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MIRA INFORM REPORT
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Report No. : |
500588 |
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Report Date : |
27.03.2018 |
IDENTIFICATION DETAILS
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Name : |
ITOCHU CHEMICAL FRONTIER CORPORATION |
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Registered Office : |
Itochu Bldg 16F, 2-5-1
Kita-Aoyama Minatoku Tokyo 107-0061 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
September 1971 |
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Com. Reg. No.: |
0104-01-057270 |
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Legal Form : |
Limited Company |
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Line of Business : |
A trading house for import, export and wholesale of
industrial chemicals, pharmaceuticals, feeds, agrochemicals, other |
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No. of Employees : |
237 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC
OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II 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 have significantly eroded under the dual pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2017 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. For three postwar decades, overall real economic growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which entailed considerable 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.
Japan enjoyed an 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. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the necessity of addressing its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to another recession, so Prime Minister ABE has twice postponed the next increase, now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Japan was the first country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP in January 2017, and in November 2017 the remaining 11 countries agreed on the core elements of a modified agreement, which they renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
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Source
: CIA |
Company
summery
ITOCHU CHEMICAL FRONTIER CORPORATION
REGD NAME: Itochu Chemical Frontier KK
MAIN OFFICE: Itochu Bldg 16F, 2-5-1 Kita-Aoyama Minatoku
Tokyo 107-0061 JAPAN
Tel:
03-3497-4510 Fax: 03-3497-4520
E-Mail
address: info@itcche.co.jp
ACTIVITIES: Import, export, wholesale of industrial
chemicals, pharmaceuticals, feeds, other
BRANCHES: Osaka, Nagoya, Kawasaki (Laboratory);
OVERSEAS: Covered by overseas offices of Itochu Corp
(-- USA, Europe, China, other – Tot 150 offices in 85 countries)
OVERSEAS: China (5), Germany, Indonesia
(--subsidiaries)
OFFICER(S): TSUTOMU MIYAZAKI, PRES Nobuyuki Mitsui, v pres
Masahi
Utsunomiya, s/mgn dir Akira Shimizu, mgn
dir
Keita
Ishii, dir Tadashi
Ishibashi, dir
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY: FINANCES FAIR A/SALES Yen 117,768 M
PAYMENTS REGULAR CAPITAL Yen 1,100 M
TREND SLOW WORTH Yen 14,029 M
STARTED 1979 EMPLOYES 237
COMMENT
TRADING HOUSE SPECIALIZING IN INDUSTRIAL CHEMICALS, OWNED BY
ITOCHU CORP.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSIENSS ENGAGEMENTS.
HIGHLIGHTS
The subject
company was established on the basis of the fine chemical division spun off
from Itochu Corp, a leading general trading house, Tokyo, as Itochu Fine
Chemical Corp. In Jul 1990, merged a
sister company, Itochu Interchem Inc, and renamed as captioned in Oct
2002. In Apr 2005, merged Itochu Techno
Chemical Inc. This is a trading firm
specializing in organic chemicals, fine chemicals, functional materials, other
industrial chemicals (See OPERATION). Overseas operations are integrated with the
parent, utilizing its 150 overseas offices as agents.
FINANCIAL
INFORMATION
Financials are consolidated by
the parent, Itochu Corp.
The sales volume for Mar/2017 fiscal term amounted to Yen
117,765 million, a 9% down from Yen 128,799 million in the previous term. The recurring profit was posted at Yen 4,846
million and the net profit at Yen 3,651 million, respectively, compared with
Yen 4,656 million recurring profit and Yen 3,194 million net profit,
respectively, a year ago.
For the current term ending 2018 the recurring profit is
projected at Yen 4,900 million and the net profit at Yen 3,700 million,
respectively, on a 5% rise in turnover, to Yen 123.650 million. Exports are increasing, particularly into
S/E Asian countries.
The financial situation is considered FAIR and good for
ORDINARY business engagements.
REGISTRATION
Date Registered: Sept 1971
Regd No.: 0104-01-057270 (Tokyo-Minatoku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized: 4
million shares
Issued:
1,097,000 shares
Sum: Yen 1,100
million
Major shareholders (%): Itochu Corp* (100)
*.. One of big 5 general trading
houses, Osaka, founded 1949, listed Tokyo S/E, capital Yen 253,448 million,
turnover Yen 4,838,464 million, operating profit Yen 298,422 million, recurring
profit Yen 499,855 million, net profit Yen 352,221 million, total assets Yen
8,644,435 million, net worth Yen 2,603,230 million, employees 104.755 million,
pres Masahiro Okafuji
Nothing detrimental is known as
to the commercial morality of executives.
OPERATION
Activities: A trading house for import, export and
wholesale of industrial chemicals, pharmaceuticals, feeds, agrochemicals, other
(--100%):
(Handling items by divisions):
Functional Polymers Div:
Acrylic Business Unit (acrylic chain products,
ethanol amines, phenyl-maleimide, SAP & hygienic products);
Polyurethane & Plastic Raw Materials Business Units
(polyurethane chain products, raw materials for unsaturated polyester resins,
rubber chemicals, amines);
Solvent-Phenol Business Units (solvents, Heptane, hexane,
ethyl acetate, phenol chain products, epoxy chain products, other organic
chemicals);
Performance Products Div:
Silicone Business Unit (silicones, silence coupling
agents, and raw materials);
Additives & Coatings Business Unit
(catalysts, pigments, plastic additives, iodine & its derivatives,
functional monomers, paints);
Specialty Adhesives & Resins Business Unit (BMI,
EVA, paper chemicals, adhesives, petroleum resins, functional plastics, resin
additives, special film, polyimide film, color filter, LCD, IT related
products, touch screen ferrite materials);
Functional Chemicals Business Unit
(super absorbent polymer, m-xylene sulfuric acid & sodium derivatives,
optical monomer & polymers, release & masking films for electrical
materials, functional monomer & organic intermediates for photosensitive
materials);
Water Treatment & Friction Materials Business Unit (water
treatment chemicals, environmental/ecology related chemicals, chemicals for oil
wells, raw materials for friction parts, inorganic compound);
Pharma-Life Science Div:
Pharmaceutical Business Unit (pharmaceuticals, active
pharmaceutical ingredients, pharmaceutical intermediates, excipients);
Life Science Business Unit (quasi-drugs, cosmetics, health
foods, functional foods, food additives, dairy product, veterinary medicine,
feed, feed additives, cosmetics, agricultural chemicals, household & public
hygiene products, horticulture & home gardening products, other).
Clients: [Mfrs, wholesalers] Kurita Ind, Sawai
Pharmaceutical, Nippon Paint, DIC Corp, Momentive Performance Materials Japan,
Akatsuki Brake Ind, other
No. of
accounts: 350
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Sumitomo Chemical,
Kurita Water Ind, New STI Technology, GE Toshiba Silicon, Mitsubishi Gas
Chemical, Showa Denko, Nippon Paint, , Nippon Shokubai, Sanyo Chemical Ind,
Mitsubishi Pharma Corp, Momentive Performance Materials Japan, Asahi Kasei
Chemicals, other
Payment record:
Regular
Location:
Business area in Tokyo. Office premises
at the caption address are owned by the parent and maintained satisfactorily.
Bank References:
Mizuho Bank (H/O)
SMBC (Tokyo)
Relations: Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
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31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual Sales |
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123,650 |
117,765 |
128,799 |
150,700 |
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Recur. Profit |
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4,900 |
4,846 |
4,656 |
5,005 |
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Net Profit |
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3,700 |
3,651 |
3,194 |
3,036 |
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Total Assets |
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56,574 |
54,012 |
60,562 |
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Net Worth |
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14,029 |
13,274 |
13,267 |
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Capital, Paid-Up |
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1,100 |
1,100 |
1,100 |
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Div.Ttl in Million(¥) |
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2,738.00 |
2,733.00 |
2,924.00 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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5.00 |
-8.57 |
-14.53 |
1.18 |
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Current Ratio |
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.. |
.. |
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N.Worth Ratio |
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24.80 |
24.58 |
21.91 |
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N.Profit/Sales |
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2.99 |
3.10 |
2.48 |
2.01 |
Note: Forecast
(or estimated) for the 31/03/2018 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.91 |
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1 |
INR 91.87 |
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Euro |
1 |
INR 80.26 |
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YEN |
1 |
INR 0.61 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIS |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.