MIRA INFORM REPORT

 

 

Report Date :

23.04.2014

 

IDENTIFICATION DETAILS

 

Name :

NISSIN TRADING CO LTD

 

 

Registered Office :

DIC Bldg 10F, 2-16-2 Sotokanda Chiyodaku Tokyo 101-0021

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

February 1950

 

 

Com. Reg. No.:

0100-01-053203 (Tokyo-Chuoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Trading firm for import, export and wholesale of chemicals, oils & fats, building materials, packaging equipment, tobacco, others (--100%).

 

 

No. of Employees

42

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  High Risk

C1

High Risk

 

C2

Very High Risk

 

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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy

Source : CIA

 

 

 


Company name and address

 

NISSIN TRADING CO LTD

REGD NAME:   Nisshin Boeki KK

MAIN OFFICE:  DIC Bldg 10F, 2-16-2 Sotokanda Chiyodaku Tokyo 101-0021 JAPAN

Tel: 03-3253-3461     Fax: 03-3253-3934

 

                        *.. Registered at: 3-7-20 Nihombashi Chuoku Tokyo

                                               

URL:                 http://www.nissinboeki.co.jp

E-Mail address: info@nissinboeki.co.jp

 

 

ACTIVITIES  

 

Import, export of chemicals, tobacco

 

 

BRANCHES   

 

Osaka

 

 

OVERSEAS   

 

China (2) (--subsidiaries)

 

 

OFFICERS

 

SHOMEI KARASAWA, PRES     Taizo Ito, ch

Kimio Matsuzawa, dir                 Shinichi Nakaya, dir

Ryuichi Masui, dir                                 

 

Yen Amount:     In million Yen, unless otherwise stated

 

 


SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 18,431 M

PAYMENTS      REGULAR         CAPITAL           Yen 20 M

TREND             SLOW               WORTH            Yen 3,047 M

STARTED         1950                 EMPLOYES      42

 

 

COMMENT    

 

TRADING FIRM SPECIALIZING IN CHEMICALS & TOBACCO.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

           

HIGHLIGHTS

           

            The subject company was established on the basis of a trading division separated from Dainippon Ink & Chemicals Co (now DIC Corp), chemical mfr, Tokyo.  This is a trading firm specializing in importing & exporting industrial chemicals & tobacco.  Sales to DIC Corp account for 32% and purchase from DIC accounts for about 17% of total sales.  Clients include chemical firms, mfrs, other.

 

 

FINANCIAL INFORMATION

           

            The sales volume for Mar/2013 fiscal term amounted to Yen 18,431 million, a 7% down from Yen 19,735 million in the previous term.  The recurring profit was posted at Yen 298 million and the net profit at Yen 221 million, compared with Yen 197 million recurring profit and Yen 119 million net profit, respectively, a year ago.

 

            For the term that ended Mar 2014 the recurring profit was projected at Yen 310 million and the net profit at Yen 230 million, respectively, on a 5% rise in turnover, to Yen 19,300 million.  Final results are yet to be released. 

 

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

 

 

REGISTRATION

 

Date Registered:  Feb 1950

Regd No.:         0100-01-053203 (Tokyo-Chuoku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         1.6 million shares

Issued:                400,000 shares

Sum:                   Yen 20 million

Major shareholders (%): Nissei Fudosan Co Ltd* (100)

*.. Real estate owner, owned by DIC Corporation           

           

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

 

 

OPERATION

           

Activities: Trading firm for import, export and wholesale of chemicals, oils & fats, building materials, packaging equipment, tobacco, others (--100%).

 

(Handling Items):

Chemicals: Solvents, monomers, organic chemicals, synthetic resins (DIC products), modifiers, intermediates for dyestuff & paints, inorganic chemicals, other;

Oils & Fats: vegetable oils & fats, animal oils & fats, fatty acids;

Building Materials: exterior materials & decorations, thermal insulation materials, housing equipment, other;

Tobacco: cigarettes, cigars, pipe tobacco, other.

 

Clients: [Mfrs, wholesalers] DIC, Nippon Rietec Co, Nippon Polyurethane Ind, Dainippon Paints, Tamura Corp, Toshiba Corp, Showa Varnish Co, Nippon Soda Co, Yantai Huada Chemical, TS Network, Chem International, Saiwai Trading, Yamaichi Chemical Ind, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] DIC, Nippon Polyurethane Ind, Mitsubishi Shoji Chemical, DH Materials, Toa Gosei Co, Teijin Chemicals Ltd, Suzhou Lintong Chemical, Sichuan Lomon, Dainichi Can Co, other

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Nihombashi)

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

 

19,300

18,431

19,735

19,592

Recur. Profit

 

310

298

197

241

Net Profit

 

230

221

119

172

Total Assets

 

 

12,842

12,291

12,830

Current Assets

 

 

4,826

5,205

4,934

Current Liabs

 

 

3,700

4,368

4,654

Net Worth

 

 

3,047

2,261

2,524

Capital, Paid-Up

 

 

20

20

20

Div.Ttl in Million (¥)

 

 

50

50

2,307

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.71

-6.61

0.73

10.12

    Current Ratio

..

130.43

119.16

106.02

    N.Worth Ratio

..

23.73

18.40

19.67

    R.Profit/Sales

1.61

1.62

1.00

1.23

    N.Profit/Sales

1.19

1.20

0.60

0.88

    Return On Equity

..

7.25

5.26

6.81

 

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

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.71

UK Pound

1

Rs.102.04

Euro

1

Rs.83.76

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.