MIRA INFORM REPORT

 

 

Report Date :

20.08.2012

 

IDENTIFICATION DETAILS

 

Name :

SUMIKIN BUSSAN CORPORATION 

 

 

Registered Office :

Sumikin Bussan Bldg, 1-10-9 Shinmachi Nishiku Osaka 550-8602

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

April 1941

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export and wholesale of iron & steel, textiles, foodstuffs, machinery, non-ferrous metals

 

 

No. of Employees :

5,154

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

Regular

Litigation :

Clear

 

 

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

 

SUMIKIN BUSSAN CORPORATION

 

 

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

 

*.. The given address is its Tokyo Headquarters

                        

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

MITSUMORI OKADA

 

Yen Amount:     In million Yen, unless otherwise stated

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 807,245 M

PAYMENTS      REGULAR         CAPITAL           Yen 12,335 M

TREND STEADY           WORTH            Yen 65,491 M

STARTED         1941                 EMPLOYES      5,154

 

 

COMMENT

 

TRADING HOUSE AFFILIATED TO SUMITOMO METAL IND. 

 

      FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

                        Unit: in Million Yen

Forecast (or estimated) figures for 31/03/2013 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 of domestic sales of casual clothing made by American Eagle Outfitters.

           

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 807,245 million, a 2.1% up from Yen 790,900 million in the previous term.  Withdrawal from the unprofitable textile business and restructuring of foodstuffs made a contribution.  By divisions, Steel Div was up 2.6% to Yen 3,862 million; Steel & Metals Div down 4.2% to Yen 101,000 million; Textiles up 7.6% to Yen 168,100 million; Foods down 1.9% to Yen 104,400 million.  The recurring profit was posted at Yen 12,408 million and the net profit at Yen 7,199 million, respectively, compared with Yen 11,736 million recurring profit and Yen 5,748 million net profit, respectively, a year ago.

 

(Apr/Jun/2012 results): Sales Yen 197,833 million (up 2.9%), operating profit Yen 4,074 million (up 33.2%), recurring profit Yen 4,253 million (up 41.7%), net profit Yen 2,673 million (up 68.4%).  (% compared with the corresponding period a year ago).

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 14,000 million and the net profit at Yen 7,800 million, respectively, on a 4.1% rise in turnover, to Yen 840,000 million.  Sales of apparel products will be brisk in textile.  In sales of steel products, volume increase on the recovery of automobile production will exceed the drop in unit prices.  Sales of machinery parts will continue to fare well. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered: Apr 1941

Legal Status:     Limited Company (Kabushiki Kaisha)

Authorized:        400 million shares

Issued:               184,534,094 shares

Sum:                  Yen 12,335 million

 

Major shareholders (%): Sumitomo Metal Ind*(38.1), Master Trust Bank of Japan T (3.5), Japan Trustee Services T (3.5), Kyoei Steel (2.1), Company’s Treasury Stock (1.6), Air Water (1.2), Chuo Denki Kogyo (1.2), JTSB (Chuo Denki Kogyo) (1.2), JP Morgan Chase Bank 385129 (1.0), Trust & Custody Services Inv T (1.0); foreign owners (8.2)

 

*.. Third ranked crude steel producer, Osaka, founded 1949, listed Tokyo, Osaka, Nagoya, Fukuoka, Sapporo S/E’s, capital Yen 262,072 million, turnover Yen 1,473,367 million, recurring profit Yen 60,803 million, net loss Yen 53,799 million, total assets Yen 2,386,158 million, net worth Yen 709,316 million, employees 23,007, pres Hiroshi Tomono

           

No. of shareholders: 8,166

 

Listed on the S/Exchange (s) of: Osaka

 

Managements: Gashun Amaya, ch; Mitsunori Okada, pres; Osamu Numata, v pres; Kenji Kamata, v pres; Tsuneaki Eguchi, v pres; 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 (54%): 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 (13%): 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 (21%): 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 (13%): 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.

 

Overseas Sales Ratio (11%)

 

Clients: [Mfrs, wholesalers] Sumitomo Metal Ind, Sumikin Bussan Coil Center, Taisei Corp, Igeta Sunrise Pipe Corp, Toyoda Iron Works, 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, Mitsuboshi Diamond Ind, 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

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

807,245

790,900

 

  Cost of Sales

744,905

732,314

 

      GROSS PROFIT

62,340

58,585

 

  Selling & Adm Costs

48,810

48,328

 

      OPERATING PROFIT

13,529

10,257

 

  Non-Operating P/L

-1,121

1,479

 

      RECURRING PROFIT

12,408

11,736

　

      NET PROFIT

7,199

5,748

BALANCE SHEET

 

 

 

 

  Cash

　

10,605

9,750

 

  Receivables

 

229,439

208,119

 

  Inventory

 

61,704

51,143

 

  Securities, Marketable

　

　

 

  Other Current Assets

7,094

8,238

 

      TOTAL CURRENT ASSETS

308,842

277,250

 

  Property & Equipment

32,329

31,766

 

  Intangibles

 

1,038

1,202

 

  Investments, Other Fixed Assets

28,059

28,182

 

      TOTAL ASSETS

370,268

338,400

 

  Payables

 

192,538

170,773

 

  Short-Term Bank Loans

78,154

74,559

 

　

 

　

　

 

  Other Current Liabs

14,089

13,252

 

      TOTAL CURRENT LIABS

284,781

258,584

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

14,976

14,907

 

  Reserve for Retirement Allw

2,413

2,608

 

  Other Debts

　

2,607

2,911

 

      TOTAL LIABILITIES

304,777

279,010

 

      MINORITY INTERESTS

 

 

 

Common stock

12,335

12,335

 

Additional paid-in capital

7,084

7,084

 

Retained earnings

45,673

39,532

 

Evaluation p/l on investments/securities

1,376

875

 

Others

 

(398)

(232)

 

Treasury stock, at cost

(579)

(204)

 

      TOTAL S/HOLDERS` EQUITY

65,491

59,390

　

      TOTAL EQUITIES

370,268

338,400

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

5,362

-578

 

Cash Flows from Investment Activities

-4,454

-6,631

 

Cash Flows from Financing Activities

-113

5,855

　

Cash, Bank Deposits at the Term End

　

10,395

9,711

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

65,491

59,390

 

 

Current Ratio (%)

108.45

107.22

 

 

Net Worth Ratio (%)

17.69

17.55

 

 

Recurring Profit Ratio (%)

1.54

1.48

 

 

Net Profit Ratio (%)

0.89

0.73

 

 

Return On Equity (%)

10.99

9.68

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.70

UK Pound

1

Rs.87.55

Euro

1

Rs.68.85

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.