MIRA INFORM REPORT

 

 

Report Date :

16.02.2011

 

IDENTIFICATION DETAILS

 

Name :

SOJITZ CORPORATION

 

 

Registered Office :

6-1-20 Akasaka Minatoku Tokyo 107-8655

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

December 1982

 

 

Com. Reg. No.:

(Tokyo-Minatoku) 049977

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, Export, Wholesale of Machinery, Energy & Metals, Chemicals

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

Yen 53,358.7 Million

Status :

Good 

Payment Behaviour :

Regular 

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 – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

Japan

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

SOJITZ CORPORATION

 

 

REGD NAME 

 

Sojitz KK

 

 

MAIN OFFICE

 

6-1-20 Akasaka Minatoku Tokyo 107-8655 JAPAN

Tel: 03-5520-5000     Fax: 03-5520-2390

           

URL:                 http://www.sojitz.com/

E-Mail address:            info@sojitz.com

 

 

ACTIVITIES

 

Import, export, wholesale of machinery, energy & metals, chemicals, other

 

 

BRANCHES   

 

7 domestic, 91 overseas

(Subsidiaries/affiliates): 144 domestic, 377 overseas

 

 

CHIEF EXECS

 

YUTAKA KASE, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                 A/SALES          Yen 3,844,418 M

PAYMENTS      REGULAR         CAPITAL           Yen 160,339 M

TREND             SLOW              WORTH            Yen 377,404 M

STARTED                     2003                 EMPLOYES      16,812

                       

COMMENT

 

GENERAL TRADING HOUSE. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY  BUSINESS ENGAGEMENTS.

           

MAX CREDIT LIMIT: YEN 53,358.7 MILLION, 30 DAYS NORMAL TERMS

 

Forecast figures for the 31/03/2011 fiscal term.

 

 

HIGHLIGHTS

 

The subject company was established in Apr 2003 by forming a joint holding company, named Nissho Iwai-Nichimen Holdings Company, by the then Nissho Iwai Co and Nichimen Co, and subsequently in Apr 2004 the two merged into Sojitz Corp as captioned.  The holding company, at the same time, renamed Sojitz Holdings Corporation.  The merger was formed in order to restructure the two firms through supports from financial institutions including the then UFJ Bank (now MUFG), the main bank for the two firms.  On 01/Oct/2005, in order to further streamline the Group’s management framework, Sojitz Holdings merged with its principal operating arm and wholly owned subsidiary, Sojitz Corporation.  The company’s name was then changed to Sojitz Corporation.  This is a general trading house succeeding the business rights & operations of the said two firms, excluding liquidation or separation of unprofitable divisions & operations.  This is the sixth-ranked general trading house.  Major handling items are machinery, energy & resources, which former Nissho Iwai Corp was the stronger, and textiles, etc, which the former Nichimen Corp was stronger.  Highly competitive in fields of aircraft, lumber and urban development.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 3,844,418 million, a 25.6% down from Yen 5,168,182 million in the previous term.  Sales were substantially affected by the global economic downturn, particularly in the first half of the term.  Demand declined in all sectors.  High Yen hurt both imports & exports in Yen terms.  By Divisions, Machinery down 16.5% to Yen 994,498 million, as substantially reduced exports to Russia/NIS and Mid/South Americas; Energy & Metals down 42.9% to Yen 874,543 million, due to decline in resources prices and withdrawal from less-profitable operations; Chemicals & Functional Materials down 23.4% to Yen 547,790 million, due to the decline in methanol prices and reduced sales of other chemicals; Lifestyle down 17.2% to Yen 1,364,672 million.  The recurring profit was posted at Yen 13,702 million and the net profit at Yen 8,794 million, respectively, compared with Yen 33,636 million recurring profit and Yen 19,001 million net profit, respectively, a year ago.  Drastic cost reductions contributed to the sales growth.  Booked restructuring losses as extraordinary loss in this term.

 

(Apr/Sept/2010 results): Sales Yen 1,965,179 million (up 4.2%), operating profit Yen 17,378 million (up 221.8%), recurring profit Yen 123,161 million (up from Yen 1,547 million), net profit Yen 9,119 million (down 54.4%).  (% & figures compared with the corresponding period a year ago).  This is on the strength of the Energy & Metals Division.  The division got a boost from a recovery in transaction volume for steel products and higher prices of such resources as coal.  Its automobile-related business, part of its Machinery Division, has been recovering faster than the firm had initially expected.  And it’s Chemicals & Functional Materials Division fared well.

 

For the current term ending Mar 2011 the recurring profit is projected at Yen 40,000 million and the net profit at Yen 12,000 million, respectively, on an 8.7% rise in turnover, to Yen 4,180,000 million.  Machinery segment will remain in deficit in the current term, hit by an ongoing unstable operating rate at the South America automobile production plant due to a labor dispute.  But coal, energy and other resources and joint venture steel materials sales will show a greater-than-anticipated profit recovery.  The lifestyle business will benefit from peaked-out fertilizer inventory adjustment in Asia.  Chemicals & functional materials will improve.  Stable sales are expected from the third quarter, regardless of impact of the Yen’s appreciation, the firm says.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 53,358.7 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:          Dec 1982

Regd No.:                                 (Tokyo-Minatoku) 049977

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  1,349 million shares

Issued:                         1,251,499,501 shares

Sum:                            Yen 160,339 million

           

Major shareholders (%): Japan Trustee Services T (6.0), Master Trust Bank of Japan T (2.7), State Street Bank & Trust 505225 (1.4), Mellon Bank Mellon Omnibus US P (1.1), Chase London SL Omnibus Acct (0.9), JUNIPER (0.9), Melon Bank NA Treaty Cl Omnibus (0.8), Japan Trustee Services T1 (0.7), Japan Trustee Services T3 (0.7); foreign owners (27.3)

 

No. of shareholders: 199,502

 

Listed on the S/Exchange (s) of: Tokyo, Osaka

 

Managements: Akio Dobashi, ch; Masaki Hashikawa, v ch; Yutaka Kase, pres;  Yoji Sato, v pres; Kazunori Teraoka, v pres, Yoshikazu Sashida, dir Toru Nagashima, dir

 

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

 

 

 

OPERATION

 

Activities: A general trading house:

 

(Sales breakdown by divisions):

 

Machinery Division (26%): Automotive Unit, Environment & Infrastructure Unit, IT Business Unit, Marine & Aerospace Unit;

 

Energy & Metals Division (23%): Energy & Nuclear Unit, Coal & Non-ferrous Metals Unit, Ferrous Metals & Steel Products Unit;

 

Chemicals & Functional Materials Division (14%): Chemicals Unit, Functional Materials Unit;

 

Lifestyle Business Division (36%): Foods Resources Unit, General Commodities & Textile Unit, Forest Products & Real Estate Development Unit;

 

Others (2%)

 

Overseas trading (30.7%): N America 2.7%, Europe 2.6%, Asia/Oceania 19.7%, other      5.7%.

 

           

Clients: [Mfrs, wholesalers] Kobe Steel, NM Life, First Retailing, Uto Kosan, Zao Severstal, Varig S.A., Auto-Isuzu PT Indofood Sukses Makmur TBK, MMC Automotriz SA, other

            No. of accounts: 2,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Hitachi Zosen, Hitachi Ltd, Toyo Rubber, Yamazaki Nabisco, Sun Building Materials Corp, Sumitomo Metal Mining, Fuji Electric Systems, Sojitz Asia,  other.

 

Payment record: Regular

 

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

 

 

Bank References

 

MUFG (Tokyo)

Mizuho Corporate Bank (H/O)

Relations: Satisfactory

 

 

FINANCIALS

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

3,844,418

5,166,182

 

  Cost of Sales

3,666,215

4,930,564

 

      GROSS PROFIT

178,203

235,618

 

  Selling & Adm Costs

162,074

183,611

 

      OPERATING PROFIT

16,128

52,006

 

  Non-Operating P/L

-2,426

-18,370

 

      RECURRING PROFIT

13,702

33,636

　

      NET PROFIT

8,794

19,001

BALANCE SHEET

 

 

 

 

  Cash

　

455,728

421,629

 

  Receivables

 

462,223

522,397

 

  Inventory

 

248,629

382,899

 

  Securities, Marketable

6,131

2,133

 

  Other Current Assets

112,566

144,114

 

      TOTAL CURRENT ASSETS

1,285,277

1,473,172

 

  Property & Equipment

222,665

209,720

 

  Intangibles

 

114,445

114,855

 

  Investments, Other Fixed Assets

538,531

515,211

 

      TOTAL ASSETS

2,160,918

2,312,958

 

  Payables

 

377,468

418,811

 

  Short-Term Bank Loans

256,652

351,841

 

　

 

　

　

 

  Other Current Liabs

207,413

269,205

 

      TOTAL CURRENT LIABS

841,533

1,039,857

 

  Debentures

 

123,647

155,120

 

  Long-Term Bank Loans

763,098

702,861

 

  Reserve for Retirement Allw

13,280

16,174

 

  Other Debts

　

41,956

43,442

 

      TOTAL LIABILITIES

1,783,514

1,957,454

 

      MINORITY INTERESTS

 

 

 

Common stock

160,339

160,339

 

Additional paid-in capital

152,160

152,160

 

Retained earnings

146,489

142,157

 

Evaluation p/l on investments/securities

14,845

6,236

 

Others

 

(96,260)

(105,223)

 

Treasury stock, at cost

(169)

(166)

 

      TOTAL S/HOLDERS` EQUITY

377,404

355,503

　

      TOTAL EQUITIES

2,160,918

2,312,958

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

107,222

103,729

 

Cash Flows from Investment Activities

28,439

-17,198

 

Cash Flows from Financing Activities

-102,597

-5,958

　

Cash, Bank Deposits at the Term End

　

454,262

414,419

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

377,404

355,503

 

 

Current Ratio (%)

152.73

141.67

 

 

Net Worth Ratio (%)

17.46

15.37

 

 

Recurring Profit Ratio (%)

0.36

0.65

 

 

Net Profit Ratio (%)

0.23

0.37

 

 

Return On Equity (%)

2.33

5.34

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.45

UK Pound

1

Rs.72.90

Euro

1

Rs.61.43

 

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

Capability to overcome financial difficulties seems comparatively below average.

 

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

----

NB

New Business

----

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.