MIRA INFORM REPORT

 

 

Report Date :

10.12.2012

 

IDENTIFICATION DETAILS

 

Name :

METAL ONE CORPORATION

 

 

Registered Office :

Celestine Shiba Mitsui Bldg, 3-23-1 Shiba Minatoku Tokyo 105-0014

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

January 2003

 

 

Com. Reg. No.:

(Tokyo-Minatoku) 049321

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Specialized trading house for steel products

 

 

No. of Employees :

10,000 employees

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

With Financial

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

japan - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

 

Source : CIA

 

 

Company name

 

METAL ONE CORPORATION

 

 

REGD NAME

 

KK Metal One

 

 

MAIN OFFICE

 

Celestine Shiba Mitsui Bldg, 3-23-1 Shiba Minatoku Tokyo 105-0014 JAPAN

Tel: 03-6400-2000     Fax: 03-6400-2939

 

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

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

 

 

ACTIVITIES  

 

Specialized trading house for steel products

 

 

BRANCHES

 

Domestic: Osaka, Nagoya, Hiroshima, Fukuoka, other (Tot 16) Affiliated firms: 6 subsidiaries, named as Metal One plus area, such as Metal One Kyushu, etc)

 

 

OVERSEAS

 

Overseas: Americas (24), Europe (14 including Russia), Asia/Oceania (39, Including 9 in China), Mid East/Africa (16)

 

 

OFFICERS

 

NAOTO MATSUOKA, PRES       Ryoji Shinohe, v pres

Terumitsu Kibe, s/mgn dir           Hideto Nakahara, dir

Jun Kinukawa, dir                       Masahiro Komiyama, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES                    FAIR                             A/SALES          Yen 2,473,001 M

PAYMENTS      No Complaints          CAPITAL           Yen 100,000 M

TREND             UP                                WORTH            Yen 299,820 M

STARTED                     2003                             EMPLOYES      10,000

 

 

COMMENT    

 

TRADING HOUSE SPECIALIZING IN STEEL PRODUCTS, JOINTLY OWNED BY MITSUBISHI CORP AND SOJITZ CORP. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

Notes: Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2013 fiscal term

 

 

HIGHLIGHTs

 

The subject company was established jointly on the basis of steel products divisions separated from each Mitsubishi Corp and the then Nissho Iwai Corporation (now Sojitz Corporation) in order to integrate steel business operations.  This is a specialized trading house for import, export and wholesale of steel products, stainless steel products, and other metal products.  The operations are composed of five core business divisions: Steel Plate, Tube & Construction Materials Div; Steel Sheet Products, Automotive Steel Products Business Div; Wire & Specialty Steel, Stainless Steel Div; International Steel Operation Div; and Energy Project International Business Div.  For operation details see OPERATION.  Has taken equity position of 20% in Usiminas SA (South America), and will proceed to expand operations in Brazil.  Metal One Corporation India Pvt. Ltd: founded in Jun/2008, headquartered in New Delhi, has branches in Mumbai, Chennai and Kolkata, managing director Takanori Higashino.  The firm is actively expanding operations in India, China and other emerging nations.  It is planning to increase capital share in JV in Brazil.  The firm established a JV company in Mexico, jointly with Nippon Steel Corp, Sumitomo Corp & Sumitomo Pipe & Tube Co Ltd, to build a mfg & sales base for automotive steel pipes/tubes, with a view to ensuring a response to the demand for such products in the Mexican market, which is expected to grow significantly in the future.  The JV company is scheduled to begin production in June 2013 and will supply products to Japanese, North Americana and European automakers and auto parts mfrs in Mexico.

 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 2,473,001 million, a 2% down from Yen 2,523,462 million in the previous term.  Regarding the global economy, there was a protracted adjustment in the housing market’s supply and demand balance in the US despite signs of improvement in personal consumption & employment.  In spite of robust internal demand, growth rates also slowed in China and the rest of Asia as exports to Europe fell.  Japan’s economy continued to stand still, primarily because of the Great East Japan Earthquake, the interruptions the quake caused in car parts supply chains and electric power supplies, fall flooding in Thailand, and the Yen’s ongoing strength.  The recurring profit was posted at Yen 25,243 million and the net profit at Yen 14,423 million, respectively, compared with Yen 31,725 million recurring profit and Yen 18,780 million net profit, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 26,000 million and the net profit at Yen 15,000 million, respectively, on a 5% rise in turnover, to Yen 2,600,000 million.  Domestically public-sector investment will rise.  Business and exports to India, China and other S/E Asian nations will rise.  Expanded production capacities (steel plates) are scheduled in China, India and Thailand, JV to be newly established in Vietnam and Russia, and warehousing business JV in Korea.

 

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

 

 

REGISTRATION

 

Date Registered:          Jan 2003

Regd No.:          (Tokyo-Minatoku) 049321

Legal Status:     Limited Company (Kabushiki Kaisha)

Authorized:        8,000 shares

Issued:               2,000 shares

Sum:                  Yen 100,000 million

 

Major shareholders (%): Mitsubishi Corp*(60), Sojitz Corp** (40)

No. of shareholders: 2

 

*.. Mitsubishi Corporation, largest general trading house, Tokyo, founded 1950, listed Tokyo, Osaka, Nagoya, London S/E’s, capital Yen 204,447 million, turnover Yen 20,125,321 million, operating profit Yen 271,122 million, recurring profit Yen 458,970 million, net profit Yen 453,849 million, total assets Yen 12,463,997 million, net worth Yen 3,445,992 million, employees 63,058, pres Ken Kobayashi

 

**.. Sojitz Corporation, holding firm formed jointly by Nichimen Corp & Nissho Iwai Corp (both former names), Tokyo, founded 2003, listed Tokyo, Osaka S/E’s, capital Yen 160,339 million, sales Yen 4,494,237 million, operating profit Yen 64,522 million, recurring profit Yen 62,228 million, net losses Yen 3,469 million, total assets Yen 2,031,923 million, net worth Yen 293,093 million, employees 16,368, pres Yoji Sato

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

 

Activities: Imports, exports and wholesales steel products (--100%):

 

Exports (28%)

 

(Handling items by Divisions)

 

Business Division A: heavy & medium plates, structural pipes, piping materials, steel bars, wide flange beams, general steel shapes, lightweight steel shapes, steel sheet piles, steel pipe piles, other structural steel, processed ferrous raw materials;

 

Business Division B: hot rolled plates & sheets, cold rolled steel plates & sheets, surface-treated steel plates & sheets, electrical sheets, tinned steel plates & sheets;

 

Business Division C: line pipes, oil country tubular goods (OCTGs), steel pipe piles, steel sheets, steel plates, steel shapes, round bars, semi-finished products;

 

Wire, Specialty Steel & Stainless Steel Division: (Wire rod sector): wire rods & secondary & tertiary wire rod products, specialty steel sector, structural steel, alloy steel, spring steel, ball-bearing steel, specialty steel sheets, free-cutting steel, heat-resistant steel, tool steel; (Stainless steel sector): stainless steel plates, sheets, strips, pipes, bar steel, shapes, round bars, stainless steel processed products, stainless steel scrap, titanium products, other

 

Operations (in terms of sales): Domestic (72%), Overseas (14%), Export (13%), Import (1%)

 

Clients: [Mfrs, wholesalers] Mitsubishi Heavy Ind, Mitsubishi Motors, Mitsubishi Electric, Suzuki Motors, Nissan Motors, other.

            No. of accounts: 2,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Nippon Steel & Sumitomo Metal Corp (born by the merger

of Nippon Steel Corp & Sumitomo Metal Corp on 01/10/2012), JFE Steel, Kobe Steel,

Nisshin Steel, other

.

Payment record: No Complaints

 

Location: Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

Bank References:

MUFG (H/O)

Mizuho Corporate Bank (H/O)

Relations: Satisfactory

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

2,473,001

2,523,462

 

  Cost of Sales

2,363,515

2,407,398

 

      GROSS PROFIT

109,486

116,064

 

  Selling & Adm Costs

82,483

87,254

 

      OPERATING PROFIT

27,003

28,810

 

  Non-Operating P/L

-1,760

2,915

 

      RECURRING PROFIT

25,243

31,725

　

      NET PROFIT

14,423

18,780

BALANCE SHEET

 

 

 

 

  Cash

　

34,227

33,402

 

  Receivables

 

628,676

571,898

 

  Inventory

 

179,787

159,773

 

  Securities, Marketable

　

　

 

  Other Current Assets

29,709

25,350

 

      TOTAL CURRENT ASSETS

872,399

790,423

 

  Property & Equipment

101,891

101,438

 

  Intangibles

 

8,618

9,320

 

  Investments, Other Fixed Assets

126,148

144,085

 

      TOTAL ASSETS

1,109,056

1,045,266

 

  Payables

 

377,494

353,073

 

  Short-Term Bank Loans

287,325

239,265

 

　

 

　

　

 

  Other Current Liabs

43,206

29,765

 

      TOTAL CURRENT LIABS

708,025

622,103

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

83,238

95,970

 

  Reserve for Retirement Allw

2,598

2,486

 

  Other Debts

　

15,375

21,411

 

      TOTAL LIABILITIES

809,236

741,970

 

      MINORITY INTERESTS

 

 

 

Common stock

100,000

100,000

 

Additional paid-in capital

50,000

50,000

 

Retained earnings

121,815

116,893

 

Evaluation p/l on investments/securities

11,504

11,279

 

Others

 

16,501

25,124

 

Treasury stock, at cost

　

　

 

      TOTAL S/HOLDERS` EQUITY

299,820

303,296

　

      TOTAL EQUITIES

1,109,056

1,045,266

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

299,820

303,296

 

 

Current Ratio (%)

123.22

127.06

 

 

Net Worth Ratio (%)

27.03

29.02

 

 

Recurring Profit Ratio (%)

1.02

1.26

 

 

Net Profit Ratio (%)

0.58

0.74

 

 

Return On Equity (%)

4.81

6.19

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.20

UK Pound

1

Rs.86.99

Euro

1

Rs.70.22

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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%)

 

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