MIRA INFORM REPORT

 

 

Report No. :

324018

Report Date :

23.05.2015

 

IDENTIFICATION DETAILS

 

Name :

METAL ONE CORPORATION

 

 

Registered Office :

Celestine Shiba Mitsui Bldg, 3-23-1 Shiba Minatoku Tokyo 105-0014

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

January 2003

 

 

Com. Reg. No.:

(Tokyo-Minatoku) 049321

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject have specialized trading house for steel products

 

 

No. of Employee :

10,000

 

 

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. 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 and address

 

METAL ONE CORPORATION

 

REGD NAME:   KK Metal One

     MAIN OFFICE:         Celestine Shiba Mitsui Bldg, 3-23-1 Shiba Minatoku Tokyo 105-0014 JAPAN

                                    Tel: 03-6400-2000     Fax: 03-6400-2939

 

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

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

 

 

ACTIVITIES

 

Specialized trading house for steel products

 

 

BRANCHES

 

                        Domestic: Osaka, Nagoya, Hiroshima, Fukuoka, other (Tot 14)

Affiliated firms: 6 subsidiaries, named as Metal One plus area, such as Metal One Kyushu, etc)

 

 

OVERSEAS

 

                       Overseas: Americas (24), Europe (14 including Russia), Asia/Oceania (39, Including 9 in China), Mid East/Africa (16)

 

 

OFFICERS

 

IWAO TODA, PRES                 Takehiro Honda, v pres

                         Jun Kinukawa, dir                     Satoshi Nagai, dir

 

                        Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 2,305,696 M

                                    PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 100,000 M

                                    TREND             SLOW                           WORTH            Yen 355,987 M

                                    STARTED         2003                             EMPLOYES      10,000

 

COMMENT    

 

                         TRADING HOUSE SPECIALIZING IN STEEL PRODUCTS, JOINTLY OWNED BY MITSUBISHI CORP AND SOJITZ CORP. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established jointly on the basis of steel products divisions separated from each Mitsubishi Corp and the then Nissho Iwai Corporation (now Sojitz Corporation) in order to integrate steel business operations.  This is a specialized trading house for import, export and wholesale of steel products, stainless steel products, and other metal products.  The operations are composed of five core business divisions: Steel Plate, Tube & Construction Materials Div; Steel Sheet Products, Automotive Steel Products Business Div; Wire & Specialty Steel, Stainless Steel Div; International Steel Operation Div; and Energy Project International Business Div.  For operation details see OPERATION.  Has taken equity position of 20% in Usiminas SA (South America), and will proceed to expand operations in Brazil.  Metal One Corporation India Pvt. Ltd: founded in Jun/2008, headquartered in New Delhi, has branches in Mumbai, Chennai and Kolkata.  The firm is actively expanding operations in India, China and other emerging nations.  It is planning to increase capital share in JV in Brazil.  In Oct 2014 Metal One Structural Steel & Resource Corp and Mitsui & Co’s steel division merged to work together on structural steel business.

           

           

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 2,563,303 million, an 11% up from Yen 2,305,696 million in the previous term.  The recurring profit was posted at Yen 33,696 million and the net profit at Yen 23,731million, respectively, compared with Yen 28,057 million recurring profit and Yen 21,858 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 35,000 million and the net profit at Yen 33,000 million, respectively, on a 10% rise in turnover, to Yen2,320,500 million. 

 

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

 

 

REGISTRATION

 

            Date Registered: Jan 2003

            Regd No.:        (Tokyo-Minatoku) 049321

            Legal Status:      Limited Company (Kabushiki Kaisha)

            Authorized:        8,000 shares

            Issued:               2,000 shares

            Sum:                  Yen 100,000 million

           

Major shareholders (%): Mitsubishi Corp*(60), Sojitz Corp** (40)

            No. of shareholders: 2

 

*.. Mitsubishi Corporation, largest general trading house, Tokyo, founded 1950, listed Tokyo S/E, capital Yen 204,447 million, turnover Yen 7,589,255 million, operating profit Yen 198,467 million, recurring profit Yen 432,233 million, net profit Yen 444,793 million, total assets Yen 15,899,652 million, net worth Yen 5,017,620 million, employees 68,38375, pres Ken Kobayashi

 

**.. Sojitz Corporation, holding firm formed jointly by Nichimen Corp & Nissho Iwai Corp (both former names), Tokyo, founded 2003, listed Tokyo S/E, capital Yen 160,339 million, sales Yen 1,803,104 million, operating profit Yen 23,694 million, recurring profit Yen 44,033, net profit Yen 27,250 million, total assets Yen 2,194,060 million, net worth Yen 465,905 million, employees 16,130, pres Yoji Sato

 

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

 

 

OPERATION

 

            Activities: Imports, exports and wholesales steel products (--100%):

            Exports (28%)

 

(Handling items by Divisions)

Business Division A: heavy & medium plates, structural pipes, piping materials, steel bars, wide flange beams, general steel shapes, lightweight steel shapes, steel sheet piles, steel pipe piles, other structural steel, processed ferrous raw materials;

Business Division B: hot rolled plates & sheets, cold rolled steel plates & sheets, surface-treated steel plates & sheets, electrical sheets, tinned steel plates & sheets;

Business Division C: line pipes, oil country tubular goods (OCTGs), steel pipe piles, steel sheets, steel plates, steel shapes, round bars, semi-finished products;

Wire, Specialty Steel & Stainless Steel Division: (Wire rod sector): wire rods & secondary & tertiary wire rod products, specialty steel sector, structural steel, alloy steel, spring steel, ball-bearing steel, specialty steel sheets, free-cutting steel, heat-resistant steel, tool steel; (Stainless steel sector): stainless steel plates, sheets, strips, pipes, bar steel, shapes, round bars, stainless steel processed products, stainless steel scrap, titanium products, other

Operations (in terms of sales): Domestic (72%), Overseas (14%), Export (13%), Import (1%)

Clients: [Mfrs, wholesalers] Mitsubishi Heavy Ind, Mitsubishi Motors, Mitsubishi Electric, Suzuki Motors, Nissan Motors, other.

            No. of accounts: 2,000

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Nippon Steel & Sumitomo Metal Corp, JFE Steel, Kobe

Steel, Nisshin Steel, other

.           Payment record: No Complaints

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

            Bank References:

                        MUFG (H/O)

                        Mizuho Corporate 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

 

2,820,500

2,563,303

2,305,696

2,473,001

Recur. Profit

 

35,000

33,696

28,057

25,243

Net Profit

 

33,000

23,731

21,858

14,423

Total Assets

 

 

1,113,845

1,085,179

1,109,056

Current Assets

 

 

861,564

831,141

872,399

Current Liabs

 

 

647,160

648,240

708,725

Net Worth

 

 

355,987

329,956

299,820

Capital, Paid-Up

 

 

100,000

100,000

100,000

Div.P.Share(¥)

 

 

5925.00

5475.00

3600.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

10.03

11.17

-6.77

-2.00

    Current Ratio

 

..

133.13

128.22

123.09

    N.Worth Ratio

 

..

31.96

30.41

27.03

    R.Profit/Sales

 

1.24

1.31

1.22

1.02

    N.Profit/Sales

 

1.17

0.93

0.95

0.58

    Return On Equity

 

..

6.67

6.62

4.81

 

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

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.57

UK Pound

1

Rs.99.67

Euro

1

Rs.70.93

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.