MIRA INFORM REPORT

 

 

Report Date :           

21.04.2012

 

IDENTIFICATION DETAILS

 

Name :

ITOCHU CHEMICAL FRONTIER CORPORATION

 

 

Registered Office :

Itochu Bldg 16F, 2-5-1 Kita-Aoyama Minatoku Tokyo 107-0061

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

October 1979

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, Export, Wholesale of industrial chemicals, pharmaceuticals, feeds

 

 

No. of Employees :

242

 

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 1,879.0 Million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

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 – March 31st, 2012

 

Country Name

Previous Rating

                   (31.12.2011)                  

Current Rating

(31.03.2012)

Japan

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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 Tokyo 107-0061 JAPAN

Tel: 03-3497-4510     Fax: 03-3497-4520

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

E-Mail address:            info@itcche.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of industrial chemicals, pharmaceuticals, feeds, other

 

 

BRANCHES

 

Osaka, Nagoya, Niigata, Mizonokuchi (laboratory)

 

 

OVERSEAS

 

Covered by overseas offices of Itochu Corp (-- USA, Europe, China, other – Tot 130 offices in 80 countries)

 

 

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 137,478 M

PAYMENTS      REGULAR         CAPITAL           Yen 1,100 M

TREND STEADY           WORTH            Yen 8,492 M

STARTED         1979                 EMPLOYES      242

 

 

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 1,879.0 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, Tokyo, as Itochu Fine Chemical Corp.  In Jul 1990, merged a sister company, Itochu Interchem Inc.  Renamed as captioned in Oct 2002.  In Apr 2005, merged Itochu Techno Chemical Inc.  This is a trading house specializing in organic chemicals, fine chemicals, functional materials, other industrial chemicals (See OPERATION).  Overseas operations are integrated with the parent, utilizing its 130 overseas offices as agents.

 

 

FINANCIAL INFORMATION

 

Financials are consolidated by the parent, Itochu Corp.

 

The sales volume for Mar/2011 fiscal term amounted to Yen 137,478 million, an 8% up from Yen 126,825 in the previous term.  Demand for chemical products rose sharply.  The price hike of the products contributed.  The recurring profit was posted at Yen 4,670 million and the net profit at Yen 2,225 million, respectively, compared with Yen 3,597 million recurring profit and Yen 1,539 million net profit, respectively, a year ago.

 

For the current term ending Mar 2012 the recurring profit is projected at Yen 4,700 million and the net profit at Yen 2,300 million, respectively, on a 5% rise in turnover, to Yen 144,000 million.  Demand is recovering.  Exports 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 1,879.0 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), Japan Cee-Bee Chemical Co (0.5)

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 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 5,673,683 million, net worth Yen 1,397,510 million, employees 62,635 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 Tokyo.  Office premises at the caption address are owned by the parent and maintained satisfactorily.

 

Bank References:

·         Mizuho Corporate Bank (H/O)

·         SMBC (Tokyo)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2012

31/03/2011

31/03/2010

31/03/2009

Annual Sales

　

144,000

137,478

126,825

129,948

Recur. Profit

　

4,700

4,670

3,597

2,531

Net Profit

　

2,300

2,225

1,539

1,591

Total Assets

　

　

50,755

48,769

39,706

Current Assets

　

　

45,906

43,923

35,144

Current Liabs

　

　

41,321

40,317

32,145

Net Worth

　

　

8,492

7,396

6,310

Capital, Paid-Up

　

　

1,100

1,100

1,100

Div.P.Share(¥)

　

　

　

　

　

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.74

8.40

-2.40

-21.28

    Current Ratio

 

..

111.10

108.94

109.33

    N.Worth Ratio

..

16.73

15.17

15.89

    R.Profit/Sales

 

3.26

3.40

2.84

1.95

    N.Profit/Sales

1.60

1.62

1.21

1.22

    Return On Equity

..

26.20

20.81

25.21

 

Note: Forecast (or estimated) for the 31/03/2012 fiscal term.

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, ITOCHU CORP

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

11,392,589

10,306,799

 

  Cost of Sales

10,351,298

9,382,433

 

      GROSS PROFIT

1,041,291

924,366

 

  Selling & Adm Costs

785,209

776,952

 

      OPERATING PROFIT

256,082

147,414

 

  Non-Operating P/L

-73,985

7,572

 

      RECURRING PROFIT

182,097

154,986

　

      NET PROFIT

160,975

128,153

BALANCE SHEET

 

 

 

 

  Cash

　

630,722

475,674

 

  Receivables

 

1,434,363

1,426,682

 

  Inventory

 

504,342

476,066

 

  Securities, Marketable

3,560

7,140

 

  Other Current Assets

502,844

(492,081)

 

      TOTAL CURRENT ASSETS

3,075,831

1,893,481

 

  Property & Equipment

643,629

666,351

 

  Intangibles

 

　

　

 

  Investments, Other Fixed Assets

1,954,223

2,917,015

 

      TOTAL ASSETS

5,673,683

5,476,847

 

  Payables

 

1,239,609

1,217,599

 

  Short-Term Bank Loans

241,915

229,236

 

　

 

　

　

 

  Other Current Liabs

561,355

545,723

 

      TOTAL CURRENT LIABS

2,042,879

1,992,558

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

2,159,929

2,107,589

 

  Reserve for Retirement Allw

52,564

43,314

 

  Other Debts

　

20,801

22,033

 

      TOTAL LIABILITIES

4,276,173

4,165,494

 

      MINORITY INTERESTS

 

 

 

Common stock

202,241

202,241

 

Additional paid-in capital

114,291

137,506

 

Retained earnings

1,035,222

900,397

 

Evaluation p/l on investments/securities

(139,038)

(194,254)

 

Others

 

187,481

268,137

 

Treasury stock, at cost

(2,687)

(2,674)

 

      TOTAL S/HOLDERS` EQUITY

1,397,510

1,311,353

　

      TOTAL EQUITIES

5,673,683

5,476,847

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

336,868

295,376

 

Cash Flows from Investment Activities

-230,420

-196,318

 

Cash Flows from Financing Activities

52,905

-258,987

　

Cash, Bank Deposits at the Term End

　

630,722

475,674

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

1,397,510

1,311,353

 

 

Current Ratio (%)

150.56

95.03

 

 

Net Worth Ratio (%)

24.63

23.94

 

 

Recurring Profit Ratio (%)

1.60

1.50

 

 

Net Profit Ratio (%)

1.41

1.24

 

 

Return On Equity (%)

11.52

9.77

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.51.99

UK Pound

1

Rs.83.54

Euro

1

Rs.63.40

 

 

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

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

----

NB

New Business

----

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.