MIRA INFORM REPORT

 

 

Report Date :

22.07.2013

 

IDENTIFICATION DETAILS

 

Name :

MITSUI BUSSAN PLASTICS LTD

 

 

Registered Office :

JA Bldg 7/8F’s, 1-3-1 Ohtemachi Chiyodaku Tokyo 100-6808

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

August, 1947

 

 

Com. Reg. No.:

0100-01-033507

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, wholesale of industrial chemicals, plastic products, other

 

 

No. of Employees :

583

 

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

 

Maximum Credit Limit:

Yen 1,695.9 million

Status :

Good

Payment Behaviour :

Regular

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)

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 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

 


Company name

 

MITSUI BUSSAN PLASTICS LTD (Renamed in Jan 2013 from the one as given)

 

 

REGD NAME

 

Mitsui Bussan Plastics KK

 

 

MAIN OFFICE

 

JA Bldg 7/8F’s, 1-3-1 Ohtemachi Chiyodaku Tokyo 100-6808 JAPAN

Tel: 03-6328-5000     

Fax: 03-6328-5390

 

URL:                 http://www.mitsui-plastics.com

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Import, export, wholesale of industrial chemicals, plastic products, other

 

 

BRANCHES

 

Sapporo, Nagoya, Osaka, Kagawa, Hiroshima, Fukuoka

 

 

OVERSEAS   

 

144 locations worldwide (Mitsui & Co’s networks)

Shanghai, Hong Kong, Taiwan, Philippines (--representatives)

 

 

OFFICERS

 

AKIO YAMAMOTO, PRES         Yuji Tanaka, s/mgn dir

Yutaka Koike, mgn dir                Haruo Sugiyama, mgn dir

Takaki Nishibayashi, mgn dir      Tadashi Yoshimoto, mgn dir

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 260,220 M

PAYMENTS      REGULAR         CAPITAL           Yen 626 M

TREND             UP                    WORTH            Yen 7,273 M

STARTED         1947                 EMPLOYES      583

 

 

COMMENT    

 

TRADING FIRM SPECIALIZING INDUSTRIAL CHMICALS, OTHERS, OWNED BY MITSUI & CO LTD.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 1,695.9 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a division separated from Mitsui & Co Ltd (See REGISTRATION).  This is a trading firm for import, export and wholesale of industrial chemicals, others, having five business units: general plastics resin unit, functional materials unit, industrial materials unit, chemicals & adhesives unit and specialty films unit.  In Jan 2013, the firm renamed as captioned from Mitsui Bussan Plastics Trade Co Ltd (as given).  Goods are imported and exported thru 144 overseas branches of the parent, Mitsui & Co Ltd.  Clients include major mfrs, food mfrs, chemical mfrs, other, nationwide. 

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2013 fiscal term amounted to Yen 260,220 million, an almost similar amount of Yen 258,586 million in the previous term.  The recurring profit was posted at Yen 3,468 million and the net profit at Yen 2,663 million, respectively, compared with Yen 3,109 million recurring profit and Yen 2,853 million net profit, respectively, a year ago.

 

For the current term ending Mar 20143 the recurring profit is projected at Yen 3,500 million and the net profit at Yen 2,800 million, respectively, on a 6% rise in turnover, to Yen 275,000 million.  Business is seen expanding steadily.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,695.9 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:                      Aug 1947

Regd No.:                                             0100-01-033507 (Tokyo-Chiyodaku)

Legal Status:                           Limited Company (Kabushiki Kaisha)

Authorized:                              44.8 million shares

Issued:                                     11.2 million shares

Sum:                                        Yen 626 million

Major shareholders (%):           Mitsui & Co Ltd* (100)

 

*.. General trading house vying with Mitsubishi Corp for top position, core company of Mitsui group, Tokyo, founded 1947, listed Tokyo S/E, capital Yen 341,482 million, sales Yen 10,049,637 million, operating profit Yen 254,603 million, recurring profit Yen 314,098 million, net profit Yen 307,926 million, total assets Yen 10,324,581 million, net worth Yen 3,181,819 million, employees 45,148, pres Masami Iijima        

 

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

 

 

OPERATION

           

Activities: Imports, exports and wholesales: Industrial Materials Unit/General Plastic units (31%), Functional Materials unit (32%), General & Adhesive Unit (16%), Specialty Films Unit (21%).  (Breakdowns are all about)

Overseas Sales Ratio (20%)

 

Sales breakdown by Units:

Industrial Materials Unit

 

Clients: [Mfrs, wholesalers] JSR, Kao Corp, Daiwa House Ind, Sharp Corp, Bridgestone Corp, Sanko Co, Sangetsu Co, Meiwa Ind, Sincol Wall, Itoham Foods Inc, other 

            No. of accounts: 500

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] MBK, Toray Ind, Prime Polymer, Kao Corp, Tosoh Corp, Dow Corning Toray Co, Mitsui Chemical, Fukubi Chemical Ind, Sunstar Engineering Inc, other

 

Payment record: Regular

 

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

 

Bank References:

SMBC (H/O)

Mizuho Bank (Yaesuguchi)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

275,000

260,220

258,586

229,777

Recur. Profit

 

3,500

3,468

3,109

2,384

Net Profit

 

2,800

2,663

2,853

1,403

Total Assets

 

 

94,172

96,435

82,587

Current Assets

 

 

91,163

93,674

 

Current Liabs

 

 

86,375

89,707

 

Net Worth

 

 

7,273

6,201

5,546

Capital, Paid-Up

 

 

626

626

626

Div.P.Share(¥)

 

 

 

160.00

114.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

5.68

0.63

12.54

28.65

    Current Ratio

 

..

105.54

104.42

..

    N.Worth Ratio

..

7.72

6.43

6.72

    R.Profit/Sales

 

1.27

1.33

1.20

1.04

    N.Profit/Sales

1.02

1.02

1.10

0.61

    Return On Equity

..

36.61

46.01

25.30

 

Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.79

UK Pound

1

Rs.91.03

Euro

1

Rs.78.52

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.