MIRA INFORM REPORT

 

 

Report Date :

14.09.2012

 

IDENTIFICATION DETAILS

 

Name :

K & I TABULAR CORPORATION 

 

 

Registered Office :

JFE Tokyo Honsha Bldg 6F, 2-7-1 Ohtemachi Chiyodaku Tokyo 100-0004

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

March 2000

 

 

Com. Reg. No.:

0100-01-068108 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Export of boiler tubes

 

 

No. of Employees :

14 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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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

 

K & I TABULAR CORPORATION

 

 

REGD NAME

 

K&I Tokushukan Hambai KK (Tokushukan means special tubes)

 

 

MAIN OFFICE

 

JFE Tokyo Honsha Bldg 6F, 2-7-1 Ohtemachi Chiyodaku Tokyo 100-0004 JAPAN

Tel: 03-3279-8751     Fax: 03-3279-8750

 

URL:                 http://www.jfe-shoji-hd.co.jp/ (of the parent)

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Export of boiler tubes, other

 

 

BRANCHES

 

Nil

 

 

OFFICER(S)

 

HIDENARI YAMADA, PRES      

Soichiro Ichimura, dir                 

Shuichi Kashiwagi, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 19,262 M

PAYMENTS      No Complaints          CAPITAL           Yen 50 M

TREND UP                                WORTH            Yen 787 M

STARTED         2000                             EMPLOYES      14

 

COMMENT

 

TRADING FIRM SPECIALIZING IN STEEL TUBES. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a specialty tube sales division separated from JFE Shoji Trade Corp.  This is a specialized trader for export of tubes for boiler power generation and for plant pipe fittings, other.  Goods are exported to China, S/E Asia, USA, Europe, other.

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2011 fiscal term amounted to Yen 19,262 million, a 17% up from Yen 16,404 million in the previous term.  Exports to China and USA rose.  The recurring profit was posted at Yen 268 million and the net profit at Yen 142 million, respectively, compared with Yen 151 million recurring profit and Yen 82 million net profit, respectively, a year ago.

 

For the current term ending Dec 2012 the recurring profit is projected at Yen 270 million and the net profit at Yen 150 million, respectively, on a 3% rise in turnover, to Yen 19,800 million.  Exports are growing mainly to Asia.

 

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

 

 

REGISTRATION

 

Date Registered:  Mar 2000

Regd No.:        0100-01-068108 (Tokyo-Chiyodaku)

Legal Status:   　Limited Company (Kabushiki Kaisha)

Authorized:      　4,000 shares

Issued:             　1,000 shares

Sum:                　Yen 50 million

Major shareholders (%): JFE Shoji Trade Corp*(60), Marubeni-Itochu Steel Inc (40)

No. of shareholders: 2

 

* JFE Shoji Trade Corp, trading firm of steel, iron ore, etc, at the caption address, founded 1954, capital Yen 20,000 million, turnover Yen 2,086,595 million, operating profit Yen 16,777 million, recurring profit Yen 17,283 million, net profit Yen 12,108 million, employees 6,119, pres Mikio Fukushima

 

Consolidated Financials are attached (See SUPPLEMENTS)

 

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

 

 

OPERATION

 

Activities: A trading firm for exporting special tubes for plant generation power, pipes for plant facilities, steel products, other (--100%)

 

Clients: [Mfrs, wholesalers] Exports to China (17.1%), Korea (36.8%), USA (19.4%), Taiwan (3.6%), other to Europe, other.

            No. of accounts: Unavailable

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] JFE Shoji Trade Corp (95%), other.

 

Payment record: No Complaints

 

Location: Business area in Tokyo.  Office premises at the caption address are owned by the top parent, JFE Shoji Holdings Inc, and maintained satisfactorily.

 

Bank References:

Mizuho Corporate Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/12/2012

31/12/2011

31/12/2010

31/12/2009

Annual Sales

　

19,800

19,262

16,404

22,903

Recur. Profit

　

270

268

151

　

Net Profit

　

150

142

82

418

Total Assets

　

　

2,432

1,634

1,393

Current Assets

　

　

2,398

1,607

1,365

Current Liabs

　

　

1,642

936

530

Net Worth

　

　

787

695

862

Capital, Paid-Up

　

　

50

50

50

Div.Ttl in Million(¥)

　

　

50

250

641

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.79

17.42

-28.38

-31.12

    Current Ratio

 

..

146.04

171.69

257.55

    N.Worth Ratio

..

32.36

42.53

61.88

    R.Profit/Sales

 

1.36

1.39

0.92

..

    N.Profit/Sales

0.76

0.74

0.50

1.83

    Return On Equity

..

18.04

11.80

48.49

 

Notes: Forecast (or estimated) figures for the 31/12/2012 fiscal term. 

 

 

SUPPLEMNTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, JFE SHOJI TRADE CORPORATION.

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

2,086,595

2,011,526

 

  Cost of Sales

2,020,266

1,938,329

 

      GROSS PROFIT

66,328

73,196

 

  Selling & Adm Costs

49,551

49,833

 

      OPERATING PROFIT

16,777

23,363

 

  Non-Operating P/L

506

420

 

      RECURRING PROFIT

17,283

23,783

　

      NET PROFIT

12,108

13,645

BALANCE SHEET

 

 

 

 

  Cash

　

27,998

31,551

 

  Receivables

 

334,374

322,108

 

  Inventory

 

79,585

77,502

 

  Securities, Marketable

　

　

 

  Other Current Assets

28,120

31,576

 

      TOTAL CURRENT ASSETS

470,077

462,737

 

  Property & Equipment

37,594

38,061

 

  Intangibles

 

4,018

5,503

 

  Investments, Other Fixed Assets

64,804

65,063

 

      TOTAL ASSETS

576,493

571,364

 

  Payables

 

283,783

304,539

 

  Short-Term Bank Loans

90,717

78,105

 

　

 

　

　

 

  Other Current Liabs

59,093

47,032

 

      TOTAL CURRENT LIABS

433,593

429,676

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

10,388

14,000

 

  Reserve for Retirement Allw

5,133

4,802

 

  Other Debts

　

3,687

5,460

 

      TOTAL LIABILITIES

452,801

453,938

 

      MINORITY INTERESTS

 

 

 

Common stock

20,000

20,000

 

Additional paid-in capital

17,428

17,428

 

Retained earnings

92,310

83,742

 

Evaluation p/l on investments/securities

2,933

3,829

 

Others

 

(8,618)

(7,217)

 

Treasury stock, at cost

(361)

(356)

 

      TOTAL S/HOLDERS` EQUITY

123,692

117,426

　

      TOTAL EQUITIES

576,493

571,364

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

-23,611

16,343

 

Cash Flows from Investment Activities

-6,429

-7,069

 

Cash Flows from Financing Activities

26,123

-850

　

Cash, Bank Deposits at the Term End

　

27,953

31,501

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

123,692

117,426

 

 

Current Ratio (%)

108.41

107.69

 

 

Net Worth Ratio (%)

21.46

20.55

 

 

Recurring Profit Ratio (%)

0.83

1.18

 

 

Net Profit Ratio (%)

0.58

0.68

 

 

Return On Equity (%)

9.79

11.62

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.44

UK Pound

1

Rs.89.31

Euro

1

Rs.71.62

 

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.