MIRA INFORM REPORT

 

 

Report Date :

08.04.2013

 

IDENTIFICATION DETAILS

 

Name :

JFE SHOJI TRADE CORPORTION

 

 

Registered Office :

2-7-1 Ohtemachi Chiyodaku Tokyo 100-8070

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

August 2004

 

 

Com. Reg. No.:

1200-01-062403 (Osaka-Kitaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of steel, iron ore, chemicals, machinery, other.

 

 

No. of Employees :

6,119

 

 

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

 

 


COMPANY NAME AND ADDRESS

 

JFE SHOJI TRADE CORPORTION

REGD NAME:   JFE Shoji KK

MAIN OFFICE:  2-7-1 Ohtemachi Chiyodaku Tokyo 100-8070 JAPAN

Tel: 03-5203-5510     Fax: 03-5203-5289

                       

*.. Registered at: 1-6-20 Dojima Kitaku Osaka

.

URL:                 http://www.jfe-shoji.co.jp/

E-Mail address:            (through the URL)

 

ACTIVITIES:     Import, export, wholesale of steel, iron ore, chemicals, machinery, other

BRANCHES:     (Domestic) 21 locations

OVERSEAS:         Korea (2), China (3), Taiwan (2), Vietnam (2), India (4), Australia (2), USA (3), India, Istanbul, Myanmar, other.  (Total 32in 17 countries)

 

OFFICERS:       TSUTOMU YAJIMA, PRES         Mikio Fukushima, ch

                        Masaru Saruwatari, s/mgn dir     Kohei Yoshioka, s/mgn dir

                        Katsuyoshi Takaya, s/mgn dir    Hidehiko Ogawa, s/mgn dir                   

 

Yen Amount:    In million Yen, unless otherwise stated

 

SUMMARY:      FINANCES        FAIR                 A/SALES          Yen 2,086,595 M

                        PAYMENTS      REGULAR         CAPITAL           Yen 20,000 M

                        TREND             STEADY           WORTH                        Yen 123,692 M

                        STARTED         1948                 EMPLOYES      6,119

             

COMMENT:      TRADING HOUSE OWNED BY JFE SHOJI HOLDINGS INC. 

                        FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY                                                          BUSINESS ENGAGEMENTS.

                       

                        MAX CREDIT LIMIT: YEN 36,122.3 MILLION, 30 DAYS NORMAL TERMS

 

HIGHLIGHTS:

 

This is a trading company belonging to JFE Shoji Holdings Inc, which was created on 01/Aug/2004 by Kawasho Corp, Kawasaki Steel group trading house.  On 01/Oct/2004, Kawasho Corp and NKK Trading Inc, NKK group trading house, merged when the two parents, Kawasaki Steel and NKK merged to become JFE Holdings Inc.  At the same time, the group reorganized into four individual companies under the control of JFE Shoji Holdings Inc: JFE Shoji Trade Corporation (consolidated steel business), Kawasho Foods Corporation (foods business), Kawasho Semiconductor Corporation (semiconductor business) and Kawasho Real Estate Corporation (real estate business).  98% of sales are generated by the subject firm and this is the core of the group firms.  In Oct 2010 acquired of all issued shares in Republic Coal Pty Ltd, Australia.  In Jun 2010 established JV with Summit Corp Thailand, as Steel Alliance Service Center Co Ltd, a steel processing center mainly serving the automobile industry.  The firm was listed on the Tokyo S/E Apr 2012.  The firm become a wholly-owned subsidiary of JFE Holdings in Oct 2012 through a stock swap, and delisted from Tokyo S/E on Sept 26, 2012. 

 

 

 

FINANCIAL INFORMATION:

 

            The sales volume for Mar/2012 fiscal term amounted to Yen 2,086,595 million, a 3.7% up from Yen 2,011,526 million in the previous term.  In the steel business, its core business field, Japan’s automobile industry witnessed a quicker than expected resumption in its supply chain.  The recurring profit was posted at Yen 17,283 million and the net profit at Yen 12,108 million, respectively, compared with Yen 23,783 million recurring profit and Yen 13,645 million net profit, respectively, a year ago.

 

            (Apr/Sept/2012 results): Sales Yen 958,280 million, operating profit Yen 7,853 million, recurring profit Yen 7,481 million, net profit Yen 4,179 million.

 

            For the current term ending Mar 2013 the recurring profit is projected at Yen 8,000 million and the net profit at Yen 4,500 million, respectively, on Yen 980,000 million sales turnover.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 36,122.3 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:            Aug 2004

Regd No.:          1200-01-062403 (Osaka-Kitaku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:        320 million shares

Issued:               236,777,704 shares

Sum:                  Yen 20,000 million

Major shareholders: JFE Holdings Inc* (100)

 

*.. Holding company formed thru business combination between Kawasaki Steel and NKK, Tokyo, founded 2002, listed Tokyo S/E, capital Yen 147,143 million, sales Yen 3,166,511 million, operating profit Yen 44,779 million, recurring profit Yen 52,977 million, net losses Yen 36,633 million, total assets Yen 3,811,848 million, net worth Yen 1,392,644 million, employees 54,341, pres Hajime Bada

 

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

 

 

OPERATION:

 

Activities: The subject is a trading house owned by JFE Shoji Holdings Inc and we here give       here breakdown of operations/sales of the 3 group firms:

JFE Shoji Trade Corp (98%): steel, coal, iron ore, chemicals & fuels, steelworks machinery, engineering works:

Kawasho Foods Corp (1%): foodstuffs;

Kawasho Semiconductor Corp (1%): semiconductor equipment & supplies;

 

(Major Handling Items by JFE Shoji Trade Corp):

Steel (60%): shipbuilding steel, thick steel plate, processed steel for ships & bridges, hot-rolled sheet, cold-rolled sheet, electrical steel sheet, coated steel sheet, steel plate, stainless steel, special steel, galvanized sheet, tin plate, steel pipes, special steel pipes, treated steel pipes, iron powder, hot charge, steel piles, wire, H-beam, lightweight shaped steel plate, regular shaped steel plate, reinforced products, columns, semi-finished steel products (slabs, etc), civil engineering products, construction materials, housing materials, other products, civil engineering, construction;

Raw Materials (10%): iron ore, sintering ore, coal for coke making, dolomite & other steel making materials, cokes & coal products, nickel, chromium, zinc, alloy iron, scrap iron & other metal raw materials, aluminum, scrap aluminum, deoxidized aluminum, aluminum products;

Machinery (10%): blast furnaces, coke ovens, oxygen facilities, continuous slab casting machines, hot rolling mills, galvanizing equipment & steel mfg machinery, roll, lubricating oil, bearing, electric cable & steel mfg materials, metal processing machinery, boilers, turbines, electrical equipment, amusement part equipment, hospital facilities, building facilities, factory facilities, various new ship building, sale & purchase of used ships, scrapping ships, ship repairs, ship equipment, other products;

Chemicals & Fuels (20%): coal tar, coal tar pitch, creosote oil & other chemical coal

products, magnesium chloride, nitric acid & other inorganic chemicals, ferrite core, molding materials, iron oxide, fertilizers, general use plastic, engineering plastics & other plastic raw materials & compound products, fine ceramics, ultra-fine nickel powder & other functional chemical products, industrial gases, crude oil, gasoline, LPG, lubricating oil & other petroleum products.

 

Clients: [Mfrs, wholesalers] JFE Steel (50%), JFE Shoji Osaka, Hanwa Kozai Co, Tosen Ltd, Yashimanada Inc, Mizushima Steel, Sanei Metal Co, Kowa Kinzoku Corp, Daiei Kogyo, other.

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] JFE Steel, JFE Chemical, JFE Steel Plate, BM Alliance, BHP Billiton, Wesfarmers, Vale, Mizushima Steel, other.

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Corporate Bank (Osaka)

SMBC (Osaka)

Relations: Satisfactory

 

 

FINANCIALS

 

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

 

2,086,595

2,011,526

 

  Cost of Sales

2,020,266

1,938,329

 

      GROSS PROFIT

66,328

73,196

 

  Selling & Adm Costs

49,551

49,833

 

      OPERATING PROFIT

16,777

23,363

 

  Non-Operating P/L

506

420

 

      RECURRING PROFIT

17,283

23,783

 

      NET PROFIT

12,108

13,645

BALANCE SHEET

 

 

 

 

  Cash

 

27,998

31,551

 

  Receivables

 

334,374

322,108

 

  Inventory

 

79,585

77,502

 

  Securities, Marketable

 

 

 

  Other Current Assets

28,120

31,576

 

      TOTAL CURRENT ASSETS

470,077

462,737

 

  Property & Equipment

37,594

38,061

 

  Intangibles

 

4,018

5,503

 

  Investments, Other Fixed Assets

64,804

65,063

 

      TOTAL ASSETS

576,493

571,364

 

  Payables

 

283,783

304,539

 

  Short-Term Bank Loans

90,717

78,105

 

 

 

 

 

 

  Other Current Liabs

59,093

47,032

 

      TOTAL CURRENT LIABS

433,593

429,676

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

10,388

14,000

 

  Reserve for Retirement Allw

5,133

4,802

 

  Other Debts

 

3,687

5,460

 

      TOTAL LIABILITIES

452,801

453,938

 

      MINORITY INTERESTS

 

 

 

Common stock

20,000

20,000

 

Additional paid-in capital

17,428

17,428

 

Retained earnings

92,310

83,742

 

Evaluation p/l on investments/securities

2,933

3,829

 

Others

 

(8,618)

(7,217)

 

Treasury stock, at cost

(361)

(356)

 

      TOTAL S/HOLDERS` EQUITY

123,692

117,426

 

      TOTAL EQUITIES

576,493

571,364

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

 

-23,611

16,343

 

Cash Flows from Investment Activities

-6,429

-7,069

 

Cash Flows from Financing Activities

26,123

-850

 

Cash, Bank Deposits at the Term End

 

27,953

31,501

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

123,692

117,426

 

 

Current Ratio (%)

108.41

107.69

 

 

Net Worth Ratio (%)

21.46

20.55

 

 

Recurring Profit Ratio (%)

0.83

1.18

 

 

Net Profit Ratio (%)

0.58

0.68

 

 

Return On Equity (%)

9.79

11.62

 

 

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.