MIRA INFORM REPORT

 

 

Report Date :

06.10.2012

 

IDENTIFICATION DETAILS

 

Name :

SANTOKU SHIPPING CO LTD

 

 

 

 

Registered Office :

Santoku Senpaku Bldg, 3-26-9 Isoji Minatoku Osaka 552-0003

 

 

 

 

Country :

Japan

 

 

 

 

Financials (as on) :

30.09.2011

 

 

 

 

Date of Incorporation :

June 1972

 

 

 

 

Com. Reg. No.:

1200-01-029026 (Osaka-Minatoku)

 

 

 

 

Legal Form :

Limited Company

 

 

 

 

Line of Business :

Ship owner, operator, ship management

 

 

 

 

No. of Employees :

85

 

 

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 but correct

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 and address

 

SANTOKU SHIPPING CO LTD (English Expression)

REGD NAME:    Santoku Senpaku KK

MAIN OFFICE:  Santoku Senpaku Bldg, 3-26-9 Isoji Minatoku Osaka 552-0003 JAPAN

Tel: 06-6574-1222     Fax: 06-6576-2600

                       

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

E-Mail address: santoku@santokuship.co.jp

 

 

ACTIVITIES

 

Ship owner, operator, ship management

 

 

BRANCHES

 

(Overseas): Manila, Yangon (Myanmar), Beijing (China), Pusan (Korea)

 

 

OFFICERS

 

MASASHI TAGA, PRES             Yoshikatsu Misawa, mgn dir

Tomoko Taga, dir                                   Junji Fujii, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                                         A/SALES          Yen 25,511 M

PAYMENTS                  SLOW BUT CORRECT               CAPITAL           Yen 40 M

TREND             UP                                            WORTH            Yen 1,476 M

STARTED                     1972                                         EMPLOYES      85

 

                                               

COMMENT

 

SHIP OWNER & OPRATOR.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

                       

                       

HIGHLIGHTS

           

            The subject company was established by Masashi Taga as a ship owner and operator.  Owns 115 vessels (of capsize, reefer, bulk carriers, pure car carriers) operating around the world (See OPERATION).  Some are chartered out to major ship operators.  Offers ship management, crew administration & training, technical administration, other.  Has two overseas offices: Manila & Yangon.  Also 4 agents: Manila, Pusan, Yangon and Beijing.  Ship crews are recruited and trained through these agents.

 

 

FINANCIAL INFORMATION

           

            The sales volume for Sept/2011 fiscal term amounted to Yen 25,511 million, an 11% up from Yen 22,967 million in the previous term.  This is thanks to the delivery of a new ship during the term.    Cargo movement between Japan & China was brisk.  The recurring profit was posted at Yen 511 million and the net profit at Yen 25million, respectively, compared with Yen 219 recurring profit and Yen 67 million net profit, respectively, a year ago.

 

For the term that just ended Sept 2012 the recurring profit was projected at Yen 520 million and the net profit at Yen 30 million, respectively, on a 6% rise in turnover, to Yen 27,000 million.  Final results are yet to be released.

 

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements. 

 

 

REGISTRATION

 

Date Registered: Jun 1972

Regd No.:        1200-01-029026 (Osaka-Minatoku)

Legal Status:     Limited Company (Kabushiki Kaisha)

Authorized:        3,200 shares

Issued:               1,000 shares

Sum:                  Yen 50 million

Major shareholders (%): Masashi Taga (100)

 

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

 

 

OPERATION

 

Activities: Ship owner & operator, operating & managing 116 vessels (--100%).

 

(Vessels under management):

 

Domestic trading Vessels: 5 ships of 29,273 GT/27,564 DWT;

Far East trading vessels:  9 ships of 47,698 GT/59,440 DWT;

Worldwide trading vessels: 102 ships of 3,514,233 GT/5,729,228 DWT.

Total:      116 ships of 3,591,204 GT/5,816,232 DWT

 

Ships are operated by own management and also chartered out.

Also offers ship management, crew manning & training, technical assistance, etc.

 

Clients: [Ship operators, trading houses] Kawasaki Kisen Kaisha, Mitsui & Co, Mitsui-OSK            Lines, Sanko Steamship, Daiichi Chuo Kisen, Konoike Transportation Co, Toyofuji Shipping, Dai-Ichi Chuo Kisen, Iino Kaiun, other.

Corus UK Ltd, Odfjel ASA, Unicorn Shipping, Pacific International Line, Sinostar marine Services (PTE) Ltd, Dongjin Marine Co, Dae Ah Shipping Co, other.

No. of accounts: 400

Domestic areas of activities: Nationwide

Suppliers: [Ship owners, operators, dockyards] Kanda Shipyard, Orophil Shipping Int’l,

Sanwa Dockyard, Oshima Shipbuilding, Tsuneishi Shipbuilding, Shin-Kurushima Dockyard,

Imabari Shipyard, other.

 

Payment record: Slow but correct

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

 

Bank References:

Iyo Bank (Osaka)

SMBC (Itachibori)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

30/09/2012

30/09/2011

30/09/2010

30/09/2009

Annual Sales

 

27,000

25,511

22,967

20,824

Recur. Profit

 

520

511

219

 

Net Profit

 

30

25

67

792

Total Assets

 

 

148,922

129,184

97,953

Current Assets

 

 

4,574

3,416

 

Current Liabs

 

 

3,129

3,085

 

Net Worth

 

 

1,486

1,461

1,373

Capital, Paid-Up

 

 

50

50

50

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

5.84

11.08

10.29

15.75

    Current Ratio

 

..

146.18

110.73

..

    N.Worth Ratio

..

1.00

1.13

1.40

    R.Profit/Sales

 

1.93

2.00

0.95

..

    N.Profit/Sales

0.11

0.10

0.29

3.80

    Return On Equity

..

1.68

4.59

57.68

 

Notes:  Forecast (or estimated) for the 30/09/2012 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.51.62

UK Pound

1

Rs.83.57

Euro

1

Rs.67.17

 

 

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.