MIRA INFORM REPORT

 

 

Report Date :

24.09.2012

 

IDENTIFICATION DETAILS

 

Name :

IWATANI MATERIALS CORPORATION

 

 

Registered Office :

Yaesu City Bldg, 3-14-2 Hatchobori Chuoku Tokyo 104-0032

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

July 1967

 

 

Com. Reg. No.:

0100-01-036777 (Tokyo-Chuoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, wholesale of synthetic resins, synthetic resin products, steel Products; mfg of PE films

 

 

No. of Employees :

195 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 :

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 – 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

 

IWATANI MATERIALS CORPORATION

 

 

REGD NAME

 

Iwatani Material KK

 

 

MAIN OFFICE

 

Yaesu City Bldg, 3-14-2 Hatchobori Chuoku Tokyo 104-0032 JAPAN

Tel: 03-3555-3501      Fax: 03-3555-3900

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Import, export, wholesale of synthetic resins, synthetic resin products, steel Products; mfg of PE films

 

 

BRANCHES

 

Osaka, Sapporo, Sendai, Shizuoka, other (Tot 12)

 

 

FACTORIES

 

Gunma, Shizuoka, other (Tot 7)

 

 

OFFICERS

 

HIROSHI SHIRAKAWA, PRES   Sosuke Takemoto, mgn dir

Mikio Sakata, dir                        Takehiro Shindo, dir

Koji Tsuji, dir                             Hideki Ogawa, dir          

           

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 15,964 M

PAYMENTS      Slow but Correct   CAPITAL           Yen 300 M

TREND             SLOW                          WORTH            Yen 733 M

STARTED         1967                             EMPLOYES      195

 

 

COMMENT    

 

TRADING FIRM SPECIALIZING IN SYNTHETIC RESINS.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

 

The subject company was established on the basis of a trading division separated from Iwatani Corporation (See REGISTRATION).  This is a trading firm specializing in import, export and wholesale of synthetic resin and products.  Also manufactures PE films.  Clients include major makers, wholesalers, nationwide

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2012 fiscal term amounted to Yen 15,964 million, an almost similar amount of Yen 15,929 million in the previous term.  The recurring profit was posted at Yen 183 million and the net profit at Yen 81 million, respectively, compared with Yen 235 million recurring profit and yen 77 million net profit, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 190 million and the net profit at Yen 90 million, respectively, on a 3% rise in turnover, to Yen 16,500 million.  Business is seen expanding steadily.

 

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

 

 

REGISTRATION

 

Date Registered:  Jul 1967

Regd No.:         0100-01-036777 (Tokyo-Chuoku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         12 million shares

Issued:                300,000 shares

Sum:                   Yen 300 million

 

Major shareholders (%): Iwatani Corp* (100)

 

*.. Trading firm specializing in gases for industrial & household use, Tokyo, founded 1945, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 20,096 million, sales Yen 661,185 million, operating profit Yen 19,171 million, recurring profit Yen 19,528 million, net profit Yen  10,543, total assets Yen 386,127 million, net worth Yen 71,155 million, employees 8,743, pres Masao Nomura

 

Consolidated financials are attached (See SUPPLEMENTS)

 

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

 

 

OPERATION

 

Activities: Imports, exports and wholesales synthetic resin & products; manufactures PE films, other (--100%)

 

Clients: [Mfrs, wholesalers] Iwatani Corp, Daikin Ind, Paloma Co, Panasonic Age-Free Tech Co, Mitsubishi Electric, Nippon Tsusho, other 

            No. of accounts: 300

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Iwatani Corp, Showa Denko, Cosmo Chemical, Paloma Co, Mitsubishi Shoji Plastic Corp, Denki Kagaku Kogyo, other

 

Payment record: Slow but Correct  

 

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

 

Bank References:

MUFG (Tokyo)

Mizuho Bank (Yaesuguchi)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

　

16,500

15,964

15,929

15,515

Recur. Profit

　

190

183

235

274

Net Profit

　

90

81

77

154

Total Assets

　

　

5,909

6,702

8,968

Current Assets

　

　

4,615

5,288

5,543

Current Liabs

　

　

4,745

4,883

5,220

Net Worth

　

　

783

740

701

Capital, Paid-Up

　

　

300

300

300

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.36

0.22

2.67

-14.56

    Current Ratio

 

..

97.26

108.29

106.19

    N.Worth Ratio

..

13.25

11.04

7.82

    R.Profit/Sales

 

1.15

1.15

1.48

1.77

    N.Profit/Sales

0.55

0.51

0.48

0.99

    Return On Equity

..

10.34

10.41

21.97

 

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

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, IWATANI CORP

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

661,185

618,844

 

  Cost of Sales

516,752

480,236

 

      GROSS PROFIT

144,432

138,608

 

  Selling & Adm Costs

125,261

123,740

 

      OPERATING PROFIT

19,171

14,868

 

  Non-Operating P/L

357

691

 

      RECURRING PROFIT

19,528

15,559

　

      NET PROFIT

10,543

6,193

BALANCE SHEET

 

 

 

 

  Cash

　

19,247

19,957

 

  Receivables

 

116,492

109,617

 

  Inventory

 

37,063

32,326

 

  Securities, Marketable

　

　

 

  Other Current Assets

12,971

14,228

 

      TOTAL CURRENT ASSETS

185,773

176,128

 

  Property & Equipment

124,177

125,016

 

  Intangibles

 

18,909

14,243

 

  Investments, Other Fixed Assets

57,268

58,553

 

      TOTAL ASSETS

386,127

373,940

 

  Payables

 

107,115

94,197

 

  Short-Term Bank Loans

36,372

40,802

 

　

 

　

　

 

  Other Current Liabs

53,641

53,382

 

      TOTAL CURRENT LIABS

197,128

188,381

 

  Debentures

 

8,000

8,000

 

  Long-Term Bank Loans

85,248

91,354

 

  Reserve for Retirement Allw

4,291

4,188

 

  Other Debts

　

11,909

10,767

 

      TOTAL LIABILITIES

306,576

302,690

 

      MINORITY INTERESTS

 

 

 

Common stock

20,096

20,096

 

Additional paid-in capital

17,895

17,897

 

Retained earnings

37,317

28,267

 

Evaluation p/l on investments/securities

1,636

2,074

 

Others

 

4,725

4,439

 

Treasury stock, at cost

(2,118)

(1,524)

 

      TOTAL S/HOLDERS` EQUITY

79,551

71,249

　

      TOTAL EQUITIES

386,127

373,940

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

31,404

14,475

 

Cash Flows from Investment Activities

-21,171

-16,465

 

Cash Flows from Financing Activities

-10,994

1,482

　

Cash, Bank Deposits at the Term End

　

18,966

19,678

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

79,551

71,249

 

 

Current Ratio (%)

94.24

93.50

 

 

Net Worth Ratio (%)

20.60

19.05

 

 

Recurring Profit Ratio (%)

2.95

2.51

 

 

Net Profit Ratio (%)

1.59

1.00

 

 

Return On Equity (%)

13.25

8.69

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.91

UK Pound

1

Rs.87.60

Euro

1

Rs.70.01

 

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.