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MIRA
INFORM REPORT
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Report No. : |
510285 |
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Report Date : |
18.05.2018 |
IDENTIFICATION DETAILS
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Name : |
MARUBENI-ITOCHU STEEL INC |
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Registered Office : |
Nihombashi 1-Chome Bldg, 1-4-1 Nihombashi Chuoku Tokyo 103-8247 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
October 2001 |
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Com. Reg. No.: |
0100-01-075892 |
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Legal Form : |
Limited Company |
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Line of Business : |
A trading firm jointly owned by Marubeni Corp & Itochu Corp,
specializing in iron & steel products & related, IT-related business,
including development of supply chain management (SCM) system of steel
products, having the following 4 core divisions |
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No. of Employees : |
927 |
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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Maximum Credit Limit : |
Yen 18,716.3 Million |
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Status : |
Excellent |
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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 summary
MARUBENI-ITOCHU
STEEL INC
REGD
NAME: Itochu Marubeni Tekko KK
MAIN
OFFICE: Nihombashi 1-Chome Bldg, 1-4-1
Nihombashi Chuoku Tokyo 103-8247 JAPAN
Tel:
03-5204-3300 Fax: 03-5204-3810
E-mail
address: (thru the URL to each Division)
ACTIVITIES: Import, export, wholesale of iron &
steel materials & products
BRANCHES: Osaka, Nagoya, Sapporo, Hiroshima, Fukuoka,
other (Total 58)
OVERSEAS: China (5), India (3), Australia, USA (8),
Canada (2), Europe/CIS, other (25)
SUBSIDIARIES:(Domestic) 35;
(Overseas) 85 (Tot 120) (--including affiliates)
OFFICER(S): TOMOHITO KANEDA, PRES Tatsuhiko Toshita, v pres
Haruhiko
Ida, mgn dir Masakazu
Tanimoto, mgn dir
Toshinori
Suwa, mgn dir Kazunori
Maruyama, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY: FINANCES FAIR A/SALES Yen 860,510 M
PAYMENTS REGULAR CAPITAL Yen 30,000 M
TREND SLOW WORTH Yen
114.785 M
STARTED 2001 EMPLOYES 927
COMMENT
TRADING HOUSE SPECIALIZING IN STEEL & IRON PRODUCTS, JOINTLY OWNED BY MARUBENI CORP & ITOCHU CORP.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 18,716.3 MILLION, 30 DAYS NORMAL TERMS
HIGHLIGHTS
The subject
company was created on the basis of spin-offs and integration of two steel
products divisions at Marubeni Corp and Itochu Corp to form a separate
entity. This is a trading house
inheriting successful & traditional business rights of each firm in the
line of steel & iron raw materials & products markets. The firm has four core divisions: Iron &
Steel Div (1), Iron & Steel Div (2), Iron & Steel Div (3), and Tubular
Products Div (for handling items see OPERATION). Osaka branch office handles these products in
lump sum. Top-ranked in the specific
business items. Clients include major
car makers, heavy machinery mfrs, and electric appliances mfrs, nationwide.
FINANCIAL INFORMATION
The sales volume
for Mar/2017 fiscal term amounted to Yen 860,510 million, a 10% fall from Yen
952,834 million in the previous term.
The recurring profit was posted at Yen 13,776 million and the net profit
at Yen 11,870 million, respectively, compared with Yen 23,855 million recurring
profit and Yen 17,196 million net profit, respectively a year ago.
For the current
term ending Mar 2018 the recurring profit is projected at Yen 14,000 million
and the net profit at 12,000 million, on a 3% rise in turnover, to Yen 886,400
million.
The financial
situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 18,716.3
million, on 30 days normal terms.
REGISTRATION
Date Registered: Oct 2001
Regd No.: 0100-01-075892 (Tokyo-Chuoku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 2,400 shares
Issued:
600 shares
Sum: Yen 30,000 million
Major shareholders (%): Marubeni Corp*
(50), Itochu Corp** (50)
No. of shareholders: 2
*.. One of big 5 general trading houses, Tokyo, founded 1949, listed
Tokyo, Nagoya, Frankfurt, Düsseldorf S/E’s, capital Yen 262,686 million,
turnover Yen 7,128,805 million, operating profit Yen 74,137 million, recurring
profit Yen 200,271 million, net profit Yen 62,264 million, total assets Yen
6,866,555 million, net worth Yen 1,799,950 million, employees 39,914, pres
Fumiya Kokubu.
**.. Equally 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 298,442 million, recurring profit Yen 499,855 million, net
profit Yen 352,221 million, total assets Yen 8,044,435 million, net worth Yen
2,603,230 million, employees 104,755, pres Masahiro Okafuji.
Nothing detrimental is known as to the
commercial morality of executives.
OPERATION
Activities: A trading firm
jointly owned by Marubeni Corp & Itochu Corp, specializing in iron &
steel products & related, IT-related business, including development of
supply chain management (SCM) system of steel products, having the following 4
core divisions (--100%):
Iron & Steel
Div (1): handles a full range of steel products for automakers and auto parts
makers, including carbon steel, specialty steel, stainless steel, electrical
steel sheets, magnequench powder, etc;
Iron & Steel
Div (2): handles steel sheet products for domestic users in the appliance,
furniture, container and office automation equipment, etc, including foreign
business of slabs, billets, blooms & other semi-finished products, bars,
shapes, plates, hot rolled and cold rolled steel, coated steel sheets, tin mill
products, clad steel plates, copper alloy tubes;
Iron & Steel
Div (3); handles plates & shapes, specialty steel, wire products &
stainless steel. The division newly
started Noble Metals Dept to handle noble items, such as Titanium, Cupro-Nickel
tubes,, offering package of noble metals required for construction of
Desalination Plants;
Tubular Products
Div: handles various types of tubular products and equipment & materials
for plant projects. Also exports pipes
for oil fields and major pipeline projects overseas. (Detailed breakdown of
each Division is not available.)
Exports (60%).
Clients: [Automakers,
steel mfrs, wholesalers] Mazda Motor Corp, Fuji Heavy Ind, Nissan Motors, Isuzu
Motor, NTN, Matsushita Electric Ind, Kawasaki Heavy Ind, Hitachi Ltd, Exxon
Mobil, IHI Marine United, other
Exports to Hyundai (Korea), Thai Controlled Steel Sheet, BNG Steel,
other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers: [Steel mfrs,
wholesalers] Nippon Steel & Sumitomo Metal Ind, JFE Steel, Nisshin Steel,
Kobe Steel, Sanyo Special Steel, Sumitomo Metal Ind, Nippon Steel & Sumikin
Stainless Steel Corp, other.
Payment
record: Regular
Location: Business area in Tokyo. Office premises at the caption address are
leased and maintained satisfactorily.
Bank References:
Mizuho
Bank (H/O)
MUFG
(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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886,400 |
860,510 |
952,834 |
1,111,296 |
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Recur. Profit |
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14,000 |
13,776 |
23,855 |
22,316 |
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Net Profit |
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12,000 |
11,870 |
17,196 |
17,028 |
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Total Assets |
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472,215 |
445,136 |
484,201 |
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Current Assets |
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296,478 |
280,749 |
310,554 |
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Current Liabs |
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190,179 |
184,282 |
249,976 |
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Net Worth |
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123,629 |
114,785 |
116,677 |
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Capital, Paid-Up |
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30,000 |
30,000 |
30,000 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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3.01 |
-9.69 |
-14.26 |
4.32 |
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Current Ratio |
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155.89 |
152.35 |
124.23 |
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N.Worth Ratio |
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26.18 |
25.79 |
24.10 |
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R.Profit/Sales |
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1.58 |
1.60 |
2.50 |
2.01 |
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N.Profit/Sales |
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1.35 |
1.38 |
1.80 |
1.53 |
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Return On Equity |
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.. |
9.60 |
14.98 |
14.59 |
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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DIV |
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Report Prepared
by : |
SYL |
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
·
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.