MIRA
INFORM REPORT
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Report Date : |
18.12.2013 |
IDENTIFICATION DETAILS
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Name : |
NIPPON STEEL & SUMIKIN BUSSAN CORPORATION
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Registered Office : |
Nittetsu Sumikin Bussan Bldg, 8-5-27 Akasaka Minatoku Tokyo 107-8527 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
August 1977 (of the former
Nippon Steel Trading Co) |
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Com. Reg. No.: |
0100-01-094558
(Tokyo-Minatoku) |
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Legal Form : |
Limited Company |
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Line of Business : |
Importer, exporter and wholesaler of steel products (coking coal,
non-ferrous metal), raw fuels, industrial machinery & materials |
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No. of Employees : |
1,515 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – September 30th, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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.
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Source : CIA |
Company name
NIPPON STEEL & SUMIKIN BUSSAN CORPORATION
(Born by the merger of Nippon Steel Trading Co Ltd
& Sumikin Bussan Corp in Oct/2013)
REGD NAME
Nittetsu Sumikin
Bussan KK
MAIN OFFICE
Nittetsu Sumikin
Bussan Bldg, 8-5-27 Akasaka Minatoku Tokyo 107-8527 JAPAN
Tel:
03-5412-5001 Fax: 03-5412-5101 -
URL: http://www.nssbussmc.com
E-Mail address: (thru the URL)
ACTIVITIES
Import,
export, wholesale of steel, raw fuels, industrial machinery & materials
BRANCHES
32
domestic (nationwide)
OVERSEAS
35
cities in 16 countries
CHIEF EXEC
ICHIRO
MIYASAKA, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,026,354 M*
PAYMENTS No
Complaints CAPITAL Yen
12,335 M
TREND UP WORTH Yen
62,848 M*
STARTED 1977 EMPLOYES 1,515
*..
Figures of Nippon Steel Co Ltd before the merger
COMMENT
TRADING FIRM SPECIALISING STEEL
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen. Figures until the 31/03/2013 fiscal term are
those of the Nippon
Steel
Trading Co Ltd before the merger
Forecast figures for the 31/03/2014
fiscal term.
HIGHLIGHTS
The subject company was born in Oct 2013 by the merger of Nippon Steel
Trading Co Ltd and Sumikin Bussan Corporation in order to integrate steel
operations. This is a steel product
trading house having strong ties with Nippon Steel & Sumitomo Metal. Downsizing businesses, including foodstuffs,
construction and management resources concentrating on steel-related
areas. Pioneer in field of
e-commerce. .
FINANCIAL INFORMATION
The sales volume for Mar/2013 fiscal term of Nippon Steel Co Ltd before
the merger amounted to Yen 1,026,354 million, a 5.6% down from Yen 1,087,512
million in the previous term. The
recurring profit was posted at Yen 9,782 million and the net profit at Yen
6,138 million, respectively, compared with Yen 11,232 million recurring profit
and Yen 6,876 million net profit, respectively, a year ago.
(Apr/Sept/2013 results): Sales Yen 547,734 million (Up 5.7%), operating
profit Yen 5,329 million (up 12.8%), recurring profit Yen 5,476 million (up
14.3%), net profit Yen 2,902 million (up 7.2%).
(% compared with the corresponding period a year ago).
For the current term ending Mar 2014 (after the merger) the recurring
profit is projected at Yen 22,200 million and the net profit at Yen 22,000
million, on a 43.2% rise in turnover, to Yen 1,470,000 million. Sales & profits will increase
dramatically on the said merger. Sales
volume will increase steadily in mainline steel products, coking coal, and
non-ferrous metal. Improvement in export
prices of steel products will also make a contribution, thanks to weaker
Yen.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date Registered: Aug
1977 (of the former Nippon Steel Trading Co)
Regd No.: 0100-01-094558 (Tokyo-Minatoku)
Legal Status:
Limited Company (Kabushiki Kaisha
Authorized: 500 million shares
Issued:
395,078,001 shares
Sum: Yen 12,335
million
Major shareholders
(%):
Nippon Steel & Sumitomo Metal (32.3), Mitsui & Co (25.0), Employees’
S/Holding Assn (1.7), Masayoshi Yamauchi (1.5), Godo Steel (1.4), Nakayama
Steel Works (1.2), Japan Trustee Services T (1.2), Nippon Denko (1.0), Topy Ind
(1.0), SNT Corp (0.9); foreign owners (4.4)
No. of shareholders: 4,195
Listed on the
S/Exchange (s) of: Tokyo
Managements: Ichiro Miyasaka,
pres; Mitsunori Okada, v pres; Kenji Hiwatari, v pres; Tsuneaki Eguchi, v pres;
Kazuo Yamaguchi, s/mgn dir; Kenji Kamata, s/mgn dir; Akio Tamagawa, s/mgn dir;
Etsuo Shimotori, s/mgn dir; Keiji Kurita, s/mgn dir; Masaharu Takeda, s/mgn dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: NSL Coil Center,
Igeta Sunrise Pipe, Sumikin Bussan Kenzai, etc.
OPERATION
Activities: Imports, exports
and wholesales steel products (coking coal, non-ferrous metal) (85%), raw fuels
(11%), industrial machinery & materials (4%)
Overseas
Sales Ratio (33%)
Clients:
[firs, wholesalers] Nittetsu Group firms, other
No. of
accounts: 500
Domestic
areas of activities: Nationwide
Suppliers:
[Mfrs, wholesalers] Nittetsu Sumikin Stainless, Nittetsu Sumikin Kenzai
(building materials), other
Payment
record: No Complaints
Location:
Business area in Tokyo. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References:
SMBC (H/O)
MUFG (Tokyo)
Relations: Satisfactory
FINANCES
(In Million Yen)
Nippon Steel Trading Co Ltd before the
merger in Oct 2013
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
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1,026,354 |
1,087,512 |
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Cost of Sales |
980,535 |
1,041,924 |
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GROSS PROFIT |
45,818 |
45,588 |
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Selling & Adm Costs |
35,888 |
34,846 |
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OPERATING PROFIT |
9,930 |
10,742 |
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Non-Operating P/L |
-148 |
490 |
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RECURRING PROFIT |
9,782 |
11,232 |
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NET PROFIT |
6,138 |
6,876 |
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BALANCE SHEET |
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Cash |
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19,536 |
20,860 |
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Receivables |
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159,123 |
227,531 |
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Inventory |
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27,844 |
28,125 |
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Securities, Marketable |
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Other Current Assets |
12,521 |
14,777 |
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TOTAL CURRENT ASSETS |
219,024 |
291,293 |
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Property & Equipment |
18,686 |
18,143 |
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Intangibles |
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1,061 |
1,544 |
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Investments, Other Fixed Assets |
23,400 |
22,378 |
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TOTAL ASSETS |
262,171 |
333,358 |
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Payables |
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107,120 |
177,255 |
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Short-Term Bank Loans |
50,868 |
52,205 |
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Other Current Liabs |
20,310 |
21,979 |
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TOTAL CURRENT LIABS |
178,298 |
251,439 |
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Debentures |
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Long-Term Bank Loans |
15,000 |
15,000 |
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Reserve for Retirement Allw |
616 |
505 |
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Other Debts |
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5,408 |
8,225 |
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TOTAL LIABILITIES |
199,322 |
275,169 |
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MINORITY INTERESTS |
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Common
stock |
8,750 |
8,750 |
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Additional
paid-in capital |
8,750 |
8,750 |
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Retained
earnings |
36,594 |
35,560 |
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Evaluation
p/l on investments/securities |
603 |
341 |
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Others |
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8,224 |
4,860 |
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Treasury
stock, at cost |
(73) |
(72) |
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TOTAL S/HOLDERS` EQUITY |
62,848 |
58,189 |
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TOTAL EQUITIES |
262,171 |
333,358 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2013 |
31/03/2012 |
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Cash
Flows from Operating Activities |
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3,891 |
19,859 |
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Cash
Flows from Investment Activities |
97 |
-2,363 |
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Cash
Flows from Financing Activities |
-7,473 |
-18,391 |
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Cash,
Bank Deposits at the Term End |
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19,030 |
19,621 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
62,848 |
58,189 |
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Current
Ratio (%) |
122.84 |
115.85 |
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Net
Worth Ratio (%) |
23.97 |
17.46 |
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Recurring
Profit Ratio (%) |
0.95 |
1.03 |
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Net
Profit Ratio (%) |
0.60 |
0.63 |
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Return
On Equity (%) |
9.77 |
11.82 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.96 |
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UK Pound |
1 |
Rs.101.14 |
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Euro |
1 |
Rs.85.33 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
RATING EXPLANATIONS
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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.