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Report No. : |
335945 |
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Report Date : |
07.08.2015 |
IDENTIFICATION DETAILS
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Name : |
ITOCHU CHEMICAL FRONTIER CORPORATION |
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Registered Office : |
Itochu Bldg 16F, 2-5-1 Kita-Aoyama Minatoku Tokyo 107-0061 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
October 1979 |
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Legal Form : |
Limited Company |
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Line of Business : |
Subject is engaged in import, export and wholesale of industrial
chemicals, pharmaceuticals, feeds, agrochemicals |
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No. of Employee : |
200 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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 four times since 2008. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 2014 stood as the fourth-largest economy in the world after first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.
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Source
: CIA |
ITOCHU CHEMICAL FRONTIER CORPORATION
Itochu Chemical
Frontier KK
Itochu Bldg 16F,
2-5-1 Kita-Aoyama Minatoku Tokyo 107-0061 JAPAN
Tel:
03-3497-4510 Fax: 03-3497-4520
E-Mail
address: info@itcche.co.jp
Import,
export, wholesale of industrial chemicals, pharmaceuticals, feeds, other
Osaka,
Nagoya, Kawasaki (Laboratory);
Covered
by overseas offices of Itochu Corp (-- USA, Europe, China, other – Tot 150
offices in 85 countries)
China
(5), Germany, Indonesia (--subsidiaries)
TSUTOMU
MIYAZAKI, PRES Nobuyuki Mitsui, v pres
Masayoshi Tamura, s/mgn dir Toshinari
Hidekuma, s/mgn dir
Yoshihiro Wakabayashi, mgn dir Akira
Shimizu, mgn dir
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 150,700 M
PAYMENTS REGULAR CAPITAL Yen 1,100 M
TREND UP WORTH Yen 13,267 M
STARTED 1979 EMPLOYES 200
TRADING HOUSE SPECIALIZING IN INDUSTRIAL CHEMICALS, OWNED BY
ITOCHU CORP.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSIENSS ENGAGEMENTS.
The subject company was established on the basis of the fine
chemical division spun off from Itochu Corp (See REGISTRATION), leading general trading house, Tokyo, as Itochu Fine
Chemical Corp. In Jul 1990, merged a
sister company, Itochu Interchem Inc, and renamed as captioned in Oct
2002. In Apr 2005, merged Itochu Techno
Chemical Inc. This is a trading firm
specializing in organic chemicals, fine chemicals, functional materials, other
industrial chemicals (See OPERATION). Overseas operations are integrated with the
parent, utilizing its 150 overseas offices as agents.
Financials are consolidated by
the parent, Itochu Corp.
The sales volume for Mar/2015 fiscal term amounted to Yen
150,700 million, a 1% up from Yen 148,943 million in the previous term. The recurring profit was posted at Yen 5,005
million and the net profit at Yen 3,036 million, respectively, compared with
Yen 4,673 million recurring profit and Yen 3,248 million net profit,
respectively, a year ago.
For the current term ending 2016 the recurring profit is
projected at Yen 5,100 million and the net profit at Yen 3,100 million,
respectively, on a 3% rise in turnover, to Yen 155,200 million. Exports are increasing, particularly into
S/E Asian countries.
The financial situation is considered FAIR and good for
ORDINARY business engagements.
Date Registered: Oct 1979
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized: 4 million shares
Issued:
1,097,000 shares
Sum: Yen 1,100
million
Major shareholders (%): Itochu Corp* (100)
*.. One of big 5 general trading
houses, Osaka, founded 1949, listed Tokyo S/E, capital Yen 253,448 million,
turnover Yen 5,591,435 million, operating profit Yen 384,960 million, recurring
profit Yen 418,515 million, net profit Yen 300,569 million, total assets Yen
8,560,701 million, net worth Yen 2,433,202 million, employees 110,487 million,
pres Masahiro Okafuji
Nothing detrimental is known as
to the commercial morality of executives.
Activities: A trading house for import, export and
wholesale of industrial chemicals, pharmaceuticals, feeds, agrochemicals, other
(--100%):
(Handling items by divisions):
Functional Polymers Div:
Acrylic Business Unit (acrylic chain products,
ethanol amines, phenyl-maleimide, SAP & hygienic products);
Polyurethane & Plastic Raw Materials Business Units
(polyurethane chain products, raw materials for unsaturated polyester resins,
rubber chemicals, amines);
Solvent-Phenol Business Units (solvents, Heptane, hexane, ethyl
acetate, phenol chain products, epoxy chain products, other organic chemicals);
Performance Products Div:
Silicone Business Unit (silicones, silence coupling
agents, and raw materials);
Additives & Coatings Business Unit
(catalysts, pigments, plastic additives, iodine & its derivatives,
functional monomers, paints);
Specialty Adhesives & Resins Business Unit (BMI,
EVA, paper chemicals, adhesives, petroleum resins, functional plastics, resin
additives, special film, polyimide film, color filter, LCD, IT related
products, touch screen ferrite materials);
Functional Chemicals Business Unit
(super absorbent polymer, m-xylene sulfuric acid & sodium derivatives,
optical monomer & polymers, release & masking films for electrical
materials, functional monomer & organic intermediates for photosensitive
materials);
Water Treatment & Friction Materials Business Unit (water
treatment chemicals, environmental/ecology related chemicals, chemicals for oil
wells, raw materials for friction parts, inorganic compound);
Pharma-Life Science Div:
Pharmaceutical Business Unit (pharmaceuticals, active
pharmaceutical ingredients, pharmaceutical intermediates, excipients);
Life Science Business Unit (quasi-drugs, cosmetics, health
foods, functional foods, food additives, dairy product, veterinary medicine,
feed, feed additives, cosmetics, agricultural chemicals, household & public
hygiene products, horticulture & home gardening products, other).
Clients: [Mfrs, wholesalers] Nippon Shokubai,
Mitsubishi Chemical, Kurita Water Ind, Teijin Ltd, Kansai Paint, Toray, DIC,
The Intec, Nippon Paint, Nitto Denko, Momentive Performance Materials Japan,
Sawai Pharmaceutical, Akebono Brake Ind, other
No. of
accounts: 500
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Sumitomo
Chemical, Kurita Water Ind, New STI Technology, GE Toshiba Silicon, Mitsubishi
Gas Chemical, Showa Denko, Nippon Paint, , Nippon Shokubai, Sanyo Chemical Ind,
Mitsubishi Pharma Corp, Momentive Performance Materials Japan, Asahi Kasei
Chemicals, other
Payment record:
Regular
Location:
Business area in Tokyo. Office premises
at the caption address are owned by the parent and maintained satisfactorily.
Bank References:
Mizuho
Bank (H/O)
SMBC
(Tokyo)
Relations:
Satisfactory
(In Million Yen)
|
Terms Ending: |
31/03/2016 |
31/03/2015 |
31/03/2014 |
31/03/2013 |
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Annual
Sales |
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155,200 |
150,700 |
148,943 |
123,433 |
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Recur.
Profit |
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5,100 |
5,005 |
4,675 |
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Net
Profit |
|
3,100 |
3,036 |
3,248 |
2,933 |
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Total
Assets |
|
|
60,562 |
58,675 |
52,881 |
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Current
Assets |
|
|
53,528 |
52,964 |
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Current
Liabs |
|
|
46,099 |
44,570 |
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Net
Worth |
|
|
13,267 |
12,851 |
11,623 |
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Capital,
Paid-Up |
|
|
1,100 |
1,100 |
1,100 |
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Div.Ttl
in Million (¥) |
|
|
2,923 |
2,054 |
2,003 |
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<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
|
2.99 |
1.18 |
20.67 |
-4.69 |
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Current Ratio |
|
.. |
116.12 |
118.83 |
.. |
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N.Worth Ratio |
|
.. |
21.91 |
21.90 |
21.98 |
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R.Profit/Sales |
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3.29 |
3.32 |
3.14 |
.. |
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N.Profit/Sales |
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2.00 |
2.01 |
2.18 |
2.38 |
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Return On Equity |
|
.. |
22.88 |
25.27 |
25.23 |
Note: Forecast
(or estimated) for the 31/03/2016 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.76 |
|
|
1 |
Rs.99.60 |
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Euro |
1 |
Rs.69.71 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
ASH |
RATING EXPLANATIONS
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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 |
-- |
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.