MIRA INFORM REPORT

 

 

Report No. :

306997

Report Date :

07.02.2015

 

IDENTIFICATION DETAILS

 

Name :

TETSUSHO KAYABA CORP

 

 

Registered Office :

Kaneyama Building 7F, 1-2-12 Shinkawa Chuoku Tokyo 104-0033

 

 

Country :

Japan

 

 

Financials (as on) :

31.01.2015

 

 

Date of Incorporation :

February 1957 

 

 

Com. Reg. No.:

0117-01-005260

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is manufacturer, processing, import, export of steel products.

 

 

No. of Employee :

29

 

 

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 :

No complaints

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 and address

 

TETSUSHO KAYABA CORP

 

REGD NAME:    Tetsusho KK

MAIN OFFICE:  Kaneyama Bldg 7F, 1-2-12 Shinkawa Chuoku Tokyo 104-0033JAPAN

Tel: 03-3206-3221     Fax: 03-3206-3633

 

                        *.. Registered at: 7-24-17 Matsue Edogawaku Tokyo

 

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

E-Mail address: tetsusho@tetsusho.co.jp

 

ACTIVITIES:     Mfg, processing, import, export of steel products

BRANCHES:     Kimitsu

FACTORIES:     Tokyo (at the registered address)

OVERSEAS:     Korea, China, Singapore, Sri Lanka, Indonesia

 

 

OFFICERS

 

TSUNEO FUKUDA, PRES          Hironori Maruyama, v pres                                                                                        orihiro Shukube, s/mgn dir          Kazuyuki Matsumoto, mgn dir

Keita Fukuda, mgn dir                Ken’ichi Arai, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 20,496 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 61 M

TREND UP                                WORTH            Yen 2,061 M

STARTED         1957                             EMPLOYES      29

 

 

COMMENT

 

MFR, IMPORTER AND EXPORTER OF STEEL PRODUCTS. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

           


HIGHLIGHTS

           

The subject company was established by Keisuke Furuya, as Tetsusho KK, at the registered address (now Tokyo Factory), for wholesaling steel products.  This is a trading firm, with mfg division, specializing in steel products, such as steel plates, steel sheets, stainless steel plates, etc.  In 1958, founded Kayaba Trading KK to engage in overseas trading, which the firm absorbed in 1994.  Tsuneo Fukuda took the pres office in Nov 1995.  Has processing yards in China, Sri Lanka and Indonesia.  Active in overseas expansion.  Founded a Singaporean subsidiary in Jul 2007.  Clients are Nippon Steel group & affiliated firms, including major general trading houses.  .

 

 

FINANCIAL INFORMATION

           

The sales volume for Jan/2014 fiscal term amounted to Yen 20,496 million, a 13% up from Yen 18,130 million in the previous term.  Exports were robust, increasing the volume by 370,000 tons.  The recurring profit was posted at Yen 1430 million and the net profit at Yen 166 million, respectively, compared with Yen 179 million recurring profit and Yen 36 million net profit, respectively, a year ago

 

For the term that ended Jan 2015 the recurring profit was projected at Yen 450 million and the net profit at Yen 175 million, respectively, on a 3% rise in turnover, to Yen 21,100 million.  The final results are yet to be released.   

 

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

 

 

REGISTRATION

           

Date Registered:           Feb 1957

Regd No.:                     0117-01-005260 (Tokyo-Edogawaku)

Legal Status:              Limited Company (Kabushiki Kaisha)

Authorized:                  490,000 shares

Issued:                         122,500 shares

Sum:                            Yen 61.25 million

Major shareholders (%): Tsuneo Fukuda (26), Nippon Steel Trading Co Ltd (24),                                                                                 Company’s treasury stock (10), Hironori Maruyama (5), Keita Fukuda (3)

No. of shareholders:    16

 

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

 

 

OPERATION

           

Activities: Manufactures & processes steel products (--100%):

(Sales breakdown by divisions):

Domestic Sales Div: hot rolled steel sheets (60%), acid pickling steel sheets (27%),                                

cold rolled steel sheets (4%), surface-treated steel sheets (6%), others (3%);

Overseas Sales Div: hot rolled steel sheets (20%), cold rolled steel sheets (15%),                                   

surface-treated steel sheets (45%), electromagnetic steel sheets (5%), colored steel                                 

sheets (2%), stainless steel sheets (5%), others (8%).

 

Products are manufactured and processed at overseas subsidiary factories and affili-                                   ates in China, Sri Lanka, Indonesia, Korea, etc.

 

 

Clients: [Mfrs, wholesalers] Nippon Steel Trading Co, Shinsei Sangyo, Metal One Corp, , Hanwa Corp, Onoken Co, Mitsui & Co, Summit Steel, Fuji Koeki Ltd, Matex Co, other. 

Exports to China, Sri Lanka, Indonesia, Singapore and other S/E Asian countries.

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Steel mills, mfrs, wholesalers] Nippon Steel Trading, Mitsui & Co, Nittetsu Shoji Coil Center, Nippon Stainless Shoji, Siam United Steel, Metal One Corp, Hanwa Corp, other. 

Imports from China, Sri Lanka, Indonesia, other.

 

Payment record: No Complaints.

 

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

 

Bank References:

SMBC (Nihombashi-Higashi)

Mizuho Bank (Shinkawa)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/01/2015

31/01/2014

31/01/2013

31/01/2012

Annual Sales

 

21,100

20,496

18,130

18,359

Recur. Profit

 

450

430

179

321

Net Profit

 

175

166

36

117

Total Assets

 

 

7,904

6,254

6,173

Current Assets

 

 

6,259

4,662

4,655

Current Liabs

 

 

4,841

3,317

3,174

Net Worth

 

 

2,061

1,915

1,900

Capital, Paid-Up

 

 

61

61

61

Div.Ttl in Million (¥)

 

 

21.2

21.2

21.2

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

2.95

13.05

-1.25

2.90

    Current Ratio

 

..

129.29

140.55

146.66

    N.Worth Ratio

 

..

26.08

30.62

30.78

    R.Profit/Sales

 

2.13

2.10

0.99

1.75

    N.Profit/Sales

 

0.83

0.81

0.20

0.64

    Return On Equity

 

..

8.05

1.88

6.16

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 61.73

UK Pound

1

Rs. 94.65

Euro

1

Rs. 70.79

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

 

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.