MIRA INFORM REPORT

 

 

Report No. :

320754

Report Date :

06.05.2015

 

IDENTIFICATION DETAILS

 

Name :

NYK TRADING CORPORATION

 

 

Registered Office :

World Trade Center Bldg 34F, 2-4-1 Hamamatsucho Minatoku Tokyo 105-6134

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

March 1948

 

 

Com. Reg. No.:

038478

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, wholesale of petroleum products, chemicals, ship machinery & equipment, plant machinery.

 

 

No. of Employees :

160

 

 

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 2,792.4 Million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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

 

NYK TRADING CORPORATION

 

REGD NAME:   Yusen Shoji KK

 

 

Address

 

MAIN OFFICE:  World Trade Center Bldg 34F, 2-4-1 Hamamatsucho Minatoku Tokyo 105-6134

                                    JAPAN

                                    Tel: 03-5408-7113     Fax: 03-5408-7163

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

E-Mail address: info@yusenshoji.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of petroleum products, chemicals, ship machinery & equipment, plant machinery

 

 

BRANCHES

 

Nagoya, Kobe, Hiroshima, Moji, Nagasaki, Yokohama

 

 

OVERSEAS

 

UK, USA, Philippines, China (--subsidiaries)

 

 

OFFICER(S)

 

HIDENORI HONO, PRES                       Jun’ichi Yokoyama, mgn dir

Keizo Murakoso, mgn dir                       Mitsuhiko Sunouchi, dir

Fumiya Aoki, dir                                                Mikishiro Ichimura, dir               

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                                         A/SALES          Yen 154,277 M

PAYMENTSSLOW BUT CORRECT                     CAPITAL           YEN 1,246 M

TREND STEADY                                   WORTH            Yen 5,499 M

STARTED         1948                                         EMPLOYES      160

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN PETROLEUM PRODUCTS, CHEMICALS & MACHINERY, AFFILIATED WITH NIPPON YUSEN KK. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 2,792.4 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established as a trading firm by Nippon Yusen KK, nation’s lar-           gest shipping company, Tokyo (See REGISTRATION).  This is a trading firm for import, export    and wholesale of petroleum products, chemicals, ship & industrial machinery, other.  Originally      named as Hikawa Shoji KK, and in Oct 2003 the firm merged with Asahi Kiso KK and renamed as       captioned.   Clients & suppliers include major petroleum refineries.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 154,277 million, a 14% up from Yen 134,894 million in the previous term, as substantially affected by the global economic downturn.  The recurring profit was posted at Yen 271 million and the net profit at Yen 366 million, respectively, compared with Yen 653 million recurring profit and Yen 757 million net profit, respectively, a year ago.

 

For the term that ended Mar 2015 the recurring profit was projected at Yen 350 million and the net profit at Yen 375 million, respectively, on a 10% rise in turnover, to Yen 170,000 million.  Final results are not yet to be released.

           

The financial situation is considered FAIR and good for ORDINARY business      engagements.  Max credit limit is estimated at Yen 2,792.4 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:         Mar 1948

Regd No.:                 (Tokyo-Minatoku) 038478

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         90 million shares

Issued:                24,922,520 shares

Sum:                   Yen 1,246,126,000 million

 

Major shareholders (%): Nippon Yusen KK*(79.2), Showa Shell Sekiyu (2.7)        , Yamatake Corp (2.3), MUFG (2.2), Yanmar Co (1.9), Daihatsu Diesel (1.9), other

 

No. of shareholders: 120

           

  * Japan’s largest shipping company, founded 1885, listed Tokyo, Nagoya S/E’s, capital Yen 144,319 million, turnover Yen 2,237,239 million, operating profit Yen 44,995 million, recurring profit Yen 58,424 million, net profit Yen 33,049 million, total           assets Yen 2,610,735 million, net worth Yen 766,940 million, employees 32,342, pres       Tadashi Naito   

           

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

 

           

OPERATION

 

Activities: Trading firm for imports, exports and wholesales: Petroleum products (fuel oil),                                              Chemical ingredients & plastic products, solar energy generation equipment, Industrial                 machinery & equipment, energy saving systems, other (--100%)

           

Clients: [Oil refineries, shipping companies, wholesalers] Nippon Yusen Kaisha,             Mitsubishi Corp, Canon Inc, Mitsubishi Heavy Ind, Asahi Kasei Corp, Mitsui & Co,     Kawasaki Heavy Ind, Sinanen Co, other.

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Oil refineries, mfrs, wholesalers] Showa Shell Sekiyu, JX Nippon Oil & Energy Corp, Shell Chemicals Japan, Yamatake Corp, Yanmar Co, other

 

Payment record: Regular

 

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

 

 

Bank References:

                        MUFG (H/O)

                        Mitsubishi UFJ Trust Bank (H/O)

                        Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

170,000

154,277

134,894

144,887

Recur. Profit

 

350

271

653

512

Net Profit

 

375

366

757

119

Total Assets

 

 

27,299

24,667

26,312

Current Assets

 

 

23,546

21,859

 

Current Liabs

 

 

19,966

17,694

 

Net Worth

 

 

5,499

5,550

4,839

Capital, Paid-Up

 

 

1,246

1,246

1,246

Div.P.Share(¥)

 

 

6.00

10.00

3.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

10.19

14.37

-6.90

19.07

    Current Ratio

 

..

117.93

123.54

..

    N.Worth Ratio

 

..

20.14

22.50

18.39

    R.Profit/Sales

 

0.21

0.18

0.48

0.35

    N.Profit/Sales

 

0.22

0.24

0.56

0.08

    Return On Equity

 

..

6.66

13.64

2.46

 

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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.52

UK Pound

1

Rs.95.96

Euro

1

Rs.70.54

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

VNT

 

               

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.