MIRA INFORM REPORT

 

 

Report Date :

29.10.2014

 

IDENTIFICATION DETAILS

 

Name :

EASTERN MARINE CORPORATION

 

 

Registered Office :

Maruito Ginza Bldg 3F, 3-10-6 Ginza Chuoku Tokyo 104-0061

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

May 1997

 

 

Com. Reg. No.:

(Tokyo-Chuoku) 051868

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Ship owner and operator of 12 ships, plying Japan/China/Korea and S/E/Russia, Asian countries, offering ship agency, ship store & machinery supply, import & export of steel, steel products, other

 

 

No of Employees :

36

 

 

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 :

Slow but correct

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

 

EASTERN MARINE CORPORATION

 

REGD NAME:   Toyo Kaiun Tsusho KK

MAIN OFFICE:  Maruito Ginza Bldg 3F, 3-10-6 Ginza Chuoku Tokyo 104-0061 JAPAN

Tel: 03-5148-1881     Fax: 03-5148-1882

 

URL:                 http://www.e-m-c.co.jp

E-Mail address: ship@e-m-c.co.jp

 

 

ACTIVITIES

 

Ship owner, operator, ship agency, ship chartering, ship sales/purchasing

 

 

BRANCHES

 

Beijing, Qingdao, Shanghai

 

 

OFFICERS

 

YUE LI, PRES

Ke Bin Xiang, s/mgn dir

Jyoji Tanada, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                                         A/SALES          Yen 8,409 M

PAYMENTS      SLOW BUT CORRECT   CAPITAL           Yen 96 M

TREND             UP                                WORTH            Yen 429 M

STARTED         1997                                         EMPLOYES      36

 

 

COMMENT

 

SHIP OWNER & OPERATOR AND AGENCY BUSINESS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established by Yue Li, resident Chinese, in order to make most of his previous experience in the shipping business.  This is a ship owner and operator of a total 11 vessels, plying between Japan/China, Korea and S/E Asia.  Originally started as a ship agency business and has expanded its operations into other areas.  In Apr 1999, started ship chartering business; in Oct 2002 owned first vessel & started tramper business.  The firm has now five divisions: ship chartering team, ship owning and operating team (owning 11 vessels); ship agency team; export/import team (steel products, mechanical materials, plastic & raw materials); ship service team (ship sales/purchases, ship material supply).  Operations are extended into Russia and vicinities areas.  Domestic clients include major trading firms, shipping companies, mfrs, other, nationwide.  Two ships were built in Qingdao, China.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 8,409 million, a 2% up from Yen 8,246 million in the previous term.  The recurring profit was posted at Yen 26 million and the net profit at Yen 22 million, respectively, compared with Yen 75 million recurring profit and Yen 45 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 35 million and the net profit at Yen 30 million, respectively, on a 6% rise in turnover, to Yen 8,900 million.  Yen’s weakness will raise freight revenues in Yen terms.

 

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

 

 

REGISTRATION

 

Date Registered:                       May 1997

Regd No.:                                             (Tokyo-Chuoku) 051868

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              2,400 shares

Issued:                                     1,936 shares

Sum:                                        Yen 96.8 million

Major shareholders (%):           Yue Li (41), K B Xiang (21), S Wang (17), Sumiko Yajima (9)

No. of shareholders:                 10

           

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

 

 


OPERATION

 

Activities: Ship owner and operator of 12 ships, plying Japan/China/Korea and S/E/Russia, Asian countries, offering ship agency, ship store & machinery supply, import & export of steel, steel products, other (--100%).

 

(Breakdown of business teams):

Ship Chartering Team: mainly carries bulk cargo such as steel products, plant equipment, coal, grain, fertilizer, steel scrap & raw materials for import and export between Japan, China, Korea, Russia and S/E Asia;

House Fleet Team: owns/operates 11 vessels ranging from 2,000 MT deadweight to more than 10,000 MT, the team runs under both periodic and spot contracts, including management, maintenance, repairing of vessels;

Trading Team: trades plastics, off-grades & recycles between Japan, China, Hong Kong, Taiwan & S/E Asia;

Ship S&P Service Team: sells & purchases bulk carriers, container ships, tankers and work boats primarily in Japan, China, Korea, S/E Asia and Europe, handling everything from concluding the contract to delivery of vessel(s).

 

Clients: [Mfrs, wholesalers] Mitsubishi Corp, Metal One, Mitsui & Co, Marubeni-Itochu     Steel Inc, JFE Shoji Trading, Topy Enterprises, Nittetsu Butsuryu, Mitsui Kinzoku                 Trading, Kanematsu Corp, Sojitz Logistics, Toyota Tsusho Corp, Mitsui OSK Lines, Kambara Steamship, other. 

No. of accounts: 300

Domestic areas of activities: Nationwide

Suppliers: [Ship owners, operators] Sankyu Inc, Nippon Express, other.

 

Payment record: Slow but correct

 

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

 

Bank References:

            MUFG (Kyobashi)

            Shoko Chukin Bank (Oshiage)

            Relations: Satisfactory.

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

8,900

8,409

8,246

6,643

Recur. Profit

 

35

26

75

63

Net Profit

 

30

22

45

8

Total Assets

 

 

2,786

1,962

1,800

Current Assets

 

 

747

909

613

Current Liabs

 

 

543

625

404

Net Worth

 

 

429

400

359

Capital, Paid-Up

 

 

96

80

80

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.84

1.98

24.13

22.23

    Current Ratio

 

..

137.57

145.44

151.73

    N.Worth Ratio

 

..

15.40

20.39

19.94

    R.Profit/Sales

 

0.39

0.31

0.91

0.95

    N.Profit/Sales

 

0.34

0.26

0.55

0.12

    Return On Equity

 

..

5.13

11.25

2.23

 

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

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.35

UK Pound

1

Rs.98.93

Euro

1

Rs.77.92            

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

SMN

 

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.