MIRA INFORM REPORT

 

 

Report No. :

509239

Report Date :

14.05.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

NOMURA TRADING CO LTD

 

 

Registered Office :

1-7-3 Azuchimachi Chuoku Osaka 541-0052

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

June 1976

 

 

Com. Reg. No.:

1200-01-074101

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Imports, exports and wholesales foods, consumer goods, industrial machinery & materials, others:

 

 

No. of Employees :

241

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Maximum Credit Limit :

Yen 875.7 million

 

 

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.

 

 

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 - averaging 10% 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 resulted in several years of economic stagnation as firms sought 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 since 2013, supported by 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 need to address 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 a sharp contraction, so Prime Minister ABE has twice postponed the next increase, which is 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.

Under the Abe Administration, Japan’s government sought to open the country’s economy to greater foreign competition and create new export opportunities for Japanese businesses, including by joining 11 trading partners in the Trans-Pacific Partnership (TPP). Japan became the first country to ratify the TPP in December 2016, but the United States signaled its withdrawal from the agreement in January 2017. 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). Japan also reached agreement with the European Union on an Economic Partnership Agreement in July 2017, and is likely seek to ratify both agreements in the Diet this year.

 

Source : CIA

 

Company summery

 

NOMURA TRADING CO LTD

 

REGD NAME:   Nomura Boeki KK

MAIN OFFICE:  Hulic Kamiyacho Bldg 7F, 4-3-13 Toranomon Minatoku Tokyo 105-0001 JAPAN

                        Tel: 03-3438-7600     Fax: 03-3438-7625

                       

*.. Registered at: 1-7-3 Azuchimachi Chuoku Osaka 541-0052 JAPAN

 

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

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

 

ACTIVITIES:     Import, export, wholesale of livestock products, farm & marine products, textiles

BRANCHES:     Tokyo, Osaka, Fukuoka

OVERSEAS:     China, Thailand, Indonesia, Vietnam, Singapore, Germany, USA, Taiwan                          (--subsidiaries & branch offices)

 

OFFICER(S):    KATSUSHIGE MIYASHITA, PRES                     

                        Shizuya Shimoji, dir                   Akira Sumida, dir                      

                        Ryoji Yuasa, dir                         Hideaki Fujiwara, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY:      FINANCES        FAIR                 A/SALES          Yen 83,437 M

                        PAYMENTS      REGULAR         CAPITAL           Yen 2,500 M

                        TREND             SLOW               WORTH            Yen 5,672 M

                        STARTED         1976                 EMPLOYES      241

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN FOODSTUFFS, APPAREL, OTHERS,   OWNED BY NOMURA TRADING HOLDINGS CO LTD. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 875.7 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

 

The subject company was established originally in 1917 by Tokushichi Nomura in order to make most of his experience in foreign trading, on his account.  This is a trading firm specializing in import, export and wholesale of foods, apparel, industrial materials, other.  In Apr 2002, due to financial difficulties the firm transferred its business rights to Alton Shoji KK (Shoji means trading), and restructured by forming a Holding Company, Nomura Trading Holdings Co Ltd, at the caption address.  The corporate name survived as captioned.  In Apr 2005, integrated business structure into three major business units: Food Business Units (Farm/Marine/Livestock business); Consumer Products Business Unit (Apparel, Housing, Building Materials business) and Industrial Business Unit (Materials, Chemical, Machinery & Electronics).  Operates 24 overseas JV enterprises/affiliates. 

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2017 fiscal term amounted to Yen 83,437 million, a 4% fall from Yen 86,640 million in the previous term.  The recurring profit was posted at Yen 1,470 million and the net profit at Yen 1,225 million, respectively, compared with Yen 1,037 million recurring profit and Yen 542 million net profit, respectively, a year ago.

 

For the term that ended Mar 2018 the recurring profit was projected at Yen 1,500 million and the net profit at Yen 1,300 million, respectively, on a 3% rise in turnover, to Yen 85,940 million.  Final results are yet to be released.

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 875.7 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:           Jun 1976

Regd No.:                     1200-01-074101 (Osaka-Chuoku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  8 million shares

Issued:                         2 million shares

Sum:                            Yen 2,500 million

Major shareholders (%): Nomura Trading Holdings Co Ltd*(100)

                       *.. Holding company, founded 2002, at the caption address

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

 

 

OPERATION

 

Activities: Imports, exports and wholesales foods, consumer goods, industrial machinery & materials, others:

 

(Sales breakdown by divisions):

 

Food Business Unit (43%): Agricultural products (coffee beans, grains, edible oils, spices,         preparation with cocoa, sugar, milk), Marine products (mackerel, capelin, horse mackerel, herring, salmon, other), Animal products (meat, sausages, hams, other meat products), Wellness goods (medical materials, health foods, food additives, collagen, placenta, pet foods);

 

Consumer Products Unit (21%): Apparel (garments for men & women, kids wear, young casual wear, sportswear, brands goods). Household goods (bedding, furniture, home appliances, kitchen utensils, brand name ceramics, plywood, jointed wood, lumber, home improvement store materials, office furniture), Building materials (construction materials, interior fixtures, wood floor materials);

 

Industrial business Unit (36%): machine tools, plastic injection molding machines, knockdown parts for gasoline dispensing pumps, wind power generators, environmental equipment, inspection machines for mobile phones & LCD displays, elastomers, iron ore, cement clinker, blast furnace slag, zinc powder, mercury, manganese, plastics, dye pigments, other,

 

Overseas Trading Ratio (90%) 

 

Clients: [Meat packers, food processors, wholesalers] S Foods (8.5%, Hasec Inc 83.7%), Burtle Corp (2.1%), KK Nosui (2.1%), Nishikawa Kyoto (1.5%), other

No. of accounts: 350

Domestic areas of activities: Nationwide

 

Suppliers: [Chemical mfrs, wholesalers] Ube-Mitsubishi Cement Corp (4.6%), Tatsuta Wire & Cable (4.1%), Brother Ind (2.9%), S Foods (2.8%), other.

 

Payment record: Regular

 

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

 

Bank References:

                        Resona Bank (Tokyo)

                        Mizuho Bank (Yaesuguchi)

                        Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

Terms Ending:

　

31/03/2018

31/03/2017

31/03/2016

31/03/2015

Annual Sales

　

85,940

83,437

86,640

87,094

Recur. Profit

　

1,500

1,470

1,037

955

Net Profit

　

1,300

1,225

542

620

Total Assets

　

　

32,470

30,423

30,844

Net Worth

　

　

5,672

4,636

4,950

Capital, Paid-Up

　

　

2,500

2,500

2,500

Div.Ttl in Million(¥)

　

　

542.59

620.86

711.29

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

3.00

-3.70

-0.52

9.01

    Current Ratio

　

　

..

..

..

    N.Worth Ratio

　

　

17.47

15.24

16.05

    N.Profit/Sales

　

1.51

1.47

0.63

0.71

 

Notes: Forecast figures for the 31/03/2018 fiscal term

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 67.22

UK Pound

1

INR 90.88

Euro

1

INR 80.09

YEN

1

INR 0.62

                                                                  

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TRU

                                                


 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

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

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

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.