MIRA INFORM REPORT
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Report Date : |
22.04.2011 |
IDENTIFICATION DETAILS
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Correct Name : |
SHOKO CO LTD |
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Registered Office : |
2-4-1 Shibakoen
Minatoku Tokyo 105-8432 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
May 1947 |
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Com. Reg. No.: |
(Tokyo-Minatoku) 013769 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import,
export, wholesale of chemicals, synthetic resins, metals, electronics |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 2,693.0 Million |
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Status : |
Satisfactory |
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Payment
Behaviour : |
Regular |
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Litigation : |
---- |
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 – December 31, 2010
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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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 |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company
name
SHOKO CO LTD
REGD
NAME
Shoko Tsusho KK
MAIN
OFFICE
2-4-1 Shibakoen
Minatoku Tokyo 105-8432 JAPAN
Tel: 03-3459-5111 Fax: 03-3459-5390
E-Mail address: info@shoko.co.jp
ACTIVITIES
Import,
export, wholesale of chemicals, synthetic resins, metals, electronics
BRANCHES
Osaka,
Nagoya, Fukuoka, Sendai, Oita
OVERSEAS
Lianyunguan
Zhoahua Minerals Co Ltd, Shoko (Shanghai) Co Ltd (--China),
Korea, Taiwan; Shoko America Inc (USA), Thailand (--affiliates)
FACTORIES
Chiba
CHIEF
EXEC
SHINJI
SAKAI, PRES & CEO
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 137,030 M
PAYMENTS REGULAR CAPITAL Yen 8,021 M
TREND SLOW WORTH Yen
14,782 M
STARTED 1945 EMPLOYES 425
COMMENT
TRADING HOUSE SPECIALIZING IN CHEMICALS & SYNTHETIC RESINS,
AFFILIATED WITH SHOWA DENKO KK.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 2,693.0 MILLION, 30 DAYS NORMAL TERMS.
Forecast figures for the 31/12/2011
fiscal term.
HIGHLIGHTS
The subject company was established by Showa Denko KK, a comprehensive chemicals
mfr, Tokyo (see REGISTRATION), as a trading firm primarily dealing in chemicals
and fertilizers. Since incorporated, the
firm has expanded operations into synthetic resins, light metals, iron/steel
products, construction materials and recently electronics. Synthetic resins & chemicals account for
nearly 50% of total sales. Emphasis on
fine chemicals. Diversifying into
metals, including aluminum alloys & foils, and electronic materials as well
as real estate business including condominium sales. Also, actively diversifying into
pharmaceuticals, analyzers, reagents, computers, etc. Moving toward a general trader on R&D,
with mfg division in fertilizers, molding, soil improvement agents, etc
domestically, and heavy nitrogen compounds, calium arsenic boards, etc in
USA. The firm acquired a stake in two
customer firms owned by the parent company.
It aims to expand the chemicals business in April 2011 and increase
sales in Southeast Asia where it created a subsidiary. The firm also plans to expand sales in
eastern US. Domestic clients are Showa
Denko group mfrs and other major chemicals mfrs nationwide.
FINANCIAL
INFORMATION
The sales volume for Dec/2010 fiscal term amounted to Yen 137,030
million, a 7.4% up from Yen 127,560 million in the previous term. Sales rose.
Demand increased. By Divisions,
Chemicals up 24.4% to Yen 31,896 million, as exports of organic solvents &
inorganic chemicals rose; Synthetic resins up 1.4% to Yen 45,553 million, as
prices increased due to the naphtha price increase; Metals up 8.2% to Yen
35,815 million, as demand revived from IT & automotive industries; Living
& Environment down 9.6% to Yen 14,605 million, as housing starts were slow
and decreased. The recurring profit was
posted at Yen 1,353 million and the net profit at Yen 863 million,
respectively, compared with Yen 518 million recurring profit and Yen 203
million net profit, respectively, a year ago.
For the current term ending Dec 2011 the recurring profit is projected
at Yen 1,210 million and the net profit at Yen 640 million, respectively, on a
1.2 rise in turnover, to Yen 138,700 million.
Chemicals sales will rise steadily and synthetic resin materials sales
should also continue growth. Information
electronics will become profitable thanks to business support and new business,
offsetting the drop in operating profit resulting from inventory valuation
returning to normal.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 2,693.0 million, on 30 days normal terms.
REGISTRATION
Date Registered: May 1947
Regd No.: (Tokyo-Minatoku) 013769
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
400 million shares
Issued: 112,714,687 shares
Sum: Yen 8,021 million
Major shareholders
(%): Showa Denko*(42.4), Mizuho Corporate Bank (2.4), Royal Bank of Canada T
(Cayman) (1.6), Master Trust Bank of Japan, T (1.3), Company’s Treasury Stock (1.1),
Japan Trustee Services Bank T4G (1.0), Sompo Japan Ins (0.9), Employees’
S/Holding Assn (0.6), BONY GCM Client JPRDISGFEAC (0.6), Fukuoka Life Ins
(0.5); foreign owners (3.2)
*.. Major comprehensive chemical mfr, Tokyo, founded 1939, listed Tokyo
S/E, capital Yen 140,564 million, sales Yen 797,189 million, operating profit
Yen 38,723 million, recurring profit Yen 30,471 million, net profit Yen 12,706
million, total assets Yen 924,484 million, net worth Yen 241,639 million,
employees 11,597, pres Hideo Ichikawa
No. of
shareholders: 9,264
Listed on the
S/Exchange (s) of: Tokyo
Managements: Shinji Sakai,
pres & CEO; Toru Takeuchi, dir; Jun Ono, dir; Shunji Seki, dir; Tetsuji
Kawaguchi, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Shoko Tsusho
Agri, Mie Kasei, Showa Baido, Cosmo Kasei Kogyo,
Shoko Tsusho (Shanghai), other
OPERATION
Activities: A trading house
for import, export and wholesale of (Sales breakdown):
Chemicals Div
(23%): (organic chemicals) raw materials for resins & organic synthesis,
solvents & cleaning agents, resin additives, adhesives, synthetic rubber,
food/feed additives, (inorganic chemicals) ammonia products, acid, alkalis
& salts, chemicals for plating, minerals, water treatment agents, other;
Synthetic Resins
Div (33%): LDPE, HDPE, PP, PS, other plastic raw materials, plastic sheets, films
& multi-layered products, plastic molding & packing materials, other;
Light Metals Div
(26%): aluminum ingots & alloy, aluminum scraps, aluminum sheets,
extrusions, electrolytic foils, rare metals, ceramics, other;
Commodities &
Construction Materials Div (11%): storage tanks, food refrigeration units,
industrial containers, reactors, heat exchangers, pumps, cement, plaster
materials & waterproofing agents, aluminum construction materials, housing
fixtures, other;
Electronics &
Other Div (7%): LED chips, modules, polymer aluminum electrolytic capacitors,
semiconductors; real estate management, sale of condominiums, land &
houses, including designing, planning, construction services; property &
life insurance broking, other.
Overseas Sales
Ratio (13.9%): Asia 13.8%, others 0.1%
Clients: [Mfrs,
wholesalers] Showa Denko, Showa Aluminum Can Recycling Center,
Showa Highpolymer, Nippon Chemi-Con, Kojundo Chemical Laboratory, Summit
Alumi, Asahi Seiren, Summit Showa Aluminum, other.
No. of accounts: 2,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Showa Denko, Japan Polyolefin, Japan Polyethylene, Showa Highpolymer, Showa Denko Kenzai,
Showa Light Metal, Cabot Super Metals, San Aroma,
Kurimoto Ltd, Asahi Seiren, other.
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are owned by the parent, Showa Denko, and maintained satisfactorily.
Bank References:
Mizuho
Corporate Bank (Ohtemachi)
Mizuho
Trust Bank (H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/12/2010 |
31/12/2009 |
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INCOME STATEMENT |
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Annual Sales |
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137,030 |
127,560 |
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Cost of Sales |
128,913 |
120,272 |
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GROSS PROFIT |
8,116 |
7,288 |
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Selling & Adm Costs |
6,641 |
6,697 |
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OPERATING PROFIT |
1,474 |
591 |
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Non-Operating P/L |
-121 |
-73 |
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RECURRING PROFIT |
1,353 |
518 |
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NET PROFIT |
863 |
203 |
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BALANCE SHEET |
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Cash |
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2,608 |
2,490 |
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Receivables |
32,434 |
38,276 |
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Inventory |
4,294 |
2,858 |
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Securities, Marketable |
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Other Current Assets |
8,421 |
7,621 |
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TOTAL CURRENT ASSETS |
47,757 |
51,245 |
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Property & Equipment |
7,186 |
8,486 |
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Intangibles |
243 |
252 |
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Investments, Other Fixed Assets |
3,782 |
3,236 |
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TOTAL ASSETS |
58,968 |
63,219 |
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Payables |
33,986 |
37,148 |
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Short-Term Bank Loans |
1,129 |
2,776 |
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Other Current Liabs |
5,368 |
2,095 |
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TOTAL CURRENT LIABS |
40,483 |
42,019 |
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Debentures |
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3,000 |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
716 |
868 |
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Other Debts |
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2,987 |
3,059 |
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TOTAL LIABILITIES |
44,186 |
48,946 |
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MINORITY INTERESTS |
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Common
stock |
8,021 |
8,021 |
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Additional
paid-in capital |
0 |
0 |
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Retained
earnings |
6,717 |
6,619 |
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Evaluation
p/l on investments/securities |
336 |
374 |
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Others |
(73) |
(525) |
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Treasury
stock, at cost |
(219) |
(217) |
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TOTAL S/HOLDERS` EQUITY |
14,782 |
14,272 |
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TOTAL EQUITIES |
58,968 |
63,219 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/12/2010 |
31/12/2009 |
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Cash
Flows from Operating Activities |
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1,536 |
-926 |
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Cash
Flows from Investment Activities |
503 |
-1,025 |
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Cash
Flows from Financing Activities |
-1,992 |
-2,782 |
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Cash,
Bank Deposits at the Term End |
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2,687 |
2,668 |
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ANALYTICAL RATIOS Terms ending: |
31/12/2010 |
31/12/2009 |
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Net
Worth (S/Holders' Equity) |
14,782 |
14,272 |
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Current
Ratio (%) |
117.97 |
121.96 |
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Net
Worth Ratio (%) |
25.07 |
22.58 |
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Recurring
Profit Ratio (%) |
0.99 |
0.41 |
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Net
Profit Ratio (%) |
0.63 |
0.16 |
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Return
On Equity (%) |
5.84 |
1.42 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.33 |
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UK Pound |
1 |
Rs.72.92 |
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Euro |
1 |
Rs.64.69 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.