MIRA INFORM REPORT

 

 

Report No. :

333974

Report Date :

08.08.2015

 

IDENTIFICATION DETAILS

 

Name :

INABATA & CO LTD

 

 

Registered Office :

Sakai-Suji Inabata Bldg, 1-15-14 Minami-Semba Chuoku Osaka 542-0081

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

June 1918

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Chemicals trading company: information electronics (37%), housing materials (4%), chemicals (9%), synthetic resins (44%), and lifestyle (6%)

 

 

No. of Employee :

3,454

 

 

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

 

Maximum Credit Limit :

Yen 17,467.6 Million

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 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.

 

Source : CIA

Company name and address

 

INABATA & CO LTD

 

REGD NAME:   Inabata Sangyo KK

MAIN OFFICE:  Sakai-Suji Inabata Bldg, 1-15-14 Minami-Semba Chuoku Osaka 542-0081

                                    JAPAN

                                    Tel: 06-6267-6051     Fax: 06-6267-6043    

 

                                    *.. The is its Tokyo Office

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Import, export and wholesale of information electronics, synthetic resin, other

 

 

BRANCHES

 

Tokyo, Nagoya, Kirishima, other (Tot 4)

 

 

OVERSEAS

 

Singapore, India, China, USA, Indonesia, other (--60 locations in 17 countries)

 

 

CHIEF EXEC

 

KATSUTARO INABATA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 572,114 M

PAYMENTSREGULAR   CAPITAL           Yen 9,364 M

TREND UP                    WORTH            Yen 128,526 M

STARTED         1918                 EMPLOYES      3,454

 

 

COMMENT

 

CHEMICALS TRADING COMPANY

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 17,467.6 MILLION, 30 DAYS NORMAL TERMS

 

Unit: In Million Yen

Forecast figures for the 31/03/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is a specialist trading house having association with Sumitomo Chemical.  Mainlines comprise of synthetic resins, and electronic materials and housing materials.  Fostering rare metals and mask blanks for semiconductors.  Extensively developing in Asian markets.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 572,114 million, a 1.9% up from Yen 561,173 million in the previous term.  Sales of synthetic resins rose steadily.  The recurring profit was posted at Yen 13,217 million and the net profit at Yen 8,630 million, respectively, compared with Yen 12,454 million recurring profit and Yen 8,669 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 12,800 million and the net profit at Yen 8,500 million, respectively, on a 6.6% rise in turnover, to Yen 610,000 million.  Sales of synthetic resins will further rise, backed by robust demand for automobile-related products.  The information electronics business will improve thanks to recovering polarizing plate sales in China.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 17,467.6 million, on 30 days normal terms.

 

REGISTRATION

           

Date Registered:　        Jun 1918

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                  200 million shares

Issued:                         63,499,227 shares

Sum:                            Yen 9,364 million

 

Major shareholders (%): Sumitomo Chemical (21.7), Japan Trustee Services T (5.0), JP Morgan Chase Bank 385093 (4.3), Master Trust Bank of Japan T (3.7), TCSB (Mizuho Bank) (2.7), other; foreign owners (26.4)

 

No. of shareholders: 3,969       

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Katsutaro Inabata, pres; Osamu Nishimura, s/mgn dir; Toyohiro Akao, s/mgn dir; Toshiyuki Suganuma, mgn dir; Ken’ichi Yokota, mgn dir; Tomohiko Sato, mgn dir; Mitsunori Takahagi, dir; Yoshimasa Takao, dir; Katsumi Nakamura, dir

 

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

 

Related companies: Inabata Singapore, Inabata America, other.

 

 

OPERATION

 

Activities: Chemicals trading company: information electronics (37%), housing materials (4%), chemicals (9%), synthetic resins (44%), and lifestyle (6%)

Overseas Sales Ratio (51%)

 

Clients: [Mfrs, wholesalers] Sumika Technology, Dongwoo Fine-Chem, Sumitomo           Chemical, LIXIL, other

            No. of accounts: 500

            Domestic areas of activities: Nationwide

            Suppliers: [Mfrs, wholesalers] Kuraray, Nissan Chemical Ind, Sumitomo Chemical, Riken              Technos, other

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Yokoyamacho)

SMBC (Ningyocho)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

  Annual Sales

　

572,114

561,173

  Cost of Sales

533,073

522,662

      GROSS PROFIT

39,040

38,511

  Selling & Adm Costs

28,266

27,574

      OPERATING PROFIT

10,774

10,936

  Non-Operating P/L

2,443

1,518

      RECURRING PROFIT

13,217

12,454

　

      NET PROFIT

8,630

8,669

BALANCE SHEET

  Cash

　

23,572

23,262

  Receivables

155,960

144,006

  Inventory

47,142

41,767

  Securities, Marketable

　

　

  Other Current Assets

8,301

5,624

      TOTAL CURRENT ASSETS

234,975

214,659

  Property & Equipment

12,649

11,656

  Intangibles

3,624

3,690

  Investments, Other Fixed Assets

75,614

75,032

      TOTAL ASSETS

326,862

305,037

  Payables

91,158

84,008

  Short-Term Bank Loans

54,460

63,134

　

　

　

  Other Current Liabs

9,095

7,934

      TOTAL CURRENT LIABS

154,713

155,076

  Debentures

　

　

  Long-Term Bank Loans

24,354

13,448

  Reserve for Retirement Allw

909

1,277

  Other Debts

　

18,359

19,355

      TOTAL LIABILITIES

198,335

189,156

      MINORITY INTERESTS

  Capital, Paid-Up

9,364

9,364

  Surplus

119,162

106,517

      SHAREHOLDERS' EQUITY

128,526

115,881

　

      TOTAL EQUITIES

326,862

305,037

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2015

31/03/2014

Cash Flows from Operating Activities

　

8,354

-764

Cash Flows from Investment Activities

-3,044

-5,467

Cash Flows from Financing Activities

-8,193

3,638

　

Cash, Bank Deposits at the Term End

　

17,394

18,402

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

Net Worth (S/Holders' Equity)

128,526

115,881

Current Ratio (%)

151.88

138.42

Net Worth Ratio (%)

39.32

37.99

Recurring Profit Ratio (%)

2.31

2.22

Net Profit Ratio (%)

1.51

1.54

Return On Equity (%)

6.71

7.48

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.81

UK Pound

1

Rs.98.93

Euro

1

Rs.69.66

 

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

Report Prepared by :

ANK

 

 

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.