MIRA INFORM REPORT

 

 

Report Date :

04.10.2014

 

IDENTIFICATION DETAILS

 

Name :

UBE MATERIAL INDUSTRIES LTD

 

 

Registered Office :

Ube Kosan Bldg 5F, 8-1 Aioicho Ube City Yamaguchi-Pref 755-0043

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

Sept., 1949

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Industrial Chemicals

 

 

No. of Employees :

660

 

 

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 :

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 – 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 and Address

 

UBE MATERIAL INDUSTRIES LTD

 

REGD NAME:    Ube Materials KK

 

MAIN OFFICE:  Ube Kosan Bldg 5F, 8-1 Aioicho Ube City Yamaguchi-Pref 755-0043 JAPAN

Tel: 0836-31-0156     Fax: 0836-21-9778

 

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

E-mail:             info@ubematerials.co.jp

 

 

ACTIVITIES

 

Mfg of industrial chemicals

 

 

BRANCHES

 

Tokyo, Sendai, Nagoya, Osaka, Okayama, Sapporo, Hachinohe   

 

 

FACTORIES

 

Yamaguchi (3), Chiba

 

 

OFFICER(S)

 

MASANORI HIRAI, PRE             Shuheii Shirai, s/mgn dir            

Yasunobu Nawata, mgn dir                     Akio Ishida, mgn dir

Shozo Yoshitake, mgn dir                       Tadashi Matsunami, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 39,400 M

PAYMENTSREGULAR   CAPITAL           Yen 4,047 M

TREND UP                    WORTH            Yen 28,807 M

STARTED         1949                 EMPLOYES      660

 

 

COMMENT

 

MFR OF INDUSTRIAL CHEMICALS, OWNED BY UBE INDUSTRIES LTD 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a chemical mfg division separated from Ube Industries Ltd (See REGISTRATION).  Originally shareholders included Yamaguchi Bank but in Aug 2013 Ube Industries bought the whole share and the firm became a wholly owned subsidiary.  The firm specializes in mfg calsia products, magnesium clinker, magnesium oxide, other.  Products are exported.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 39,400 million, a 5% up from Yen 37,439 million in the previous term.  Demand from clients increased.  The recurring profit was posted at Yen 2,044 million and the net profit at Yen 1,208 million, respectively, compared with Yen 1,763 million recurring profit and Yen 1,106 million net profit, respectively, a year ago.  .

 

For the current term ending Mar/2015 the recurring profit is projected at Yen 2,100 million and the net profit at Yen 1,250 million, respectively, on a 3% rise in turnover, to Yen 40,500 million. 

           

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

 

 

REGISTRATION

 

Date Registered:           Sept 1949

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  32 million shares

Issued:                         8,094,814 shares

Sum:                            Yen 4,047.407 million

Major shareholders (%): Ube Industries Ltd* (100)

           

*.. Diversified mfr of chemicals & cement, Yamaguchi, founded 1942, listed Tokyo, Fukuoka S/E’s, capital Yen 58,435 million, sales Yen 650,510 million, operating profit Yen 24,413 million, recurring profit Yen 18,691 million, net profit yen 12,623 million, total assets Yen 700,715 million net worth Yen 241,729 million, employees 11,225, pres Michio Takeshita

 

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

 

 

OPERATION

 

Activities: Manufactures industrial chemicals, magnesium oxide, hydraulic magnesium, Magnesia clinker, calcia products, fine materials products, resin, fertilizer, food additives, soil stabilizer, desulfurizer, dechlorinizer, neutralizer of flue gas & sewages, improving agents for water &bottom sediments, other (--100%).

 

 

Clients: [Mfrs, wholesalers] Nippon Steel & Sumitomo Metal Corp, Shinagawa Refractories, JFE Shoji Trading, Mitsui & Co, Mintec Japan, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Ube Industries, JFE Shoji Trading, Seibu Oil, Murakashi Lime Ind, other

 

Payment record: Regular

 

Location: Business area in Yamaguchi.  Office premises at the caption address are owned by the parent and maintained satisfactorily.

 

Bank References:

            Yamaguchi Bank (Ube)

            SMBC (Shimonoseki)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

　

40,500

39,400

37,439

40,072

Recur. Profit

　

2,100

2,044

1,763

2,348

Net Profit

　

1,250

1,208

1,106

1,209

Total Assets

　

　

40,393

39,153

38,996

Current Assets

　

　

23,939

22,820

22,881

Current Liabs

　

　

10,997

10,440

10,803

Net Worth

　

　

28,807

28,114

27,528

Capital, Paid-Up

　

　

4,047

4,047

4,047

Div.Ttl in Million (¥)

　

　

566

566

647

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

2.79

5.24

-6.57

-3.92

    Current Ratio

　

..

217.69

218.58

211.80

    N.Worth Ratio

　

..

71.32

71.81

70.59

    R.Profit/Sales

　

5.19

5.19

4.71

5.86

    N.Profit/Sales

　

3.09

3.07

2.95

3.02

    Return On Equity

　

..

4.19

3.93

4.39

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term. 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.75

UK Pound

1

Rs.100.07

Euro

1

Rs.77.95

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.