MIRA
INFORM REPORT
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Report Date : |
13.10.2012 |
IDENTIFICATION DETAILS
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Name : |
METAL ONE CORPORATION |
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Registered Office : |
Celestine Shiba Mitsui
Bldg, 3-23-1 Shiba Minatoku Tokyo 105-0014 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
January 2003 |
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Com. Reg. No.: |
(Tokyo-Minatoku)
049321 |
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Legal Form : |
Limited Company |
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Line of Business : |
Specialized trading house for steel products |
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No. of Employees : |
10,000 employees |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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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
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)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2012 |
31/03/2011 |
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INCOME STATEMENT |
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Annual Sales |
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2,473,001 |
2,523,462 |
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Cost of Sales |
2,363,515 |
2,407,398 |
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GROSS PROFIT |
109,486 |
116,064 |
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Selling & Adm Costs |
82,483 |
87,254 |
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OPERATING PROFIT |
27,003 |
28,810 |
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Non-Operating P/L |
-1,760 |
2,915 |
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RECURRING PROFIT |
25,243 |
31,725 |
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NET PROFIT |
14,423 |
18,780 |
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BALANCE SHEET |
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Cash |
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34,227 |
33,402 |
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Receivables |
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628,676 |
571,898 |
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Inventory |
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179,787 |
159,773 |
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Securities, Marketable |
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Other Current Assets |
29,709 |
25,350 |
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TOTAL CURRENT ASSETS |
872,399 |
790,423 |
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Property & Equipment |
101,891 |
101,438 |
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Intangibles |
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8,618 |
9,320 |
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Investments, Other Fixed Assets |
126,148 |
144,085 |
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TOTAL ASSETS |
1,109,056 |
1,045,266 |
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Payables |
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377,494 |
353,073 |
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Short-Term Bank Loans |
287,325 |
239,265 |
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Other Current Liabs |
43,206 |
29,765 |
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TOTAL CURRENT LIABS |
708,025 |
622,103 |
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Debentures |
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Long-Term Bank Loans |
83,238 |
95,970 |
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Reserve for Retirement Allw |
2,598 |
2,486 |
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Other Debts |
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15,375 |
21,411 |
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TOTAL LIABILITIES |
809,236 |
741,970 |
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MINORITY INTERESTS |
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Common
stock |
100,000 |
100,000 |
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Additional
paid-in capital |
50,000 |
50,000 |
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Retained
earnings |
121,815 |
116,893 |
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Evaluation
p/l on investments/securities |
11,504 |
11,279 |
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Others |
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16,501 |
25,124 |
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Treasury
stock, at cost |
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TOTAL S/HOLDERS` EQUITY |
299,820 |
303,296 |
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TOTAL EQUITIES |
1,109,056 |
1,045,266 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
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Net
Worth (S/Holders' Equity) |
299,820 |
303,296 |
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Current
Ratio (%) |
123.22 |
127.06 |
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Net
Worth Ratio (%) |
27.03 |
29.02 |
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Recurring
Profit Ratio (%) |
1.02 |
1.26 |
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Net Profit
Ratio (%) |
0.58 |
0.74 |
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Return
On Equity (%) |
4.81 |
6.19 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.52.70 |
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UK Pound |
1 |
Rs.84.51 |
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Euro |
1 |
Rs.68.16 |
INFORMATION DETAILS
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Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.