MIRA INFORM REPORT

 

 

Report Date :

21.05.2012

 

IDENTIFICATION DETAILS

 

Name :

SHOKO CO LTD

 

 

Registered Office :

2-4-1 Shibakoen Minatoku Tokyo 105-8432

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2011 (Consolidated)

 

 

Date of Incorporation :

May 1947

 

 

Com. Reg. No.:

(Tokyo-Minatoku) 013769

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, wholesale of chemicals, synthetic resins, metals, electronics

 

 

No. of Employees :

451

 

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

 

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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 and address

 

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

 

URL:                 http://www.shoko.co.jp/

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 139,353 M

PAYMENTS  REGULAR CAPITAL           Yen 8,021 M

TREND UP                    WORTH            Yen 15,543 M

STARTED         1945                 EMPLOYES      451

 

 

COMMENT    

 

TRADING HOUSE SPECIALIZING IN CHEMICALS & SYNTHETIC RESINS, AF      FILIATED WITH SHOWA DENKO KK. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

           

                        Notes: Unit: In Million Yen

Forecast figures for the 31/12/2012 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.  The company will introduce red LED products for vegetable plants.  Own-brand construction materials will take hold in the Tohoku area (North East Japan).  The company will strengthen businesses in South Korea and Taiwan through the new subsidiaries.  Domestic clients are Showa Denko group mfrs and other major chemicals mfrs nationwide.

 

 

FINANCIAL INFORMATION

 

            The sales volume for Dec/2011 fiscal term amounted to Yen 139,353 million, a 1.7% up from Yen 137,030 million in the previous term.  China-bound synthetic resin sales grew.  Fireproof materials and inorganic materials such as rare earth, remained in good shape.  Chemicals benefited from the business acquisition.  By Divisions, Chemicals down 0.5% to Yen 31,740 million; Synthetic resins down 5.5% to Yen 43,038 million; Metals up 11.9% to Yen 40,069 million; Living & environment down 6.1% to Yen 13,078 million; Electronic Materials & others up 17.9% to Yen 10,796 million.  The recurring profit was posted at Yen 1,717 million and the net profit at Yen 1,349 million, respectively, compared with Yen 1,353 million recurring profit and Yen 863 million net profit, respectively, a year ago.

 

            (Jan/Mar/2012 results): Sales Yen 33,869 million (down 3.1%), operating profit Yen 668 million (down 5.0%), recurring profit Yen 656 million (down 1.8%), net profit Yen 414 million (up 0.5%).  (% compared with the corresponding period a year ago).

 

For the current term ending Dec 2012 the recurring profit is projected at Yen 1,930 million and the net profit at Yen 1,030 million, respectively, on a 4.6% rise in turnover, to Yen 145,700 million.  In metal materials, rare earth sales will fall.  Domestic market slump will hurt sales of synthetic resins.  But chemicals will benefit from recovering demand for mainstay products among government agencies and growth of business acquired in the preceding term.  Electric materials will contribute more thanks to new products.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

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), Japan Trustee Services T (1.4), Master Trust Bank of Japan, T (1.3), Company’s Treasury Stock (1.2), Japan Trustee Services Bank T4G (1.0), Sompo Japan Ins (0.9), Employees’ S/Holding Assn (0.6), Japan Securities Finance 80.5), Fukuoka Life Ins (0.5), Japan Trustee Services T1 (0.5); foreign owners (1.3)

 

*.. Major comprehensive chemical mfr, Tokyo, founded 1939, listed Tokyo S/E, capital Yen 140,564 million, sales Yen 854,158 million, operating profit Yen 47,357 million, recurring profit Yen 40,018 million, net profit Yen 16,980 million, total assets Yen 941,303 million, net worth Yen 295,745 million, employees 11,542, pres Hideo Ichikawa

 

No. of shareholders: 9,216

 

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

 

Managements: Shinji Sakai, pres & CEO; Jun Ono, dir; Shunji Seki, dir; Tetsuji Kawaguchi, dir; Kazuo Ogawa, 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 (31%): LDPE, HDPE, PP, PS, other plastic raw materials, plastic sheets, films & multi-layered products, plastic molding & packing materials, other;

Light Metals Div (29%): aluminum ingots & alloy, aluminum scraps, aluminum sheets, extrusions, electrolytic foils, rare metals, ceramics, other;

Commodities & Construction Materials Div (10%): 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 (8%): 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, Tian Gong International Trade, Tokuen HK Technology Ltd, other.

No. of accounts: 2,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Showa Denko, Focus Trading Co Ltd, Japan Polyolefin,

Japan Polyethylene, Showa Highpolymer, Showa Denko Kenzai, Showa Light Metal,

Cabot Super Metals, Prime Mineral Exports Pvt, Leshan Shenghe Rare Technology Co,

San Aroma, Kurimoto Ltd, Asahi Seiren, Kurimoto Ltd, 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)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/12/2011

31/12/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

139,353

137,030

 

  Cost of Sales

130,800

128,913

 

      GROSS PROFIT

8,553

8,116

 

  Selling & Adm Costs

6,730

6,641

 

      OPERATING PROFIT

1,822

1,474

 

  Non-Operating P/L

-105

-121

 

      RECURRING PROFIT

1,717

1,353

　

      NET PROFIT

1,349

863

BALANCE SHEET

 

 

 

 

  Cash

　

2,248

1,608

 

  Receivables

 

37,477

32,434

 

  Inventory

 

4,010

4,797

 

  Securities, Marketable

　

　

 

  Other Current Assets

2,603

8,918

 

      TOTAL CURRENT ASSETS

46,338

47,757

 

  Property & Equipment

6,763

7,186

 

  Intangibles

 

304

243

 

  Investments, Other Fixed Assets

3,526

3,782

 

      TOTAL ASSETS

56,931

58,968

 

  Payables

 

30,727

33,986

 

  Short-Term Bank Loans

1,675

1,129

 

　

 

　

　

 

  Other Current Liabs

3,449

5,368

 

      TOTAL CURRENT LIABS

35,851

40,483

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

2,000

　

 

  Reserve for Retirement Allw

796

716

 

  Other Debts

　

2,741

2,987

 

      TOTAL LIABILITIES

41,388

44,186

 

      MINORITY INTERESTS

 

 

 

Common stock

8,021

8,021

 

Additional paid-in capital

0

0

 

Retained earnings

6,789

6,717

 

Evaluation p/l on investments/securities

92

336

 

Others

 

861

(73)

 

Treasury stock, at cost

(220)

(219)

 

      TOTAL S/HOLDERS` EQUITY

15,543

14,782

　

      TOTAL EQUITIES

56,931

58,968

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/12/2011

31/12/2010

 

Cash Flows from Operating Activities

　

-6,325

1,536

 

Cash Flows from Investment Activities

5,806

503

 

Cash Flows from Financing Activities

72

-1,992

　

Cash, Bank Deposits at the Term End

　

2,239

2,687

ANALYTICAL RATIOS            Terms ending:

31/12/2011

31/12/2010

 

 

Net Worth (S/Holders' Equity)

15,543

14,782

 

 

Current Ratio (%)

129.25

117.97

 

 

Net Worth Ratio (%)

27.30

25.07

 

 

Recurring Profit Ratio (%)

1.23

0.99

 

 

Net Profit Ratio (%)

0.97

0.63

 

 

Return On Equity (%)

8.68

5.84

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.87

UK Pound

1

Rs.86.46

Euro

1

Rs.69.49

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

 

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.