MIRA INFORM REPORT

 

 

Report Date :

05.11.2012

 

IDENTIFICATION DETAILS

 

Name :

AKROS TRADING CO LTD

 

 

Registered Office :

 

Shiba Park Bldg 14F, 2-4-1 Shibakoen Minatoku Tokyo 105-8508

 

 

 

 

Country :

Japan

 

 

 

 

Financials (as on) :

31.03.2012

 

 

 

 

Date of Incorporation :

April 1932

 

 

 

 

Com. Reg. No.:

0104-01-031626 (Tokyo-Minatoku)

 

 

 

 

Legal Form :

Limited Company

 

 

 

 

Line of Business :

Import, export, wholesale of steel materials, building materials, electronics

 

 

 

 

No. of Employees :

112

 

 

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

 

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

(31.03.2011)

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 and address

 

AKROS TRADING CO LTD

REGD NAME:    KK Akros Shoji

MAIN OFFICE:  Shiba Park Bldg 14F, 2-4-1 Shibakoen Minatoku Tokyo 105-8508 JAPAN

                                    Tel: 03-5405-6000          Fax: 03-5405-6034    

 

URL:                 http//:www.akros-trading.com

E-mail:             (thru the URL)   

 

 

ACTIVITIES

 

Import, export, wholesale of steel materials, building materials, electronics

 

BRANCHES

 

Sapporo, Osaka, Nagoya, Fukuoka, Oita, other (Tot 11)

 

OVERSEAS

 

Taiwan, Shanghai, Hong Kong, Singapore, India, Korea

 

 

OFFICER(S)

 

MAMORU HOSHI, PRES           Fusaharu Honma, s/mgn dir       

Takeshi Okada, mgn dir              Shigeru Matsumoto, mgn dir      

Shoji Okabe, mgn dir                  Hsu Tzyh Lih, mgn dir

 

Yen Amount:                 In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                             A/SALES          Yen 45,218 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 1,200 M

TREND             UP                                WORTH            Yen 2,465 M

STARTED                     1932                             EMPLOYES      112

 

COMMENT

 

TRADING FIRM SPECIALIZING IN CHEMICALS, STEEL MATERIALS, OTHER,

AFFILIATED WITH DENKI KAGAKU KOGYO KK 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

 

HIGHLIGHTS

           

            The subject company was established by a local entrepreneur in order to wholesale chemicals and steel products, names as Hissan Trading Co Ltd.  Incorporated in 1932 and the firm became a subsidiary of Denki Kagaku Kogyo KK (See REGISTRATION).  In Aug 2010, transferred the business operations from a subsidiary, Aiko Chemical Co Ltd.  In Oct 2012, merged with Rokko Shoji KK and renamed as captioned.  This is a trading firm specializing in import, export and wholesale of industrial chemicals, steel mfg materials, paper-related products, electronics, other.  Has six overseas subsidiaries in Hong Kong, Taiwan, Singapore, India, Korea and China.

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2012 fiscal term amounted to Yen 45,218 million, a 6% down from Yen 48,190 million in the previous term.  This is referred to the high Yen, reducing export revenues & profits in Yen terms.  The recurring profit was posted at Yen 258 million and the net profit at Yen 160 million, respectively, compared with Yen 318 million recurring profit and Yen 178 million net profit, respectively, a year ago.  .

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 300 million and the net profit at Yen 180 million, respectively, on a 15% rise in turnover, to Yen 52,000 million.  The said merger will contribute to the sales growth for the second half year.

           

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

 

REGISTRATION

 

Date Registered:       Apr 1932

Regd No.:                        0104-01-031626 (Tokyo-Minatoku)

Legal Status:    Limited Company (Kabushiki Kaisha)

Authorized:       96 million shares

Issued:              24 million shares

Sum:                 Yen 1,200 million

Major shareholders (%): Denki Kagaku Kogyo KK* (65.6), Japan Pulp & Paper (14.4), Mizuho Corporate Bank (4.3)

No. of shareholders: 74

 

* Leading second-tier comprehensive chemical mfr, Tokyo, founded 1915, listed Tokyo S/E, capital Yen 36,998 million, sales Yen 364,712 million, operating profit Yen 20,713 million, recurring profit Yen 18,996 million, net profit Yen 11,330 million, total assets Yen 401,269 million, net worth Yen 168,857 million, employees 4,921, pres Shinsuke Yoshitaka

           

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

 

OPERATION

 

Activities: Trading firm for import, export and wholesale of:

Chemicals & Plastics (25%): inorganic chemicals, solvents, monomers, adhesives, synthetic resins, plastics, packaging materials, plastic films, plastic sheets;

Steel & Iron Materials & Welding Materials (24%): ferroalloys, stainless scraps, refractory metals, stainless steel plates, pipes, titanium, welding materials, high-pressure gases, fire-proof cement, high-pressure gas vessels, waste water disposal facilities;

Paper-Related Products (13%): paper-related chemicals, silicon, adhesives, pulps, waste paper, other;

Building Materials (11%): cement, admixtures, water-proof materials, construction & building materials, water-proof works, floorings, others;

High-Functional Chemicals (18%): synthetic rubber, conveyor belts, adhesives, sponge wet suits, cables, gloves, wipers, air suspensions, car motor cycle parts, hoses, boots;

Electronics Materials (9%): semiconductor related materials, LCD-related materials, photo-resist materials, other.

Others (3%)

 

Clients: [Mfrs, wholesalers] Oji Paper Ind, Itochu Plastics, Denki Kagaku Kogyo, NEC Semiconductors Kansai, Nippon Steel Sumikin Stainless Corp, Sanyo Chemical Ind, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Denki Kagaku Kogyo, BASF Catalysts LLC, Toagosei Co, Tokyo Ohka Kogyo, Nippon Steel & Sumikin Welding Co, other

 

Payment record: No Complaints

 

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

 

Bank References:

Mizuho Corporate Bank (Uchisaiwaicho)

SMBC (Kyobashi)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

52,000

45,218

48,190

44,545

Recur. Profit

 

300

258

318

249

Net Profit

 

180

160

178

194

Total Assets

 

 

16,713

16,939

17,244

Current Assets

 

 

14,669

14,877

 

Current Liabs

 

 

13,683

13,992

 

Net Worth

 

 

2,465

2,416

2,279

Capital, Paid-Up

 

 

1,200

1,200

1,200

Div.P.Share(¥)

 

 

3.00

3.00

3.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

15.00

-6.17

8.18

0.77

    Current Ratio

 

..

107.21

106.33

..

    N.Worth Ratio

..

14.75

14.26

13.22

    R.Profit/Sales

 

0.58

0.57

0.66

0.56

    N.Profit/Sales

0.35

0.35

0.37

0.44

    Return On Equity

..

6.49

7.37

8.51

 

Notes: Forecast (or estimated) figures for the 31/03/2013 fiscal term. 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.66

UK Pound

1

Rs.86.37

Euro

1

Rs.69.24

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.