MIRA INFORM REPORT

 

 

Report Date :

07.01.2014

 

IDENTIFICATION DETAILS

 

Name :

NISSAN TRADING CO LTD

 

 

Registered Office :

Belista Tower Higashitotsuka, 91-1 Kawakamicho Totsukaku Yokohama 244-0805

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

April 1978

 

 

Com. Reg. No.:

0200-01-037321 (Yokohama-Totsukaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Importer, exporter, wholesaler of automobiles, machinery, steel & nonferrous metals, fuels & chemicals

 

 

No. of Employees :

261

 

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 :

Good

 

 

Payment Behaviour :

Regular

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

 

NISSAN TRADING CO LTD

 

 

REGD NAME

 

Nissan Trading KK

 

 

MAIN OFFICE

 

Belista Tower Higashitotsuka, 91-1 Kawakamicho Totsukaku Yokohama 244-0805 JAPAN                                     

Tel: 045-522-3840

 

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

E-Mail address:            i.terashima@nitco.co.jp

                        

 

ACTIVITIES

           

Import, export, wholesale of automobiles, machinery, steel & nonferrous metals & fuels, chemicals

 

BRANCHES

 

Fukuoka, Utsunomiya, Fuji

 

 

OVERSEAS

 

China (3), Nashville, Amsterdam, Los Angeles, Mexico City, Barcelona

 

 

SUBSIDAIRIES

 

China (5), Taiwan, USA (3), UK (2), Europe (2), India, Indonesia, Thailand, Brazil, other


 

OFFICERS

 

MASASHI ENOMOTO, PRES

Akihiro Ishiwatari, dir

Shigeki Ueda, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 320,978 M

PAYMENTSREGULAR   CAPITAL           Yen 320 M

TREND UP                    WORTH            Yen 19,039 M

STARTED         1978                 EMPLOYES      261

 

 

COMMENT    

 

TRADING HOUSE WHOLLY OWNED BY NISSAN MOTOR CO LTD. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOF FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established as a trading house by Nissan Motor Co Ltd, one of the largest automakers in Japan, for importing automotive components and raw materials, and exporting cars.  Through the years since the inception, the firm has grown into a specialized trading house handling a wide range of automotive products, utilizing the parent’s wide networks worldwide.  The firm has also diversified into various other areas, such as machinery parts, steel & nonferrous metals, energy & chemicals, etc.  Major portion of business operations is still with Nissan Motor and its group firms, for importing & exporting Nissan car produced both domestically and abroad.  Exports Nissan cars to overseas Japanese embassies, consulates & diplomats.  In Apr 2013 set up a subsidiary in Brazil. 

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2013 fiscal term amounted to Yen 320,978 million, a 3% down from Yen 329,194 million in the previous term.  The recurring profit was posted at Yen 7,943 million and the net profit at Yen 4,754 million respectively, compared with Yen 7,215 million recurring profit and Yen 4,248 million net profit, respectively, a year ago.

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 8,000 million and the net profit at Yen 5,000 million, respectively, on a 5% rise in turnover, to Yen 337,000 million. 

 

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

 

 

REGISTRATION

 

Date Registered:        Apr 1978

Regd No.:                  0200-01-037321 (Yokohama-Totsukaku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         1.6 million shares

Issued:                400,000 shares

Sum:                   Yen 320 million

Major shareholders (%): Nissan Motor Co* (100)

 

*.. Second largest automaker in Japan, founded 1933, listed Tokyo S/E, capital Yen 605,814 million, sales Yen 9,629,574 million, operating profit Yen 523,544 million, recurring profit Yen 529,320 million, net profit Yen 342,446 million, total assets Yen             12,925,569 million, net worth Yen 3,879,752 million, employees 160,530, pres Carlos Ghosn

           

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

 

 

OPERATION

           

Activities: Trading house, owned by Nissan Motor Co, for import, export, wholesale of:

 

(Sales breakdown by divisions):

 

Vehicle Div (7%): automobiles, commercial vehicles, special vehicles, spare parts & car accessories;

 

Machinery & Automotive Components Div (29%): Automotive components business       (engines, power train components, catalytic converters, aluminum wheels, brakes & other      chassis components, roof racks, spoilers & other exterior components, seat materials &            other trim components); Machinery (machine tools, presses, casting equipment, electric     vices & apparatus, plastic injection machines, testers, welding equipment, stamping dies, molding dies, jig fixtures, cutting & pneumatic tools, pallets, other tools, environmental   facilities;

 

Steel & Nonferrous Metal Div (48%): Steel Business (mild steel, cold/rolled steel, hot-rolled steel, various types of surface-treated steel, special steel 8structural carbon steel, structural alloy steel, stainless steel), extruded aluminum, pallets for automotive parts;           Non-ferrous metal business (aluminum primary & secondary ingots & aluminum scraps,      platinum, palladium, rhodium, rare metals (cobalt);

 

Energy, Materials & Chemical Div (13%): Energy & Materials business (bunker & industrial fuel oils, lubricants, liquefied petroleum gas (LPG), grease, automobile gasoline, gas oil & lubricant oils, cokes, materials for casting, raw materials for steel, nickel for stainless steel recycled precious metals; Chemical business (synthetic resins (thermoplastic resins, thermosetting resins, master batches), plastic components, organic chemicals (intermediates, raw materials, solvents, plasticizers, industrial chemicals, others.

 

Chemicals, others (3%).

 

Overseas trading ratio: Imports (13.3%), Exports (25.7%)

 

Clients: [Carmakers] Nissan Motor & group firms, Nissan Trading Europe, Nissan Trading USA, Kyushu Steel Center, Nissan Mexico, Jatco, other

No. of accounts: 100 (Major direct clients)           

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Nissan Motor, Nippon Steel, Kobe Steel, JFE Steel, Nippon Steel, Daido Special Steel, Unipress Corp, Kyushu Steel Center, JX Holdings Inc, etc

 

Payment record: Regular

 

Location: Business area in Yokohama.  Office premises at the caption address are owned by the parent, Nissan Motor Co Ltd, and maintained satisfactorily.

 

Bank References:

Mizuho Corporate Bank (H/O)

MUFG (Shimbashi)

Relations: Satisfactory

 

 


FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

337,000

320,978

329,194

293,100

Recur. Profit

 

8,000

7,943

7,215

5,260

Net Profit

 

5,000

4,954

4,248

3,066

Total Assets

 

 

81,786

75,249

62,805

Current Assets

 

 

79,914

73,224

60,783

Current Liabs

 

 

62,359

59,867

51,614

Net Worth

 

 

19,039

14,891

10,631

Capital, Paid-Up

 

 

320

320

320

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.99

-2.50

12.31

31.86

    Current Ratio

 

..

128.15

122.31

117.76

    N.Worth Ratio

..

23.28

19.79

16.93

    R.Profit/Sales

 

2.37

2.47

2.19

1.79

    N.Profit/Sales

1.48

1.54

1.29

1.05

    Return On Equity

..

26.02

28.53

28.84

 

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


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.33

UK Pound

1

Rs.101.99

Euro

1

Rs.84.62

 

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%)

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.