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Report Date : |
30.04.2013 |
IDENTIFICATION DETAILS
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Name : |
ITOCHU CHEMICAL FRONTIER CORPORATION |
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Registered Office : |
Itochu Bldg 16F, 2-5-1 Kita-Aoyama
Minatoku Tokyo 107-0061 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
October 1979 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, export, wholesale of industrial chemicals,
pharmaceuticals, feeds |
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No. of Employees : |
197 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 small agricultural
sector is highly subsidized and protected, with crop yields among the highest
in the world. While self-sufficient in rice production, Japan imports about 60%
of its food on a caloric basis. 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. Modest economic
growth continued after 2000, but the economy has fallen into recession three
times since 2008. A sharp downturn in business investment and global demand for
Japan's exports in late 2008 pushed Japan 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 and the
ensuing tsunami in March disrupted manufacturing. The economy has largely
recovered in the two years since the disaster, but reconstruction in the Tohoku
region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared
the economy his government's top priority; he has pledged to reconsider his
predecessor's plan to permanently close nuclear power plants and is pursuing an
economic revitalization agenda of fiscal stimulus and regulatory reform and has
said he will press the Bank of Japan to loosen monetary policy. Measured on a
purchasing power parity (PPP) basis that adjusts for price differences, Japan
in 2012 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 2012. The new government will continue a longstanding debate 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 |
ITOCHU CHEMICAL FRONTIER CORPORATION
Itochu Chemical
Frontier KK
Itochu Bldg 16F,
2-5-1 Kita-Aoyama Minatoku Tokyo 107-0061 JAPAN
Tel:
03-3497-4510 Fax: 03-3497-4520
E-Mail address: info@itcche.co.jp
Import,
export, wholesale of industrial chemicals, pharmaceuticals, feeds, other
Osaka,
Nagoya, Kawasaki (Laboratory);
Covered by overseas offices of Itochu Corp (-- USA, Europe, China, other
– Tot 130 offices in 8 countries)
OVERSEAS
China
(5), Germany, Indonesia (--subsidiaries)
SHINICHIRO
MAKIDA, PRES Nobuyuki Mitsui, v pres
Masayoshi Tamura, s/mgn dir Yoshihiro Wakabayashi, mgn dir
Toshinari Hidekuma, mgn dir Akira Shimizu, dir
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 129,501 M
PAYMENTSREGULAR CAPITAL Yen
1,100 M
TREND UP WORTH Yen 9,871 M
STARTED 1979 EMPLOYES 197
TRADING HOUSE SPECIALIZING IN INDUSTRIAL CHEMICALS, OWNED BY
ITOCHU CORP.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSIENSS ENGAGEMENTS.
The subject company was established on the basis of the Fine Chemical Division spun off from Itochu Corp, leading general trading house, Tokyo, as Itochu Fine Chemical Corp. In Jul 1990, merged a sister company, Itochu Interchem Inc. Renamed as captioned in Oct 2002. In Apr 2005, merged Itochu Techno Chemical Inc. This is a trading house specializing in organic chemicals, fine chemicals, functional materials, other industrial chemicals (See OPERATION). Overseas operations are integrated with the parent, utilizing its 130 overseas offices as agents.
Financials are consolidated by the parent, Itochu Corp.
The sales volume for Mar/2012 fiscal term amounted to Yen 129,501 million, a 6% down from Yen 137,478 million in the previous term. Exports were hurt by the high Yen, reducing revenues in Yen terms. The recurring profit was posted at Yen 4,606 million and the net profit at Yen 2,662 million, respectively, compared with Yen 4,670 million recurring profit and Yen 2,225 million net profit, respectively, a year ago.
For the term that ended Mar 2013 the recurring profit was projected at Yen 4,700 million and the net profit at Yen 2,700 million, respectively, on a 3% rise in turnover, to Yen 133,500 million. Exports are increasing. Pharmaceutical- & health food-related products grew amid ballooning elderly population at home. Final results are yet to be released.
The financial situation is considered FAIR and good for ORDINARY business engagements.
Date Registered: Oct
1979
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized: 4
million shares
Issued:
1,097,000 shares
Sum: Yen 1,100
million
Major shareholders (%):
Itochu Corp* (100)
*.. One of big 5 general trading houses, at the caption address, founded 1949, listed Tokyo, Osaka, Nagoya, Fukuoka, Sapporo S/E’s, capital Yen 202,241 million, turnover Yen 11,978,276 million, operating profit Yen 272,620 million, recurring profit Yen 341,174 million, net profit Yen 300,505 million, total assets Yen 6,411,158 million, net worth Yen 1,354,136 million, employees 70,324 million, pres Masahiro Okafuji
Nothing detrimental is known as to the commercial morality of executives.
Activities: A
trading house for import, export and wholesale of industrial chemicals,
pharmaceuticals, feeds, agrochemicals, other (--100%):
(Handling items by divisions):
Functional
Polymers Div:
Acrylic
Business Unit (acrylic chain products, ethanol amines, phenyl-maleimide,
SAP & hygienic products);
Polyurethane
& Plastic Raw Materials Business Units (polyurethane chain products,
raw materials for unsaturated polyester resins, rubber chemicals, amines);
Solvent-Phenol
Business Units (solvents, Heptane, hexane, ethyl acetate, phenol chain
products, epoxy chain products, other organic chemicals);
Performance
Products Div:
Silicone
Business Unit (silicones, silence coupling agents, and raw materials);
Additives
& Coatings Business Unit (catalysts, pigments, plastic
additives, iodine & its derivatives, functional monomers, paints);
Specialty
Adhesives & Resins Business Unit (BMI, EVA, paper chemicals,
adhesives, petroleum resins, functional plastics, resin additives, special film,
polyimide film, color filter, LCD, IT related products, touch screen ferrite
materials);
Functional
Chemicals Business Unit (super absorbent polymer, m-xylene
sulfuric acid & sodium derivatives, optical monomer & polymers, release
& masking films for electrical materials, functional monomer & organic
intermediates for photosensitive materials);
Water
Treatment & Friction Materials Business Unit (water
treatment chemicals, environmental/ecology related chemicals, chemicals for oil
wells, raw materials for friction parts, inorganic compound);
Pharma-Life
Science Div:
Pharmaceutical
Business Unit (pharmaceuticals, active pharmaceutical ingredients,
pharmaceutical intermediates, excipients);
Life
Science Business Unit (quasi-drugs, cosmetics, health foods,
functional foods, food additives, dairy product, veterinary medicine, feed,
feed additives, cosmetics, agricultural chemicals, household & public
hygiene products, horticulture & home gardening products, other).
Clients:
[Mfrs, wholesalers] Sumitomo Chemical, Nippon Shokubai, Mitsubishi Chemical,
Kurita Water Ind, Teijin Ltd, Kansai Paint, Toray, DIC, The Intec, Nippon
Paint, Nitto Denko, Momentive Performance Materials Japan, other
No. of
accounts: 1,000
Domestic
areas of activities: Nationwide
Suppliers:
[Mfrs, wholesalers] Kurita Water Ind, New STI Technology, GE Toshiba Silicon,
Mitsubishi Gas Chemical, Showa Denko, Nippon Paint, Sumitomo Seika Chemicals,
Nippon Shokubai, Sanyo Chemical Ind, Mitsubishi Pharma Corp, Momentive
Performance Materials Japan, Asahi Kasei Chemicals, other
Payment
record: Regular
Location:
Business area in Tokyo. Office premises
at the caption address are owned by the parent and maintained satisfactorily.
Bank References:
Mizuho Corporate Bank (H/O)
SMBC (Tokyo)
Relations: Satisfactory
(In
Million Yen)
|
Terms Ending: |
31/03/2013 |
31/03/2012 |
31/03/2011 |
31/03/2010 |
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Annual Sales |
|
133,500 |
129,501 |
137,478 |
126,825 |
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Recur. Profit |
|
4,700 |
4,606 |
4,670 |
3,597 |
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Net Profit |
|
2,700 |
2,662 |
2,225 |
1,539 |
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Total Assets |
|
|
52,426 |
50,755 |
48,769 |
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Current Assets |
|
|
46,387 |
45,906 |
43,923 |
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Current
Liabs |
|
|
41,682 |
41,321 |
40,317 |
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Net
Worth |
|
|
9,871 |
8,492 |
7,396 |
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Capital,
Paid-Up |
|
|
1,100 |
1,100 |
1,100 |
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Div.P.Share(¥) |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
3.09 |
-5.80 |
8.40 |
-2.40 |
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Current Ratio |
|
.. |
111.29 |
111.10 |
108.94 |
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N.Worth Ratio |
.. |
18.83 |
16.73 |
15.17 |
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R.Profit/Sales |
|
3.52 |
3.56 |
3.40 |
2.84 |
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N.Profit/Sales |
2.02 |
2.06 |
1.62 |
1.21 |
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Return On Equity |
.. |
26.97 |
26.20 |
20.81 |
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Note: Forecast
(or estimated) for the 31/03/2013 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.27 |
|
UK Pound |
1 |
Rs.84.23 |
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Euro |
1 |
Rs.70.90 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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---- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.