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Report No. : |
352951 |
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Report Date : |
03.12.2015 |
IDENTIFICATION DETAILS
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Name : |
MARUBENI-ITOCHU STEEL INC |
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Registered Office : |
Nihombashi 1-Chome Bldg, 1-4-1 Nihombashi Chuoku Tokyo 103-8247 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
October 2001 |
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Com. Reg. No.: |
0100-01-075892 |
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Legal Form : |
Limited Company |
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Line of Business : |
A trading firm jointly owned by Marubeni Corp & Itochu
Corp, specializing in iron & steel products & related, IT-related
business, including development of supply chain management (SCM) system of
steel products, having the following 4 core divisions (--100%) |
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No. of Employees : |
889 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 |
MARUBENI-ITOCHU STEEL INC
REGD NAME: Itochu
Marubeni Tekko KK
MAIN OFFICE: Nihombashi
1-Chome Bldg, 1-4-1 Nihombashi Chuoku Tokyo 103-8247 JAPAN
Tel: 03-5204-3300
Fax: 03-5204-3810
URL: http://www.benichu.com/-Mail
address:
E-mail address:
(thru the URL to each Division)
ACTIVITIES: Import,
export, wholesale of iron & steel materials & products
BRANCHES: Osaka,
Nagoya, Sapporo, Hiroshima, Fukuoka, other (Total 59)
OVERSEAS: China
(5), India (3), Australia, USA (8), Canada (2), Europe/CIS, other (25)
SUBSIDIARIES: (Domestic)
35; (Overseas) 85 (Tot 120) (--including affiliates)
OFFICER(S): YASUO
MATSUURA, PRES Yasuhiko Koike, ch
Shuichi Okazaki, mgn dir Tomohito Kaneda, mgn dir
Tatsuhiko Toshita, mgn
dir Haruhiko Ida, mgn dir
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 1,111,296 M
PAYMENTSREGULAR CAPITAL Yen 30,000 M
TREND UP WORTH Yen 116,677 M
STARTED 2001 EMPLOYES 889
COMMENT: TRADING HOUSE SPECIALIZING IN STEEL
& IRON PRODUCTS, JOINTLY OWNED BY MARUBENI CORP & ITOCHU CORP.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
The subject company was created on the basis of spin-offs and integration of two steel products divisions at Marubeni Corp and Itochu Corp to form a separate entity. This is a trading house inheriting successful & traditional business rights of each firm in the line of steel & iron raw materials & products markets. The firm has four core divisions: Iron & Steel Div (1), Iron & Steel Div (2), Iron & Steel Div (3), and Tubular Products Div (for handling items see OPERATION). Osaka branch office handles these products in lump sum. Top-ranked in the specific business items. Clients include major car makers, heavy machinery mfrs, and electric appliances mfrs, nationwide.
The sales volume for Mar/2015 fiscal term amounted to Yen 1,111,296 million, a 4% up from Yen 1,065,229 million in the previous term. This is attributed to the acquisition of leading US OCTG distributor (acquired 2013), Sooner Inc, and higher trade profit buoyed by the weaker Yen. The recurring profit was posted at Yen 22,316 million and the net profit at Yen 17,028 million, respectively, compared with Yen 20,889 million recurring profit and Yen 13,621 million net profit, respectively a year ago.
For the current term ending Mar 2016 the recurring profit is projected at Yen 23,000 million and the net profit at 18,000 million, on a 5% rise in turnover, to Yen 1,166,860 million.
The financial situation is considered FAIR and good for ORDINARY business engagements.
Date Registered: Oct 2001
Regd No.:
0100-01-075892
(Tokyo-Chuoku)
Legal Status: Limited Company
(Kabushiki Kaisha)
Authorized: 2,400 shares
Issued:
600 shares
Sum: Yen
30,000 million
Major shareholders (%): Marubeni
Corp* (50), Itochu Corp** (50)
No. of shareholders: 2
*.. One of big 5 general trading houses, Tokyo, founded 1949, listed Tokyo, Nagoya, Frankfurt, Düsseldorf S/E’s, capital Yen 262,686 million, turnover Yen 7,834,295 million, operating profit Yen 23,632 million, recurring profit Yen 124,624 million, net profit Yen 105,604 million, total assets Yen 7,828,752 million, net worth Yen 1,619,125 million, employees 38,830, pres Fumiya Kokubu.
**.. Equally 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 300,519 million, total assets Yen 8,960,281 million, net worth Yen 2,538,840 million, employees 110,906, pres Masahiro Okafuji.
Nothing detrimental is known as to the commercial morality of executives.
Activities: A trading firm jointly owned by Marubeni Corp & Itochu Corp, specializing in iron & steel products & related, IT-related business, including development of supply chain management (SCM) system of steel products, having the following 4 core divisions (--100%):
Iron
& Steel Div (1): handles a full range of steel products for
automakers and auto parts makers, including carbon steel, specialty steel, stainless
steel, electrical steel sheets, magnequench powder, etc;
Iron
& Steel Div (2): handles steel sheet products for domestic users in
the appliance, furniture, container and office automation equipment, etc,
including foreign business of slabs, billets, blooms & other semi-finished
products, bars, shapes, plates, hot rolled and cold rolled steel, coated steel
sheets, tin mill products, clad steel plates, copper alloy tubes;
Iron
& Steel Div (3); handles plates & shapes, specialty steel,
wire products & stainless steel. The
division newly started Noble Metals Dept to handle noble items, such as
Titanium, Cupro-Nickel tubes,, offering package of noble metals required for
construction of Desalination Plants;
Tubular
Products Div: handles various types of tubular products and equipment & materials
for plant projects. Also exports pipes
for oil fields and major pipeline projects overseas. (Detailed breakdown of
each Division is not available.)
Exports
(60%).
Clients: [Automakers,
steel mfrs, wholesalers] Mazda Motor Corp, Fuji Heavy Ind, Nissan Motors, Isuzu
Motor, NTN, Matsushita Electric Ind, Kawasaki Heavy Ind, Hitachi Ltd, Exxon
Mobil, IHI Marine United, other
Exports to Hyundai (Korea), Thai Controlled
Steel Sheet, BNG Steel, other.
No. of accounts:
2,000
Domestic areas of
activities: Nationwide
Suppliers: [Steel mfrs,
wholesalers] Nippon Steel & Sumitomo Metal Ind, JFE Steel, Nisshin Steel,
Kobe Steel, Sanyo Special Steel, Sumitomo Metal Ind, Nippon Steel & Sumikin
Stainless Steel Corp, other.
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank
References:
Mizuho Bank
(Tokyo)
SMBC (H/O)
Relations:
Satisfactory
(In Million
Yen)
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Terms Ending: |
31/03/2016 |
31/03/2015 |
31/03/2014 |
31/03/2013 |
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Annual
Sales |
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1,166,860 |
1,111,296 |
1,065,229 |
985,054 |
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Recur.
Profit |
|
23,000 |
22,316 |
20,889 |
17,156 |
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Net
Profit |
|
18,000 |
17,028 |
13,621 |
13,198 |
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Total
Assets |
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|
484,201 |
452,115 |
365,212 |
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Current
Assets |
|
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310,554 |
286,430 |
255,242 |
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Current
Liabs |
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249,976 |
223,281 |
187,923 |
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Net
Worth |
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116,677 |
108,513 |
98,753 |
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Capital,
Paid-Up |
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30,000 |
30,000 |
30,000 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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5.00 |
4.32 |
8.14 |
-11.53 |
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Current Ratio |
|
.. |
124.23 |
128.28 |
135.82 |
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N.Worth Ratio |
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.. |
24.10 |
24.00 |
27.04 |
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R.Profit/Sales |
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1.97 |
2.01 |
1.96 |
1.74 |
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N.Profit/Sales |
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1.54 |
1.53 |
1.28 |
1.34 |
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Return On Equity |
|
.. |
14.59 |
12.55 |
13.36 |
Notes: Forecast (or estimated) figures for the
31/03/2016 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.66.62 |
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|
1 |
Rs.100.34 |
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Euro |
1 |
Rs.70.67 |
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JPY |
1 |
Rs. 0.54 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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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 |
-- |
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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.