MIRA INFORM REPORT
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Report Date : |
17.11.2011 |
IDENTIFICATION DETAILS
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Name : |
MARUBENI-ITOCHU STEEL INC |
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Registered Office : |
Nihombashi 1-Chome Bldg, 1-4-1 Nihombashi
Chuoku Tokyo 103-8247 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
October 2001 |
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Com. Reg. No.: |
(Tokyo-Chuoku) 075892 |
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Legal Form : |
Limited Company |
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Line of Business : |
Trading house specializing in iron & steel materials
& products |
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 30,238.2 Million |
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Status : |
Satisfactory |
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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 – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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
MARUBENI-ITOCHU STEEL INC
REGD NAME
Itochu Marubeni
Tekko KK
MAIN OFFICE
Nihombashi 1-Chome
Bldg, 1-4-1 Nihombashi Chuoku Tokyo 103-8247 JAPAN
Tel:
03-5204-3300 Fax: 03-5204-3810
E-Mail address: Not specified (thru the URL to each
Division)
ACTIVITIES
Trading
house specializing in iron & steel materials & products
BRANCHES
Osaka,
Nagoya, Sapporo, Hiroshima, Fukuoka, other (Total 14)
OVERSEAS
China (5),
India (3), Australia, USA (9), Canada (2), Europe/CIS, other (27)
SUBSIDIARIES
(Domestic)
58; (Overseas) 79
OFFICER(S)
KENICHIRO
USHINO, PRES Tsunekatsu
Yonezawa, ch
Yasuhiko
Koike, mgn dir Yasuo
Matsuura, mgn dir
Shigeru Numata, mgn dir Takeshi
Mitomi, mgn dir
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,611,356 M
PAYMENTS REGULAR CAPITAL Yen 30,000 M
TREND SLOW WORTH Yen
167,679 M
STARTED 2001 EMPLOYES 811
COMMENT
TRADING HOUSE SPECIALIZING IN STEEL & IRON PRODUCTS, JOINTLY OWNED
BY MARUBENI CORP & ITOCHU CORP.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 30,238.2 MILLION, 30
DAYS NORMAL TERMS
Forecast (or estimated) for the 31/03/2012 fiscal term.
HIGHLIGHTS
The subject company was created on the basis of spin-offs and
integration of two steel products divisions at Marubeni Corp and Itochu Corp to
form a separate entity. This is a
trading house inheriting successful & traditional business rights of each
firm in the line of steel & iron raw materials & products markets. The firm has four core divisions: Iron &
Steel Div (1), Iron & Steel Div (2), Iron & Steel Div (3), and Tubular
Products Div (for handling items see OPERATION). Osaka branch office handles these products in
lumpsum. Top-ranked in the specific
business items. The firm will expand the
plant at MI Steel Processing Guangzhou Co Ltd, Guangzhou City, China,
specializing in the processing of automobile-use steel sheets in South
China. The firm received orders for
approx 52,000 tons of oil country tubular goods (OCTG) from Kuwait Oil Company
(KOC) jointly with China’s Pangang Group Chengdu Steel & Vanadium Co
Ltd. Most of this will be heat-treated
steel pipes for casing, and plans are to ship them to Kuwait from July thru
November 2011. Clients include major car
makers, heavy machinery mfrs, electric appliances mfrs, nationwide.
FINANCIAL INFORMATION
The sales volume for Mar/2011 fiscal term amounted to Yen 1,611,356
million, a 15% up from Yen 1,400,727 million in the previous term. This is attributed to steep expansion of
demand particularly in China and other emerging nations. Export trade targeting Asia moved into firm territory,
with business activity picking up particularly from automobile industries. Japan’s nationwide crude steel production in
Fiscal 2010 increased 14.8% from Fiscal 2009’ level and the first such
year-on-year increase recorded in three years.
The recurring profit was posted at Yen 28,015 million and the net profit
at Yen 13,502 million, respectively, compared with Yen 6,849 million recurring
profit and Yen 537 million net profit, respectively a year ago.
For the current term ending Mar 2012 the recurring profit is projected
at Yen 28,500 million and the net profit at 14,000 million, on a 5% rise in
turnover, to Yen 1,690,000 million. The
said business acquisition from Kuwait Oil Co will contribute. Production in China will expand.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 30,238.2 million, on 30 days normal terms.
REGISTRATION
Date Registered: Oct
2001
Regd No.: (Tokyo-Chuoku) 075892
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 2,400 shares
Issued: 600
shares
Sum: Yen 30,000
million
Major shareholders (%):
Marubeni Corp* (50), Itochu Corp** (50)
No. of shareholders: 2
*.. One of big 5 general trading houses, Tokyo, founded 1949, listed
Tokyo, Osaka, Nagoya, Frankfurt, Düsseldorf S/E’s, capital Yen 262,686 million,
turnover Yen 9,020,468 million, operating profit Yen 145,774 million, recurring
profit Yen 207,217 million, net profit Yen 136,541 million, total assets Yen
4,679,089 million, net worth Yen 773,592 million, employees 30,626, pres Teruo
Asada.
**.. Equally one of big 5 general trading houses, Osaka, founded 1949,
listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 202,241 million, turnover Yen
11,392,589 million, operating profit Yen 256,082 million, recurring profit Yen
182,097 million, net profit Yen 160,975 million, total assets Yen 5,673,568
million, net worth Yen 1,154,876 million, employees 62,635, pres Masahiro
Okafuji.
Nothing detrimental is known as to the commercial morality of
executives.
OPERATION
Activities: A trading firm
jointly owned by Marubeni Corp & Itochu Corp, specializing in iron &
steel products & related, IT-related business, including development of
supply chain management (SCM) system of steel products, having the following 4
core divisions (--100%):
Iron & Steel
Div (1): handles a full range of steel products for automakers and auto parts
makers, including carbon steel, specialty steel, stainless steel, electrical
steel sheets, magnequench powder, etc;
Iron & Steel
Div (2): handles steel sheet products for domestic users in the appliance,
furniture, container and office automation equipment, etc, including foreign
business of slabs, billets, blooms & other semi-finished products, bars, shapes,
plates, hot rolled and cold rolled steel, coated steel sheets, tin mill
products, clad steel plates, copper alloy tubes;
Iron & Steel
Div (3); handles plates & shapes, specialty steel, wire products &
stainless steel. The division newly
started Noble Metals Dept to handle noble items, such as Titanium, Cupro-Nickel
tubes,, offering package of noble metals required for construction of
Desalination Plants;
Tubular Products
Div: handles various types of tubular products and equipment & materials
for plant projects. Also exports pipes
for oil fields and major pipeline projects overseas. (Detailed breakdown of
each Division is not available.)
Exports (60%).
Clients: [Automakers,
steel mfrs, wholesalers] Mazda Motor Corp, Fuji Heavy Ind, Nissan Motors, Isuzu
Motor, NTN, Matsushita Electric Ind, Kawasaki Heavy Ind, Hitachi Ltd, Exxon
Mobil, other
Exports to Hyundai (Korea), Thai Controlled Steel Sheet, BNG Steel,
other.
No. of accounts: 2,000
Domestic areas of
activities: Nationwide
Suppliers: [Steel mfrs,
wholesalers] Nippon Steel, JFE Steel, Nisshin Steel, Kobe Steel, Sanyo Special
Steel, Sumitomo Metal Ind, Nippon Steel & Sumikin Stainless Steel Corp,
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 (H/O)
SMBC
(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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1,611,356 |
1,400,727 |
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Cost of Sales |
1,527,399 |
1,333,660 |
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GROSS PROFIT |
83,957 |
67,067 |
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Selling & Adm Costs |
57,070 |
57,807 |
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OPERATING PROFIT |
26,887 |
9,260 |
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Non-Operating P/L |
1,128 |
-2,411 |
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RECURRING PROFIT |
28,015 |
6,849 |
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NET PROFIT |
13,502 |
537 |
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BALANCE SHEET |
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Cash |
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24,892 |
25,968 |
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Receivables |
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373,376 |
314,437 |
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Inventory |
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140,688 |
122,063 |
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Securities, Marketable |
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Other Current Assets |
31,965 |
32,867 |
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TOTAL CURRENT ASSETS |
570,921 |
495,335 |
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Property & Equipment |
52,499 |
54,081 |
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Intangibles |
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7,247 |
8,724 |
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Investments, Other Fixed Assets |
75,152 |
72,019 |
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TOTAL ASSETS |
705,819 |
630,159 |
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Payables |
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226,045 |
195,195 |
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Short-Term Bank Loans |
183,440 |
129,695 |
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Other Current Liabs |
27,952 |
23,888 |
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TOTAL CURRENT LIABS |
437,437 |
348,778 |
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Debentures |
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Long-Term Bank Loans |
90,490 |
108,163 |
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Reserve for Retirement Allw |
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Other Debts |
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10,213 |
12,663 |
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TOTAL LIABILITIES |
538,140 |
469,604 |
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MINORITY INTERESTS |
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Common
stock |
30,000 |
30,000 |
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Additional
paid-in capital |
20,537 |
22,370 |
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Retained
earnings |
119,662 |
110,154 |
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Evaluation
p/l on investments/securities |
(12,529) |
(6,811) |
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Others |
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10,009 |
4,843 |
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Treasury
stock, at cost |
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TOTAL S/HOLDERS` EQUITY |
167,679 |
160,556 |
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TOTAL EQUITIES |
705,819 |
630,159 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2011 |
31/03/2010 |
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Net
Worth (S/Holders' Equity) |
167,679 |
160,556 |
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Current
Ratio (%) |
130.52 |
142.02 |
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Net
Worth Ratio (%) |
23.76 |
25.48 |
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Recurring
Profit Ratio (%) |
1.74 |
0.49 |
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Net
Profit Ratio (%) |
0.84 |
0.04 |
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Return
On Equity (%) |
8.05 |
0.33 |
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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.50.90 |
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UK Pound |
1 |
Rs.80.30 |
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Euro |
1 |
Rs.68.48 |
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.