MIRA INFORM REPORT

 

 

Report Date :

07.01.2011

 

IDENTIFICATION DETAILS

 

Correct Name :

JFE SHOJI TRADE CORPORTION

 

 

Registered Office :

2-7-1 Ohtemachi Chiyodaku Tokyo 100-8070

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

August 2004

 

 

Com. Reg. No.:

(Osaka-Kitaku) 062403

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, Export, Wholesale of steel, iron ore, chemicals, machinery, other

 

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 14,771.1 Million

 

 

Status :

Satisfactory

 

 

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

 

JFE SHOJI TRADE CORPORTION

 

 

REGD NAME 

 

JFE Shoji KK

 

 

MAIN OFFICE

 

2-7-1 Ohtemachi Chiyodaku Tokyo 100-8070 JAPAN

Tel: 03-5203-5510     Fax: 03-5203-5289

                       

*.. Registered at: 1-6-20 Dojima Kitaku Osaka

.

URL:                 http://www.jfe-shoji.co.jp/

E-Mail address:            (through the URL)

 

 

ACTIVITIES

 

Import, export, wholesale of steel, iron ore, chemicals, machinery, other

 

 

BRANCHES   

 

(Domestic) 18 locations

 

 

OVERSEAS

 

Korea (3), China (4), Taiwan (2), Vietnam (2), India (3), Australia (2), USA (8), other (Total 32 in 15 countries)

 

 

OFFICER(S)  

 

MIKIO FUKUSHIMA, PRES & CEO         Yuji Imataka, v pres

Hisao Osato, s/mgn dir                           Kohei Yoshioka, s/mgn dir

Katsuyoshi Takaya, s/mgn dir                 Hidehiko Ogawa, mgn dir

                       

 

Yen Amount:    In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 1,424,232 M

PAYMENTS                  REGULAR                     CAPITAL           Yen 14,539 M

TREND             SLOW                          WORTH            Yen 46,443 M

STARTED                     1948                             EMPLOYES      1,302

             

 

COMMENT    

 

TRADING HOUSE OWNED BY JFE SHOJI HOLDINGS INC. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 14,771.1 MILLION, 30 DAYS NORMAL TERMS

 

                                    Notes: Forecast figures for the 31/03/2011 fiscal term

 

 

HIGHLIGHTS

 

This is a trading company belonging to JFE Shoji Holdings Inc, which was created on 01/Aug/2004 by Kawasho Corp, Kawasaki Steel group trading house.  On 01/Oct/2004, Kawasho Corp and NKK Trading Inc, NKK group trading house, merged when the two parents, Kawasaki Steel and NKK merged to become JFE Holdings Inc.  At the same time, the group reorganized into four individual companies under the control of JFE Shoji Holdings Inc: JFE Shoji Trade Corporation (consolidated steel business), Kawasho Foods Corporation (foods business), Kawasho Semiconductor Corporation (semiconductor business) and Kawasho Real Estate Corporation (real estate business).  96% of sales are generated by the subject firm and this is the core of the group firms.  In Oct 2010 acquired of all issued shares in Republic Coal Pty Ltd, Australia.  In Jun 2010 established JV with Summit Corp Thailand, as Steel Alliance Service Center Co Ltd, a steel processing center mainly serving the automobile industry.

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 1,424,232 million, a 32% drop from Yen 2,106,616 million in the previous term.  Affected by the global economic downturn, sales declined.  Domestic net demand from the construction and civil engineering sectors has remained sluggish.  The recurring profit was posted at Yen 14,671 million and the net profit at Yen 9,542 million, respectively, compared with Yen 26,291 million recurring profit and Yen 16,104 million net profit, respectively, a year ago.

 

For the current term ending Mar 2011 the recurring profit is projected at Yen 16,000 million and the net profit at Yen 15,000 million, respectively, on a 26% rise in turnover, to Yen 1,800,000 million.  Sales to construction/machinery firms will increase.  Sales to automakers will rise mainly in the first half thanks to subsidies.  Asia bound exports are steady.  The newly established JV in Thailand will contribute for the full term.  Price hikes for steel products will help.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 14,771.1 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:          Aug 2004

Regd No.:                     (Osaka-Kitaku) 062403

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                 1,000 million shares

Issued:                        295,365,187 shares

Sum:                            Yen 14,539 million

Major shareholders:     JFE Shoji Holdings Inc*(100)

 

*..Holding company created by Kawasho Corp & NKK Trading on 01/Aug/2004 following      Apr/04 merger between their parent firms, Kawasaki Steel & NKK Corp (now JFE Holdings Inc); Listed Tokyo, Osaka S/E’s, capital Yen 20,000 million (38% owned by JFE Steel under        JFE Holdings Inc), sales Yen 1,811,887 million, operating profit Yen 15,140 million, recurring profit Yen 14,491 million, net profit Yen 7,506 million, total assets Yen 535,886 million, net worth Yen 102,561 million, employees 5,788, pres Mikio Fukushima, concurrently

 

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

 

           

OPERATION

 

Activities: The subject is a trading house owned by JFE Shoji Holdings Inc and we here give here breakdown of operations/sales of the 4 group firms:

 

JFE Shoji Trade Corp (98%): steel, coal, iron ore, chemicals & fuels, steelworks machinery, engineering works:

 

Kawasho Foods Corp (1%): foodstuffs;

 

Kawasho Semiconductor Corp (1%): semiconductor equipment & supplies;

 

(Major Handling Items by JFE Shoji Trade Corp):

 

Steel: shipbuilding steel, thick steel plate, processed steel for ships & bridges, hot-rolled    sheet, cold-rolled sheet, electrical steel sheet, coated steel sheet, steel plate, stainless steel, special steel, galvanized sheet, tin plate, steel pipes, special steel pipes, treated steel pipes, iron powder, hot charge, steel piles, wire, H-beam, lightweight shaped steel plate, regular shaped steel plate, reinforced products, columns, semi-finished steel products (slabs, etc), civil engineering products, construction materials, housing materials, other products, civil engineering, construction;

 

Raw Materials: iron ore, sintering ore, coal for coke making, dolomite & other steel making materials, cokes & coal products, nickel, chromium, zinc, alloy iron, scrap iron & other metal            raw materials, aluminum, scrap aluminum, deoxidized aluminum, aluminum products;

 

Machinery: blast furnaces, coke ovens, oxygen facilities, continuous slab casting machines, hot rolling mills, galvanizing equipment & steel mfg machinery, roll, lubricating oil, bearing, electric cable & steel mfg materials, metal processing machinery, boilers, turbines, electrical equipment, amusement part equipment, hospital facilities, building facilities, factory facilities, various new ship building, sale & purchase of used ships, scrapping ships, ship repairs, ship equipment, other products;

 

Chemicals & Fuels: coal tar, coal tar pitch, creosote oil & other chemical coal products, magnesium chloride, nitric acid & other inorganic chemicals, ferrite core, molding materials, iron oxide, fertilizers, general use plastic, engineering plastics & other plastic raw materials & compound products, fine ceramics, ultra-fine nickel powder & other functional chemical products, industrial gases, crude oil, gasoline, LPG, lubricating oil & other petroleum products.

 

Clients: [Mfrs, wholesalers] JFE Steel (50%), Nissan Motor, Mitsubishi Motors, other.

            No. of accounts: 2,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] JFE Steel, JFE Chemical, JFE Steel Plate, other.

 

Payment record: Regular

 

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

 

Bank References:

·         Mizuho Corporate Bank (H/O)

·         SMBC (H/O)

Relations: Satisfactory

 

FINANCES

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

1,424,232

2,106,616

 

  Cost of Sales

1,391,191

2,062,238

 

      GROSS PROFIT

33,041

44,378

 

  Selling & Adm Costs

20,688

21,574

 

      OPERATING PROFIT

12,353

22,803

 

  Non-Operating P/L

2,318

3,488

 

      RECURRING PROFIT

14,671

26,291

　

      NET PROFIT

9,542

16,104

BALANCE SHEET

 

 

 

 

  Cash

　

9,381

42,126

 

  Receivables

 

197,262

200,792

 

  Inventory

 

10,527

26,379

 

  Securities, Marketable

　

1,000

 

  Other Current Assets

59,972

61,923

 

      TOTAL CURRENT ASSETS

277,142

332,220

 

  Property & Equipment

6,485

6,585

 

  Intangibles

 

5,519

6,411

 

  Investments, Other Fixed Assets

75,366

68,911

 

      TOTAL ASSETS

364,512

414,127

 

  Payables

 

182,476

203,408

 

  Short-Term Bank Loans

182,476

91,618

 

　

 

　

　

 

  Other Current Liabs

(70,112)

58,365

 

      TOTAL CURRENT LIABS

294,840

353,391

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

17,000

22,279

 

  Reserve for Retirement Allw

2,936

2,582

 

  Other Debts

　

3,293

494

 

      TOTAL LIABILITIES

318,069

378,746

 

      MINORITY INTERESTS

 

 

 

Common stock

14,539

14,539

 

Additional paid-in capital

4,779

4,779

 

Retained earnings

23,246

16,104

 

Evaluation p/l on investments/securities

3,876

(61)

 

Others

 

3

20

 

Treasury stock, at cost

　

　

 

      TOTAL S/HOLDERS` EQUITY

46,443

35,381

　

      TOTAL EQUITIES

364,512

414,127

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

46,443

35,381

 

 

Current Ratio (%)

94.00

94.01

 

 

Net Worth Ratio (%)

12.74

8.54

 

 

Recurring Profit Ratio (%)

1.03

1.25

 

 

Net Profit Ratio (%)

0.67

0.76

 

 

Return On Equity (%)

20.55

45.52

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.31

UK Pound

1

Rs.70.26

Euro

1

Rs.59.56

 

 

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.