MIRA INFORM REPORT
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Report No. : |
327059 |
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Report Date : |
12.06.2015 |
IDENTIFICATION DETAILS
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Name : |
NIPPON STEEL & SUMIKIN BUSSAN
CORPORATION |
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Registered Office : |
Nittetsu Sumikin Bussan Bldg, 8-5-27 Akasaka Minatoku Tokyo 107-8527 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
October 2013 |
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Com. Reg. No.: |
0100-01-094558 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, export, wholesale of steel, raw fuels, industrial machinery
& materials |
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No. of Employees : |
7,778 |
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 : |
Satisfactory |
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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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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 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 & address
NIPPON STEEL & SUMIKIN BUSSAN CORPORATION
(Born by the merger of Nippon Steel Trading Co Ltd
& Sumikin Bussan Corp in Oct/2013)
REGD
NAME
Nittetsu Sumikin Bussan KK
MAIN
OFFICE
Nittetsu Sumikin
Bussan Bldg, 8-5-27 Akasaka Minatoku Tokyo 107-8527 JAPAN
Tel:
03-5412-5001 Fax: 03-5412-5101 -
URL: http://www.nssbussmc.com
E-Mail address: (thru the URL)
ACTIVITIES
Import, export,
wholesale of steel, raw fuels, industrial machinery & materials
BRANCHES
31 domestic
(nationwide)
OVERSEAS
36 cities in 17
countries
CHIEF
EXEC
ICHIRO MIYASAKA,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,443,843 M
PAYMENTSREGULAR CAPITAL Yen
12,335 M
TREND UP WORTH Yen 157,554 M
STARTED 1977 EMPLOYES 7,778
COMMENT
TRADING FIRM SPECIALISING IN STEEL
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
Unit: In Million Yen. Figures until the 31/03/2013 fiscal term are
those of the Nippon
Steel Trading Co
Ltd before the merger
Forecast figures for the 31/03/2015 fiscal term.
HIGHLIGHTS
The subject
company was born in Oct 2013 by the merger of Nippon Steel Trading Co Ltd and
Sumikin Bussan Corporation in order to integrate steel operations. This is a steel product trading house having
strong ties with Nippon Steel & Sumitomo Metal. Downsizing businesses, including foodstuffs,
construction, etc and management resources concentrating on steel-related
areas. Pioneer in field of
e-commerce. .
FINANCIAL
INFORMATION
The sales volume
for the initial accounting term that ended Mar/2014 fiscal term amounted to Yen
1,443,843 million. The recurring profit
was posted at Yen 21,830 million and the net profit at Yen 22,768 million, respectively.
(Apr/Dec/2014
results): Sales Yen 1,569,208 million, operating profit Yen 20,572 million,
recurring profit Yen21,171 million, net profit Yen 13,116 million.
For the current term ending Mar 2015 the recurring profit is projected at
Yen 31,000 million and the net profit at Yen 17,500 million, respectively, on
sales turnover of Yen 2,120,000 million.
Sales will expand on the merger effect making a full-term contribution. Mainline wholesaling of steel materials will
be brisk for the construction industry and sales volume will increase steadily.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date
Registered: Aug 1977 (of the former Nippon Steel Trading Co)
Regd
No.: 0100-01-094558 (Tokyo-Minatoku)
Legal Status: Limited
Company (Kabushiki Kaisha
Authorized:
500 million shares
Issued: 395,078,001
shares
Sum: Yen 12,335 million
Major shareholders
(%):
Nippon Steel & Sumitomo Metal (35.9), Mitsui & Co (10.9), Japan Trustee
Services T (3.7), Master Trust Bank of Japan T (2.7), Kyoei Steel (1.2),
Employees’ S/Holding Assn (1.2), SSBT OD05 Omnibus Acct Treaty (0.7), Chuo
Denki Kogyo (0.6), JTSB (Chuo Denki Kogyo) (0.6), Air Water (0.6); foreign owners
(10.4)
No.
of shareholders: 10,888
Listed on the S/Exchange (s) of: Tokyo
Managements: Ichiro Miyasaka,
pres; Mitsunori Okada, v pres; Kenji Hiwatari, v pres; Tsuneaki Eguchi, v pres;
Kazuo Yamaguchi, s/mgn dir; Kenji Kamata, s/mgn dir; Akio Tamagawa, s/mgn dir;
Etsuo Shimotori, s/mgn dir; Keiji Kurita, s/mgn dir; Masaharu Takeda, s/mgn dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: NSL Coil Center, Igeta Sunrise Pipe,
Sumikin Bussan Kenzai, etc.
OPERATION
Activities: Imports, exports
and wholesales steel products (coking coal, non-ferrous metal) (72%), textiles
(13%), foods (9%), industrial machinery & infrastructure (7%)
Overseas
Sales Ratio (21%)
Clients: [firs,
wholesalers] Nittetsu Group firms, other
No. of accounts:
500
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Nittetsu Sumikin Stainless, Nittetsu Sumikin Kenzai (building
materials), other
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
SMBC (H/O)
MUFG (Tokyo)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME STATEMENT |
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Annual Sales |
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1,443,843 |
1,026,354 |
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Cost of Sales |
1,349,555 |
980,512 |
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GROSS PROFIT |
94,287 |
45,841 |
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Selling & Adm Costs |
73,326 |
35,888 |
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OPERATING PROFIT |
20,961 |
9,952 |
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Non-Operating P/L |
869 |
-148 |
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RECURRING PROFIT |
21,830 |
9,804 |
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NET PROFIT |
22,768 |
6,154 |
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BALANCE SHEET |
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Cash |
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26,879 |
19,536 |
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Receivables |
383,665 |
159,123 |
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Inventory |
89,457 |
27,814 |
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Securities, Marketable |
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Other Current Assets |
16,846 |
12,551 |
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TOTAL CURRENT ASSETS |
516,847 |
219,024 |
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Property & Equipment |
56,303 |
18,198 |
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Intangibles |
992 |
1,061 |
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Investments, Other Fixed Assets |
68,162 |
23,399 |
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TOTAL ASSETS |
642,304 |
261,682 |
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Payables |
253,944 |
107,120 |
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Short-Term Bank Loans |
166,331 |
50,868 |
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Other Current Liabs |
29,515 |
20,310 |
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TOTAL CURRENT LIABS |
449,790 |
178,298 |
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Debentures |
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Long-Term Bank Loans |
23,170 |
15,000 |
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Reserve for Retirement Allw |
2,785 |
616 |
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Other Debts |
|
9,004 |
5,261 |
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TOTAL LIABILITIES |
484,749 |
199,175 |
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MINORITY INTERESTS |
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Common
stock |
12,335 |
8,750 |
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Additional
paid-in capital |
50,644 |
8,750 |
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Retained
earnings |
74,398 |
36,262 |
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Evaluation
p/l on investments/securities |
2,572 |
603 |
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Others |
17,700 |
8,214 |
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Treasury
stock, at cost |
(95) |
(73) |
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TOTAL S/HOLDERS` EQUITY |
157,554 |
62,506 |
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TOTAL EQUITIES |
642,304 |
261,682 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash
Flows from Operating Activities |
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-15,463 |
3,891 |
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Cash
Flows from Investment Activities |
-9,088 |
97 |
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Cash
Flows from Financing Activities |
18,650 |
-7,473 |
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Cash,
Bank Deposits at the Term End |
|
26,027 |
19,030 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
157,554 |
62,506 |
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Current
Ratio (%) |
114.91 |
122.84 |
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Net
Worth Ratio (%) |
24.53 |
23.89 |
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Recurring
Profit Ratio (%) |
1.51 |
0.96 |
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Net
Profit Ratio (%) |
1.58 |
0.60 |
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Return
On Equity (%) |
14.45 |
9.85 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.89 |
|
|
1 |
Rs.98.90 |
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Euro |
1 |
Rs.72.31 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
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.