MIRA INFORM REPORT

 

 

Report Date :

24.10.2013

 

IDENTIFICATION DETAILS

 

Name :

MIZUHO SECURITIES CO LTD

 

 

Registered Office :

Ohtemachi First Square Bldg, 1-5-1 Ohtemachi Chiyodaku Tokyo 100-0004

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

July, 1917

 

 

Com. Reg. No.:

0100-01-008687 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Securities company

 

 

No. of Employees :

7,295

 

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 :

Slow but correct

 

 

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

 

MIZUHO SECURITIES CO LTD

 

 

REGD NAME

 

Mizuho Shoken KK

 

 

MAIN OFFICE

 

Ohtemachi First Square Bldg, 1-5-1 Ohtemachi Chiyodaku Tokyo 100-0004 JAPAN

Tel: 03-5208-3210     

 

URL:                 http://www.mizuho-sc.com

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Securities company

 

 

BRANCHES

 

290 domestic; 10 overseas

 

 

OVERSEAS

 

UK, Switz, Saudi Arabia, USA, China (3), Singapore, India

 

 

OFFICERS

 

HIROSHI MOTOYAMA, PRES                Mitsuhiro Nagashima, ch

Katsuyoshi Ejima, v pres                       Hajime Saito, v pres

Ken’ichi Minamitani, v pres                     Yasuo Agemura, v pres

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                                         A/SALES          Yen 221,102 M

PAYMENTSSLOW BUR CORRECT                    CAPITAL           Yen 125,187 M

TREND UP                                            WORTH            Yen 546,417 M

STARTED         1917                                         EMPLOYES      7,295

 

 

COMMENT

 

SECURITIES COMPANY.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company is a financial instruments firm registered with the Director of the Kanto Local Finance Bureau of the Ministry of Finance (Kinsho) No.9.  This is a securities firm having 3 divisions: Retail Business Division (for individual clients markets equities, bonds, investment trusts, and insurance); Corporate Investment Services Division (for institutional clients devise and supply optimal solutions that take into account their defining business attributes); Markets & Products Division (equity sales and trading, bond sales and trading, research, and investment trusts.  Association Memberships: Japan Securities Dealers Association, Japan Investment Advances Association, The Financial Futures Association of Japan & Type II Financial Investments Firms Association.

 

Group firms: Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Research Institute, Mizuho Information & Research Institute, Trust & Custody Services Bank.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2013 fiscal term amounted to Yen 221,102 million, a 47% up from Yen 150,238 million in the previous term.  Yen’s depreciation contributed.  Operations came back profitability to sot the recurring profit was posted at Yen 39,019 million and the net profit at Yen 31,395 million, respectively, compared with Yen 27,484 million recurring loss and Yen 66,400 million net losses, respectively, a year ago.

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 41,000 million and the net profit at Yen 34,000 million, respectively, on a 9% rise in turnover, to Yen 240,000 million. 

 

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

 

 

REGISTRATION

 

      Date Registered:                             Jul 1917

Regd No.:                                             0100-01-008687 (Tokyo-Chiyodaku)

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              6,300 million shares

Issued:                                     1,584,312,962 shares

Sum:                                        Yen 125,167 million

      Major shareholders (%):                 Mizuho Financial Group Inc* (95.8), Norin Chukin Bank (4.2)

No. of shareholders:                 2

 

*.. Mizuho Financial Group Inc, Tokyo, founded 2003, listed Tokyo, New York S/Es, capital Yen 2,254,972 million, revenues Yen 2,913,005 million, operating profit Yen 912,155 million, recurring profit Yen 750,376 million, net profit Yen 560,516 million, total assets Yen 174,692,831 million, net worth Yen 5,887,889 million, employees 55,492, pres Yasuhiro Sato

 

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

 

 

OPERATION

           

Activities: This is a securities firm having 3 divisions: Retail Business Division (for individual clients markets equities, bonds, investment trusts, and insurance); Corporate Investment Services Division (for institutional clients devise and supply optimal solutions that take into account their defining business attributes); Markets & Products Division (equity sales and trading, bond sales and trading, research, and investment trusts.

 

Clients: Investors, business firms, individual clients, other 

            No. of accounts: Unavailable

            Domestic areas of activities: Nationwide

 

Suppliers: [Securities firms, Investors] Shinko Asset Management Co, Mizuho Securities Research & Consulting, other

 

Payment record: Slow but correct

 

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

 

Bank References:

            Shizuoka Bank (Tokyo)

            Mizuho Bank (Kabutocho)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

　

240,000

221,102

150,238

193,692

Recur. Profit

　

41,000

39,019

-27,484

　

Net Profit

　

34,000

31,395

-66,400

-92,212

Total Assets

　

　

12,172,269

12,682,570

12,299,300

Current Assets

　

　

11,851,505

12,419,439

　

Current Liabs

　

　

10,554,423

11,298,630

　

Net Worth

　

　

546,417

415,269

483,218

Capital, Paid-Up

　

　

125,167

125,167

125,167

Div.Ttl in Million (¥)

　

　

0.00

0.00

7.9

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

8.55

47.17

-22.43

-10.73

    Current Ratio

 

..

112.29

109.92

..

    N.Worth Ratio

..

4.49

3.27

3.93

    R.Profit/Sales

 

17.08

17.65

-18.29

..

    N.Profit/Sales

14.17

14.20

-44.20

-47.61

    Return On Equity

..

5.75

-15.99

-19.08

 

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

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.53

UK Pound

1

Rs.99.75

Euro

1

Rs.84.75

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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.