MIRA INFORM REPORT

 

 

Report Date :

16.07.2013

 

IDENTIFICATION DETAILS

 

Name :

JFE SHOJI TRADE CORPORTION

 

 

Registered Office :

1-6-20 Dojima Kitaku Osaka

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

August 2004

 

 

Com. Reg. No.:

(Osaka-Kitaku) 062403

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Importer, exporter, wholesaler of steel, iron ore, chemicals, machinery

 

 

No. of Employees :

933

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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 – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 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.

 

Source : CIA

 

 

 


Company name

 

JFE SHOJI TRADE CORPORTION

 

 

REGD NAMe

 

JFE Shoji KK

 

 

MAIN OFFICE

 

1-9-5 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, other.  (Total 32 in 17 countries)

 

OFFICERS

 

TSUTOMU YAJIMA, PRES         Kohei Yoshioka, s/mgn dir

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

Masaru Saruwatari, s/mgn dir      Takeshi Fujiwara, mgn dir                                  

 

Yen Amount:    In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 1,743,900 M

PAYMENTS      REGULAR         CAPITAL           Yen 14,539 M

TREND             SLOW              WORTH            Yen 134,600 M

STARTED                     1948                 EMPLOYES      933

             

 

COMMENT    

 

TRADING HOUSE OWNED BY JFE SHOJI HOLDINGS INC. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

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 became a wholly-owned subsidiary of JFE Holdings in Oct 2012 through a stock swap, and the company was delisted on September 26, 2012. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 1,743,900 million, a 16% down from 2,086,595 million in the previous term.  Sales declined due mainly to decline prices of steel products and raw materials for producing steel.  The recurring profit was posted at Yen 15,000 million and the net profit at Yen 7,100 million, respectively, compared with Yen 17,283 million recurring profit and Yen 12,108 million net profit, respectively, a year ago.

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 17,000 million and the net profit at Yen 10,000 million, respectively, on a 5% rise in turnover, to Yen 1,830,000 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered: Aug 2004

Regd No.:       (Osaka-Kitaku) 062403

Legal Status:     Limited Company (Kabushiki Kaisha)

Authorized:        115 million shares

Issued:               29 million shares

Sum:                  Yen 14,539 million

Major shareholders: JFE Holdings Inc* (100)

 

*.. Holding company formed thru business combination between Kawasaki Steel and NKK, Tokyo, founded 2002, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 147,143 million, sales Yen 3,189,198 million, operating profit Yen 39,873 million, recurring profit Yen 52,214 million, net profit Yen 39,599 million, total assets Yen 4,107,519 million, net worth Yen 1,598,797 million, employees 54,341, pres Hajime Bada

 

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

 

 

OPERATION

 

Activities:  Imports, exports and wholesales steel, steel products (60%), materials, chemicals, oil & fuels (20%), machinery & equipment, others (10%)

 

Clients: [Mfrs, wholesalers] JFE Steel (50%), Nissan Motor, Mitsubishi Motors, Samsung Japan, other.

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

 

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

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Corporate Bank (Osaka)

MUFG (H/O)

Relations: Satisfactory

 

 


FINANCIALS

 

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

1,830,000

1,743,900

2,086,595

2,011,526

Recur. Profit

 

17,000

15,000

17,283

23,783

Net Profit

 

10,000

7,100

12,108

13,645

Total Assets

 

 

523,000

576,493

571,364

Current Assets

 

 

 

470,077

462,737

Current Liabs

 

 

 

433,593

429,676

Net Worth

 

 

134,600

123,692

117,426

Capital, Paid-Up

 

 

14,539

14,539

14,539

Div.Ttl Million (¥)

 

 

707

2,400

2,400

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.94

-16.42

3.73

0.08

    Current Ratio

 

..

..

108.41

107.69

    N.Worth Ratio

..

25.74

21.46

20.55

    R.Profit/Sales

 

0.93

0.86

0.83

1.18

    N.Profit/Sales

0.55

0.41

0.58

0.68

    Return On Equity

..

5.27

9.79

11.62

 

Notes: Financials are disclosed in rounded-off numbers for the 31/03/2013 fiscal term.

Forecast (or estimated) figures for the 31/03/2014 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.05

UK Pound

1

Rs.90.71

Euro

1

Rs.78.47

 

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%)

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.