MIRA INFORM REPORT

 

 

Report Date :           

07.03.2012

 

IDENTIFICATION DETAILS

 

Name :

KOKUKA SANGYO CO LTD

 

 

Registered Office :

NBF Hibiya Bldg 4F, 1-1-7 Uchisaiwaicho Chiyodaku Tokyo 100-0011

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

March  1947 

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Chemical Tanker Operator

 

 

No. of Employees :

90

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

Yen 128.6 Million

Status :

Moderate

Payment Behaviour :

No Complaints

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

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

 

KOKUKA SANGYO CO LTD 

 

 

REGD NAME

 

Kokuka Sangyo KK

 

 

MAIN OFFICE

 

NBF Hibiya Bldg 4F, 1-1-7 Uchisaiwaicho Chiyodaku Tokyo 100-0011 JAPAN

Tel: 03-3593-3663     Fax: 03-3593-2272

 

*.. Moved to the caption address in Apr 2010 from the former as given

 

URL:                 www.kokuka.co.jp  

E-mail:             info@kokuka.co.jp          

 

 

ACTIVITIES

 

Chemical tanker operator

 

 

BRANCHES

 

Matsuyama, Mihara (Hiroshima)

 

 

OFFICER(S)

 

MAKOTO FUJITA, PRES                        Kenji Takagi, mgn dir                                                     

Yoshitsugu Owada, dir                           Soichiro Ueda, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 


 

SUMMARY

 

FINANCES                    FAIR                             A/SALES          Yen 14,525 M

PAYMENTS                  No Complaints          CAPITAL           Yen 100 M

TREND             SLOW                          WORTH            Yen 1,032 M

STARTED                     1947                             EMPLOYES      90

 

 

COMMENT    

 

CHEMICAL TANKER OWNER & OPERATOR, AFFILIATED TO MITSUBISHI GAS CHEMICAL CO LTD 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

MAX CREDIT LIMIT: YEN 128.6 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established in 1947 originally as Kokuka Sangyo Kaiun (Shipping in Japanese) Co Ltd, to engage in marine transport operation, non-life insurance agent and commercial business operations.  Began shipping operations for coals, carbon sulfide and sodium hydroxide.  In 1954, changed the name as captioned (deleting Kaiun from the corporate name).  In 195 first sodium hydroxide carrier was completed.  Thence successively has built chemical tankers, molten sulfur carrier, stainless tanker, other.  In 2001, stocks were transferred from Teijin Ltd to Mitsubishi Gas Chemical Co Inc (owning 69.8% of the share) (See REGISTRATION).  In 2002, began methanol transport from Saudi Arabia, followed by from Venezuela in 2003.  In 2006, completed LPG carrier and entered into LPG transport business.  Owning & operating tonnage: 21 ships of 226,883 DWT for oceangoing trade; 16 ships of 21,911 DWT for coastal trading.  Clients are petrochemical mfrs, oil refineries, wholesalers, other, nationwide.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2011 fiscal term amounted to Yen 14,525 million, a 7% up from Yen 13,336 million in the previous term.  Methanol & LPG shipping rose and freight rates increased on the back of robust demand.  The recurring profit was posted at Yen316 million and the net loss at Yen 1,688 million, respectively, compared with Yen 644 million net loss a year ago.  High Yen deteriorated revenues in Yen terms. .

 

For the current term ending Mar 2012 the recurring profit is projected at Yen 320 and a minimum amount post-taxes, respectively, on a 3% rise in turnover, to Yen 14,900 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 128.6 million, on 30 days normal terms.

 

 

 

REGISTRATION

 

Date Registered:  Mar 1947

Legal Status:    Limited Company (Kabushiki Kaisha)

Authorized:       16 shares

Issued:           4 shares

Sum:                 Yen100 million

Major shareholders (%): Mitsubishi Gas Chemical Co Inc* (100),

 

* Major mfr of xylene & methanol, Tokyo, founded 1951, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 41,970 million, sales Yen 451,033 million, operating profit Yen 23,363 million, recurring profit Yen 36,394 million, net profit Yen 18,950 million, total assets Yen 577,045 million, net worth Yen 288,257 million, employees 5,059, pres Kazuo Sakai

 

Consolidated Financials are attached (See SUPPLEMENTS)

 

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

 

 

OPERATION

 

Activities: Ship owning & operating, including chartering, of chemicals, LPG, methanol, agency business, other (--100%).

 

(Sales Breakdown):

 

Methanol Shipping: operates 5 chemical tankers, mainly carrying Methanol produced in Saudi Arabia & Venezuela; carrying about 1.5 million tons annually;

 

LPG Shipping: operates 3 gas carriers of 3,500 m3 pressure type, trading area of India & Far East, mainly Singapore & S/E Asia; operating about 80 trips annually in the area;

 

Chemical Shipping: operated 9 ships, carrying small-lot chemicals mainly in the Far East area;

 

Coastal Shipping: handles all types of chemicals, running services nationwide.

 

(Cargoes handled): .1.4-butanediol, acetic acid, acetone, acrylonitrile, allyl alcohol, benzene, budadiene, carbon disulfide, DM, ethanol, ethylbenzene, ethylene glycol, hydrochloric acid, hydrogen peroxide, liquid ammonia, LPG, methanol, MMA, molten caprolactam, molten phthalic anhydride, molten sulfur, MTBE, neopentyl glycol, nitric acid, petroleum products, phenol, plasticizers, propylene, sodium hydroxide, styrene monomer, toluene, vinyl acetate monomer, xylene, others.

 

Clients: [Petrochemical mfrs, oil refineries, wholesalers] Mitsubishi Gas Chemical, Idemitsu Kosan, Sumitomo Chemical, Mitsubishi Chemical, Itochu Corp, Marubeni Corp, Mitsui & Co, Maruzen Petrochemical, other.

            No. of accounts: 300

            Domestic areas of activities: Nationwide

 

Suppliers: [Ship owners, shipyards] Kansai Apollo, Itochu Enex, Suzuki Shipyard, Miura Shipbuilding, other.

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Osaka)

Resona Bank (Dojima)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2012

31/03/2011

31/03/2010

31/03/2009

Annual Sales

 

14,900

14,525

13,536

13,551

Recur. Profit

 

320

316

 

-894

Net Profit

 

0

-1,688

-644

-389

Total Assets

 

 

6,977

9,086

11,546

Current Assets

 

 

3,847

3,878

4,898

Current Liabs

 

 

3,996

5,153

6,311

Net Worth

 

 

1,027

720

1,359

Capital, Paid-Up

 

 

100

250

250

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.58

7.31

-0.11

3.83

    Current Ratio

 

..

96.27

75.26

77.61

    N.Worth Ratio

..

14.72

7.92

11.77

    R.Profit/Sales

 

2.15

2.18

..

-6.60

    N.Profit/Sales

0.00

-11.62

-4.76

-2.87

    Return On Equity

..

-164.36

-89.44

-28.62

 

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

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, MITSUBISHI GAS CHEMICAL CO IND

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

 

451,033

384,528

 

  Cost of Sales

370,963

326,738

 

      GROSS PROFIT

80,070

57,790

 

  Selling & Adm Costs

56,706

53,699

 

      OPERATING PROFIT

23,363

4,090

 

  Non-Operating P/L

13,031

3,275

 

      RECURRING PROFIT

36,394

7,365

 

      NET PROFIT

18,950

5,827

BALANCE SHEET

 

 

 

 

  Cash

 

47,964

27,560

 

  Receivables

 

112,029

104,086

 

  Inventory

 

68,316

62,006

 

  Securities, Marketable

613

10,016

 

  Other Current Assets

15,600

14,414

 

      TOTAL CURRENT ASSETS

244,522

218,082

 

  Property & Equipment

176,823

161,334

 

  Intangibles

 

4,231

4,658

 

  Investments, Other Fixed Assets

151,469

155,357

 

      TOTAL ASSETS

577,045

539,431

 

  Payables

 

60,108

56,486

 

  Short-Term Bank Loans

69,845

74,004

 

 

 

 

 

 

  Other Current Liabs

52,574

29,807

 

      TOTAL CURRENT LIABS

182,527

160,297

 

  Debentures

 

0

20,000

 

  Long-Term Bank Loans

75,850

71,394

 

  Reserve for Retirement Allw

5,402

4,630

 

  Other Debts

 

25,008

5,015

 

      TOTAL LIABILITIES

288,787

261,336

 

      MINORITY INTERESTS

 

 

 

Common stock

41,970

41,970

 

Additional paid-in capital

25,591

25,590

 

Retained earnings

236,597

222,394

 

Evaluation p/l on investments/securities

4,197

(1,013)

 

Others

 

(12,178)

(2,942)

 

Treasury stock, at cost

(7,920)

(7,905)

 

      TOTAL S/HOLDERS` EQUITY

288,257

278,094

 

      TOTAL EQUITIES

577,045

539,431

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

 

39,773

31,326

 

Cash Flows from Investment Activities

-24,626

-33,662

 

Cash Flows from Financing Activities

-1,849

-15,354

 

Cash, Bank Deposits at the Term End

 

46,768

38,048

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

288,257

278,094

 

 

Current Ratio (%)

133.96

136.05

 

 

Net Worth Ratio (%)

49.95

51.55

 

 

Recurring Profit Ratio (%)

8.07

1.92

 

 

Net Profit Ratio (%)

4.20

1.52

 

 

Return On Equity (%)

6.57

2.10

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.50.03

UK Pound

1

Rs.79.32

Euro

1

Rs.66.02

 

 

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.