MIRA INFORM REPORT

 

 

Report No. :

302802

Report Date :

22.01.2015

 

IDENTIFICATION DETAILS

 

Name :

SUMISHO METALEX CORPORATION

 

 

Registered Office :

Triton Office Square Tower 20F, 1-8-10 Harumi Chuoku Tokyo 104-6020

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015 (Estimated)

 

 

Date of Incorporation :

April 1973

 

 

Com. Reg. No.:

(Tokyo-Chuoku) 020211

 

 

Legal Form :

Limited Company

 

 

Line of Business :

importer, exporter and wholesaler of Aluminum Products & Components including Electric/Electronic Products, Transport, Industrial Components, Hot-Water Heating Systems, Housing Equipment & Building Materials

 

Subject product ranges includes:

 

Electric & Electronic Products: solar power generation, rechargeable battery, materials for air conditioners, electric & telecommunication equipment (aluminum sheets & fabricated products for satellite antenna, fabricated products for terrestrial antenna)

 

Transport, Industrial Components: transport (pistons & connecting rods for engines, aluminum materials & precision products for aircrafts, precision products for oil pressure control systems, aluminum molded/forged products, aluminum extrusion, heat exchangers;

 

Hot-Water Heating Systems: hot-water heating terminal, hot-water piping components, hot-water floor heating, hot-water radiator;

 

Housing Equipment/Facilities: air supply/exhaust pipe components, water supply system by plastic piping, fire extinguishing equipment;

 

Building Materials: exterior/roofing materials, plastic building materials, metallic materials.

 

 

No of Employees :

223

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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

 

SUMISHO METALEX CORPORATION

 

 

REGD NAME

 

Sumisho Metalex KK

 

 

MAIN OFFICE

 

Triton Office Square Tower 20F, 1-8-10 Harumi Chuoku Tokyo 104-6020 JAPAN

 

Tel: 03-3533-6010     Fax: 03-3533-6019

 

*.. The is its Osaka Branch at: 4-5-33 Kitahama Chuoku Osaka

 

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

E-mail:             (thru the URL)   

 

 

ACTIVITIES

 

importer, exporter and wholesaler of Aluminum Products & Components including Electric/Electronic Products, Transport, Industrial Components, Hot-Water Heating Systems, Housing Equipment & Building Materials

 

BRANCHES

 

Osaka, Nagoya, Sapporo, Niigata, Hiroshima, Fukuoka

 

 

OFFICER(S

 

YOSHIFUMI YAMAWAKI, PRES Masaaki Yoshimoto, dir

Shin’ichi Hikono, dir                               Tsutomu Morikawa, dir

Akihiko Shono, dir                                 Koji Fukushima, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                                         A/SALES          Yen 78,827 M

PAYMENTSNo Complaints                CAPITAL           Yen 1,169 M

TREND STEADY                                   WORTH            Yen 9,262 M

STARTED         1973                                         EMPLOYES      223

 

 

COMMENT    

 

TRADING FIRM SPECIALIZING IN ALUMINUM PRODUCTS & COMPONENTS, WHOLLY OWNED BY SUMITOMO CORP. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a non-ferrous metal division separated from Sumitomo Corporation, one of leading general trading houses, Tokyo (See REGISTRATION).  This is a trading firm specializing in import, export and wholesale of aluminum products & components: electric/electronic products, transport, industrial components, hot-water heating systems, housing equipment & building materials (Details in OPERATION).   Major items are hot-water supply, heating systems.  Clients include city gas companies, electronics mfrs, other.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 78,827 million, a 15% up from Yen 68,394 million in the previous term.  Sales of hot-water heating system were in good demand and sales rose.  The recurring profit was posted at Yen 2,389 million and the net profit at Yen 1,451 million, respectively, compared with Yen 1,749 million recurring profit and Yen 1,050 million net profit, respectively, a year ago.  .

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 2,400 million and the net profit at Yen 1,500 million, respectively, on a 5% rise in turnover, to Yen 82,500 million.  Sales of floor heating system continue rising.    

           

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

 

 

REGISTRATION

 

Date Registered:            Apr 1973

Regd No.:          (Tokyo-Chuoku) 020211

Legal Status:     Limited Company (Kabushiki Kaisha)

Authorized:       39 million shares

Issued:              9.98 million shares

Sum:                 Yen 1,169,800 million

 

Major shareholders (%): Sumitomo Corporation* (100)

           

*.. One of general trading houses, Tokyo, founded 1919, listed Tokyo, Nagoya, Fukuoka S/E’s, capital Yen 219,279 million, turnover Yen 3,317,406 million, operating profit Yen 171,750 million, recurring profit Yen 304,246 million, net profit Yen 223,064 million, total assets Yen 8,604,791 million, net worth Yen 2,427,576 million, employees 74,638, pres Kuniharu Nakamura

 

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

 

OPERATION

 

Activities: Imports, exports and wholesales components water-supply systems, including hot-water supply, fabricated products for electric/electronic, transport and general machinery industries, building materials, others (--100%).

 

(Handling Items):

Electric & Electronic Products: solar power generation, rechargeable battery, materials for air conditioners, electric & telecommunication equipment (aluminum sheets & fabricated products for satellite antenna, fabricated products for terrestrial antenna)

 

Transport, Industrial Components: transport (pistons & connecting rods for engines, aluminum materials & precision products for aircrafts, precision products for oil pressure control systems, aluminum molded/forged products, aluminum extrusion, heat exchangers;

 

Hot-Water Heating Systems: hot-water heating terminal, hot-water piping components, hot-water floor heating, hot-water radiator;

 

Housing Equipment/Facilities: air supply/exhaust pipe components, water supply system by plastic piping, fire extinguishing equipment;

 

Building Materials: exterior/roofing materials, plastic building materials, metallic materials.

 

Clients: [Mfrs, wholesalers] Sharp Corp, Tokyo Gas Co, Osaka Gas Co, other

            No. of accounts: 800

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sumitomo Light Metal Ind, Sumitomo Metal Mining, UACJ, Tanaka Chemical Corp, other.

 

Payment record: No Complaints 

 

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


Bank References:

SMBC (Tokyo)

Sumitomo Trust Bank (Tokyo)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

82,500

78,827

68,394

81,053

Recur. Profit

 

2,400

2,389

1,749

1,723

Net Profit

 

1,500

1,451

1,050

1,024

Total Assets

 

 

26,586

28,313

25,657

Current Assets

 

 

25,861

27,557

24,924

Current Liabs

 

 

16,719

18,898

16,256

Net Worth

 

 

9,260

8,856

8,782

Capital, Paid-Up

 

 

1,169

1,169

1,169

Div.Ttl in Million (¥)

 

 

0.00

1,024.5

561.3

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.66

15.25

-15.62

-22.71

    Current Ratio

 

..

154.68

145.82

153.32

    N.Worth Ratio

 

..

34.83

31.28

34.23

    R.Profit/Sales

 

2.91

3.03

2.56

2.13

    N.Profit/Sales

 

1.82

1.84

1.54

1.26

    Return On Equity

 

..

15.67

11.86

11.66

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.61

UK Pound

1

Rs.93.49

Euro

1

Rs.71.38

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

MNL

 

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.