MIRA INFORM REPORT

 

 

Report Date :

24.11.2012

 

IDENTIFICATION DETAILS

 

Name :

CHUBU ENERGY TRADING INC

 

 

Registered Office :

1 Toshincho Higashiku Nagoya 461-0006

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

December 2007

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, transport of coal

 

 

No. of Employees :

14 employees

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but Correct

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

 

CHUBU ENERGY TRADING INC

 

 

REGD NAME

 

Chuden Energy Trading KK

 

 

MAIN OFFICE

 

1 Toshincho Higashiku Nagoya 461-0006 JAPAN

Tel: 052-957-3063      Fax: 052-957-3084

 

URL:                 http://www.chubet.com

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Import, transport of coal,

 

 

BRANCHES

 

Nil

 

 

OFFICERS

 

TAKAHIRO OTSUKI, PRES        Yoshikatsu Nakamura, dir

Hitoshi Mizutani, dir                   Hideki Taguchi, dir        

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 29,431 M

PAYMENTS                  Slow but Correct CAPITAL            Yen 100 M

TREND             UP                                WORTH            Yen 8,957 M

STARTED                     2007                             EMPLOYES      14

 

COMMENT    

 

TRADING FIRM FOR IMPORTING COAL, JV BETWEEN CHUBU ELECTRIC POWER INC AND EDF TRADING FRANCE.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established jointly by Chubu Electric Power Inc and EDF Trading (France) with an aim to supply world class standards of fossil fuel procurement.  This is a trading company (virtually a division) for importing coal and freight procurement.  In Feb 2012 the firm transferred coat business operations to Chubu Energy Trading Singapore Pte Ltd, and became a commission merchant and freight procurement. 

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2012 fiscal term amounted to Yen 29,431 million, a 33% down from Yen 43,887 million in the previous term.  This is referred to the said transfer of coal business to its subsidiary in Singapore.  The recurring profit was posted at Yen 565 million and the net profit at Yen 365 million, respectively, compared with Yen 189 million recurring profit and yen 188 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 50% fall in turnover, to Yen 15,000 million.  The coal business operation is wholly transferred to its Singapore subsidiary.

 

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

 

 

REGISTRATION

 

Date Registered:           Dec 2007

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         2,000 shares

Issued:                2,000 shares

Sum:                   Yen 100 million

 

Major shareholders (%): Chubu Electric Power Inc* (100)

 

*.. Third-ranked electric power company in terms of kWh sales & one of leading corporations in business circles of the Chubu region, Nagoya, founded 1951, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 430,777 million, sales Yen 2,449,283 million, operating loss Yen 37,667 million, recurring loss Yen 67,857 million, net loss Yen 92,195 million, total assets Yen 5,647,169 million, net worth Yen 1,548,347 million, employees 29,774, pres Akihisa Mizuno

 

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

 

 

OPERATION

           

Activities: Imports coal, freight arrangement, others (--100%)

 

Clients: [Electric Power] Wholly supplied to Chubu Electric Power Inc 

No. of accounts: 1

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] EDF Trading (France), other

 

Payment record: Slow but Correct 

 

Location: Business area in Nagoya.  Office premises at the caption address are owned by the parent, Chubu Electric Power Inc, and maintained satisfactorily.

 

Bank References:

SMBC (Nagoya-Ekimae)

Mizuho Bank (Nagoya)

Relations: Satisfactory

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

　

15,000

29,431

43,887

28,238

Recur. Profit

　

300

565

189

　

Net Profit

　

180

365

188

-290

Total Assets

　

　

12,888

19,169

20,040

Current Assets

　

　

12,872

19,137

　

Current Liabs

　

　

3,913

7,744

　

Net Worth

　

　

8,957

11,408

11,220

Capital, Paid-Up

　

　

100

100

100

Div.P.Share(¥)

　

　

9.00

9.00

9.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

-49.03

-32.94

55.42

0.47

    Current Ratio

 

..

328.95

247.12

..

    N.Worth Ratio

..

69.50

59.51

55.99

    R.Profit/Sales

 

2.00

1.92

0.43

..

    N.Profit/Sales

1.20

1.24

0.43

-1.03

    Return On Equity

..

4.08

1.65

-2.58

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.34

UK Pound

1

Rs.88.30

Euro

1

Rs.71.37

 

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%)

 

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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.