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Report Date : |
25.09.2012 |
IDENTIFICATION DETAILS
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Name : |
SANWA CO LTD |
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Registered Office : |
Imai Bldg 5F, 1-1-27 Kitahorie Nishiku Osaka 550-0014 |
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Country : |
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Financials (as on) : |
30.04.2012 |
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Date of Incorporation : |
May 1985 |
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Com. Reg. No.: |
1200-02-021945 (Osaka-Nishiku) |
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Legal Form : |
Limited Company |
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Line of Business : |
Export of Steel Products |
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No. of Employees : |
4 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
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
Export of steel
products
Nil
MIYUKI OKADA, PRES
Daisuke Okada, dir
Yen Amount: In million Yen, unless otherwise stated
FINANCES WEAK A/SALES Yen 208 M
PAYMENTS SLOW CAPITAL Yen 5 M
TREND SLOW WORTH Yen
(-) 40 M
STARTED 1985 EMPLOYES 4
TRADING FIRM SPECIALIZING IN STEEL PRODUCTS.
FINANCIAL SITUATION CONSIDERED WEAK BUT
SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.
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.
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.
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.
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
(In Million Yen)
|
Terms Ending: |
30/04/2013 |
30/04/2012 |
30/04/2011 |
30/04/2010 |
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Annual
Sales |
|
215 |
208 |
375 |
406 |
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Recur.
Profit |
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-18 |
-25 |
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Net
Profit |
|
5 |
-18 |
-25 |
-19 |
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Total
Assets |
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|
5 |
42 |
57 |
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Current
Assets |
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|
5 |
42 |
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Current
Liabs |
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|
2 |
38 |
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Net
Worth |
|
|
-40 |
-21 |
3 |
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Capital,
Paid-Up |
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|
5 |
5 |
5 |
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Div.P.Share(¥) |
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|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
3.37 |
-44.53 |
-7.64 |
534.38 |
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Current Ratio |
|
.. |
250.00 |
110.53 |
.. |
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N.Worth Ratio |
.. |
-800.00 |
-50.00 |
5.26 |
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R.Profit/Sales |
|
.. |
-8.65 |
-6.67 |
.. |
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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 |
|
|
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 |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<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.