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Report Date : |
04.09.2012 |
IDENTIFICATION DETAILS
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Name : |
DENKI SHOJI CO LTD |
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Registered Office : |
4-1-3 Nishitenma Kitaku Osaka 530-0047 |
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Country : |
Japan |
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Financials (as on) : |
30.06.2011 |
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Date of Incorporation : |
Feb 1953 |
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Com. Reg. No.: |
1200-01-067508 (Osaka-Kitaku) |
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Legal Form : |
Limited Company (Kabushiki
Kaisha) |
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Line of Business : |
Export of
electronic/electrical industrial machinery & equipment |
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|
No. of Employees : |
33 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 – 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 |
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 |
DENKI SHOJI CO LTD
REGD NAME: Denki
Shoji KK
MAIN OFFICE: 4-1-3
Nishitenma Kitaku Osaka 530-0047 JAPAN
Tel:
06-6363-1141 Fax: 06-6365-1585
E-Mail
address: ds.osaka@denki.co.jp
Export
of electronic/electrical industrial machinery & equipment
Tokyo
Taiwan
(3), China, Korea, Philippines, Thailand, Indonesia, Singapore,
Vietnam,
Pakistan (--JV & offices)
(subcontracted)
MASUMI HARADA, PRES
Takejiro
Furuhashi, dir
Seiji
Taniguchi, dir
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 3,895 M
PAYMENTS No
complaints CAPITAL Yen 90 M
TREND UP WORTH Yen 1,252 M
STARTED 1953 EMPLOYES 33
EXPORTER OF ELECTRICAL INDUSTRIAL MACHINERY & EQUIPMENT.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR CREDIT ENGAGEMENTS: US$200,000 / O/A TERMS.
The subject
firm was established by father of Masumi Harada in order to make most of his
experience in the subject line of business.
This is a trading firm specializing in export of electronic/electrical
industrial machinery & equipment (See OPERATION). Has 4 overseas JV firms: Taiwan (3) and
Indonesia, also has 8 overseas offices in China and other S/E Asian
countries. Products are supplied from
major electronic makers, industrial machinery makers, other, nationwide.
The sales
volume for Jun/2011 fiscal term amounted to Yen 3,895 million, an 18% up from
Yen 3,293 million in the previous term.
Demand increased in China and other S/E Asian countr
ies. However, the
exports were hurt by the high Yen, reducing revenues & profits in Yen
terms. Foreign exchange losses were
incurred. The operations plunged into
the red to register Yen 124 million recurring loss and Yen 127 million net
losses, respectively, compared with Yen 23 million recurring profit and Yen 16
million net profit, respectively, a year ago.
For the
term ended Jun 2012 the operations were projected to come back to profitability
to post Yen 30 million recurring profit and Yen 50 million net profit,
respectively, on a 3% rise in turnover, to Yen 4,000 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 244.5 million, on 30 days normal terms. The proposed amount is considered well within
the firm’s financial capacities.
Date Registered: Feb 1953
Regd No.: 1200-01-067508 (Osaka-Kitaku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
720,000 shares
Issued:
180,000 shares
Sum: Yen 90 million
Major shareholders (%): Masumi Harada (100)
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Exports Electronics/industrial
materials & devices, electrical construction materials, machinery &
equipment, office & living equipment, others (--100%)
(Handling Items):
Electronics/Industrial Materials & Devices: multi-layer
wiring materials, press plates, copper foils, borosilicate glass tubes for
ampoules & vials, connectors, relays, electromagnetic clutch/brakes;
Electrical Construction Materials: bus
ducts, sports timing system, common entrance station/ nurse call station, air
circuit breakers, molded case circuit breakers, magnetic contractors;
Machinery & Industry: multi-wires drawing machine,
wire & cable making machines, CCFL mfg line, motor, pumps, vacuum pumping
system, X-ray shielding glass, ultrasonic scanners;
Office & Living Equipment: crystallized glass, water
heating system, clean energy, housing materials, built-in kitchen, video
intercom, lighting equipment, DC/AC refrigerators, other.
Clients: [Mfrs, wholesalers] Exports to:
Taiwan, Philippines, Vietnam, Thailand, Indonesia, Singapore, Korea, China,
Malaysia, other
No. of
accounts: Unavailable
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Panasonic Corp,
Nihon Kinzoku Kogyo Co, Nippon Electric Glass Co, CKD, Tsurumi Mfg Co, Rinnai
Corp, Mitsui Sumitomo Metal Ind, Terasaki Electric Co, Fukuda Metal Foil &
Powder Co, Aiphone Co, other
Payment record: Regular
Location:
Business area in Osaka. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References:
MUFG
(Osaka-Chuo)
SMBC
(Dojima)
Relations:
Satisfactory
(In Million Yen)
|
Terms Ending: |
30/06/2012 |
30/06/2011 |
30/06/2010 |
30/06/2009 |
|
|
Annual
Sales |
|
4,000 |
3,895 |
3,293 |
4,344 |
|
Recur.
Profit |
|
30 |
-124 |
23 |
|
|
Net
Profit |
|
30 |
-127 |
16 |
27 |
|
Total
Assets |
|
|
1,582 |
1,849 |
1,714 |
|
Current
Assets |
|
|
1,067 |
1,261 |
|
|
Current
Liabs |
|
|
281 |
145 |
|
|
Net
Worth |
|
|
1,252 |
1,385 |
1,372 |
|
Capital,
Paid-Up |
|
|
90 |
90 |
90 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
2.70 |
18.28 |
-24.19 |
-30.64 |
|
|
Current Ratio |
|
.. |
379.72 |
869.66 |
.. |
|
N.Worth Ratio |
.. |
79.14 |
74.91 |
80.05 |
|
|
R.Profit/Sales |
|
0.75 |
-3.18 |
0.70 |
.. |
|
N.Profit/Sales |
0.75 |
-3.26 |
0.49 |
0.62 |
|
|
Return On Equity |
.. |
-10.14 |
1.16 |
1.97 |
|
Notes:
Forecast (or estimated) figures for the 30/06/2012 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.45 |
|
|
1 |
Rs.87.98 |
|
Euro |
1 |
Rs.69.69 |
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.