MIRA INFORM REPORT

 

 

Report Date :

15.01.2013

 

IDENTIFICATION DETAILS

 

Name :

MC ENERGY INC

 

 

Registered Office :

Hibiya Dai Bldg 14F, 1-2-1 Uchisaiwaicho Chiyodaku Tokyo 100-0011

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

January 2000

 

 

Com. Reg. No.:

0100-01-067102 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Sale of asphalt, road materials, bunker oils, marine lubricants

 

 

No. of Employees :

62

 

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 :

Good

Payment Behaviour :

Regular

Litigation :

--

 

 

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 and address

 

MC Energy Inc

(Renamed in 2010 from Petro Diamond Co thru merger)

 

REGD NAME:    MC Energy KK

 

MAIN OFFICE:  Hibiya Dai Bldg 14F, 1-2-1 Uchisaiwaicho Chiyodaku Tokyo 100-0011 JAPAN

Tel: 03-5251-2080     Fax: 03-5251-2086

 

URL:                             http://www.mcene.com

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Sale of asphalt, road materials, bunker oils, marine lubricants

 

BRANCHES   

 

Sendai, Sapporo, Nagoya, Osaka, Hiroshima, Fukuoka

 

 

OFFICER(S)

 

SHUN’ICHIRO KUWAHARA, PRES

Takayuki Higashi, mgn dir                       Minoru Katsu, dir                                                                      

Hajime Hirano, dir                                  Kenji Kuroe, dir                                                                         

Yozo Yamada, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 92,029 M

PAYMENTS      REGULAR         CAPITAL           Yen 490 M

TREND             STEADY           WORTH            Yen 3,276 M

STARTED         2000                 EMPLOYES      62

                                   

 


COMMENT

 

WHOLESALER SPECIALIZING IN BUNKER OILS AND MARINE LUBRICANTS, ASPHALT, WHOLLY OWNED BY MITSUBISHI CORP. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

           

HIGHLIGHTS

 

The subject company was established on the basis of bunker sales division separated from Mitsubishi Corp (see REGISTRATION) as MC Marine & Bunkering Inc, for supplying bunker fuels to ships.  In Mar 2002 renamed as captioned to handle additionally marine lubricants and related products.  In Apr 2003, started to handle specialty lubricants and operation of crude & crude oil products consigned from the parent, Mitsubishi Corp.  In Oct 2010 merged a sister company and renamed MC Energy Inc.  In the marine lubricants, controls about 10% of total bunker sales to Japanese-owned/controlled ships.  Bunkering services cover all major Japan ports (31 ports) and worldwide ports in Europe, Mid East, Africa, N & S America, Taiwan, Singapore, other Asia & Oceania areas. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 92,029 million, a 32% hike from Yen 70,748 million in the previous term.  This is attributed to the skyrocketing oil prices.  The recurring profit was posted at Yen 663 million and the net profit at Yen 365 million, respectively, compared with Yen 505 million recurring profit and Yen 307 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 700 million and the net profit at Yen 400 million, respectively, on a 5% rise in turnover, to Yen 96,600 million.  Business is seen expanding steadily.

 

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

 

 

REGISTRATION

 

Date Registered: Jan 2000

Regd No.:        0100-01-067102 (Tokyo-Chiyodaku)

Legal Status:     Limited Company (Kabushiki Kaisha)

Authorized:        39,200 shares

Issued:               9,800 shares

Sum:                  Yen 490 million

Major shareholders (%): Mitsubishi Corporation*(100)

 

*.. Largest general trading house and one of core firms of Mitsubishi Group, Tokyo, founded  1950, listed Tokyo, Osaka, Nagoya and London S/E’s, capital Yen 202,698 million, turnover    Yen 20,126,321 million, operating profit Yen 271,122 million, recurring profit Yen 458,970 million, net profit Yen 458,849 million, total assets Yen 12,588,513 million, net worth Yen 3,828,187 million, employees 63,058, pres Ken Kobayashi

Consolidated Financials are as attached (See SUPPLEMENTS)

 

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

 

 

OPERATION

 

Activities: Wholesales asphalt for road construction and other industrial purposes, bunker oils, marine lubricants, specialty lubricants, oil cokes; operation of crude and crude products consigned from the parent, Mitsubishi Corp (--100%).    

 

Clients: [Ship owners, operators] NYK, Mitsui OSK Lines, Kawasaki Kisen, Shinwa Kogyo, Seiki Tokyu Kogyo, Nippon Road Co, Nippo, Maeda Road Construction, Obayashi Road Corp, Taisei Rotec Corp, other.

No. of accounts: 800

Domestic areas of activities: Nationwide & worldwide

Suppliers: [Oil refineries, oil traders] JX Nippon Energy & Corp, Showa Shell Sekiyu, Cosmo Oil, Mitsubishi Corp, other.

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned by the parent, Mitsubishi Corp, and maintained satisfactorily.

           

Bank References:

City Bank (Tokyo)

MUFG (Tokyo)

Relations: Satisfactory

 

 

FINANCES

 (In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

96,600

92,029

70,748

49,257

Recur. Profit

 

700

663

505

 

Net Profit

 

400

365

307

80

Total Assets

 

 

20,575

17,089

5,441

Current Assets

 

 

20,231

17,089

 

Current Liabs

 

 

16,393

13,321

 

Net Worth

 

 

3,276

3,200

1,083

Capital, Paid-Up

 

 

490

490

490

Div.Total in million(¥)

 

 

307

80

147

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.97

30.08

43.63

-44.42

    Current Ratio

 

..

123.41

128.29

..

    N.Worth Ratio

..

15.92

18.73

19.90

    R.Profit/Sales

 

0.72

0.72

0.71

..

    N.Profit/Sales

0.41

0.40

0.43

0.16

    Return On Equity

..

11.14

9.59

7.39

 

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

 

 

SUPPLEMNTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, MITSUBISHI CORP

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

 

20,126,321

19,233,443

 

  Cost of Sales

18,998,461

18,083,541

 

      GROSS PROFIT

1,127,860

1,149,902

 

  Selling & Adm Costs

856,738

833,761

 

      OPERATING PROFIT

271,122

316,141

 

  Non-Operating P/L

177,748

218,156

 

      RECURRING PROFIT

458,970

534,297

 

      NET PROFIT

453,849

463,188

BALANCE SHEET

 

 

 

 

  Cash

 

1,252,951

1,208,752

 

  Receivables

 

2,379,899

3,133,395

 

  Inventory

 

965,027

970,675

 

  Securities, Marketable

 

 

 

  Other Current Assets

 

 

 

      TOTAL CURRENT ASSETS

6,175,276

5,993,975

 

  Property & Equipment

3,265,380

2,978,616

 

  Intangibles

 

 

 

 

  Investments, Other Fixed Assets

 

 

 

      TOTAL ASSETS

12,588,513

11,272,775

 

  Payables

 

2,108,171

1,879,958

 

  Short-Term Bank Loans

886,431

656,873

 

 

 

 

 

 

  Other Current Liabs

 

 

 

      TOTAL CURRENT LIABS

4,465,966

3,981,297

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

3,760,101

3,188,749

 

  Reserve for Retirement Allw

51,345

48,657

 

  Other Debts

 

 

 

 

      TOTAL LIABILITIES

8,760,226

7,722,830

 

      MINORITY INTERESTS

 

 

 

Common stock

204,447

203,598

 

Additional paid-in capital

262,039

256,501

 

Retained earnings

3,302,093

3,095,348

 

Evaluation p/l on investments/securities

230,362

236,792

 

Others

 

 

 

 

Treasury stock, at cost

(20,565)

(151,650)

 

      TOTAL S/HOLDERS` EQUITY

3,828,287

3,549,945

 

      TOTAL EQUITIES

12,588,513

11,272,775

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

 

550,694

331,204

 

Cash Flows from Investment Activities

-1,100,913

-262,601

 

Cash Flows from Financing Activities

599,059

76,749

 

Cash, Bank Deposits at the Term End

 

1,252,951

1,208,742

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

3,828,287

3,549,945

 

 

Current Ratio (%)

138.27

150.55

 

 

Net Worth Ratio (%)

30.41

31.49

 

 

Recurring Profit Ratio (%)

2.28

2.78

 

 

Net Profit Ratio (%)

2.26

2.41

 

 

Return On Equity (%)

11.86

13.05

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.63

UK Pound

1

Rs.88.17

Euro

1

Rs.73.12

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.