MIRA INFORM REPORT

 

 

Report No. :

324405

Report Date :

25.05.2015

 

IDENTIFICATION DETAILS

 

Name :

MATSUTANI CHEMICAL INDUSTRY CO LTD

 

 

Registered Office :

5-3 Kita-Itami Itami Hyogo-Pref 664-8508

 

 

Country :

Japan

 

 

Financials (as on) :

30.11.2014

 

 

Date of Incorporation :

January 1937

 

 

Com. Reg. No.:

(Hyogo-Itami) 001254

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufactures & processes starch

 

 

No. of Employee :

437

 

 

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 :

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 and address

 

MATSUTANI CHEMICAL INDUSTRY CO LTD

 

REGD NAME:   Matsutani Kagaku Kogyo KK

MAIN OFFICE:  5-3 Kita-Itami Itami Hyogo-Pref 664-8508 JAPAN

                                    Tel: 072-771-2010     Fax: 072-771-7447

 

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

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

 

ACTIVITIES

 

Mfg, processing of starch

 

 

BRANCHES

 

Tokyo, Nagoya, Fukuoka, Hiroshima, Niigata, Takamatsu

 

 

OVERSEAS

 

USA, Korea, China

 

 

FACTORIES

 

At the caption address; Thailand (JV factory)

 

OFFICER(S)

 

HARUYO MATSUTANI, PRES    Eijiro Matsutani, ch

            Hiroshi Matsutani, v ch              Yoshinobu Matsutani, v pres

            Masayuki Ueno, s/mgn dir          Kazuhiro Okuma, s/mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

        FINANCES            FAIR                             A/SALES                      Yen 55,641 M

            PAYMENTS      SLOW BUT CORRECT   CAPITAL                       Yen 100 M

            TREND             STEADY                       WORTH                        Yen 18,809 M

            STARTED         1937                             EMPLOYES                  437

 

COMMENT

 

MFR OF STARCH

FINANCIAL SITUATION CONSIDERED FARI AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

HIGHLIGHTS

 

The subject company was established by Kameichiro Matsutani in order to start starch business in Osaka.  Present executives are the founder’s descendants.  Specializes in mfg and processing starch.  Has JV factory in Thailand, and with ADM USA.  Mfg factory consists of malt dextrin factory and granulation factory.  Controls about 50% market share of processed starch domestically.  Domestic clients are major food processors nationwide.

 

 

FINANCIAL INFORMATION

 

The sales volume for Nov/2014 fiscal term amounted to Yen 55,641 million, a 9% up from Yen 51,204 million in the previous term.  The recurring profit was posted at Yen 905 million and the net profit at Yen 449 million, respectively, compared with Yen 1,450 million and Yen 860 million, respectively, a year ago.

 

For the current term ending Nov 2015 the recurring profit is projected at Yen 930 million and the net profit at Yen 460 million, respectively, on a 5% rise in turnover, to Yen 58,400 million.  Demand is steady and expanding.    .

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 2,015.7 million, on 30 days normal terms.

 

 

REGISTRATION

 

            Date Registered:           Jan 1937

            Regd No.:                                 (Hyogo-Itami) 001254

            Legal Status:                Limited Company (Kabushiki Kaisha)

            Authorized:                   8 million shares

            Issued:                         2 million shares

            Sum:                            Yen 100 million

Major shareholders (%): Mitsubishi Corp (30), Matsutani Shoten (10.1), Hiroshi Ichihara (4.2), Haruyo Matsutani (4.1), Eijiro Matsutani (4.1)

No. of shareholders: 45 (about)

 

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

 

OPERATION

 

Activities: Manufactures & processes starch (100%).

 

Clients: [Food processors, mfrs] Mitsubishi Corp (30%), Matsutani Shoji (20%),Morinaga Milk Ind (5%), Nissin Foods (5%), Meiji Dairies, Ajinomoto Co Inc, Yamazaki Baking, Nippon Meat Packers, other

            No. of accounts: 500

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Asean Trading (30%), Mitsubishi Corp, Zen-Noh, Marubeni Corp, Mitsui & Co, Itochu Corp, Osaka Gas, other

 

Payment record: Slow but Correct

 

Location: Business area in Itami, Hyogo-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

            Bank References:

            MUFG (Osaka-Chuo)

            Norin Chukin Bank (Osaka)

            Relations: Satisfactory

 

FINANCES

 

(In Million Yen)

       Terms Ending:

30/11/2015

30/11/2014

30/11/2013

30/11/2012

Annual Sales

 

58,400

55,641

51,204

47,010

Recur. Profit

 

930

905

1,450

2,830

Net Profit

 

460

449

860

1,500

Total Assets

 

 

37,548

36,419

31,315

Current Assets

 

 

26,282

25,052

 

Current Liabs

 

 

10,973

11,521

 

Net Worth

 

 

18,809

18,350

17,489

Capital, Paid-Up

 

 

100

100

100

Div.P.Share(¥)

 

 

60.00

60.00

60.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.96

8.67

8.92

6.50

    Current Ratio

 

..

239.52

217.45

..

    N.Worth Ratio

 

..

50.09

50.39

55.85

    R.Profit/Sales

 

1.59

1.63

2.83

6.02

    N.Profit/Sales

 

0.79

0.81

1.68

3.19

    Return On Equity

 

..

2.39

4.69

8.58

 

Notes: Forecast (or estimated) figures for the 30/11/2015 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 :

DIV

 

 

Report Prepared by :

ANK

 


 

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.