MIRA INFORM REPORT

 

 

Report Date :

27.09.2012

 

 

IDENTIFICATION DETAILS

 

Name :

ISHIHARA STEEL CO LTD

 

 

Registered Office :

Shintomi TT Bldg 9F, 1-13-26 Shintomi Chuoku Tokyo 104-0041

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

Apr 1978

 

 

Com. Reg. No.:

0400-01-000562 (Tokyo-Chuoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of steel & nonferrous steel products

 

 

No. of Employees :

9

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow

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

(31.03.2012)

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

 

ISHIHARA STEEL CO LTD

REGD NAME:    Ishihara Kogyo KK

MAIN OFFICE:  Shintomi TT Bldg 9F, 1-13-26 Shintomi Chuoku Tokyo 104-0041 JAPAN

                                    Tel: 03-3553-0304      Fax: 03-3553-0400

 

URL:                 http://www.ishihara-k-k.co.jp

E-Mail address: info@ishihara-k-k.co.jp

 

 

ACTIVITIES  

 

Import, export, wholesale of steel & nonferrous steel products

 

 

BRANCHES   

 

Osaka, Chiba

 

 

OFFICERS

 

HIROHISA ISHIHARA, PRES

Satatsune Ishihara, ch

Masahiro Iida, dir          

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    WEAK              A/SALES          Yen 6,575 M

PAYMENTS                  Slow                 CAPITAL           Yen 30 M

TREND             SLOW              WORTH            Yen (-) 1,129 M

STARTED                     1978                 EMPLOYES      9

 

 

COMMENT    

 

TRADING CO SPECIALIIZING IN STEEL & NONFEROUS STEEL PRODUCTS.

FINANCIAL SITUATION CONSIDERED WEAK AND DOUBTFUL FOR CREDIT ENGAGEMENTS: US$1,000,000 / O/A 30 DAYS.

                       

                       

ANY AND ALL CREDITS UNDER STRICT SECURED TERMS

 

 

HIGHLIGHTS

           

            The subject company was established by Satatsune Ishihara in order to make most of his experience in the subject line of business.  Hirohisa is his son, who took the pres office in Jun 2005.  This is a trading firm specializing in import, export and wholesale of steel & nonferrous steel products (See OPERATION).  The firm went into financial difficulties in Feb 2012 and sought for protection from creditors under the Civil Rehabilitation Law on 16/Feb/2012.  On the same day the Court ordered management procedure and appointed Isao Saiki of Abe, Ikubo & Katayama Law Office as supervisor.  Supervision order started on 23/Feb/2012.  The liabilities are reported at Yen 1,179 million.  Business is carried out under supervision & order of the appointed supervisor, Isao Saiki.  The bankruptcy is said referred to over-stock & excessive inventory costs to cope with ever increasing business activities, including import & export businesses.  Clients include car makers, home electronics makers, construction companies, other, nationwide

 

 

FINANCIAL INFORMATION

           

            The sales volume for Mar/2012 fiscal term amounted to Yen 6,575 million, a 31% up from Yen 5,021 million in the previous term.  Demand rose steeply.  Exports into China and other S/E Asian countries were robust.  The operations plunged into deficit to register Yen 665 million recurring loss and Yen 1,197 million net losses, respectively, compared with Yen 14 million recurring profit and Yen 2 million net profit, respectively, a year ago.

 

            For the current term ending Mar 2013 the recurring profit is tentatively projected at Yen 15 million and the net profit at Yen 15 million, respectively, on a 24% fall in turnover, to Yen 5,000 million.  Business will be substantially curtailed.  These are tentative figures and could change. 

 

The financial situation is considered WEAK but should be good for MODERATE business engagements.  The proposed amount, however, is considered TOO HIGH from the recent financial status. 

 

 

REGISTRATION

 

Date Registered:  Apr 1978

Regd No.:         0400-01-000562 (Tokyo-Chuoku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         240,000 shares

Issued:                60,000 shares

Sum:                   Yen 30 million

Major shareholders (%): Hirohisa Ishihara (82), Satatsune Ishihara (14), Masahiro Iida (0.3)

No. of shareholders: 7

 

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

OPERATION

           

Activities: Imports, exports and wholesales steel & nonferrous steel products: hot rolled steel sheets & plates, cold rolled steel sheets & plates, pickled & oiled steel sheets, surface treated steel plates, steel bars, stainless steel, aluminum and other nonferrous steel products, other industrial materials (--100%).

 

Clients: [Mfrs, wholesalers] Nihon Teppan Co, Kanox Corp, Topy Ind, Nisshin A&C Co, Tetsusho Kayaba Corp, other 

No. of accounts: 300

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Kanox Corp, Nisshin A&C Co, Metal One Steel Service, Onoken Co, NSM Coil Center, JFE Shoji Coil Center Corp, other

 

Payment record: Regular

 

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

 

Bank References:

Shoko Chukin Bank (H/O)

Chiba Bank (Urayasu)

Relations: Money deposits & transfers only

 

 


FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

5,000

6,575

5,021

2,079

Recur. Profit

 

15

-665

14

8

Net Profit

 

15

-1,197

2

3

Total Assets

 

 

564

1,586

798

Current Assets

 

 

416

1,443

661

Current Liabs

 

 

1,116

1,032

388

Net Worth

 

 

-1,129

108

105

Capital, Paid-Up

 

 

30

30

30

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

-23.95

30.95

141.51

29.21

    Current Ratio

 

..

37.28

139.83

170.36

    N.Worth Ratio

..

-200.18

6.81

13.16

    R.Profit/Sales

 

0.30

-10.11

0.28

0.38

    N.Profit/Sales

0.30

-18.21

0.04

0.14

    Return On Equity

..

..

1.85

2.86

 

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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.57

UK Pound

1

Rs.86.60

Euro

1

Rs.68.93

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.