MIRA INFORM REPORT

 

 

Report Date :

25.02.2013

 

IDENTIFICATION DETAILS

 

Name :

SOJITZU AEROSPACE CORPORATION

 

 

Registered Office :

Akasaka Twin Tower Bldg 17F, 2-17-22 Akasaka Minatoku Tokyo 107-8518

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

April 1975

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, wholesale of aerospace & defense equipment, ships

 

 

No. of Employees :

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

 

Maximum Credit Limit : 

Yen 1,839.3 Million

Status :

Good

Payment Behaviour :

Regular

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 

 

SOJITZU AEROSPACE CORPORATION

 

 

REGD NAME

 

Sojitz Aerospace KK

 

 

MAIN OFFICE

 

Akasaka Twin Tower Bldg 17F, 2-17-22 Akasaka Minatoku Tokyo 107-8518JAPAN

Tel: 03-5574-6006     Fax: 03-5574-6001

 

URL:                             http://www.sojitz-aero.com/

E-Mail address:                        info@sojitz-aero.com

 

 

ACTIVITIES

 

Import, wholesale of aerospace & defense equipment, ships, other

 

 

BRANCHES   

 

Nagoya, Osaka

 

 

OVERSEAS

 

Sojitz Aerospace America Corp (New York, Los Angeles, St Louis, Mesa), Sojitz Aerospace Europe

 

 

OFFICER(S)  

 

MIKIO TAKEUCHI, PRES           Takao Miyazaki, s/mgn dir                                                         

Takeshi Sekine, mgn dir             Takanori Hasegawa, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 112,349 M

PAYMENTS                  REGULAR         CAPITAL           Yen 1,410 M

TREND             STEADY           WORTH            Yen 4,887 M

STARTED                     1975                 EMPLOYES      119

 

 

COMMENT

 

IMPORTER OF AEROSPACE & DEFENSE EQUIPMENT, WHOLLY OWNED  BYSOJITZ CORP. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY  BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 1,839.3 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established originally by the then Nissho Iwai Corp in order to advance into aerospace business.  In 2004, when Nissho Iwai Corp merged with Nichimen Corp to become Sojitz Corp (See REGISTRATION), the firm renamed as captioned.  This is a trading house handling aviation, ships, vehicles, rockets, others.  Major client is Japan’s Maritime Self-Defense Forces, to which the firm supplies escort ships, submarines, vehicles, other.  Has a subsidiary in USA & Europe.

 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 112,349 million, a 15% up from Yen 97,806 million in the previous term.  The price hike of materials & equipment pushed the sales amount in Yen terms.  The recurring profit was posted at Yen 620 million and the net profit at Yen 381 million, respectively, compared with Yen 469 million recurring profit and Yen 198 million net profit, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 640 million and the net profit at Yen 390 million, respectively, on a 3% rise in turnover, to Yen 115,700 million.  Business is seen expanding steadily.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,839.3 million, on 30 days normal terms

 

 

REGISTRATION

 

Date Registered:  Apr 1975

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         11 million shares

Issued:                2.82 million shares

Sum:                  Yen 1,410 million

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

 

* General Trading House, specializing in aircraft, lumber & urban development, founded 2003 by the merger of the then Nissho Iwai Corp & Nichimen Corp, listed Tokyo S/E, capital Yen 160,339 million, turnover Yen 4,494,237 million, operating profit Yen 64,522 million recurring profit Yen 62,228 million, net profit Yen 3,649 million, total assets Yen 2,006,513 million, net worth Yen 290,207 million, employees 16,467, pres Yoji Sato

           

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

 

 

OPERATION

 

Activities: Imports and wholesales aircrafts, their parts & components, defense equipment & products, vehicles, bridges, others (--100%).

 

(Handling Items):

Aviation: aircrafts, their parts & components;

Maritime: Escort ships/submarines for National Defense Forces;

Land: Vehicles, temporary panel bridges others for National Defense Forces;

Space: Rockets boosters, high-tech products for satellite, others.

           

Clients: [Governments, mfrs, wholesalers] National Self-Defense Forces, Mitsubishi Heavy Ind, IHI, Kawasaki Heavy Ind, Fuji Heavy Ind, Toshiba Corp, Mitsubishi Electric Co, IHI Aerospace, other.

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsubishi Heavy Ind, Fuji Heavy Ind, Sojitz Aerospace America, Sojitz Corp America, Yokohama Rubber, Shin-Meiwa Corp, Toshiba Corp, Booing, other.

 

Payment record: Regular

 

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

 

Bank References:

MUFG (H/O)

Mizuho Corporate Bank (Uchisaiwaicho)

Relations: Satisfactory

 


 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

115,700

112,349

97,806

111,728

Recur. Profit

 

640

620

469

 

Net Profit

 

390

381

198

546

Total Assets

 

 

24,960

23,944

24,039

Current Assets

 

 

24,196

23,087

 

Current Liabs

 

 

19,895

19,131

 

Net Worth

 

 

4,887

4,607

4,746

Capital, Paid-Up

 

 

1,410

1,410

1,410

Div.P.Share(¥)

 

 

 

 

 

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.98

14.87

-12.46

1.57

    Current Ratio

 

..

121.62

120.68

..

    N.Worth Ratio

..

19.58

19.24

19.74

    R.Profit/Sales

 

0.55

0.55

0.48

..

    N.Profit/Sales

0.34

0.34

0.20

0.49

    Return On Equity

..

7.80

4.30

11.50

 

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

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.43

UK Pound

1

Rs.83.20

Euro

1

Rs.71.91

 

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%)

 

 

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