MIRA INFORM REPORT

 

 

Report Date :

12.11.2013

 

IDENTIFICATION DETAILS

 

Name :

RYOYO TRADING CO LTD

 

 

Registered Office :

Tokyo Sakurada Bldg 6F, 1-1-3 Nishi-Shimbashi Minatoku Tokyo 103-0003

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

February 1956

 

 

Com. Reg. No.:

0104-01-074051 (Tokyo-Minatoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Imports, exports and wholesales commodity chemicals, functional chemicals, engineering chemicals, others (99%), insurance broking (1%)

 

 

No. of Employees :

52

 

 

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 :

Satisfactory

Payment Behaviour :

No complaints

 

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 and address

 

RYOYO TRADING CO LTD

REGD NAME:    Ryoyo Shoji KK

MAIN OFFICE:  Tokyo Sakurada Bldg 6F, 1-1-3 Nishi-Shimbashi Minatoku Tokyo 103-0003

                JAPAN

Tel: 03-3506-3750      Fax: 03-3580-8615

 

URL:                 http://www.ryoyotrading.com

E-Mail address: info-chem@ryoyotrading.com

 

 

ACTIVITIES

 

Import, export, wholesale of chemicals, chemical products, insurance broking

 

 

BRANCHES

 

Osaka, Okayama, Niigata

 

 

OVERSEAS   

 

China (4)

 

 

OFFICERS

 

YOSHISHIGE YAMAZAKI, PRES

Ryoichi Oda, dir                         Hiroaki Nishijima, dir

Akio Yamada, dir                                   Kazuaki Ishihara, dir                              

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 40,903 M

PAYMENTS      No complaints   CAPITAL           Yen 90 M

TREND UP                    WORTH            Yen 2,987 M

STARTED         1956                 EMPLOYES      52

 

 

COMMENT    

 

TRADING FIRM SPECIALIZING CHEMICALS, PETROCHEMICALS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                       

HIGHLIGHTS

           

            The subject company was established originally as an insurance broking company affiliated to Mitsubishi Gas Chemical Co Inc, as Yuriga Trading Co Ltd.  In 1979 renamed as captioned when the firm expanded operations to import, export and wholesale of organic chemicals, chemical products, petrochemicals, etc.  It has grown into a core chemical trading firm of the Mitsubishi Chemical group.  Goods are exported actively to China, Taiwan, Korea, other.  About 20% of the sales are for exports.  Operates four subsidiaries in China.  Clients are chemical mfrs, wholesalers, other.

 

 

FINANCIAL INFORMATION

           

            The sales volume for Mar/2012 fiscal term amounted to Yen 40,903 million, a 4% up from Yen 39,285 million in the previous term.  Exports were robust into China, Taiwan, other.  Industrial chemical business was steady.  Sales of electric industrial materials and functional chemicals rebounded in the second half of the term.  Operating profit grew.  The recurring profit was posted at Yen 518 million and the net profit at Yen 345 million, respectively, compared with Yen 429 million recurring profit and Yen 31 million net losses, respectively, a year ago.

 

            (Apr/Sept/2012 results): Sales Yen 19,206 million, operating profit Yen 186 million, recurring profit Yen 215 million, net profit Yen 131 million.

 

            For the term that ended Mar 2013 the recurring profit was projected at Yen 530 million and the net profit at Yen 360 million, respectively, on a 3% rise in turnover, to Yen 42,100 million..  Final results are yet to be released. 

 

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

 

 

REGISTRATION

 

Date Registered:                      Feb 1956

Regd No.:                                 0104-01-074051 (Tokyo-Minatoku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              720,000 shares

Issued:                         180,000 shares

Sum:                            Yen 90 million

Major shareholders (%): Mitsubishi Gas Chemical Co Inc* (19.0), Ryoyu Industrial Corp  (18.0), U-PICA Co (15.0), Kagaku Unyu Ltd (15.0), Nisshin Unyu Co (15.0), ISP (11.0) (--all group firms)

No. of shareholders:    7

 

*.. Major mfr of xylene & methanol, Tokyo, founded 1951, listed Tokyo S/E, capital Yen 41,970 million, sales Yen 467,979 million, operating profit Yen 11,421 million, recurring profit Yen 27,651 million, net losses Yen 7,793 million, total assets Yen 613,908 million, net worth Yen 294,895 million, employees 5,376, pres Kazuo Sakai

 

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

 

 

OPERATION

           

Activities: Imports, exports and wholesales commodity chemicals, functional chemicals, engineering chemicals, others (99%), insurance broking (1%)

Overseas Sales Ratio (21%)

 

(Handling Items):

Commodity Chemicals: paints, paint materials, methanol, formalin, methanol, ethylamine, xylene, urea, styrene monomer, others;

Functional Chemicals: neopal, purified terephthalic acid, maleic anhydride, pure isophthalic acid, phthalic acid anhydride, dimethyl telephtalate, other.

Engineering Plastics: polycarbonate resin lupion, reny, lupital, novamid, other

 

Clients: [Mfrs, wholesalers] Mitsubishi Gas Chemical Co, U-PICA Co, Japan Finechem Co Ind, Agic Yuan Jen Enterprise, other

Exports to China, Taiwan, Korea, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsubishi Gas Chemical Co, Itochu Corp, CGC Japan Co, Mitsui Bussan Chemicals Co, Fudow Co, Asahi Kasei Chemicals, Nagase & Co, other

 

Payment record: No complaintsp

 

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

 

Bank References:

MUFG (Toranomon)

Daishi Bank (Hamamatsu)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

　

42,100

40,903

39,285

32,531

Recur. Profit

　

530

518

429

286

Net Profit

　

360

345

-31

147

Total Assets

　

　

16,996

14,356

13,792

Current Assets

　

　

16,026

13,455

　

Current Liabs

　

　

23,880

11,551

　

Net Worth

　

　

2,987

2,687

2,744

Capital, Paid-Up

　

　

90

90

90

Div.P.Share(¥)

　

　

580.00

290.00

300.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.93

4.12

20.76

-14.53

    Current Ratio

 

..

67.11

116.48

..

    N.Worth Ratio

..

17.57

18.72

19.90

    R.Profit/Sales

 

1.26

1.27

1.09

0.88

    N.Profit/Sales

0.86

0.84

-0.08

0.45

    Return On Equity

..

11.55

-1.15

5.36

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.29

UK Pound

1

Rs.101.36

Euro

1

Rs.84.59

 

 

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.