MIRA INFORM REPORT

 

 

Report Date :

25.07.2014

 

IDENTIFICATION DETAILS

 

Name :

MITSUI BUSSAN CHEMICALS CO LTD

 

 

Registered Office :

JA Bldg 11F, 1-3-1 Ohtemachi Chiyodaku Tokyo 100-0004

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014 (Estimated)

 

 

Date of Incorporation :

March 1991

 

 

Com. Reg. No.:

0100-01-030451 (Tokyo—Chiyodaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Importer, exporter and wholesaler of Industrial Chemicals such as Solvents, Coating Materials, Paints, Adhesives, Pigments, Plastic Additives, Urethane Materials, Biocides, Water Treatment Chemicals, Soda Chemicals, Ammonia, Nitric Acid, Sulphuric Acid, Organic & Inorganic Chemicals

 

 

No of Employees :

166

 

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

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate 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

 

MITSUI BUSSAN CHEMICALS CO LTD

 

 

REGD NAME

 

Mitsui Bussan Chemical KK

 

 

MAIN OFFICE

 

JA Bldg 11F, 1-3-1 Ohtemachi Chiyodaku Tokyo 100-0004 JAPAN

 

      Tel: 03-6759-5000     Fax: 03-3213-5873

 

URL:                             http://www.mb-chemicals.co.jp

E-Mail address:            info@mb-chemicals.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of industrial chemicals

 

 

BRANCHES

 

Osaka, Nagoya, Fukuoka

 

 

OFFICERS   

 

TAKAHARU NISHINO, PRES                  Masanori Ikebe, v pres  

Yoshinobu Muramat                               Tatsuo Shioda, dir

Masafumi Oosaki, dir                             Takuya Inagaki, dir

 

Yen Amount:    In million Yen, unless otherwise stated

 

SUMMARY 

 

FINANCES                    FAIR                             A/SALES:         Yen 134,474 M

PAYMENTS                  No Complaints          CAPITAL           Yen 800 M

TREND                         UP                                WORTH            Yen 2,447M

STARTED                     1991                             EMPLOYES      166

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN INDUSTRIAL CHEMICALS, OWNED BY MITSUI & CO LTD.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

HIGHLIGHTS

           

The subject company was established on the basis of a chemicals division separated from Mitsui & Co Ltd (See REGISTRATION), as Mitsui Bussan Solvent & Coating Co Ltd.  In Apr 2009, merged with Bussan Chemicals Co Ltd and renamed as captioned.  This is a trading firm for import, export and wholesale of industrial chemicals (See OPERATION).  Goods are imported and exported worldwide, using the parent’s networks.  Clients include major chemical mfrs, wholesalers, other, nationwide.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2013 fiscal term amounted to Yen 134,474 million, a 1% up from Yen 132,817 million in the previous term. Exports rose into S/E Asian countries.  The recurring profit was posted at Yen 742 million and the net profit at Yen 1,021 million, respectively, compared with Yen 211 million recurring profit and Yen 453 million net profit, respectively, a year ago.

 

For the term that ended Mar 2014 the recurring profit was projected at Yen 850 million and the net profit at Yen 500 million, respectively, on a 5% rise in turnover, to Yen 141,500 million.  Final results are yet to be released.

 

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

 

 

REGISTRATION

 

Date Registered:  Mar 1991

Regd No.:         0100-01-030451 (Tokyo—Chiyodaku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         64,000 shares

Issued:                16,000 shares

Sum:                   Yen 800 million

Major shareholders (%): Mitsui & Co Ltd* (100)

 

*... General trading house vying with Mitsubishi Corp for top position, core company of Mitsui group, Tokyo, founded 1947, listed Tokyo S/E, capital Yen 341,482 million, sales Yen 11,165,660 million, operating profit Yen 275,215 million, recurring profit Yen 453,732 million, net profit Yen 422,181 million, total assets Yen 11,001,264 million, net worth Yen 3,586,414 million, employees 45,148, pres Masami Iijima

 

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

 

OPERATION

           

Activities: Import, exports and wholesales industrial chemicals: solvents, coating materials, paints, adhesives, pigments, plastic additives, urethane materials, biocides, water treatment chemicals, soda chemicals, ammonia, nitric acid, sulphuric acid, organic & inorganic chemicals, other (--100%)

 

Clients: [Mfrs, wholesalers] Mitsui Chemical (4.5%), Wuxi Baichuan Chemical Ind, Koyo Boeki, Kawasaki Kasei Chemicals, Honshu Chemical Ind, Sanyu Industrial Co, Miyako Kosan Co, Moriroku Chemicals, other

 

            No. of accounts: 800

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsui Chemical Co (31.5%), Mitsui & Co (13.6%), JX Nippon Oil & Metal Mining Corp, Chugoku Marine Paints, Sumitomo Chemical, Daicel Chemical Ind, Zeon Corp, other

 

Payment record: No Complaints

 

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

 

Bank References:

SMBC (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

　

141,500

134,474

132,817

128,910

Recur. Profit

　

850

742

811

1,256

Net Profit

　

500

1,020

453

648

Total Assets

　

　

47,963

45,852

43,656

Current Assets

　

　

47,337

44,559

42,418

Current Liabs

　

　

44,701

42,679

40,494

Net Worth

　

　

2,447

2,270

2,364

Capital, Paid-Up

　

　

800

800

800

Div.Ttl in Million (¥)

　

　

462

712

444

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

5.22

1.25

3.03

24.46

    Current Ratio

 

..

105.90

104.40

104.75

    N.Worth Ratio

..

5.10

4.95

5.42

    R.Profit/Sales

 

0.60

0.55

0.61

0.97

    N.Profit/Sales

0.35

0.76

0.34

0.50

    Return On Equity

..

41.68

19.96

27.41

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.00

UK Pound

1

Rs.102.19

Euro

1

Rs.80.68

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIS

 

 

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.