MIRA INFORM REPORT

 

 

Report Date :

17.10.2012

 

IDENTIFICATION DETAILS

 

Name :

TOKYO MARINE CO LTD

 

 

 

 

Registered Office :

METLIFE Nihombashi-Honcho Bldg 8F, 1-1-1 Nihombashi-Honcho Chuoku Tokyo 103-0023

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

July 1972

 

 

Com. Reg. No.:

(Tokyo-Chuoku) 066006

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Chemical parcel tanker operator

 

 

No. of Employees :

106

 

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 :

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

(31.03.2011)

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

 

TOKYO MARINE CO LTD

REGD NAME:   Tokyo Marine KK

MAIN OFFICE:   METLIFE Nihombashi-Honcho Bldg 8F, 1-1-1 Nihombashi-Honcho Chuoku Tokyo 103-0023 JAPAN

Tel: 03-3241-7711     Fax: 03-3246-1485

                        *.. Building name changed from AIG to the above

 

URL:                 http://www.tokyomarine.net/

E-Mail address: mail@tokyomarine.net/

 

 

ACTIVITIES

 

Chemical parcel tanker operator

 

BRANCHES

 

Vancouver, London, Singapore, Seoul, Pusan, Shanghai

 

SUBSIDIARIES

 

Tokyo Marine Asia Pte Ltd, UNIX Line Pte Ltd (--Singapore);

Tokyo Marine Europe Ltd, Tokyo Marine Europe Ltd, Rotterdam Branch;

TM Ship Management Co Ltd (Korea) (--subsidiaries).

 

 

OFFICER(S)

 

YOICHI AOKI, PRES                  Yoshinori Shimizu, rep dir

Masao Nagao, dir                                  Kenji Arima, dir 

Masatoshi Kosaka, dir               Hirofumi Nara, dir

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                                         A/SALES          Yen 43,177 M

PAYMENTSSLOW BUT CORRECT                     CAPITAL           Yen 2,000 M

TREND SLOW                                       WORTH            Yen 8,685 M

STARTED         1972                                         EMPLOYES      106

COMMENT

 

CHEMICAL PARCEL TANKER OPERATOR, AFFILIATED TO MITSUI-OSK LINES. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

HIGHLIGHTS

 

The subject company was established by Yoshioka in order to make most of his previous experience and networks in the subject line of business.  In 1996 the firm became the Mitsui OSK Lines group firm.  This is a chemical parcel tanker operator ranked top in Japan and reportedly 4th in the world in this specific line of business.  Specializes in transport of liquid chemicals, vegetable oils, fats, alcohols, and other chemical products.  Operates a total 45 chemical parcel tankers of 1,060 million DWT, owned & chartered-in of approx 5,000 to 25,000 DWT, all IMO II & III certified, with segregation of 13 to 31 cargo tanks.  Services composed of: Pacific Ocean route, European route via Suez Canal, Arabian Gulf-Asia route, Asian short sea trade route and worldwide tramping.  In 1999, took over commercial activities of Tokyo Chemical Tanker Co Ltd, a short-sea chemical tanker operator, Tokyo.  By this takeover the firm expanded trading route to short-sea transport.  Has 6 overseas offices: London, Singapore, Vancouver, Shanghai, Seoul, Pusan. 

 

           

FINANCIAL INFORMATION

 

            The revenues for Mar/2012 fiscal term amounted to Yen 43,177 million, a 4% down from Yen 40,165 million in the previous term.  Transport volumes declined.  Freight rates dropped.  The operations continued in the red to post Yen 2,101 million recurring loss and Yen 2,074 million net losses, respectively, compared with Yen 2,024 million recurring loss and Yen 3,030 million net losses, respectively, a year ago.

 

For the current term ending Mar 2013 the operations are expected to come back to profitability to post Yen 300 million recurring profit and Yen 300 million net profit, respectively, on a 3% rise in turnover, to Yen 44,500 million.  High Yen may squeeze profits in Yen terms.

 

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

 

 

REGISTRATION

 

Date Registered:  Jul 1972

Regd No.:         (Tokyo-Chuoku) 066006

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         2.4 million shares

Issued:                1.6 million shares

Sum:                   Yen 2,000 million

Major shareholders (%): Mitsui OSK Lines*(100)

No. of shareholders: 5

 

*.. Nation’s second largest shipping company, Tokyo, founded 1884, listed Tokyo, Osaka, Nagoya, Frankfurt S/E’s, capital Yen 65,400 million, turnover Yen 1,435,220 million, recurring loss Yen 24,320 million, net loss Yen 26,009 million, total assets Yen 1,946,161 million, net worth Yen 717,909 million, employees 9,499, pres Akimitsu Ashida

Consolidated financials are as attached (See ATTACHMENTS)

           

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

 

OPERATION

 

Activities: Chemical parcel tanker operator (100%)

           

Trading routes: Pacific Ocean route, European service via Suez Canal, Arabian Gulf-Asia route, Asian Short Sea trade, Linkage Pacific Ocean service & European service, Linkage        Pacific Ocean service & Arabian Gulf-Asia Service, Arabian Gulf-European service, Oil-Fats             service.

           

Breakdown of cargoes transported:

 

Liquid chemicals (71%): ethylene glycol 20.8%, caustic soda 9.8%, phosphoric acid 5.0%, sulfuric acid 4.4%, cyclohexane 3.8%, xylene 3.2%, styrene monomer 2.0%, others  21.8%;

Oil & Fats (20%): clean petroleum products 3.5%, lubricants 4.0%, Lube oils 4.0%, others 1.4%, coconut oil 0.8%, tallow 1.5%, palm oil 22.2%, other;

Others (9%): petroleum products.

 

 

Clients: [Cargo owners, trading houses, mfrs] Mitsubishi Corp, Itochu Corp, Marubeni Corp, Mitsui & Co, Kao Corp, Dow Chemical, ExxonMobile, Shell Chemical, Chevron, Philips,          other.

No. of accounts: 300

Domestic areas of activities: Nationwide

Suppliers: [Shipyard, ship owners] Shin Kurushima Dockyard, Nippo Un’yu Shokai, Spring Navigation SA, Itochu Marine, Shinto Paint, other.

 

Payment record: Slow but correct

 

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

 

Bank References:

Sumitomo Trust Bank (Tokyo)

Kinki Osaka Bank (Tokyo)

Relations: Satisfactory

 


FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

44,500

43,177

45,165

45,591

Recur. Profit

 

-300

-2,101

-2,024

-1,680

Net Profit

 

-300

-2,074

-3,030

-2,060

Total Assets

 

 

12,817

14,189

18,187

Current Assets

 

 

9,185

10,202

13,465

Current Liabs

 

 

3,900

3,241

15,573

Net Worth

 

 

8,685

10,781

13,799

Capital, Paid-Up

 

 

2,000

2,000

2,000

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.06

-4.40

-0.93

-13.02

    Current Ratio

 

..

235.51

314.78

86.46

    N.Worth Ratio

..

67.76

75.98

75.87

    R.Profit/Sales

 

-0.67

-4.87

-4.48

-3.68

    N.Profit/Sales

-0.67

-4.80

-6.71

-4.52

    Return On Equity

..

-23.88

-28.10

-14.93

 

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

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, Mitsui OSK Lines.

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

 

1,435,220

1,543,660

 

  Cost of Sales

1,368,794

1,328,959

 

      GROSS PROFIT

66,426

214,701

 

  Selling & Adm Costs

90,885

91,300

 

      OPERATING PROFIT

-24,459

123,400

 

  Non-Operating P/L

139

-1,779

 

      RECURRING PROFIT

-24,320

121,621

 

      NET PROFIT

-26,009

58,277

BALANCE SHEET

 

 

 

 

  Cash

 

50,864

65,788

 

  Receivables

 

130,921

128,208

 

  Inventory

 

54,335

46,547

 

  Securities, Marketable

10,023

29

 

  Other Current Assets

40,793

103,871

 

      TOTAL CURRENT ASSETS

286,936

344,443

 

  Property & Equipment

1,293,802

1,257,823

 

  Intangibles

 

16,193

9,187

 

  Investments, Other Fixed Assets

349,230

257,287

 

      TOTAL ASSETS

1,946,161

1,868,740

 

  Payables

 

133,599

130,752

 

  Short-Term Bank Loans

101,012

111,720

 

 

 

 

 

 

  Other Current Liabs

88,240

131,796

 

      TOTAL CURRENT LIABS

322,851

374,268

 

  Debentures

 

187,030

160,157

 

  Long-Term Bank Loans

552,156

399,382

 

  Reserve for Retirement Allw

13,766

14,310

 

  Other Debts

 

152,449

180,376

 

      TOTAL LIABILITIES

1,228,252

1,128,493

 

      MINORITY INTERESTS

 

 

 

Common stock

65,400

65,400

 

Additional paid-in capital

44,486

44,516

 

Retained earnings

629,667

664,645

 

Evaluation p/l on investments/securities

16,888

14,488

 

Others

 

(31,381)

(41,621)

 

Treasury stock, at cost

(7,151)

(7,181)

 

      TOTAL S/HOLDERS` EQUITY

717,909

740,247

 

      TOTAL EQUITIES

1,946,161

1,868,740

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

 

5,014

181,755

 

Cash Flows from Investment Activities

-134,312

-134,785

 

Cash Flows from Financing Activities

148,272

-63,759

 

Cash, Bank Deposits at the Term End

 

82,837

65,477

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

717,909

740,247

 

 

Current Ratio (%)

88.88

92.03

 

 

Net Worth Ratio (%)

36.89

39.61

 

 

Recurring Profit Ratio (%)

-1.69

7.88

 

 

Net Profit Ratio (%)

-1.81

3.78

 

 

Return On Equity (%)

-3.62

7.87

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.82

UK Pound

1

Rs.84.96

Euro

1

Rs.68.61

 

 

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.