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Report Date : |
21.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
MITSUBA TRADING CO LTD |
|
|
|
|
Registered Office : |
Watahan Nohara Bldg 7F, 4-1 Yotsuya
Shinjukuku Tokyo 160-0004 |
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Country : |
Japan |
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Date of Incorporation : |
July 1965 |
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Com. Reg. No.: |
0111-01-020596
(Tokyo-Shinjukuku) |
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Legal Form : |
Limited Company |
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Line of Business : |
importer and wholesaler of pharmaceuticals, jewelry
and chemicals |
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No. of Employees : |
25 |
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 |
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|
|
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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 – 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 |
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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 |
MITSUBA TRADING CO LTD
Mitsuba Boeki KK
Watahan Nohara Bldg
7F, 4-1 Yotsuya Shinjukuku Tokyo 160-0004 JAPAN
Tel:
03-3353-2301 Fax: 03-3353-2639
E-Mail address: pharma@mitsuba-t.com
(Pharmaceutical Div)
jewel@mitsuba-t.com (Jewelry Div)
chem.@mitsuba-t.com (Chemicals Div)
Import,
wholesale of pharmaceuticals, jewelry, chemicals
Yokohama
(Laboratory)
Mexico
City (Mexico)
At the
caption address (Laboratory); Mexico (Tijuana Factory)
TATSUO
NOHARA, PRES Tetsuro Nagata, mgn
dir
Hiroyuki
Onishi, dir Hisami
Sasazawa, di
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 2,871 M
PAYMENTSNo Complaints
CAPITAL Yen 45 M
TREND UP WORTH Yen 1,957 M
STARTED 1965 EMPLOYES 25
TRADING FIRM SPECIALIZING IN PHARMACEUTICALS, JEWELRY AND
CHEMICALS, WHOLLY OWNED BY WATAHAN HOLDINGS INC.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
The
subject company was established in order to reactivate a shell company, YK
Mitsuba Shoji, founded in 1945. This is
a trading firm for import and wholesale of pharmaceuticals, jewelry and
chemicals, the three core divisions (see OPERATION
for details). Also has mfg division with
laboratory attached. Products are
imported from Germany, Mexico, China, USA, Korea, Taiwan, Singapore,
other. Has a purchasing office in
Mexico, opened in Sept 1979, and a factory, Tijuana Factory, opened in Aug
2007. In Apr 2010, became a wholly owned
subsidiary of Watahan Holdings Inc (See REGISTRATION). Clients include major pharmaceutical mfrs,
cosmetics mfrs, food processors, health food processors, others,
nationwide.
The sales volume for Mar/2013 fiscal term amounted to Yen 2,871 million,
a 2% up from Yen 2,821 million in the previous term. Pharmaceutical division fared well with
infertility treatment medicines/drugs sold well together with other
pharmaceutical medicines. The recurring
profit was posted at Yen 384 million and the net profit at Yen 226 million,
respectively, compared with Yen 300 million recurring profit and Yen 205
million net profit, respectively, a year ago.
For the current term ending Mar 2014 the recurring profit is projected
at Yen 400 million and the net profit at Yen 240 million, respectively, on a 4%
rise in turnover, to Yen 3,000 million.
Weaker Yen may raise import/export revenues in Yen terms.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
Date Registered: Jul 1965
Regd No.: 0111-01-020596 (Tokyo-Shinjukuku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 96,000 shares
Issued: 90,940 shares
Sum: Yen 45.47
million
Major shareholders (%):
Watahan Holdings Inc* (100)
*.. Holding Company of Watahan Group firms (6 subsidiaries including the
subject, in the line of iron/steel, construction, general trading), at the
caption address, founded 1949, capital Yen 430 million, sales Yen 83,665
million, net profit Yen 1,017 million, total assets Yen 43,391 million,
employees 897, pres Kanji Nohara
Nothing
detrimental is known as to the commercial morality of executives.
Activities:
Trading house with three core divisions:
(Sales Breakdown
by Divisions):
Pharmaceuticals
Div (46.6%): suppository-based “Witepsol” (Germany) as treatment of quadriceps contracture – an adverse reaction
to injections of antipyretic in infants; sasol products,
hormone materials, in vitro diagnostic reagents, general medical bulk drugs, others;
Chemicals Div
(33%): 70% of the goods are of Mexican natural plants; aloe vera pow-der,
aloe vera gel, agave extract, candilla wax, quillaja extract, seabuckthorn
(fruit juice powder, seed oil, fruit oil, teas; from China), jojoba, yucca
materials & products;
Jewel Div &
others (--20.4%): the history of the division goes back to the 1970’ when the firm
imported opals from Mexico. In 1978,
imported diamonds from Mumbai for the first time, the diamonds have become the
major products handled. Import sources
today are expanded to India, Israel, Thailand, other.
Pharmaceutical
Laboratory: mfg (subcontracted) of bulk “Human Menopausal Gonad-otorophin”, which
is contained in urine of menopausal female.
Materials are imported and supplied from China & Taiwan.
Clients: [Pharmaceutical
mfrs, food processors, cosmetics mfrs] Showa Yakuhin Kako Co, Mitsui & Co,
Ace Trading, Fujikawa & Co, Mochida Pharmaceutical Kogyo, Koyo Fine
Chemical, Nagase & Co, other.
No. of accounts: 800
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs, wholesalers[ Cremer Oleo GmbH
& Co, Deset King International, LLC, other
Payment record: No
Complaints
Location:
Business area Tokyo. Office premises at
the caption address are owned by the parent, Watahan Holdings Inc, and
maintained satisfactorily.
Bank References:
MUFG
(Yotsuya)
Hachijuni
Bank (Shinjuku)
Relations:
Satisfactory
(In Million Yen)
|
Terms Ending: |
31/03/2014 |
31/03/2013 |
31/03/2012 |
31/03/2011 |
|
|
Annual
Sales |
|
3,000 |
2,871 |
2,821 |
2,218 |
|
Recur.
Profit |
|
400 |
384 |
300 |
|
|
Net
Profit |
|
240 |
226 |
205 |
223 |
|
Total
Assets |
|
|
2,315 |
2,336 |
2,605 |
|
Current
Assets |
|
|
2,170 |
2,187 |
2,442 |
|
Current
Liabs |
|
|
295 |
331 |
442 |
|
Net
Worth |
|
|
1,957 |
1,906 |
1,987 |
|
Capital,
Paid-Up |
|
|
45 |
45 |
45 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
4.49 |
1.77 |
27.19 |
-12.81 |
|
|
Current Ratio |
|
.. |
735.59 |
660.73 |
552.49 |
|
N.Worth Ratio |
.. |
84.54 |
81.59 |
76.28 |
|
|
R.Profit/Sales |
|
13.33 |
13.38 |
10.63 |
.. |
|
N.Profit/Sales |
8.00 |
7.87 |
7.27 |
10.05 |
|
|
Return On Equity |
.. |
11.55 |
10.76 |
11.22 |
|
Forecast
(or estimated) for the 30/06/2014 fiscal term.
DIAMOND INDUSTRY – INDIA
-
From time immemorial, India is well known in the world
as the birthplace for diamonds. It is difficult to trace the origin of
diamonds but history says that in the remote past, diamonds were mined only in
India. Diamond production in India can be traced back to almost 8th
Century B.C. India, in fact, remained undisputed leader till 18th
Century when Brazilian fields were discovered in 1725 followed by emergence of
S. Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian
workforce and the untiring and unflagging efforts of the Indian diamantaires,
supported by progressive Government policies.
-
The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
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Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
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Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
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Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
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Excerpts from Times of India dated 30th
October 2010 is as under –
-
Gem & Jewellery Export Promotion Council in its
statistical data has shown the export of polished diamonds to have increase by
28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in
February, 2012, India exported $ 1.84 billion worth of polished diamonds in
February 2013. A senior executive of GJEPC said, “Export of cut and polished
diamonds started falling month-wise after the imposition of 2 % of import duty
on the polished diamonds. But February, 2013 has given a new ray of hope to the
industry as the export of polished diamonds has actually increased by 28 %. It
means the industry is on the track of recovery and round tripping of
diamonds has stopped completely.” Demand has started coming from the US, the
UK, Japan and China. India’s polished diamond export is expected to cross $ 21
bn in 2013-14.
-
The banking sector has started exercising restraint
while following prudent risk management norms when lending money to gems and
jewellery sector. This follows the implementation of Basel III accord – a
global voluntary regulatory standard on bank capital adequacy, stress testing
and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.24 |
|
UK Pound |
1 |
Rs.99.90 |
|
Euro |
1 |
Rs.84.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.