MIRA INFORM REPORT

 

 

Report No. :

346296

Report Date :

20.10.2015

 

IDENTIFICATION DETAILS

 

Name :

MARUBENI PETROLEUM CO LTD

 

 

Registered Office :

c/o Marubeni Corporation, 1-4-2 Ohtemachi Chiyodaku Tokyo 100-0004

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015 (Consolidated)

 

 

Date of Incorporation :

December 1989

 

 

Legal Form :

Intra-house division-company

 

 

Line of Business :

Imports, exports and wholesales petroleum & products (--70%), petrochemicals, other products (--30%).

 

 

No. of Employee :

10

 

 

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 :

Good

 

 

Payment Behaviour :

Regular

 

 

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 and address

 

MARUBENI PETROLEUM CO LTD

 

REGD NAME:               Marubeni Petroleum (Intra-house company & not registered)

MAIN OFFICE:              c/o Marubeni Corporation, 1-4-2 Ohtemachi Chiyodaku Tokyo 100-0004 JAPAN

                                                Tel: 03-3282-4939     Fax: 03-3282-4244

                       

URL:                             http://www.marubeni.co.jp  (Of the parent, Marubeni Corp)

E-Mail address:             TOKB554@jp.marubeni.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of petroleum and products

 

 

BRANCHES

 

Nil

 

OFFICERS

 

SHINJI KAWAI, PETROLEUM DIV MANAGER

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 7,834,295 M*

PAYMENTSREGULAR               CAPITAL           Yen 262,686 M*

TREND STEADY                       WORTH            Yen 1,678.781 M*

STARTED         1989                             EMPLOYES      10**

 

*.. All figures are of the parent, Marubeni Corp.

**.. Staff members are overlapped with the Energy Division of the parent.

 

 

COMMENT

 

PETROLEUM TRADING DIVISION OWNED BY MARUBENI CORP.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

                       

Consolidated Financials of Marubeni Corp

Notes: Unit: In Million Yen.

 Forecast figures for the 31/03/2016 fiscal term

 

 

HIGHLIGHTS

           

The subject firm is an intra-house division company founded by Marubeni Corp, at the caption    address (See REGISTRATION), in order to operate trading of petroleum, petroleum products, petrochemical products, etc in the Far East area.  Staff members are overlapping with the parent’ division.  Clients are major petrochemical mfrs, oil refineries, general trading houses, nationwide.

 

 

FINANCIAL INFORMATION

           

Financials are all for Marubeni Corp.

 

The sales volume for Mar/2015 fiscal term amounted to Yen 7,834,295 million, an 11.03% up from Yen 7,055,700 million in the previous term.  The recurring profit was posted at Yen 707,318 million and the net profit at Yen 105,604 million, respectively, compared with Yen 651,063 million recurring profit and Yen 210,945 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 250,000 million and the net profit at Yen 190,000 million, respectively, on a 2.99% fall in turnover, to Yen 7,600,000 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 129,936.7 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:  Not registered

                                    (Founded Dec 1989)

Legal Status:      Intra-house division-company

Major shareholders (%): Marubeni Corp*(100)

 

*.. One of big 5 general trading houses, founded 1949, listed Tokyo, Nagoya S/E’s, capital Yen 262,686 million, sales Yen 7,834,295 million, operating profit Yen 23,632 million, recurring profit Yen 124,614 million, net profit Yen 105,604 million, total assets Yen 7,828,252 million, net worth Yen 1,619,252 million, employees 38,830, pres Fumiya Kokubu.

Consolidated Financials are attached

 

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

 

 

OPERATION

 

Activities: Imports, exports and wholesales petroleum & products (--70%), petrochemicals, other products (--30%).

Trading area within the Far East region.

 

Clients: Oil refineries, petrochemical mfrs, wholesalers, other. 

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

Suppliers: Oil majors, oil refineries, wholesalers, other.

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned by the parent, Marubeni Corp, and maintained satisfactorily.

 

Bank References:

Mizuho Bank (H/O)

MUFG (H/O)

Relations: Satisfactory

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF MARUBENI CORP

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

7,834,295

7,055,700

　

  Cost of Sales

7,126,977

6,404,637

　

      GROSS PROFIT

707,318

651,063

　

  Selling & Adm Costs

683,686

441,003

　

      OPERATING PROFIT

23,632

110,060

　

  Non-Operating P/L

100,982

126,313

　

      RECURRING PROFIT

124,614

236,373

　

      NET PROFIT

105,604

210,945

BALANCE SHEET

　

　

  Cash

　

469,106

665,498

　

  Receivables

1,350,473

1,414,045

　

  Inventory

898,870

778,683

　

  Securities, Marketable

601

0

　

  Other Current Assets

541,617

452,800

　

      TOTAL CURRENT ASSETS

3,260,667

3,311,026

　

  Property & Equipment

1,363,776

1,175,046

　

  Intangibles

366,185

350,443

　

  Investments, Other Fixed Assets

2,682,436

2,419,570

　

      TOTAL ASSETS

7,673,064

7,256,085

　

  Payables

1,443,064

1,313,065

　

  Short-Term Bank Loans

482,904

522,992

　

　

　

　

　

  Other Current Liabs

722,378

893,952

　

      TOTAL CURRENT LIABS

2,648,346

2,730,009

　

  Debentures

2,699,461

1,846,082

　

  Long-Term Bank Loans

19,714

20,649

　

  Reserve for Retirement Allw

69,014

76,135

　

  Other Debts

　

(2,788,189)

(1,942,866)

　

      TOTAL LIABILITIES

2,648,346

2,730,009

　

      MINORITY INTERESTS

　

　

Common stock

262,686

262,686

　

Additional paid-in capital

154,054

154,054

　

Retained earnings

154,054

699,951

　

Evaluation p/l on investments/securities

120,738

120,738

　

Others

988,519

295,144

　

Treasury stock, at cost

(1,338)

(1,338)

　

      TOTAL S/HOLDERS` EQUITY

1,678,713

1,531,235

　

      TOTAL EQUITIES

7,673,064

7,256,085

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

170,943

291,188

　

Cash Flows from Investment Activities

-331,411

-706,685

　

Cash Flows from Financing Activities

-70,705

196,775

　

Cash, Bank Deposits at the Term End

　

469,106

665,498

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

1,678,713

1,531,235

　

Current Ratio (%)

123.12

121.28

　

Net Worth Ratio (%)

21.88

21.10

　

Recurring Profit Ratio (%)

1.59

3.35

　

Net Profit Ratio (%)

1.35

2.99

　

　

Return On Equity (%)

6.29

13.78

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.82

UK Pound

1

Rs.100.12

Euro

1

Rs.73.75

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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%)

 

 

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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.