses on
reinforcement of steel materials processing in Thailand, China & USA. The firm established a JV with Aoyama Trading
o domestic sales of casual clothing made by American Eagle Outfitters.
FINANCIAL INFORMATION
The sales volume for Mar/2011 fiscal term amounted to Yen 790,900
million, a 4.5% up from Yen 757,185 million in the previous term. In steel products, export of steel sheets and
sales in overseas processing footholds fared well. Sales of nonferrous metals or digital
consumer electronics mfrs improved. By
divisions, Steel Div was up 3.7% to Yen 421,100 million; Steel & Metals Div
7.1% to Yen 105,400 million; Textiles up 8.4% to Yen 156,200 million; Foods
down 0.8% to Yen 106,400 million. The
recurring profit was posted at Yen 11,736 million and the net profit at Yen
5,748 million, respectively, compared with Yen 8,425 million recurring profit
and Yen 4,591 million net profit, respectively, a year ago.
For the current term ending Mar 2012 the recurring profit is projected
at Yen 11,700 million and the net profit at Yen 5,700 million, respectively, on
a 2.4% rise in turnover, to Yen 810,000 million. Sales of steel products will continue the
recovery. Restructuring in steel
products and nonferrous metal subsidiary in the preceding term will make a full
contribution. Operating profit will grow,
thanks to firm textiles and foods.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 10,710.2 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Apr 1941
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized:
400 million shares
Issued:
164,534,094 shares
Sum:
Yen 12,335 million
Major
shareholders (%): Sumitomo Metal Ind*(38.1), Master Trust Bank
of Japan T (4.2), Japan Trustee Services T (3.8), Kyoei Steel (2.1), Japan
Trustee Services T9 (1.8), Air Water (1.2), Chuo Denki Kogyo (1.2), JTSB (Chuo
Denki Kogyo) (1.2), Employees’ S/Holding Assn (0.8); foreign owners (6.5)
*.. Third ranked crude steel producer, Osaka, founded 1949, listed Tokyo,
Osaka, Nagoya, Fukuoka, Sapporo S/E’s, capital Yen 262,072 million, turnover
Yen 1,402,454 million, recurring profit Yen 34,049 million, net loss Yen 7,144
million, total assets Yen 2,440,761 million, net worth Yen 818,080 million,
employees 22,747, pres Hiroshi Tomono
No. of
shareholders: 9,016
Listed on the
S/Exchange (s) of: Tokyo, Osaka
Managements: Gashun Amaya, pres & CEO;
Katsuhiko Yagi, v pres; Kiyoshi Meguro, v pres; Osamu
Numata, s/mgn dir; Kenji Kamata, s/mgn dir; Tsuneaki Eguchi, s/mgn dir; Etsuo Shimotori, s/mgn dir; Keiji Kurita, s/mgn dir; Toshimitsu Fukushima, s/mgn dir;
Shigeru Maeda, mgn dir; Kouki
Tahara, mgn dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Tsubohachi, Igeta Sunrise Pipes, Sumikin Bussan Steel Products, First Company, other
OPERATION
Activities: Imports, exports
and wholesales iron & steel, textiles, foodstuffs, machinery, nonferrous metals, others:
(Sales breakdown
by intra-company units):
Steel Company (52%):
seamless
pipes/tubes, welded pipes/tubes, large-diameter pipes, fittings, hot-rolled
coils, cold-rolled coils, coated sheets, plates, electrical sheets, H-shaped lightweight H-sheets, sheet piles, stainless
steel, titanium, other steel products, pig iron, scrap, direct-reduced iron, ferroalloys, petrochemical
products, coal, sand;
Machinery &
Metals Company (15%): all types of machinery for steel production,
general industrial machinery, environmental-related equipment, electric power
business, bars, wire rods, bar in
coils, wire products, cold finished steel bars, cast steel products, forged
steel products, rolling stock parts, automobile parts, sintered products,
nonferrous raw materials, nonferrous ingots, nonferrous mill products, raw
materials for synthetic plastics & molded products, urethane system liquid
raw materials and products, packaging materials and products, plastic pallets,
construction materials;
Textiles Company
(19%): raw cotton, yarn, woven & knitted textiles, outerwear & inner wear for men, women & children,
infants’ wear, school uniform, sportswear, working wear, sleepwear, interior
goods;
Foodstuffs
Company (14%): meat (beef, pork, chicken, etc) including processed
products, fishery products (shrimp, crab, squid, sardine, etc) including
processed products, grain (rice, wheat, beans, etc), agricultural products
(pumpkins, tomatoes, carrots, melons, etc), others.
Clients: [Mfrs, wholesalers] Sumitomo Metal Ind, Marudai Foods, Fuji Echo, Onward Kashiyama, Obayashi
Corp, Takenaka Corp, other.
No. of
accounts: 2,000
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Sumitomo Metal Ind, Samsung Diamond Ind, Nippon
Steel & Sumikin Stainless Steel Co, Sumitomo
Light Metal Ind, Cargill Meats Co, Danish Crown, SSC,
Sumitomo Pipe & Tube Corp, other.
Payment record:
Regular
Location: Business area in Osaka. Office premises at the caption address are
leased and maintained satisfactorily.
Bank References:
SMBC
(Osaka H/O)
Sumitomo
Trust Bank (H/O)
Relations:
Satisfactory
FINANCES
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2011 |
31/03/2010 |
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INCOME STATEMENT |
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Annual Sales |
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790,900 |
757,185 |
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Cost of Sales |
732,314 |
701,871 |
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GROSS PROFIT |
58,585 |
55,313 |
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Selling & Adm
Costs |
48,328 |
46,517 |
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OPERATING PROFIT |
10,257 |
8,796 |
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Non-Operating P/L |
1,479 |
-371 |
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RECURRING PROFIT |
11,736 |
8,425 |
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NET PROFIT |
5,748 |
4,591 |
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BALANCE SHEET |
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Cash |
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9,750 |
11,224 |
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Receivables |
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208,119 |
206,414 |
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Inventory |
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51,143 |
41,181 |
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Securities, Marketable |
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Other Current Assets |
8,238 |
8,814 |
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TOTAL CURRENT ASSETS |
277,250 |
267,633 |
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Property & Equipment |
31,766 |
27,248 |
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Intangibles |
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1,202 |
1,393 |
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Investments, Other Fixed Assets |
(71,818) |
27,780 |
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TOTAL ASSETS |
238,400 |
324,054 |
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Payables |
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170,773 |
169,417 |
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Short-Term Bank Loans |
74,559 |
66,318 |
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Other Current Liabs |
13,252 |
14,234 |
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TOTAL CURRENT LIABS |
258,584 |
249,969 |
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Debentures |
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Long-Term Bank Loans |
14,907 |
14,480 |
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Reserve for Retirement Allw |
2,608 |
2,442 |
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Other Debts |
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2,911 |
2,395 |
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TOTAL LIABILITIES |
279,010 |
269,286 |
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MINORITY INTERESTS |
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Common
stock |
12,335 |
12,335 |
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Additional
paid-in capital |
7,084 |
7,084 |
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Retained
earnings |
39,532 |
39,532 |
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Evaluation
p/l on investments/securities |
875 |
889 |
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Others |
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(232) |
(4,988) |
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Treasury
stock, at cost |
(204) |
(184) |
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TOTAL S/HOLDERS` EQUITY |
59,390 |
54,668 |
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TOTAL EQUITIES |
338,400 |
323,954 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2011 |
31/03/2010 |
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Cash
Flows from Operating Activities |
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-578 |
11,596 |
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Cash
Flows from Investment Activities |
-6,631 |
-1,901 |
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Cash
Flows from Financing Activities |
5,855 |
-9,602 |
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Cash,
Bank Deposits at the Term End |
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9,711 |
11,214 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2011 |
31/03/2010 |
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Net
Worth (S/Holders' Equity) |
59,390 |
54,668 |
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Current
Ratio (%) |
107.22 |
107.07 |
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Net Worth
Ratio (%) |
17.55 |
16.88 |
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Recurring
Profit Ratio (%) |
1.48 |
1.11 |
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Net
Profit Ratio (%) |
0.73 |
0.61 |
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Return
On Equity (%) |
9.68 |
8.40 |
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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.44.85 |
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UK Pound |
1 |
Rs.73.29 |
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Euro |
1 |
Rs.64.89 |
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.