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MIRA
INFORM REPORT
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Report No. : |
510330 |
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Report Date : |
18.05.2018 |
IDENTIFICATION DETAILS
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Name : |
NIPPON STEEL & SUMIKIN BUSSAN CORPORATION |
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Registered Office : |
Nittetsu Sumikin Bussan Bldg, 8-5-27 Akasaka Minatoku
Tokyo 107-8527 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
Aug 1977 |
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Com. Reg. No.: |
0100-01-094558 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, export, wholesale of steel, raw fuels, industrial
machinery & materials |
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No. of Employees : |
1,530 |
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 - 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.
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Source
: CIA |
Company name and address
NIPPON STEEL & SUMIKIN BUSSAN
CORPORATION
REGD NAME: Nittetsu Sumikin Bussan KK
MAIN OFFICE: Nittetsu Sumikin Bussan Bldg, 8-5-27 Akasaka
Minatoku Tokyo 107-8527 JAPAN
Tel: 03-5412-5001 Fax: 03-5412-5101 -
URL: http://www.nssbussmc.com
E-Mail
address: (thru the URL)
ACTIVITIES: Import, export, wholesale of steel, raw
fuels, industrial machinery & materials
BRANCHES: 30 domestic (nationwide)
OVERSEAS: 36 cities in 17 countries
OFFICERS: KENJI HIWATARI, PRES Akio Tamagawa, v pres
Tsuneo
Miyamoto, v pres Yuichi
Nomura, dir
Eiichi Nakamura, mgn dir Yasuhiro Sugiguchi, dir
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,841,353 M
PAYMENTS REGULAR CAPITAL Yen 12,335 M
TREND SLOW WORTH
Yen 190,264 M
STARTED 1977 EMPLOYES 1,530
COMMENT
TRADING FIRM SPECIALISING IN STEEL
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
HIGHLIGHTS
The
subject company was born in Oct 2013 by the merger of Nippon Steel Trading Co
Ltd and Sumikin Bussan Corporation in order to integrate steel operations. This is a steel product trading house having
strong ties with Nippon Steel & Sumitomo Metal. Main customers are civil engineering and
construction firms. In recent years,
upgrading steel processing and distribution bases (coil centers) in China,
Thailand & Vietnam, and reinforcing services for Nippon Steel &
Sumitomo Metals and other users. Jointly
developing coking coal interests in Africa with Nippon Steel & Sumitomo
Metals. A third-party allotment is
scheduled in Sept 2018.
FINANCIAL INFORMATION
The sales
volume for Mar/2017 amounted to Yen 1,841,353 million, a 4.63% fall from Yen
1,930,845 million in the previous term.
The recurring profit was posted at Yen 30,915 million and the net profit
at Yen 18,238 million, respectively, compared with Yen 29,025 million recurring
profit and Yen 17,329 million net profit, respectively, a year ago..
For the
current term ending Mar 2018 the recurring profit is projected at Yen 34,000
million and the net profit at Yen 20,000 million, respectively, on an 11.33%
rise in turnover, to Yen 2,050,000 million.
Overseas projects in industrial machinery will make a contribution.
The
financial situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Aug
1977 (of the former Nippon Steel Trading Co)
Regd No.:
0100-01-094558 (Tokyo-Minatoku)
Legal Status:
Limited Company (Kabushiki Kaisha
Authorized: 500 million shares
Issued:
309,578,001 shares
Sum: Yen 12,335
million
Major shareholders (%): Nippon Steel & Sumitomo
Metal (35.9), Mitsui & Co (10.9), Master Trust Bank of Japan T (3.1), Japan
Trustee Services T (2.6), Japan Trust Bank of Japan T9 (1.5), State Street Bank
& Trust (1.3), Kyoei Steel (1.2), Employees’ S/Holding Assn (1.1), CBNYDFA
Int’l Small Cap Value P (1.0), Japan Trustee Services T4 (0.9); foreign owners
(9.5)
No. of shareholders: 7,423
Listed on the S/Exchange (s) of:
Tokyo
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: NSL
Coil Center, Igeta Sunrise Pipe, Sumikin Bussan Kenzai, etc.
OPERATION
Activities: Imports, exports and wholesales steel
products (coking coal, non-ferrous metal) (78%), textiles (9%), foods (8%),
industrial machinery & infrastructure (5%)
Overseas Sales Ratio (26%)
Clients: [firs, wholesalers] Nittetsu Group
firms, other
No. of
accounts: 1,000
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Nittetsu Sumikin
Stainless, Nittetsu Sumikin Kenzai (building materials), other
Payment record:
Regular
Location: Business area in Tokyo. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References:
MUFG
(Tokyo)
Mizuho
Bank (H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual Sales |
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2,050,000 |
1,841,353 |
1,930,845 |
2,104,606 |
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Recur. Profit |
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34,000 |
30,915 |
29,025 |
30,573 |
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Net Profit |
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20,000 |
18,238 |
17,329 |
17,434 |
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Total Assets |
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701,874 |
678,176 |
700,869 |
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Current Assets |
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537,450 |
525,878 |
550,754 |
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Current Liabs |
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385,594 |
387,707 |
461,018 |
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Net Worth |
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189,907 |
173,513 |
166,775 |
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Capital, Paid-Up |
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12,335 |
12,335 |
12,335 |
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Div.Ttl in Million (¥) |
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4,637 |
4,174 |
3,710 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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11.33 |
-4.63 |
-8.26 |
45.76 |
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Current Ratio |
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.. |
139.38 |
135.64 |
119.46 |
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N.Worth Ratio |
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.. |
27.06 |
25.59 |
23.80 |
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R.Profit/Sales |
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1.66 |
1.68 |
1.50 |
1.45 |
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N.Profit/Sales |
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0.98 |
0.99 |
0.90 |
0.83 |
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Return On Equity |
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.. |
9.60 |
9.99 |
10.45 |
Notes:
Forecast (or estimated) figures 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 67.72 |
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1 |
INR 91.65 |
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Euro |
1 |
INR 79.89 |
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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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VIV |
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Report Prepared
by : |
KET |
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.