MIRA
INFORM REPORT
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Report Date : |
12.07.2013 |
IDENTIFICATION DETAILS
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Name : |
SOJITZ CORPORATION |
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Registered Office : |
2-1-1 Uchisaiwaicho Chiyodaku Tokyo 100-8691 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
December, 1982 |
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Com. Reg. No.: |
(Tokyo-Minatoku) 049977 |
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Legal Form : |
Limited Company |
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Line of Business : |
Importer, exporter, wholesaler of
machinery, energy & metals, chemicals |
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No. of Employees : |
16,614 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. 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. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan 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 and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 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 2012. The new government will continue a longstanding debate 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.
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Source
: CIA |
COMPANY NAME
SOJITZ CORPORATION
REGD NAME
Sojitz KK
MAIN OFFICE
2-1-1
Uchisaiwaicho Chiyodaku Tokyo 100-8691 JAPAN
Tel:
03-6871-5000
Fax: 03-6871-2430
*.. Moved to the caption
address in 2012 from the one as given
E-Mail address: info@sojitz.com
ACTIVITIES
Import, export,
wholesale of machinery, energy & metals, chemicals, other
BRANCHES
7 domestic, 89
overseas
(Subsidiaries/affiliates): 128 domestic, 342
overseas
CHIEF EXECS
YOJI SATO, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 3,955,907 M
PAYMENTS NO
COMPLAINTS CAPITAL Yen 160,339 M
TREND STEADY WORTH Yen
382,537 M
STARTED 2003 EMPLOYES 16,614
COMMENT
GENERAL TRADING HOUSE.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
Unit: In Million Yen
Forecast figures for the 31/03/2014 fiscal term.
(Unit in Million Yen)
HIGHLIGHTS
The subject company was established in Apr 2003 by forming a joint
holding company, named Nissho Iwai-Nichimen Holdings Company, by the then Nissho
Iwai Co and Nichimen Co, and subsequently in Apr 2004 the two merged into
Sojitz Corp as captioned. The holding
company, at the same time, renamed Sojitz Holdings Corporation. The merger was formed in order to restructure
the two firms through supports from financial institutions including the then
UFJ Bank (now MUFG), the main bank for the two firms. On 01/Oct/2005, in order to further
streamline the Group’s management framework, Sojitz Holdings merged with its
principal operating arm and wholly owned subsidiary, Sojitz Corporation. The company’s name was then changed to Sojitz
Corporation. This is a general trading
house succeeding the business rights & operations of the said two firms,
excluding liquidation or separation of unprofitable divisions &
operations. This is the sixth-ranked
general trading house. Major handling
items are machinery, energy & resources, which former Nissho Iwai Corp was
the stronger, and textiles, etc, which the former Nichimen Corp was
stronger. Highly competitive in fields
of aircraft, lumber and urban development.
The company will reduce automobile production in anticipation of
European automakers’ low price offensive sales efforts in Russia and possible
currency devaluation in Venezuela.
Automobile production cut might be possibly prolonged. The company is planning to spend Yen 60
billion on automobile-related capital spending in Mar 2013.
FINANCIAL INFORMATION
The sales volume
for Mar/2013 fiscal term amounted to Yen 3,955,907 million, a 12.0% down from Yen
4,494,237 million in the previous term.
The decline is largely as a result of lower prices and reduced demand
for commodities the firm handles.
Another factor is that earnings in the 2011 fiscal term (the fiscal year
ended Mar/2012) included 15 months of major overseas’ subsidiaries as a result
of change their fiscal year-end from December to March. The recurring profit was posted at Yen 34,478
million and the net profit at Yen 14,263 million respectively, compared with
Yen 82,228 million recurring profit and Yen 3,469 million net losses,
respectively, a year ago
For the current
term ending Mar 2014 the recurring profit is projected at Yen 45,000 million
and the net profit at Yen 25,000 million, respectively, on an 8% rise in
turnover, to Yen 4,280,000 million.
Earnings will be led by overseas fertilizer sales and industrial park
allotment sales. Elimination of
resource-related temporary deficit will show effects.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date Registered: Dec 1982
Regd No.:
(Tokyo-Minatoku)
049977
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 1,349
million shares
Issued:
1,251,091,013 shares
Sum: Yen
160,339 million
Major
shareholders (%): Japan Trustee Services T (5.7), Master Trust Bank of Japan T (3.1),
State Street Bank & Trust 505225 (1.4), SSBT Omnibus Acct Treaty (1.3),
Mellon Bank Mellon Omnibus US P (1.2), State Street Bank West (1.1), Japan
Trustee Services T9 (0.9), Nomura Sing C Segregated FJ1309 (0.9); foreign
owners (26.0)
No. of shareholders: 186,273
Listed on the S/Exchange (s) of: Tokyo
Managements: Yutaka Kase, ch;
Takashi Hara, v ch; Yoji Sato, pres; Shigeki Dantani, v pres; Joji Suzuki, v
pres; Shinichi Taniguchi, v pres; Yoshio Mogi, s/mgn dir; Tetsuya Kaneda, mgn
dir; Masahiro Komiyama, mgn dir; Shinichi Teranishi, mgn dir; Satoshi Mizui,
mgn dir
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION
Activities: A general
trading house:
(Sales
breakdown by Divisions):
Machinery
Division (23%): Automotive Unit, Environment & Infrastructure Unit, IT Business
Unit, Marine & Aerospace Unit;
Energy
& Metals Division (23%): Energy & Nuclear Unit, Coal & Non-ferrous Metals
Unit, Ferrous Metals & Steel Products Unit;
Chemicals
& Functional Materials Division (15%): Chemicals Unit, Functional Materials Unit;
Lifestyle
Business Division (37%): Foods Resources Unit, General Commodities &
Textile Unit, Forest Products & Real Estate Development Unit;
Others
(1%)
Overseas
trading (34%)
Clients: [Mfrs,
wholesalers] Kobe Steel, NM Life, First Retailing, Uto Kosan, Zao Severstal,
Varig S.A., Auto-Isuzu PT Indofood Sukses Makmur TBK, MMC Automotriz SA, other
No. of accounts: 2,000
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs,
wholesalers] Hitachi Zosen, Hitachi Ltd, Toyo Rubber, Yamazaki
Nabisco, Sun Building Materials Corp,
Sumitomo Metal Mining, Fuji Electric Systems, Sojitz Asia, other.
Payment record: No Complaints
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
MUFG (Tokyo)
Mizuho Corporate
Bank (H/O)
Relations:
Satisfactory
FINANCIALS
(In Million
Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
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3,955,907 |
4,494,237 |
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Cost of Sales |
3,763,842 |
4,262,671 |
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GROSS PROFIT |
192,064 |
231,566 |
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Selling & Adm Costs |
158,759 |
167,044 |
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OPERATING PROFIT |
33,305 |
64,522 |
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Non-Operating P/L |
1,173 |
-2,294 |
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RECURRING PROFIT |
34,478 |
62,228 |
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NET PROFIT |
14,263 |
-3,649 |
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BALANCE SHEET |
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Cash |
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433,584 |
442,706 |
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Receivables |
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456,455 |
490,708 |
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Inventory |
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292,105 |
270,645 |
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Securities, Marketable |
100 |
1,297 |
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Other Current Assets |
82,027 |
92,795 |
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TOTAL CURRENT ASSETS |
1,264,271 |
1,298,151 |
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Property & Equipment |
228,332 |
233,260 |
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Intangibles |
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126,114 |
124,497 |
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Investments, Other Fixed Assets |
467,693 |
464,688 |
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TOTAL ASSETS |
2,086,410 |
2,120,596 |
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Payables |
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436,696 |
461,799 |
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Short-Term Bank Loans |
242,267 |
282,524 |
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Other Current Liabs |
180,047 |
203,099 |
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TOTAL CURRENT LIABS |
859,010 |
947,422 |
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Debentures |
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60,000 |
80,000 |
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Long-Term Bank Loans |
715,478 |
691,018 |
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Reserve for Retirement Allw |
14,998 |
14,232 |
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Other Debts |
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54,386 |
57,453 |
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TOTAL LIABILITIES |
1,703,872 |
1,790,125 |
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MINORITY INTERESTS |
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Common
stock |
160,339 |
160,339 |
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Additional
paid-in capital |
152,160 |
152,160 |
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Retained
earnings |
158,488 |
151,706 |
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Evaluation
p/l on investments/securities |
13,710 |
7,626 |
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Others |
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(101,981) |
(141,181) |
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Treasury
stock, at cost |
(179) |
(179) |
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TOTAL S/HOLDERS` EQUITY |
382,537 |
330,471 |
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TOTAL EQUITIES |
2,086,410 |
2,120,596 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2013 |
31/03/2012 |
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Cash
Flows from Operating Activities |
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51,524 |
91,600 |
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Cash
Flows from Investment Activities |
-13,580 |
-42,287 |
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Cash Flows
from Financing Activities |
-52,737 |
-36,376 |
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Cash,
Bank Deposits at the Term End |
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424,371 |
427,274 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
382,537 |
330,471 |
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Current
Ratio (%) |
147.18 |
137.02 |
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Net
Worth Ratio (%) |
18.33 |
15.58 |
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Recurring
Profit Ratio (%) |
0.87 |
1.38 |
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Net
Profit Ratio (%) |
0.36 |
-0.08 |
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Return
On Equity (%) |
3.73 |
-1.10 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.59.64 |
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UK Pound |
1 |
Rs.90.14 |
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Euro |
1 |
Rs.77.99 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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 |
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NB |
New Business |
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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.