MIRA INFORM REPORT

 

 

Report Date :

09.11.2012

 

IDENTIFICATION DETAILS

 

Name :

SHINKO KAIUN CO LTD

 

 

Registered Office :

 

Towa Ginza I-chome Bldg 6F, 1-22-12 Ginza Chuoku Tokyo 104-0061 Tokyo

104-0061

 

 

 

 

Country :

Japan

 

 

 

 

Financials (as on) :

30.09.2011

 

 

 

 

Date of Incorporation :

Nov, 1981

 

 

 

 

Com. Reg. No.:

0100-01-045770

 

 

 

 

Legal Form :

Limited Company

 

 

 

 

Line of Business :

Ship operator of logs and timber

 

 

 

 

No. of Employees :

10

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow

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

(31.03.2011)

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

COMPANY NAME

 

SHINKO KAIUN CO LTD

 

 

REGD NAME    

 

KK Shinko Kaiun

 

 

MAIN OFFICE

 

Towa Ginza I-chome Bldg 6F, 1-22-12 Ginza Chuoku Tokyo 104-0061 Tokyo

104-0061 JAPAN

Tel: 03-5524-3636     Fax: 03-5524-3637

 

URL:                 N/A

 

 

ACTIVITIES

 

Ship operator, ship broker

 

 

BRANCHES

 

Singapore

 

 

OFFICERS

 

MASATAKA GOHARA, PRES

K R Chang, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 900 M

PAYMENTS      SLOW              CAPITAL           Yen 23 M

TREND             SLOW              WORTH            Yen 95 M

STARTED         1981                 EMPLOYES      10

 

COMMENT

 

SHIP OPERATOR.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

           

HIGHLIGHTS

           

The subject company was established by Takashi Shibasaki as a marine transport company of logs from Indonesia, Malaysia, etc.  When Indonesia and Malaysia later stopped exports of logs due to the ecological reasons (forest conservation), the firm was transferred to the present executives. T Shibasaki then started his own company in Singapore for focusing on chemical tanker operation in the Asian region.  The subject firm is now engaged in transport of logs and timber from Sarawak.  At the same time, the firm expanded its operations to general merchandise shipment & transport, particularly in small-lots of cargoes from and into China.  Operates 3 vessels, as chartered in.   Clients are general trading houses, paper mills, and lumber traders, other, nationwide. 

 

 

FINANCIAL INFORMATION

           

The sales volume for Sept/2011 fiscal term amounted to Yen 900 million, a 21% down from Yen 1,139 million.  Cargo movements from and into China dropped substantially.  High Yen hurt freight revenues in Yen terms.  The recurring profit was posted at Yen 18 million, but posted Yen 3 million net losses for the term, compared with Yen 1 million recurring profit and Yen 1 million net profit, respectively, a year ago.

 

For the term that ended Sept 2012 the recurring profit was projected at Yen 20 million and the net profit at Yen 15million, respectively, on a 3% rise in turnover, to Yen 930 million.  Final results are yet to be released.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 15.5 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:            Nov 1981

Regd No.:                      0100-01-045770 (Tokyo-Chuoku)

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    184,000 shares

Issued:                          46,000 shares

Sum:                            Yen 23 million

Major shareholders (%): K R Chan (36), Masataka Gohara (28), Lee Joe Song (18),

Kaoru Sugie (2),

No. of shareholders: 6

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

 

 

OPERATION

 

Activities: Ship operator of logs and timber from Sarawak centrally, operating three

bulkers, shipment of container-lot cargoes (on a charter-in & broking basis) (--100%).

 

Clients: [Cargo owners, charterers] Marubeni Corp, Sojitz Corp, Nippon Paper Ind, Nagasaki International, Oji Forest & Products Co, Able Wooden Enterprise Co Ltd, Itochu Corp, Sumitomo Corp, other. 

No. of accounts: 100

Domestic areas of activities: Nationwide

Suppliers: [Ship owners] Albeni Pratama Ocean Line, Yayasan Saba Shipping, Eternity                  Shipping, Kyowa Sansho, other.

 

Payment record: Slow

 

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

 

Bank References:

Mizuho Bank (Kyobashi)

MUFG (Shimbashi-Ekimae)

Relations: Satisfactory.

 

 

FINANCES

 

(In Million Yen)

 

 

       Terms Ending:

30/09/2012

30/09/2011

30/09/2010

30/09/2009

Annual Sales

　

930

900

1,139

747

Recur. Profit

　

20

18

1

1

Net Profit

　

15

-3

1

2

Total Assets

　

　

408

401

478

Current Assets

　

　

210

174

233

Current Liabs

　

　

183

162

163

Net Worth

　

　

95

98

97

Capital, Paid-Up

　

　

23

23

23

Div.P.Share(¥)

　

　

0.00

0.00

25.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.33

-20.98

52.48

-16.35

    Current Ratio

 

..

114.75

107.41

142.94

    N.Worth Ratio

..

23.28

24.44

20.29

    R.Profit/Sales

 

2.15

2.00

0.09

0.13

    N.Profit/Sales

1.61

-0.33

0.09

0.27

    Return On Equity

..

-3.16

1.02

2.06

 

Note: Forecast figures for the 30/09/2012 fiscal term.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.44

UK Pound

1

Rs.87.00

Euro

1

Rs.69.47

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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%)

 

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