MIRA INFORM REPORT

 

 

Report Date :

07.11.2012

 

IDENTIFICATION DETAILS

 

Name :

DAITOH TRADING CO LTD

 

 

Registered Office :

Ichigaya Daitoh Bldg, 6-3 Ichigayadaimachi Shinjukuku Tokyo 162-0066

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

August 1947

 

 

Com. Reg. No.:

(Tokyo-Shinjukuku) 062340

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, wholesale of petroleum products, marine products; tanker operation

 

 

No. of Employees :

69 employees

 

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

(31.03.2012)

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

 

DAITOH TRADING CO LTD

 

 

REGD NAME

 

Daitoh Tsusho KK

 

 

MAIN OFFICE

 

Ichigaya Daitoh Bldg, 6-3 Ichigayadaimachi Shinjukuku Tokyo 162-0066 JAPAN

Tel: 03-5919-6100

 

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

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

 

 

ACTIVITIES  

 

Import, export, wholesale of petroleum products, marine products; tanker operation

 

 

BRANCHES

 

Nil (Regional operations are handled by 15 subsidiaries nationwide & 2 overseas: New York & Singapore))

 

 

OFFICER(S)

 

YOSHIRO NAKABE, PRES        Sadao Kogure, mgn dir

Yoishiro Sakai, mgn dir              Yasuo Akuzawa, dir

Akira Nakabe, dir

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 102,457 M

PAYMENTS                  No Complaints          CAPITAL           Yen 2,000 M

TREND             UP                                WORTH            Yen 6,054 M

STARTED                     1947                             EMPLOYES      69

 

COMMENT    

 

TRADING HOUSE SPECIALIZING IN PETROLEUM OILS, MARINE PRODUCTS AND TANKER OPERATION. 

           

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

 

The subject company was established by Taiyo Fishery group originally as Azuma Boeki KK for exporting farm/fishery products and non-life insurance broking.  In 1953, licensed as importer of petroleum products.  After merging several sister firms, renamed as captioned in 1963 to focus on petroleum trading business.  In 1988, launched crude oil/oil products transportation business by large-sized tankers.  In 1989, advanced into chemical tanker operations (total 12 chemical tankers operated).  This is a trading house having 5 divisions: Petroleum Div, Materials Div, Shipping Div, Insurance Broking Div, and Real Estate Div (See OPERATION for details).  The Petroleum Div accounts for about 60% of total sales.  Operates 15 subsidiaries domestically and two overseas: New York & Singapore.  Domestic major clients are oil refiners both on the supply and sales sides.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 102,457 million, a 24% up from Yen 82,457 million in the previous term.  The growth is attributed to the price hike of petroleum products & petro chemicals.  The recurring profit was posted at Yen 640 million and the net profit at Yen 167 million, respectively, compared with Yen 478 million recurring profit and Yen 285 million net profit, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 650 million and the net profit at Yen 180 million, respectively, on a 3% rise in turnover, to Yen 105,000 million.  Business is seen expanding steadily.

 

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

 

 

REGISTRATION

 

Date Registered:           Aug 1947

Regd No.:         (Tokyo-Shinjukuku) 062340

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         49 million shares

Issued:                40 million shares

Sum:                   Yen 2,000 million

 

Major shareholders (%): NA Holdings Co Ltd* (25.3), Yoshiro Nakabe (12.2), Ken Nakabe (9.3), Kumiko Tsubakihara (8.0), Takako Akusawa (7.3)

 

* Holding company owned by the Nakabe family.

 

No. of shareholders: 36

 

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

 

 

OPERATION

 

Activities: Trading house specializing in oils, marine products and ship operation:

 

(Sales breakdown by divisions):

 

Petroleum Div (60%): import, export, and wholesale of crude oil, gasoline, fuel oil, other     petroleum products, including supply of fuels/diesels/lubricating oils to ocean-going vessels, ship agency;

 

Ship Operation Div (20%): operates crude oil tanker, liquid chemical stainless tankers,     engaged in ocean-going & coastal transportation, including supply of bunker fuels/victuals, etc to fishing boats at sea, operating a supply boat “Oriental Bluebird”, business tie-up with Serromah Shipping BV, Rotterdam, Netherlands in the area of chemical cargo marketing, booking, etc;

 

Materials Div (10%): marine products (raw & frozen fish, processed sea foods), building     materials, Styrofoam products, paint, lube oils for industrial machinery;

 

Insurance Broking Div (5%): representing nation’s major life & non-life insurance firms;

 

Real Estate Div (5%): real estate/office building management, leasing, new building house broking, others. 

 

(The breakdown percentages are estimated only and all about).

 

Clients: [Oil refiners, wholesalers] JX Nippon Oil & Energy Corp, Taiyo Oil, Marubeni Energy, Sojitz Energy, Hayashikane Oil, National Federation of Fisheries Coop Assn, Kamei Corp, Itochu Enex, Showa Shell Sekiyu, Kokusai Oil & Chemical Co, Cosmo Oil, other.

            No. of accounts: 800

            Domestic areas of activities: Nationwide

 

Suppliers: [Oil refiners, wholesalers] JX Nippon Oil & Energy Corp, Showa Shell Sekiyu,

Marubeni Energy, Kamei Corp, Mitsubishi Corp, Sojitz Energy, Kignus, Itochu Enex, 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 (H/O)

MUFG (H/O)

Relations: Satisfactory

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

　

105,000

102,457

82,547

67,357

Recur. Profit

　

650

640

478

347

Net Profit

　

180

167

285

186

Total Assets

　

　

46,023

44,751

50,688

Current Assets

　

　

18,430

18,571

25,041

Current Liabs

　

　

22,180

20,911

29,115

Net Worth

　

　

6,054

5,601

5,421

Capital, Paid-Up

　

　

2,000

2,000

2,000

Div.P.Share(¥)

　

　

3.00

3.00

5.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.48

24.12

22.55

-35.85

    Current Ratio

 

..

83.09

88.81

86.01

    N.Worth Ratio

..

13.15

12.52

10.69

    R.Profit/Sales

 

0.62

0.62

0.58

0.52

    N.Profit/Sales

0.17

0.16

0.35

0.28

    Return On Equity

..

2.76

5.09

3.43

 

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

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.60

UK Pound

1

Rs.87.31

Euro

1

Rs.69.86

 

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.