MIRA INFORM REPORT

 

 

Report Date :

17.10.2014

 

IDENTIFICATION DETAILS

 

Name :

MITSUBISHI MATERIALS TRADING CORPORATION

 

 

Formerly Known As :

RYOKO SANGYO CORPORATION

 

 

Registered Office :

Nihombashi Hamacho F-Tower 17F, 3-21-1 Nihombashi-Hamacho Tokyo 103-0007

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

May 1947

 

 

Com. Reg. No.:

0100-01-032169

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Trading firm for import, export and wholesale of industrial products: processed (63.9%), materials & commodities (13.7%), building materials (11.7%), machinery & equipment (6.9%), other

 

 

No of Employees :

375

 

 

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 & address

 

MITSUBISHI MATERIALS TRADING CORPORATION (CHANGED FROM RYOKO SANGYO CORP)

 

REGD NAME

 

Mitsubishi Material Trading KK

 

MAIN OFFICE

 

Nihombashi Hamacho F-Tower 17F, 3-21-1 Nihombashi-Hamacho Tokyo 103-0007 Japan

Tel: 03-3660-1682      

Fax: 03-3660-1650

 

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

E-Mail address: (thru the URL)

 

ACTIVITIES:     Trading firm for import, export, wholesale of industrial products

BRANCHES:     27 locations nationwide

OVERSEAS:     Thailand, Indonesia, Korea, China, Singapore, Vietnam, Australia

 

OFFICERS:       TOSHIO HIRATSUKA, PRES      Satoshi Terashita v pres

                        Kotaro Mitsune, mgn dir                        Takayoshi Akiyama, mgn dir

                        Susumu Arai, mgn dir                Kazuyuki Ito, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 93,364 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 393 M

TREND UP                                WORTH            Yen 5,670 M    

STARTED         1947                             EMPLOYES      375

 

COMMENT:      TRADING FIRM, OWNED BY MITSUBISHI MATERIALS CORP. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established by Mitsubishi Materials Corporation (See REGISTRATION) as a trading firm, named Ryoko Sangyo Corporation, and in July 2014 renamed as captioned.  This is a trading firm for import, export and wholesale of industrial products, chemicals, machinery, metals, other.  Clients include Mitsubishi Group firms as a main.

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 93,364 million, a 24% up from Yen 75,366 million in the previous term.  Exports were robust to Asian countries.  The weaker Yen also contributed to raise earnings in Yen terms.  The recurring profit was posted at Yen 1,559 million and the net profit at Yen 960 million, respectively, compared with Yen 1,284 million recurring profit and Yen 830 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 1,650 million and the net profit at Yen 980 million, respectively, on a 5% rise in turnover, to Yen 98,000 million.  Business is seen expanding steadily.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,119.3 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:           May 1947

Regd No.:                                 0100-01-032169 (Tokyo-Chuoku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  26.6 million shares

Issued:                         6.66 million shares

Sum:                            Yen 393 million

Major shareholders (%): Mitsubishi Materials Corporation* (100)

 

*.. Leading nonferrous metal smelter, Tokyo, founded 1950, listed Tokyo S/E, capital Yen 119,457 million, sales Yen 1,414,796 million, operating profit Yen 66,281 million, recurring profit Yen 76,902 million, net profit Yen 52,551 million, total assets Yen 1,802,769 million, net worth Yen 452,946 million, employees 23,661, pres Hiroshi Yao

 

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

 

 

OPERATION

           

Activities: Trading firm for import, export and wholesale of industrial products: processed (63.9%), materials & commodities (13.7%), building materials (11.7%), machinery & equipment (6.9%), other

 

Clients: [Mfrs, wholesalers] SUMCO, Mitsubishi Materials Corp, Mitsubishi Electric, IHI Corp, Mitsubishi Heavy Ind, Onahama Smelting & Refining, Owari Precise Products Co, other  

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsubishi Materials Corp, MMC Super Alloy, Ube Mitsubishi Cement, Mitsubishi Aluminium, other.

 

Payment record: No Complaints

 

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

 

Bank References:

MUFG (Shin-Marunouchi)

Joyo Bank (Tokyo)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

98,000

93,364

75,366

79,280

Recur. Profit

 

1,650

1,559

1,284

 

Net Profit

 

980

960

830

682

Total Assets

 

 

38,609

31,318

31,498

Current Assets

 

 

36,279

29,046

 

Current Liabs

 

 

32,022

25,350

 

Net Worth

 

 

5,670

5,077

5,777

Capital, Paid-Up

 

 

393

393

393

Div.Ttl in Million (¥)

 

 

414.9

1,546.4

352.3

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.97

23.88

-4.94

3.64

    Current Ratio

 

..

113.29

114.58

..

    N.Worth Ratio

 

..

14.69

16.21

18.34

    R.Profit/Sales

 

1.68

1.67

1.70

..

    N.Profit/Sales

 

1.00

1.03

1.10

0.86

    Return On Equity

 

..

16.93

16.35

11.81

 

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

 

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.47

UK Pound

1

Rs.98.23

Euro

1

Rs.78.66

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 


 

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.