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Report Date : |
07.05.2014 |
IDENTIFICATION DETAILS
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Name : |
MARUBENI-ITOCHU STEEL INC |
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Registered Office : |
Nihombashi 1-Chome Bldg, 1-4-1 Nihombashi
Chuoku Tokyo 103-8247 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
01.10.2001 |
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Com. Reg. No.: |
0100-01-075892 (Tokyo-Chuoku) |
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Legal Form : |
Limited Company |
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Line of Business : |
A trading firm jointly owned by Marubeni Corp & Itochu Corp,
specializing in iron & steel products & related, IT-related business,
including development of supply chain management (SCM) system of steel
products |
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No. of Employees |
846 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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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. 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 |
MARUBENI-ITOCHU STEEL INC
Itochu Marubeni
Tekko KK
Nihombashi 1-Chome
Bldg, 1-4-1 Nihombashi Chuoku Tokyo 103-8247 JAPAN
Tel:
03-5204-3300 Fax: 03-5204-3810
URL: Error! Hyperlink reference not valid.-Mail address:
E-mail address: (thru
the URL to each Division)
Trading
house specializing in iron & steel materials & products
Osaka,
Nagoya, Sapporo, Hiroshima, Fukuoka, other (Total 59)
China
(5), India (3), Australia, USA (9), Canada (2), Europe/CIS, other (27)
(Domestic)
58; (Overseas) 79
YASUO
MATSUURA, PRES Yasuhiko
Koike, ch
Takeshi
Mitomi, mgn dir Shuichi
Okazaki, mgn dir
Tomohito
Kaneda, mgn dir Tatsuhiko Toshita, mgn dir90
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 985,054 M
PAYMENTSNo Complaints
CAPITAL Yen 30,000 M
TREND SLOW WORTH Yen 98,753 M
STARTED 2001 EMPLOYES 846
TRADING HOUSE SPECIALIZING IN STEEL & IRON PRODUCTS, JOINTLY OWNED
BY MARUBENI CORP &
ITOCHU CORP.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
The subject company was created on the basis of spin-offs and
integration of two steel products divisions at Marubeni Corp and Itochu Corp to
form a separate entity. This is a
trading house inheriting successful & traditional business rights of each
firm in the line of steel & iron raw materials & products markets. The firm has four core divisions: Iron &
Steel Div (1), Iron & Steel Div (2), Iron & Steel Div (3), and Tubular
Products Div (for handling items see OPERATION). Osaka branch office handles these products in
lumpsum. Top-ranked in the specific
business items. Clients include major
car makers, heavy machinery mfrs, and electric appliances mfrs, nationwide.
The sales volume for Mar/2013 fiscal term amounted to Yen 985,054
million, a 12% down from Yen 1,113,377 million in the previous term. The recurring profit was posted at Yen 17,156
million and the net profit at Yen 13,198 million, respectively, compared with
Yen 17,487 million recurring profit and Yen 14,242 million net profit,
respectively a year ago.
For the current term ending Mar 2014 the recurring profit is projected
at Yen 18,000 million and the net profit at 13,500 million, on a 5% rise in
turnover, to Yen 1,075,000 million.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
Date Registered: 01
Oct 2001
Regd No.: 0100-01-075892 (Tokyo-Chuoku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 2,400 shares
Issued: 600 shares
Sum: Yen 30,000
million
Major shareholders (%):
Marubeni Corp* (50), Itochu Corp** (50)
No. of shareholders: 2
*.. One of big 5 general trading houses, Tokyo, founded 1949, listed
Tokyo, Nagoya, Frankfurt, Düsseldorf S/E’s, capital Yen 262,686 million,
turnover Yen 10,509,088 million, operating profit Yen 122,932 million,
recurring profit Yen 247,543 million, net profit Yen 205,696 million, total
assets Yen 6,648,019 million, net worth Yen 1,280,425 million, employees
38,662, pres Fumiya Kokubu.
**.. Equally one of big 5 general trading houses, Osaka, founded 1949,
listed Tokyo S/E, capital Yen 202,241 million, turnover Yen 12,551,557 million,
operating profit Yen 244,219 million, recurring profit Yen 311,112 million, net
profit Yen 280,297 million, total assets Yen 7,584,546 million, net worth Yen
1,949,670 million, employees 104,543, pres Masahiro Okafuji.
Nothing
detrimental is known as to the commercial morality of executives.
Activities: A trading firm
jointly owned by Marubeni Corp & Itochu Corp, specializing in iron &
steel products & related, IT-related business, including development of
supply chain management (SCM) system of steel products, having the following 4
core divisions (--100%):
Iron & Steel
Div (1): handles a full range of steel products for automakers and auto parts
makers, including carbon steel, specialty steel, stainless steel, electrical
steel sheets, magnequench powder, etc;
Iron & Steel
Div (2): handles steel sheet products for domestic users in the appliance,
furniture, container and office automation equipment, etc, including foreign
business of slabs, billets, blooms & other semi-finished products, bars,
shapes, plates, hot rolled and cold rolled steel, coated steel sheets, tin mill
products, clad steel plates, copper alloy tubes;
Iron & Steel
Div (3); handles plates & shapes, specialty steel, wire products &
stainless steel. The division newly
started Noble Metals Dept to handle noble items, such as Titanium, Cupro-Nickel
tubes,, offering package of noble metals required for construction of
Desalination Plants;
Tubular Products
Div: handles various types of tubular products and equipment & materials
for plant projects. Also exports pipes
for oil fields and major pipeline projects overseas. (Detailed breakdown of
each Division is not available.)
Exports (60%).
Clients: [Automakers, steel
mfrs, wholesalers] Mazda Motor Corp, Fuji Heavy Ind, Nissan Motors, Isuzu
Motor, NTN, Matsushita Electric Ind, Kawasaki Heavy Ind, Hitachi Ltd, Exxon
Mobil, IHI Marine United, other
Exports to Hyundai (Korea), Thai Controlled Steel Sheet, BNG Steel, other.
No. of accounts: 2,000
Domestic areas of
activities: Nationwide
Suppliers: [Steel mfrs,
wholesalers] Nippon Steel, JFE Steel, Nisshin Steel, Kobe Steel, Sanyo Special
Steel, Sumitomo Metal Ind, Nippon Steel & Sumikin Stainless Steel Corp,
other.
Payment record: No
Complaints
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
Mizuho
Corporate Bank (H/O)
SMBC
(H/O)
Relations:
Satisfactory
(In Million Yen)
|
Terms Ending: |
31/03/2014 |
31/03/2013 |
31/03/2012 |
31/03/2011 |
|
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Annual
Sales |
|
1,035,000 |
985,054 |
1,113,377 |
1,072,466 |
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Recur.
Profit |
|
18,000 |
17,156 |
17,487 |
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Net
Profit |
|
13,500 |
13,198 |
14,242 |
8,472 |
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Total
Assets |
|
|
365,212 |
428,224 |
391,277 |
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Current
Assets |
|
|
255,242 |
122,043 |
|
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Current
Liabs |
|
|
187,923 |
242,427 |
|
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Net
Worth |
|
|
98,753 |
97,334 |
90,376 |
|
Capital,
Paid-Up |
|
|
30,000 |
30,000 |
30,000 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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|
S.Growth Rate |
5.07 |
-11.53 |
3.81 |
.. |
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Current Ratio |
.. |
135.82 |
50.34 |
.. |
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N.Worth Ratio |
.. |
27.04 |
22.73 |
23.10 |
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R.Profit/Sales |
1.74 |
1.74 |
1.57 |
.. |
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N.Profit/Sales |
1.30 |
1.34 |
1.28 |
0.79 |
|
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Return On Equity |
.. |
13.36 |
14.63 |
9.37 |
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Notes:
Forecast (or estimated) figures for the 31/03/2014 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.20 |
|
UK Pound |
1 |
Rs.101.67 |
|
Euro |
1 |
Rs.83.55 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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.