MIRA INFORM REPORT

 

 

Report No. :

344808

Report Date :

10.10.2015

 

IDENTIFICATION DETAILS

 

Name :

EASTERN MARINE CORPORATION

 

 

Registered Office :

Maruito Ginza Bldg 3F, 3-10-6 Ginza Chuoku Tokyo 104-0061

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

May 1997

 

 

Com. Reg. No.:

0100-01-051868

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Ship owner and operator of 15 ships, plying Japan/China/Korea and S/E/Russia, Asian countries, offering ship agency, ship store & machinery supply, import & export of steel, steel products, other (--100%).

 

 

No. of Employees :

38

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA


Company name

 

EASTERN MARINE CORPORATION

 

REGD NAME:   Toyo Kaiun Tsusho KK

MAIN OFFICE:  Maruito Ginza Bldg 3F, 3-10-6 Ginza Chuoku Tokyo 104-0061 JAPAN

                                    Tel: 03-5148-1881     Fax: 03-5148-1882

 

URL:                 http://www.e-m-c.co.jp

E-Mail address: ship@e-m-c.co.jp

 

ACTIVITIES:     Ship owner, operator, ship agency, ship chartering, ship sales/purchasing

BRANCHES:     Beijing, Qingdao, Shanghai

 

OFFICERS:       YUE LI, PRES

                        Ke Bin Xiang, s/mgn dir

                        Jyoji Tanada, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 9,541 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 96 M

TREND UP                                WORTH            Yen 490 M

STARTED         1997                             EMPLOYES      38

 

COMMENT:      SHIP OWNER & OPERATOR AND AGENCY BUSINESS. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established by Yue Li, resident Chinese, in order to make most of his previous experience in the shipping business.  This is a ship owner and operator of a total 15 vessels, plying between Japan/China, Korea and S/E Asia.  Originally started as a ship agency business and has expanded its operations into other areas.  In Apr 1999, started ship chartering business; in Oct 2002 owned first vessel & started tramper business.  The firm has now five divisions: ship chartering team, ship owning and operating team (owning 15 vessels); ship agency team; export/import team (steel products, mechanical materials, plastic & raw materials); ship service team (ship sales/purchases, ship material supply).  Operations are extended into Russia and vicinities areas.  Domestic clients include major trading firms, shipping companies, mfrs, other, nationwide.  Two ships were built in Qingdao, China.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2015 fiscal term amounted to Yen 9,541 million, a 14% up from Yen 8,409 million in the previous term.  3 vessels newly added in the previous term contributed.  The recurring profit was posted at Yen 107 million and the net profit at Yen 65 million, respectively, compared with Yen 26 million recurring profit and Yen 22 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 110 million and the net profit at Yen 70 million, respectively, on a 5% rise in turnover, to Yen 10,010 million.  The weaker Yen will raise freight revenues in Yen terms.

 

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

 

 

REGISTRATION

 

Date Registered:                                   May 1997

Regd No.:                                             0100-01-051868 (Tokyo-Chuoku) 

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              2,400 shares

Issued:                                     1,936 shares

Sum:                                        Yen 96.8 million

Major shareholders (%):                       Yue Li (41), K B Xiang (21), S Wang (17), Sumiko Yajima (9), Employees’ S/Holding Assn, other

No. of shareholders:                             10

           

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

 

 

OPERATION

 

Activities: Ship owner and operator of 15 ships, plying Japan/China/Korea and S/E/Russia, Asian countries, offering ship agency, ship store & machinery supply, import & export of steel, steel products, other (--100%).

 

(Breakdown of business teams):

 

Ship Chartering Team: mainly carries bulk cargo such as steel products, plant equipment, coal, grain, fertilizer, steel scrap & raw materials for import and export between Japan, China, Korea, Russia and S/E Asia;

 

House Fleet Team: owns/operates 15 vessels ranging from 2,000 MT deadweight to more than 10,000 MT, the team runs under both periodic and spot contracts, including management, maintenance, repairing of vessels;

Trading Team: trades plastics, off-grades & recycles between Japan, China, Hong Kong, Taiwan & S/E Asia;

 

Ship S&P Service Team: sells & purchases bulk carriers, container ships, tankers and work boats primarily in Japan, China, Korea, S/E Asia and Europe, handling everything from concluding the contract to delivery of vessel(s).

Clients: [Mfrs, wholesalers] Mitsubishi Corp, Metal One, Mitsui & Co, Marubeni-Itochu Steel Inc, JFE Shoji Trading, Topy Enterprises, Mitsui Kinzoku Trading, Kanematsu Corp, Sojitz Logistics, Toyota Tsusho Corp, Mitsui OSK Kinkai, Nippon Steel & Sumikin Bussan Corp, Tokyo Steel, other. 

No. of accounts: 300

Domestic areas of activities: Nationwide

 

Suppliers: [Ship owners, operators] Sankyu Inc, Nippon Express, other.

 

Payment record: No Complaints

 

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

 

Bank References:

MUFG (Kyobashi)

Shoko Chukin Bank (Oshiage)

Relations: Satisfactory.

 

 

FINANCES

 

(In Million Yen)

 

Terms Ending:

31/03/2016

31/03/2015

31/03/2014

31/03/2013

Annual Sales

 

10,010

9,541

8,409

8,246

Recur. Profit

 

110

107

26

75

Net Profit

 

70

65

22

45

Total Assets

 

 

2,301

2,786

1,962

Current Assets

 

 

887

747

909

Current Liabs

 

 

761

543

625

Net Worth

 

 

490

429

400

Capital, Paid-Up

 

 

96

96

80

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.92

13.46

1.98

24.13

    Current Ratio

 

..

116.56

137.57

145.44

    N.Worth Ratio

 

..

21.30

15.40

20.39

    R.Profit/Sales

 

1.10

1.12

0.31

0.91

    N.Profit/Sales

 

0.70

0.68

0.26

0.55

    Return On Equity

 

..

13.27

5.13

11.25

 

Notes: Forecast (or estimated) for the 31/03/2016 fiscal term.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.78

UK Pound

1

Rs.99.54

Euro

1

Rs.73.08

 

 

INFORMATION DETAILS

 

Analysis Done by :

TRI

 

 

Report Prepared by :

TPT

 

               

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.