MIRA INFORM REPORT

 

 

Report Date :

03.12.2014

 

IDENTIFICATION DETAILS

 

Name :

NISSIN TRADING CO., LTD.

 

 

Registered Office :

Daini(#2) DIC Bldg. 10F., 2-16-2, Soto-kanda, Chiyoda-ku, Tokyo 101-0021

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

22.02.1950

 

 

Com. Reg. No.:

0100-01-053203

 

 

Legal Form :

Private

 

 

Line of Business :

Trader of Chemical Products.

 

 

No. of Employees :

39

 

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. 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

 

NISSIN TRADING CO., LTD.

 

 

OUTLINE

 

Country:                                    Japan

Company name:                        NISSIN TRADING CO., LTD.

Name in local language:             NISSIN BOEKI K.K.

Office address:                         Daini(#2) DIC Bldg. 10F., 2-16-2, Soto-kanda, Chiyoda-ku, Tokyo 101-0021

Office tel:                                             03-3253-3461

Office fax:                                03-3253-3934

Website:                                   www.nissinboeki.co.jp  

Business type:                          Trader 

Industry:                                               Chemical products

Established:                              February 22, 1950

Capital:                                                 Jp. 20,000,000 yen

Employees:                              39

Corporate formation:                 Private 

Corporation No.:                       0100-01-053203 (Tokyo Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

Paid in capital :                         Jp. 20,000,000 yen

Number of authorized shares :   1,000,000 shares

Shares issued :                         500,000 shares

Number of shareholder :                        1

 

Nissei Real Estate Co., Ltd. holds 100 percent.

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

Activity                         Product/Service Description

-------------------------------------------------------------------------------

Trading                                     Chemical products

Trading                                     Others

 

 

 

COMPANY MANAGEMENT

 

President                      Mr. Shomei Karasawa

Nationality:                    n. a. (Chinese origin)

 

Managing Director         Mr. Kimio Matsuzawa

Nationality:                    Japan

 

Director                                    Mr. Shinichi Nakatani

Nationality:                    Japan

 

Director                                    Mr. Ryuichi Masui

Nationality:                    Japan

 

Auditor                                     Mr. Ryuji Kawamura

Nationality:                    Japan

 

Note: The names of director(s) and auditor(s) are phonetically spelt.

 

*Key Personnel*

==============

Mr. Shomei Karasawa

President and representative director

Born on April 3, 1956 in Beijing, China

Education: Graduated from Beijing Steel Academy

Business career:

Apr. 1991: Employed by DIC Corp.

Oct. 2011: Converted to the subject.

Feb. 2013: Director of the subject.

Jun. 2013: Representative director and president of the subject.

Home address: 5-1-15, Makinohara, Inzai-shi, Chiba pref. 270-1331

 

 

FINANCIALS

 

Currency: (local currency - Jp. yen)

-------------------------------------------------------------------------------------

 Year |          Sales            |      Net Income     

-------------------------------------------------------------------------------------

2010

17,792,888,000

306,093,000

2011

19,592,553,000

172,558,000

2012

19,735,958,000

119,155,000

2013

18,431,128,000

221,049,000

2014

20,312,787,000

464,233,000

 

 

FINANCIAL DESCRIPTION

 

*Book Closing*

============

March 31st

 

 

*Financials*

==========

Balance Sheet

Unit: millions of JP yen

                          

3/31/2012

3/31/2013

3/31/2014

Current assets  

5,205

4,826

5,872

 Cash & deposits      

180

329

222

 Account receivables   

3,758

3,301

3,919

Inventories          

836

831

915

 Others

431

365

816

Fixed assets           

7,085

8,016

10,294

 Tangible assets      

843

841

838

 Intangible assets    

59

44

30

 Investments & others  

6,182

7,129

9,426

Total Assets       

12,291

12,842

16,167

　

　

　

　

Current liabilities     

4,368

3,700

6,036

 Account payables  

3,542

3,232

3,822

 Short term loans    

525

100

1,650

 Outstanding accounts  

76

73

126

 Outstanding taxes    

22

56

170

 Others

203

239

268

Fixed liabilities      

5,661

6,095

5,300

 Bonds payable

400

300

200

 Long term loans     

4,160

4,330

2,770

 Retirement benefits    

57

52

67

 Others

1,044

1,413

2,263

Total Net Assets       

2,261

3,047

4,829

 Paid up capital      

20

20

20

 Retained earnings    

457

628

972

Valuation & adjustment 

1,784

2,398

3,837

Total Liabilities & Net Assets     

12,291

12,842

16,167

Income Statement

Unit : millions of JP yen

                          

3/31/2012

3/31/2013

3/31/2014

Sales          

19,735

18,431

20,312

Cost of goods sold      

18,310

17,020

18,887

Gross profit(loss)    

1,425

1,410

1,425

Sales/administrative expenses  

1,007

1,003

1,022

Operating profit(loss)    

418

406

402

Non operating income        

165

200

409

Non operating expenses       

386

307

112

Ordinary profit(loss)      

197

298

699

Special profits                

0

0

0

Special losses             

0

0

0

Pretax profit                

197

298

699

Taxes & adjustment           

78

77

235

Net profit      

119

221

464

 

 

*Bank Details*

============

Bank Name :                 Bank of Tokyo-Mitsubishi UFJ, Ltd.

Branch :                       Nihonbashi

 

Bank Name :                 Mizuho Bank, Ltd.

Branch :                        Yaesu-guchi

 

Bank Name :                 Sumitomo Mitsui Banking Corp.

Branch :                        Kyobashi

 

 

*Credit Opinion*

=============

The subject is a Tokyo-based firm, specializing in trading of primarily chemical products.

Strong at domestic and Asian markets.　

The direct parent company, Nissei Real Estate Co., Ltd. is most likely held by DIC Corp. and Kawamura Family, the founding family of the subject.

Nissei Real Estate is managing the propertis of DIC group companies.

The subject holds 3.4% of the issued shares of DIC Corp.(#4631) or the 7th largest shareholder of the world’s No.1 manufacturer of inks.

The subject purchases JPY 6,622 million from DIC and sells JPY 3,822 million to DIC for the March 2014 term.

DIC carries JPY 96,737 million of retained earnings as of June 30, 2014.

 

Performance of the subject itself has been steady for years.

Negative factors are not observed in particular at present.

 

 

LOCAL BRANCHES & MANAGEMENT

 

Branch name:                Osaka sales division

Branch address:            Kyutaro-machi, Chuo-ku, Osaka-shi

Branch tel:                    06-6252-9538

Branch fax:                   06-6252-9597

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

 

*Main Products & Services*

======================

Trading of the following products and materials:

-       Chemical products

-       Petrochemical products

-       Synthetic resins

-       Cigarettes

-       Textile and apparel products

-       Construction materials

-       Machines relating to logistics service business

 

 

ORGANIZATION STRUCTURE

 

*Address*

=========

Registered address is the same as the operational address.

 

*Company History*

================

Date                             Development

-----------------------------------------------------------------------------------------------

February 22, 1950          Incorporated in Tokyo as an affiliate backed by DIC Corp.

                                                Founder’s name: Mr. Katsumi Kawamura.

January 1956                 Became an authorized exporter of Nippon Monopoly Corp. of Tobacco(now JT).

October 1980                Relocated to the current address(where DIC’s head office is located).

October 2001                Acquired some business assets from DIC Corp.

January 2004                 Founded a subsidiary in China.

July 2005                      Started manufacturing synthetic leather materials.

 

 

TRADE REFERENCES

 

*Suppliers*

==========

DIC Corp.

Mitsubishi Shoji Chemical Co., Ltd.

Nippon Polyurethane Industry Co., Ltd.

DH Materials Co., Ltd.

 

 

*Customers*

==========

DIC Corp.

Leatec Corp.

TS Network Inc.

Saiwai Shoji Co., Ltd.

Showa Vanish Co., Ltd.

Morita Miyata Industry Co., Ltd.

Yamaichi Chemical Industry Co., Ltd.

Panasonic Device Material Koriyama Co., Ltd.

Nippon Polyurethane Industry Co., Ltd.

 

 

SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

 

Company name:            Shanghai Nissin Trading Co., Ltd.

Country:                        China

Status:                         Subsidiary 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.93

UK Pound

1

Rs.97.39

Euro

1

Rs.77.21

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.