MIRA INFORM REPORT

 

 

Report Date :

05.09.2014              

 

IDENTIFICATION DETAILS

 

Name :

UNIVERSAL METAL CORPORATION

 

 

Registered Office :

1-7-4 Iwasaki-Nishi Ichihara City Chiba-Pref 290-0046

 

 

Country :

Japan

 

 

Financials (as on) :

31.01.2014

 

 

Date of Incorporation :

February 1993

 

 

Com. Reg. No.:

(Chiba-Ichihara) 054950

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Export of iron/steel coils & sheets

 

 

No. of Employees :

8

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 and address

 

UNIVERSAL METAL CORPORATION

REGD NAME:    KK Universal Metal Corporation

MAIN OFFICE:  1-7-4 Iwasaki-Nishi Ichihara City Chiba-Pref 290-0046 JAPAN

Tel: 0436-20-6661     Fax: 0436-20-6663

 

URL:                 http://www.universalmetal.jp/

E-Mail address:            umc@universalmetal.jp

 

 

ACTIVITIES  

 

Export of iron/steel coils & sheets

 

 

BRANCHES   

 

Nil

 

 

WAREHOUSE

 

At the caption address (Bonded warehouse)

Two storied building of total 4,020m2 land space, equipped with:

Crane: 10ton x 2; 2 ton x 2; 4.8 ton x 1;

Forklift: 12 ton x & 4.5 ton x 1;

Shearing Line: One line

 

 

OFFICER(S)  

 

HASIB REHMAN, CH & PRES

Aisha Rehman, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 1,080 M

PAYMENTSSlow but correct       CAPITAL           Yen 100 M

TREND SLOW                          WORTH            Yen 233 M

STARTED         1993                             EMPLOYES      8

 

 

COMMENT    

 

EXPORTER OF IRON/STEEL COILS & SHEETS. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

 

           

HIGHLIGHTS

           

            The subject company was established by Hasib UR Rehman, a Pakistani resident, in order to make most of his experience in the subject line of business.  Aisha is his son.  This is a trading company specializing in exporting iron/steel coils & sheets to Asian countries.  Originally started in Yokohama and moved to the caption address in 1997, where the firm built the new warehouse in Aug 2004 and set up the shearing line from coils into sheet. The same year, obtained a custom bond warehouse license to be independent in-house customs clearance facilities.  Coils and sheets are exported to Pakistan, Bangladesh, Philippines, Thailand, Vietnam, China, India, Indonesia, other.

 

 

FINANCIAL INFORMATION

 

            Financial are only partially disclosed.

 

            The sales volume for Jan/2014 fiscal term amounted to Yen 1,080 million, a 10% down from Yen 1,200 million in the previous term.  Exports decreased.  The operations came back to profitability to post Yen 13 million net profit, compared with Yen 46 million net losses a year ago.  The weaker yen contributed to make the business profitable. 

 

For the current term ending Jan 2015 the net profit is projected at Yen 15 million, on a 6% rise in turnover, to Yen 1,150 million.

           

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

 

 

REGISTRATION

 

Date Registered:      Feb 1993

Regd No.:                (Chiba-Ichihara) 054950

Legal Status:     Limited Company (Kabushiki Kaisha)

Authorized:        8,000 shares

Issued:               2,000 shares

Sum:                  Yen 100 million

Major shareholders (%): Hasib UR Rehman (95), I Rehman (5)

No. of shareholders: 2

           

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

 

 

OPERATION

 

Activities: Exports iron & steel coils & sheets of: hot roll, cold roll, galvanized, galvanealed, galvalume, tin plate, tin-free steel, color coils & sheets; shearing processing of color & GI sheets, others (--100%).

                       

Clients: [Mfrs, wholesalers] Exports to Pakistan, Bangladesh, Philippines, Thailand, Vietnam, China, India, Indonesia, Taiwan, other.

No. of accounts: Unavailable

Domestic areas of activities: Centered in greater-Tokyo

Suppliers: [Mfrs, wholesalers] Supplied from domestic iron/steel mfrs, steel traders, other.

 

Payment record: slow but correct

 

Location: Business area in Ichihara City, Chiba-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

National Bank of Pakistan (Tokyo)

Chiba Bank (Yawata)

Relations: Satisfactory

 

 

 

 

 

 

 

 

 

FINANCES

 

(In Million Yen)

Terms Ending:

　

31/01/2015

31/01/2014

31/01/2013

31/01/2012

Annual Sales

　

1,150

1,080

1,200

1,446

Recur. Profit

　

..

..

..

..

Net Profit

　

15

13

-46

-22

Total Assets

　

　

N/A

N/A

N/A

Net Worth

　

　

233

220

266

Capital, Paid-Up

　

　

100

100

100

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

6.48

-10.00

-17.01

18.04

    Current Ratio

　

　

..

..

..

    N.Worth Ratio

　

　

..

..

..

    N.Profit/Sales

　

1.30

1.20

-3.83

-1.52

 

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/01/2015 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.45

UK Pound

1

Rs.99.45

Euro

1

Rs.79.46

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

PDT

 

               

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.