MIRA INFORM REPORT

 

 

Report Date :

13.10.2012

 

IDENTIFICATION DETAILS

 

Name :

SHINTOA CORPORATION

 

 

Registered Office :

Fuji Bldg 7F, 3-2-3 Marunouchi Chiyodaku Tokyo 100-8383

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

February 1952

 

 

Com. Reg. No.:

(Tokyo-Chiyodaku) 018290

 

 

Legal Form :

Limited Company

 

 

Line of Business :

A trading house for import, export, wholesale of foodstuffs, beverages, vending machines (operation), fuels, chemicals, aircraft engines

 

 

No. of Employees :

154 employees

 

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 :

No Complaints

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

 


Company name 

 

SHINTOA CORPORATION

 

 

REGD NAME

 

Shintoa Koeki KK

 

 

MAIN OFFICE

 

Fuji Bldg 7F, 3-2-3 Marunouchi Chiyodaku Tokyo 100-8383 JAPAN

 

Tel: 03-3286-0211     Fax: 03-3213-2405

 

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

E-Mail address:                        info@sda.shintoa.co.jp

 

 

ACTIVITIES

 

A trading house for import, export, wholesale of foodstuffs, beverages, vending machines (operation), fuels, chemicals, aircraft engines, others

 

 

BRANCHES

 

Osaka, Nagoya, Fukuoka, Sapporo, Sendai, Hiroshima, Takamatsu

 

 

OVERSEAS

 

Taipei, Perth (Australia), Vietnam

 

 

OVERSEAS SUBSIDIARIES

 

USA (2), UK (1), China

 


OFFICER(S)

 

KAZUO SHIGEMOTO, PRES      Takao Takahashi, v pres

Masataka Ozawa, dir                 Morihiro Toida, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                             A/SALES          Yen 103,963 M

PAYMENTS                  No Complaints          CAPITAL           Yen 500 M

TREND             UP                                WORTH            Yen 6,616 M

STARTED                     1952                             EMPLOYES      154

 

 

COMMENT    

 

TRADING HOUSE, OWNED BY KANEMATSU CORP. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established jointly by voluntary groups of Mitsubishi Corp and former body of Bank of Tokyo-Mitsubishi, as a trading firm dealing with foods, metals, resources & materials, household items, etc.  In Jan 2006, 60% of Mitsubishi Corp & its group shares were transferred to Kanematsu Corp, which became 77.4% owning parent company.  Further in Oct 2010 Kanematsu Corp bought the whole shares and the firm became a 100% owned subsidiary of Kanematsu Corp (See REGISTRATION).  This is a trading firm specializing in farm products, animal feeds, livestock products, vending machines for beverages, building materials, oil products, aerospace products, aluminum scraps, etc.  Has overseas subsidiaries in USA (2), UK and China.  In Aug/2006, took over 50% shares of nestle Vending KK from Nestle Japan Corp.  Major activities are centered in domestic operations with overseas trading accounting for 15%.  Aircraft engines and peripherals division is expanding and the vending machine division keeps rising.  Health foods also continue growing.  In Mar 2008, sold a subsidiary oil dealer, Shinto Petroleum Corporation, to Kanematsu Petro KK.  In Jul 2012, transferred the food division business to Kanematsu Corp.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 103,963 million, a 5% up from Yen 98,801 million in the previous term.  Sales in Aerospace & Marine division rose thanks to increased demand from airlines, new & existing.  Health food division also rose.   The recurring profit was posted at Yen 1,158 million and the net profit at Yen 676 million, respectively, compared with Yen 812 million recurring profit and Yen 451 million net profit, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 1,000 million and the net profit at Yen 650 million, respectively, on a 9% fall in turnover, to Yen 95,000 million.  This is referred to the said transfer of foodstuff operations to Kanematsu Corp.

 

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

 

 

REGISTRATION

 

Date Registered: Feb 1952

Regd No.:       (Tokyo-Chiyodaku) 018290

Legal Status:   Limited Company (Kabushiki Kaisha)

Authorized:      40,000 shares

Issued:             10,000 shares

Sum:                 Yen 500 million

Major shareholders (%): Kanematsu Corp*(100)

 

*.. Trading house, formerly general trading businesses, now specializes in foods, IT-related areas, founded 1961, listed Tokyo S/E, capital Yen 27,781 million, turnover Yen 1,006,365 million, operating profit Yen 21,426 million, recurring profit Yen 17,752 million, net profit Yen 6,110 million, total assets Yen 399,753 million, net worth Yen 56,392 million, employees 4,770, pres Masayuki Shimojima

 

Consolidated Financials are as attached (See SUPPLEMENTS).

 

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

 

 

OPERATION

 

Activities: Wholesales foods (12%), pet-care goods (19%), health foods, health-care equipment (12.7%), food & beverage vending machines (33.3%), metal & materials (8.8%), aircraft engines, parts, other (14.4%).

(Overseas trading ratio 20%)

 

(Products):

 

Machinery: industrial machinery, transportation machinery, machines & tools, prime mover, plant machinery & equipment for petrochemicals, fertilizer, pulp & paper, power generation systems;

 

Aerospace products: airplane engines & electronic instruments, the products of: Rolls Royce, Honeywell, MOOG (--USA), Dowty Propellers, Goodrich Control Systems (--UK);

 

Food & Provisions: agricultural products, sugar, fruits & vegetables, livestock, meat & dairy products, marine products, processed foods, other;

 

Metals: ferrous & non-ferrous metals

 

 

Clients: [Mfrs, wholesalers] Japan Beverage, Self Defense Agency, Gastech Service, Zen-Noh, Neos Co, Daiwa House Ind, Glocal Petcare Japan, Shinko Service, Daiki Aluminum Ind, Summit Showa Aluminum, Nosan Corp, Chubu Shiryo, Japell Co, Nakaya Shoji, Arata Corp, Yuka Co, other

            No. of accounts: 500

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsubishi Corp, Otsuka Beverage, Shinko Service, Kurabo, Otsuka Pharmaceutical, Asahi Calpis Beverage, Suntory Foods, Pokka Corp, Royal Canin Japon, other

 

Payment record: No Complaints

 

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

 

Bank References:

MUFG (H/O)

Mitsubishi Trust Bank (H/O)

Relations: Satisfactory

 

 


FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

95,000

103,963

98,801

107,118

Recur. Profit

 

1,000

1,158

812

962

Net Profit

 

650

676

451

496

Total Assets

 

 

33,036

32,528

32,315

Current Assets

 

 

26,865

25,926

25,203

Current Liabs

 

 

25,220

24,585

25,389

Net Worth

 

 

6,616

5,976

5,597

Capital, Paid-Up

 

 

500

500

500

Div.P.Share(¥)

 

 

31,000.00

2,500.00

2,500.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

-8.62

5.22

-7.76

-19.45

    Current Ratio

 

..

106.52

105.45

99.27

    N.Worth Ratio

..

20.03

18.37

17.32

    R.Profit/Sales

 

1.05

1.11

0.82

0.90

    N.Profit/Sales

0.68

0.65

0.46

0.46

    Return On Equity

..

10.22

7.55

8.86

 

Notes: Forecast (or estimated) figures for the 31/03/2013 fiscal term.

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, KANEMATSU CORPORATION

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

 

1,006,365

936,891

 

  Cost of Sales

925,464

859,986

 

      GROSS PROFIT

80,900

76,905

 

  Selling & Adm Costs

59,473

58,875

 

      OPERATING PROFIT

21,426

18,029

 

  Non-Operating P/L

-3,674

-3,772

 

      RECURRING PROFIT

17,752

14,257

 

      NET PROFIT

6,510

9,175

BALANCE SHEET

 

 

 

 

  Cash

 

70,835

69,014

 

  Receivables

 

163,782

146,546

 

  Inventory

 

57,113

57,089

 

  Securities, Marketable

 

 

 

  Other Current Assets

 

 

 

      TOTAL CURRENT ASSETS

318,581

299,283

 

  Property & Equipment

27,028

27,884

 

  Intangibles

 

1,905

1,859

 

  Investments, Other Fixed Assets

 

 

 

      TOTAL ASSETS

399,753

388,676

 

  Payables

 

108,956

96,137

 

  Short-Term Bank Loans

78,444

100,488

 

 

 

 

 

 

  Other Current Liabs

 

 

 

      TOTAL CURRENT LIABS

246,837

252,120

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

82,403

73,138

 

  Reserve for Retirement Allw

2,736

2,516

 

  Other Debts

 

 

 

 

      TOTAL LIABILITIES

343,360

339,099

 

      MINORITY INTERESTS

 

 

 

Common stock

27,781

27,781

 

Additional paid-in capital

27,597

27,606

 

Retained earnings

1,540

8,914

 

Evaluation p/l on investments/securities

137

(166)

 

Others

 

 

 

 

Treasury stock, at cost

(550)

(569)

 

      TOTAL S/HOLDERS` EQUITY

56,392

49,576

 

      TOTAL EQUITIES

399,753

388,676

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

 

15,822

7,827

 

Cash Flows from Investment Activities

1,291

17,322

 

Cash Flows from Financing Activities

-13,411

-20,664

 

Cash, Bank Deposits at the Term End

 

70,594

67,426

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

56,392

49,576

 

 

Current Ratio (%)

129.07

118.71

 

 

Net Worth Ratio (%)

14.11

12.76

 

 

Recurring Profit Ratio (%)

1.76

1.52

 

 

Net Profit Ratio (%)

0.65

0.98

 

 

Return On Equity (%)

11.54

18.51

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.70

UK Pound

1

Rs.84.51

Euro

1

Rs.68.16

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.