MIRA INFORM REPORT

 

 

Report Date :

25.09.2012

 

IDENTIFICATION DETAILS

 

Name :

SANWA CO LTD

 

Registered Office :

 

Imai Bldg 5F, 1-1-27 Kitahorie Nishiku Osaka 550-0014

 

 

Country :

Japan

 

 

Financials (as on) :

30.04.2012

 

 

Date of Incorporation :

May 1985

 

 

Com. Reg. No.:

1200-02-021945 (Osaka-Nishiku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Export of Steel Products

 

 

No. of Employees :

4

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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 and address

 

SANWA CO LTD

REGD NAME:   YK Sanwa Bussan

MAIN OFFICE:  Imai Bldg 5F, 1-1-27 Kitahorie Nishiku Osaka 550-0014 JAPAN

                        Tel: 06-6532-0046      Fax: 06-6532-0490

 

URL:                 N/A

 

 

ACTIVITIES

 

Export of steel products

 

BRANCHES   

 

Nil

 

 

OFFICERS

 

MIYUKI OKADA, PRES

Daisuke Okada, dir       

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    WEAK                          A/SALES          Yen 208 M

PAYMENTS      SLOW                           CAPITAL           Yen 5 M

TREND             SLOW                           WORTH            Yen (-) 40 M

STARTED                     1985                             EMPLOYES      4

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN STEEL PRODUCTS.

FINANCIAL SITUATION CONSIDERED WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

                       

 

 

 

HIGHLIGHTS

           

            The subject company was established by Miyuki Okada in order to make most of his experience in the subject line of business.  This is a trading firm for exporting steel products to Asian countries.  Products are supplied from domestic steel makers, other.

 

 

FINANCIAL INFORMATION

 

            The sales volume for Apr/2012 fiscal term amounted to Yen 208 million, a 45% down from Yen 375 million in the previous term.  High Yen hurt substantially export sales and profits in Yen terms.  Foreign currency exchange rates fluctuated.  The operations continued in the red to post Yen 18 million recurring loss and Yen 18 million net losses, respectively, compared with Yen 25 million recurring loss and Yen 25 million net losses, respectively, a year ago.

 

            For the current term ending Apr 2013 the operations are projected to come back to profitability to post Yen 5 million net profit, on a 3% rise in turnover, to Yen 215 million.  Export volumes are rising. 

 

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

 

 

REGISTRATION

 

Date Registered:  May 1985

Regd No.:         1200-02-021945 (Osaka-Nishiku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         400 shares

Issued:                100 shares

Sum:                   Yen 5 million

Major shareholders (%): Miyuki Okada (100)

 

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

 

 

OPERATION

 

Activities: Exports steel products: steel sheets, steel wires, steel coils, other (--100%)

 

Clients: [Mfrs, wholesalers] Exports to: Vietnam, India, Bangladesh, Indonesia, Taiwan, Hong Kong, Korea, other S/E Asian countries.

No. of accounts: Unavailable

Domestic areas of activities: Centered in greater-Osaka

Suppliers: Domestic steel mills, wholesalers, other

 

Payment record: Slow

 

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

 

Bank References:

Mizuho Bank (Yotsubashi)

MUFG (Osaka-Nishi)

Relations: Money deposits & transfers only

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

30/04/2013

30/04/2012

30/04/2011

30/04/2010

Annual Sales

 

215

208

375

406

Recur. Profit

 

 

-18

-25

 

Net Profit

 

5

-18

-25

-19

Total Assets

 

 

5

42

57

Current Assets

 

 

5

42

 

Current Liabs

 

 

2

38

 

Net Worth

 

 

-40

-21

3

Capital, Paid-Up

 

 

5

5

5

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.37

-44.53

-7.64

534.38

    Current Ratio

 

..

250.00

110.53

..

    N.Worth Ratio

..

-800.00

-50.00

5.26

    R.Profit/Sales

 

..

-8.65

-6.67

..

    N.Profit/Sales

2.33

-8.65

-6.67

-4.68

 

Notes: Forecast (or estimated) figures for the 30/04/2013 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.29

UK Pound

1

Rs.86.43

Euro

1

Rs.68.95

 

 

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.