MIRA INFORM REPORT

 

 

Report Date :

23.10.2012

 

IDENTIFICATION DETAILS

 

Name :

NISSAN TRADING CO LTD

 

 

Registered Office :

 

6-1 Daikokucho Tsurumiku Yokohama 230-0053

 

 

 

 

Country :

Japan   

 

 

 

 

Financials (as on) :

31.03.2012

 

 

 

 

Date of Incorporation :

April 1978

 

 

 

 

Com. Reg. No.:

(Yokohama-Tsurumiku) 037321

 

 

 

 

Legal Form :

Limited Company

 

 

 

 

Line of Business :

Import, export, wholesale of automobiles, machinery, steel & nonferrous metals, fuels, chemicals, others

 

 

 

 

No. of Employees :

315

 

 

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 :

Good

Payment Behaviour :

Regular

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

 

NISSAN TRADING CO LTD

REGD NAME:    Nissan Trading KK

MAIN OFFICE:  6-1 Daikokucho Tsurumiku Yokohama 230-0053 JAPAN                 

Tel: 045-279-5704     Fax: 045-279-5686

 

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

E-Mail address: i.terashima@nitco.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of automobiles, machinery, steel & nonferrous metals, fuels, chemicals, others

 

BRANCHES

 

Fukuoka, Utsunomiya, Fuji

 

OVERSEAS   

 

China (3), Nashville, Amsterdam, Los Angeles, Mexico City, Barcelona

 

SUBSIDAIRIES

 

China, Taiwan, USA, Europe, other

 

OFFICERS

 

MASASHI ENOMOTO, PRES

Akihiro Ishiwatari, dir

Taichi Matsuda, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    AIR                   A/SALES          Yen 329,190 M

PAYMENTS                  EGULAR           CAPITAL           Yen 320 M

TREND             UP                    WORTH            Yen 14,891 M

STARTED                     978                   EMPLOYES      315

 

 

COMMENT

 

TRADING HOUSE WHOLLY OWNED BY NISSAN MOTOR CO LTD. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOF FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

 

            The subject company was established as a trading house by Nissan Motor Co Ltd, one of the largest automakers in Japan, for importing automotive components and raw materials, and exporting cars.  Through the years since the inception, the firm has grown into a specialized trading house handling a wide range of automotive products, utilizing the parent’s wide networks worldwide.  The firm has also diversified into various other areas, such as machinery parts, steel & nonferrous metals, energy & chemicals, etc.  Major portion of business operations is still with Nissan Motor and its group firms, for importing & exporting Nissan car produced both domestically and abroad.  Exports Nissan cars to overseas Japanese embassies, consulates & diplomats.

 

 

FINANCIAL INFORMATION

           

            The financials are consolidated by the parent, Nissan Motor Co Ltd, whose financials are attached below.

 

            The sales volume for Mar/2012 fiscal term amounted to Yen 329,194 million, a 12% up from Yen 293,100 million in the previous term.  Car production rose.  Exports were brisk.  The recurring profit was posted at Yen 7,215 million and the net profit at Yen 4,248 million respectively, compared with Yen 5,260 million recurring profit and Yen 3,066 million net profit, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 7,300 million and the net profit at Yen 4,300 million, respectively, on a 10% rise in turnover, to Yen 361,000 million.  The parent, Nissan Motor Co, plans global launches of 10 new models and a 10.4% sales increase to 5.35 million units.  Market share in China is increasing.

 

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


REGISTRATION

 

Date Registered:  Apr 1978

Regd No.:         (Yokohama-Tsurumiku) 037321

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         1.6 million shares

Issued:                400,000 shares

Sum:                   Yen 320 million

Major shareholders (%): Nissan Motor Co*(100)

 

*.. Second largest automaker in Japan, founded 1933, listed Tokyo E/E, capital Yen 605,814 million, sales Yen 9,409,026 million, operating profit Yen 545,839 million, recurring profit Yen 535,090 million, net profit Yen 341,433 million, total assets Yen         11,072,053 million, net worth Yen 3,449,997 million, employees 157,365, pres Carlos Ghosn

Consolidated Financials are as attached (See SUPPLEMENTS)

 

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

 

 

OPERATION

           

Activities: Trading house, owned by Nissan Motor Co, for import, export, wholesale of:

 

(Sales breakdown by divisions):

 

Vehicle Div (7%): automobiles, commercial vehicles, special vehicles, spare parts & car accessories;

Machinery & Automotive Components Div (29%): Automotive components business       (engines, power train components, catalytic converters, aluminum wheels, brakes & other chassis components, roof racks, spoilers & other exterior components, seat materials & other trim components); Machinery (machine tools, presses, casting equipment, electric vices & apparatus, plastic injection machines, testers, welding equipment, stamping dies, molding dies, jig fixtures, cutting & pneumatic tools, pallets, other tools, environmental            facilities;

Steel & Nonferrous Metal Div (48%): Steel Business (mild steel, cold/rolled steel, hot-rolled steel, various types of surface-treated steel, special steel 8structural carbon steel, structural alloy steel, stainless steel), extruded aluminum, pallets for automotive parts; Non-ferrous metal business (aluminum primary & secondary ingots & aluminum scraps, platinum, palladium, rhodium, rare metals (cobalt);

Energy, Materials & Chemical Div (13%): Energy & Materials business (bunker & industrial fuel oils, lubricants, liquefied petroleum gas (LPG), grease, automobile gasoline, gas oil & lubricant oils, cokes, materials for casting, raw materials for steel, nickel for stainless steel recycled precious metals; Chemical business (synthetic resins (thermoplastic resins, thermosetting resins, master batches), plastic components, organic chemicals (intermediates, raw materials, solvents, plasticizers, industrial chemicals, others.

Chemicals, others (3%).

Overseas trading ratio (49%)

Clients: [Carmakers] Nissan Motor & group firms, Nissan Trading Europe, Nissan Trading USA, Kyushu Steel Center, Nissan Mexico, Jatco, other

 No. of accounts: 100 (Major direct clients)          

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Nissan Motor, Nippon Steel, Kobe Steel, JFE Steel, Nippon Steel, Daido Special Steel, Unipress Corp, Kyushu Steel Center, JX Holdings Inc, etc

 

Payment record: Regular

 

Location: Business area in Yokohama.  Office premises at the caption address are owned by the parent, Nissan Motor Co Ltd, and maintained satisfactorily.

 

Bank References:

Mizuho Corporate Bank (H/O)

MUFG (Shimbashi)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

　

361,000

329,194

293,100

222,273

Recur. Profit

　

7,300

7,215

5,260

4,692

Net Profit

　

4,300

4,248

3,066

2,752

Total Assets

　

　

75,249

62,805

58,737

Current Assets

　

　

73,224

60,783

56,503

Current Liabs

　

　

59,867

51,614

50,308

Net Worth

　

　

14,891

10,631

7,558

Capital, Paid-Up

　

　

320

320

320

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

9.66

12.31

31.86

-24.79

    Current Ratio

 

..

122.31

117.76

112.31

    N.Worth Ratio

..

19.79

16.93

12.87

    R.Profit/Sales

 

2.02

2.19

1.79

2.11

    N.Profit/Sales

1.19

1.29

1.05

1.24

    Return On Equity

..

28.53

28.84

36.41

 

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

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, NISSAN MOTOR CO LTD

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

9,409,026

9,773,093

 

  Cost of Sales

7,772,832

7,155,100

 

      GROSS PROFIT

1,636,194

2,617,993

 

  Selling & Adm Costs

1,090,355

1,080,526

 

      OPERATING PROFIT

545,839

1,537,467

 

  Non-Operating P/L

-10,749

-999,653

 

      RECURRING PROFIT

535,090

537,814

　

      NET PROFIT

341,433

319,221

BALANCE SHEET

 

 

 

 

  Cash

　

765,423

998,822

 

  Receivables

 

820,008

738,950

 

  Inventory

 

1,018,966

982,233

 

  Securities, Marketable

77,476

158,012

 

  Other Current Assets

3,928,199

3,467,818

 

      TOTAL CURRENT ASSETS

6,610,072

6,345,835

 

  Property & Equipment

3,731,246

3,637,042

 

  Intangibles

 

120,114

133,769

 

  Investments, Other Fixed Assets

610,621

620,047

 

      TOTAL ASSETS

11,072,053

10,736,693

 

  Payables

 

1,377,254

1,181,469

 

  Short-Term Bank Loans

244,582

593,095

 

　

 

　

　

 

  Other Current Liabs

2,523,392

2,605,981

 

      TOTAL CURRENT LIABS

4,145,228

4,380,545

 

  Debentures

 

584,962

640,850

 

  Long-Term Bank Loans

1,877,997

1,422,478

 

  Reserve for Retirement Allw

159,369

182,155

 

  Other Debts

　

854,500

836,882

 

      TOTAL LIABILITIES

7,622,056

7,462,910

 

      MINORITY INTERESTS

 

 

 

Common stock

605,814

605,814

 

Additional paid-in capital

804,470

804,470

 

Retained earnings

3,009,090

2,733,253

 

Evaluation p/l on investments/securities

16,979

20,862

 

Others

 

(836,814)

(728,592)

 

Treasury stock, at cost

(149,542)

(162,024)

 

      TOTAL S/HOLDERS` EQUITY

3,449,997

3,273,783

　

      TOTAL EQUITIES

11,072,053

10,736,693

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

696,297

667,502

 

Cash Flows from Investment Activities

-685,053

-331,118

 

Cash Flows from Financing Activities

-308,457

110,575

　

Cash, Bank Deposits at the Term End

　

840,871

1,153,453

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

3,449,997

3,273,783

 

 

Current Ratio (%)

159.46

144.86

 

 

Net Worth Ratio (%)

31.16

30.49

 

 

Recurring Profit Ratio (%)

5.69

5.50

 

 

Net Profit Ratio (%)

3.63

3.27

 

 

Return On Equity (%)

9.90

9.75

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.67

UK Pound

1

Rs.86.05

Euro

1

Rs.70.07

 

 

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.