|
Report Date : |
27.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
JFE SHOJI TRADE CORPORTION |
|
|
|
|
Registered Office : |
1-6-20 Dojima Kitaku Osaka |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2012 |
|
|
|
|
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 |
|
|
|
|
No. of Employees : |
6,119 |
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 |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
JAPAN - ECONOMIC OVERVIEW
In the years
following World War II, government-industry cooperation, a strong work ethic,
mastery of high technology, and a comparatively small defense allocation (1% of
GDP) helped Japan develop a technologically advanced economy. Two notable
characteristics of the post-war 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 are now eroding under the dual pressures of global
competition and domestic demographic change. Japan's industrial sector is
heavily dependent on imported raw materials and fuels. A tiny agricultural
sector is highly subsidized and protected, with crop yields among the highest
in the world. Usually self-sufficient in rice, Japan imports about 60% of its
food on a caloric basis. Japan maintains one of the world's largest fishing
fleets and accounts for nearly 15% of the global catch. For three decades,
overall real economic growth had been spectacular - a 10% average in the 1960s,
a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed
markedly in the 1990s, averaging just 1.7%, largely because of the after
effects of inefficient investment and an asset price bubble in the late 1980s
that required a protracted period of time for firms to reduce excess debt,
capital, and labor. Measured on a purchasing power parity (PPP) basis that
adjusts for price differences, Japan in 2011 stood as the fourth-largest
economy in the world after second-place China, which surpassed Japan in 2001,
and third-place India, which edged out Japan in 2011. A sharp downturn in
business investment and global demand for Japan's exports in late 2008 pushed
Japan further into recession. Government stimulus spending helped the economy
recover in late 2009 and 2010, but the economy contracted again in 2011 as the
massive 9.0 magnitude earthquake in March disrupted manufacturing. Electricity
supplies remain tight because Japan has temporarily shut down almost all of its
nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled
by the earthquake and resulting tsunami. Estimates of the direct costs of the
damage - rebuilding homes, factories, and infrastructure - range from $235
billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister
Yoshihiko NODA has proposed opening the agricultural and services sectors to
greater foreign competition and boosting exports through membership in the
US-led Trans-Pacific Partnership trade talks and by pursuing free-trade
agreements with the EU and others, but debate continues on restructuring the
economy and reining in Japan's huge government debt, which exceeds 200% of GDP.
Persistent deflation, reliance on exports to drive growth, and an aging and
shrinking population are other major long-term challenges for the economy.
|
Source : CIA |
JFE SHOJI TRADE CORPORTION
JFE Shoji KK
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)
Import,
export, wholesale of steel, iron ore, chemicals, machinery, other
(Domestic)
20 locations
Korea (2), China (3), Taiwan (2), Vietnam (2), India (4), Australia (2), USA (3), India, other. (Total 30 in 15 countries)
MIKIO
FUKUSHIMA, PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 2,086,595 M
PAYMENTS REGULAR CAPITAL Yen 20,000 M
TREND STEADY WORTH Yen
123,692 M
STARTED 1948 EMPLOYES 6,119
TRADING HOUSE OWNED BY JFE SHOJI HOLDINGS INC.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
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). 98% 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. The firm was listed on the Tokyo S/E Apr 2012. The firm will become a wholly-owned subsidiary of JFE Holdings in Oct 2012 through a stock swap. Shares will be allocated at 1 JFE Shoji share to 0.268 JFE Holdings shares. The company will be delisted on September 26, 2012. The subsidiaries under the company’s aegis will also be realigned.
The sales volume for Mar/2012 fiscal term amounted to Yen 2,086,595 million, a 3.7% up from Yen 2,011,526 million in the previous term. In the steel business, its core business field, Japan’s automobile industry witnessed a quicker than expected resumption in its supply chain. The recurring profit was posted at Yen 17,283 million and the net profit at Yen 12,108 million, respectively, compared with Yen 23,783 million recurring profit and Yen 13,645 million net profit, respectively, a year ago.
(Apr/Jun/2012 results): Sales Yen 493,197 million, operating profit Yen 4,141 million, recurring profit Yen 4,179 million, net profit Yen 2,311 million.
For the current term ending Mar 2013 the firm announced forecast for the second quarter 2012 that: Sales Yen 980,000 million, operating profit Yen 8,000 million, recurring profit Yen 8,000 million, net profit Yen 4,500 million. This is the forecast until the merger in Oct/2012.
The financial situation is considered FAIR and good for ORDINARY business engagements.
Date Registered: Aug
2004
Regd No.: (Osaka-Kitaku) 062403
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
320 million shares
Issued:
236,777,704 shares
Sum: Yen 20,000 million
Major shareholders: JFE Steel (38.5), Kawasaki Heavy Ind (2.7), TCSB (Kawasaki Heavy Ind) (2.3), Japan Trustee Services T (2.0), Master Trust Bank of Japan T (1.9), Kawasaki Kisen (1.8), Century Tokyo Leasing (1.8), Juniper (1.6), Group Customers’ S/Holding Assn (1.6), Mizuho Corporate Bank (1.4); foreign owners (18.9)
No. of shareholders: 5,258
Listed on the Stock Exchange of: Tokyo (listed in Apr/2012)
Management: Mikio Fukushima, pres; Tsutomu Yajima, v pres; Hisao Osato, s/mgn dir; Kohei Yoshioka, s/mgn dir; Katsuyoshi Takaya, s/mgn dir; Hidehiko Ogawa, s/mgn dir; Masaru Saruwatari, mgn dir; Takeshi Fujiwara, mgn dir
Nothing detrimental is known as to the commercial morality of executives.
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, Samsung
Japan, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers:
[Mfrs, wholesalers] JFE Steel, JFE Chemical, JFE Steel Plate, BM Alliance, BHP
Billiton, Wesfarmers, Vale, 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 (Uchisaiwaicho)
SMBC
(H/O)
Relations:
Satisfactory
|
FINANCES: (Consolidated
in million yen) |
|
|||||
|
|
|
Terms Ending: |
31/03/2012 |
31/03/2011 |
||
|
INCOME STATEMENT |
|
|
||||
|
|
Annual Sales |
|
2,086,595 |
2,011,526 |
||
|
|
Cost of Sales |
2,020,266 |
1,938,329 |
|||
|
|
GROSS PROFIT |
66,328 |
73,196 |
|||
|
|
Selling & Adm Costs |
49,551 |
49,833 |
|||
|
|
OPERATING PROFIT |
16,777 |
23,363 |
|||
|
|
Non-Operating P/L |
506 |
420 |
|||
|
|
RECURRING PROFIT |
17,283 |
23,783 |
|||
|
|
NET PROFIT |
12,108 |
13,645 |
|||
|
BALANCE SHEET |
|
|
|
|||
|
|
Cash |
|
27,998 |
31,551 |
||
|
|
Receivables |
|
334,374 |
322,108 |
||
|
|
Inventory |
|
79,585 |
77,502 |
||
|
|
Securities, Marketable |
|
|
|||
|
|
Other Current Assets |
28,120 |
31,576 |
|||
|
|
TOTAL CURRENT ASSETS |
470,077 |
462,737 |
|||
|
|
Property & Equipment |
37,594 |
38,061 |
|||
|
|
Intangibles |
|
4,018 |
5,503 |
||
|
|
Investments, Other Fixed Assets |
64,804 |
65,063 |
|||
|
|
TOTAL ASSETS |
576,493 |
571,364 |
|||
|
|
Payables |
|
283,783 |
304,539 |
||
|
|
Short-Term Bank Loans |
90,717 |
78,105 |
|||
|
|
|
|
|
|
||
|
|
Other Current Liabs |
59,093 |
47,032 |
|||
|
|
TOTAL CURRENT LIABS |
433,593 |
429,676 |
|||
|
|
Debentures |
|
|
|
||
|
|
Long-Term Bank Loans |
10,388 |
14,000 |
|||
|
|
Reserve for Retirement Allw |
5,133 |
4,802 |
|||
|
|
Other Debts |
|
3,687 |
5,460 |
||
|
|
TOTAL LIABILITIES |
452,801 |
453,938 |
|||
|
|
MINORITY INTERESTS |
|
|
|||
|
|
Common
stock |
20,000 |
20,000 |
|||
|
|
Additional
paid-in capital |
17,428 |
17,428 |
|||
|
|
Retained
earnings |
92,310 |
83,742 |
|||
|
|
Evaluation
p/l on investments/securities |
2,933 |
3,829 |
|||
|
|
Others |
|
(8,618) |
(7,217) |
||
|
|
Treasury
stock, at cost |
(361) |
(356) |
|||
|
|
TOTAL S/HOLDERS` EQUITY |
123,692 |
117,426 |
|||
|
|
TOTAL EQUITIES |
576,493 |
571,364 |
|||
|
CONSOLIDATED CASH FLOWS |
|
|
||||
|
|
|
Terms ending: |
31/03/2012 |
31/03/2011 |
||
|
|
Cash
Flows from Operating Activities |
|
-23,611 |
16,343 |
||
|
|
Cash
Flows from Investment Activities |
-6,429 |
-7,069 |
|||
|
|
Cash
Flows from Financing Activities |
26,123 |
-850 |
|||
|
|
Cash,
Bank Deposits at the Term End |
|
27,953 |
31,501 |
||
|
ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
||||
|
|
|
Net
Worth (S/Holders' Equity) |
123,692 |
117,426 |
||
|
|
|
Current
Ratio (%) |
108.41 |
107.69 |
||
|
|
|
Net
Worth Ratio (%) |
21.46 |
20.55 |
||
|
|
|
Recurring
Profit Ratio (%) |
0.83 |
1.18 |
||
|
|
|
Net
Profit Ratio (%) |
0.58 |
0.68 |
||
|
|
|
Return
On Equity (%) |
9.79 |
11.62 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.96 |
|
UK Pound |
1 |
Rs.88.67 |
|
Euro |
1 |
Rs.72.45 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.