MIRA INFORM REPORT

 

 

Report Date :

23rd February, 2007

 

IDENTIFICATION DETAILS

 

Name :

NISSO SHOJI CO LTD

 

 

Registered Office :

Wakamatsu Bldg, 3-3-6 Nihombashi-Honcho Chuoku Tokyo 103-8422, Japan

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

December 1939

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of industrial chemicals

 

 

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

 

Maximum Credit Limit :

Yen 629.6 Million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

Company Name

 

NISSO SHOJI CO LTD

 

 

REGD NAME

 

Nisso Shoji KK

 

 

MAIN OFFICE

 

Wakamatsu Bldg, 3-3-6 Nihombashi-Honcho Chuoku Tokyo 103-8422 JAPAN

Tel                                : 03-3270-0701    

Fax                               : 03-3279-6036

URL                              : http://www.nissoshoji.com/

E-Mail address              : info@nissoshoji.com

 

 

ACTIVITIES

 

Import, export, wholesale of industrial chemicals

 

 

BRANCHES

 

Osaka, Nagoya, Sapporo, Sendai, Hiroshima, Fukuoka, Takaoka

 

 

OVERSEAS

 

Shanghai, Taipei, Hong Kong

 

 

OFFICER(S)

 

KATSUYUKI YAMAZAKI, PRES             Tohru Kinebuchi, mgn dir

Takamichi Kobayashi, dir                        Hiroshi Takeyama, dir

Katsuyuki Naitoh, dir                              Hiroshi Yoshida, dir

 

 

Yen Amount

 

In million Yen, unless otherwise stated

 

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 45,242 M

PAYMENTS      REGULAR                     CAPITAL           Yen 401 M

TREND             STEADY                       WORTH            Yen 3,330 M

STARTED         1939                             EMPLOYES      155

 

 

COMMENT

 

TRADING HOUSE SPECIALIZING IN INDUSTRIAL CHEMICALS, AFFILIATED WITH NIPPON SODA CO LTD.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

MAX CREDIT LIMIT: YEN 629.6 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

 

The subject company was established as a marketing division by Nippon Soda Co Ltd, fine chemicals mfr, Tokyo, in order to focus on distributing industrial chemicals centrally.  The firm has since grown into a trading house for import, export and wholesale of industrial chemicals, functional chemical products, semiconductor mfg equipment, synthetic resin materials, heat insulating materials, waterproofing agents, other.  The overseas trading division was opened in 1966.  Aggressive in expanding overseas operations: in 1991 opened a subsidiary in Taiwan; in 1994 established a JV in Hong Kong; in 2002 opened Shanghai office.  Clients include major paper mills, pharmaceutical mfrs, other mfrs nationwide.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2006 fiscal term amounted to Yen 45,242 million, a 1.1% up from Yen 44,741 million in the previous term.  The rising material costs led to the hike in downstream marketing prices.  The recurring profit increased by 8% to Yen 517 million from Yen 478 million, and resulted in Yen 234 million net profit, down from Yen 254 million a year ago.  Wrote off Yen 35 million as assets impairment expenses.

 

For the current term ending Mar 2007 the recurring profit is projected at Yen 500 million and net profit at Yen 250 million, on a similar turnover, at Yen 45,200 million.  The Shanghai office, which started operations in Jun 2004 will continue contributing to the sales and profits.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 629.6 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered : Dec 1939

Legal Status                  : Limited Company (Kabushiki Kaisha)

Authorized                     : 24 million shares

Issued                           : 6.5 million shares

Sum                             : Yen 401 million

 

 

Major shareholders (%)

 

Nippon Soda Co*(56.9), Sanwa Soko (10.7), MUFG (4), SMBC      (3), Nisso Engineering (2.3)

 

No. of shareholders: 82

 

*.. Mid-sized fine chemical mfr, Tokyo, founded 1920, listed Tokyo S/E, capital Yen 26,666 million, turnover Yen 143,934 million, recurring profit Yen 4,612 million, net loss Yen 6,263 million, employees 2,534, pres K Inoue

 

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

 

 

OPERATION

 

Activities: A trading house for import, export, wholesale of organic/inorganic industrial chemicals: soda chemicals, urethane materials, pharmaceutical & agrochemicals intermediates, surfactants (--52%); feed additives, pesticides, other functional agents (--14%); synthetic resin materials & products (--11%); semiconductor mfg equipment, injection molding equipment, UV-related apparatus (--6%); waterproofing materials & agents, heat insulating agents, construction materials & chemicals (--9%); others (8%).

 

(Import 70%, export 30%)

 

 

Clients

 

[Mfrs, wholesalers] Nippon Soda Co, Chuetsu Pulp & Paper, Mitsubishi Paper Mills, Oji Paper, Achilles Corp, NOK, other

 

 

No. of accounts

 

2,000

 

 

Domestic areas of activities

 

Nationwide

 

 

Suppliers

 

[Mfrs, wholesalers] Nippon Soda Co, Mitsui & Co, Maruzen Chemical, Aica Kogyo, Mitsui Takeda Chemical, other.

 

Payment record

 

Regular

 

 

Location

 

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

 

 

Bank References

 

SMBC (Nihombashi)

MUFG (Nihombashi-Chuo)

Relations: Satisfactory

 

 

FINANCES

 

(Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2006

31/03/2005

INCOME STATEMENT

 

 

 

  Annual Sales

　

45,242

44,741

 

  Cost of Sales

42,120

41,645

 

      GROSS PROFIT

3,122

3,096

 

  Selling & Adm Costs

2,634

2,648

 

      OPERATING PROFIT

488

448

 

  Non-Operating P/L

29

30

 

      RECURRING PROFIT

517

478

　

      NET PROFIT

234

254

BALANCE SHEET

 

 

 

 

  Cash

　

584

775

 

  Receivables

 

9,399

9,020

 

  Inventory

 

689

880

 

  Securities, Marketable

　

　

 

  Other Current Assets

5,001

5,081

 

      TOTAL CURRENT ASSETS

15,673

15,756

 

  Property & Equipment

139

188

 

  Intangibles

 

29

44

 

  Investments, Other Fixed Assets

2,725

2,056

 

      TOTAL ASSETS

18,566

18,044

 

  Payables

 

9,517

9,571

 

  Short-Term Bank Loans

2,150

2,650

 

　

 

　

　

 

  Other Current Liabs

2,466

2,274

 

      TOTAL CURRENT LIABS

14,133

14,495

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

180

207

 

  Other Debts

　

923

593

 

      TOTAL LIABILITIES

15,236

15,295

 

      MINORITY INTERESTS

 

 

 

Common stock

401

401

 

Additional paid-in capital

100

100

 

Retained earnings

2,006

1,823

 

Evaluation p/l on investments/securities

821

424

 

Others

 

2

1

 

Treasury stock, at cost

　

　

 

      TOTAL S/HOLDERS` EQUITY

3,330

2,749

　

      TOTAL EQUITIES

18,566

18,044

ANALYTICAL RATIOS          Terms ending:

31/03/2006

31/03/2005

 

 

Net Worth (S/Holders' Equity)

3,330

2,749

 

 

Current Ratio (%)

110.90

108.70

 

 

Net Worth Ratio (%)

17.94

15.23

 

 

Recurring Profit Ratio (%)

1.14

1.07

 

 

Net Profit Ratio (%)

0.52

0.57

 

 

Return On Equity (%)

7.03

9.24

 

 

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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%)

 

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