MIRA INFORM REPORT

 

 

Report Date :

20.07.2013

 

IDENTIFICATION DETAILS

 

Name :

SHIMA TRADING CO LTD 

 

 

Registered Office :

2-12-14 Ginza Chuoku Tokyo 104-0061

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

July 1921

 

 

Com. Reg. No.:

0100-01-045959 (Tokyo-Chuoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Importer, wholesaler of industrial chemicals, lubricating oils, machinery

 

 

No. of Employees :

137

 

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

 

SHIMA TRADING CO LTD

 

REGD NAME

 

Shima Boeki KK

 

 

MAIN OFFICE

 

2-12-14 Ginza Chuoku Tokyo 104-0061 JAPAN

Tel: 03-3542-3111     Fax: 03-3542-3345

 

URL:                 http://www.shima-tra.co.jp/

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Import, wholesale of industrial chemicals, lubricating oils, machinery, other

 

 

BRANCHES   

 

Osaka, Nagoya

 

 

OVERSEAS   

 

USA,, China (Shanghai), Singapore, Malaysia, Taiwan, Korea (--subsidiaries)

 

 

OFFICER(S)

 

KOSHI SHIMA, PRES                Shin’ichiro Taki, mgn dir

Motoshi Yoshimura, dir              Tsuguo Noda, dir

Keitaro Hirai, dir                                    Kazuki Takahashi, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 37,860 M

PAYMENTSREGULAR   CAPITAL           Yen 330 M

TREND SLOW               WORTH            Yen 8,070 M

STARTED         1921                 EMPLOYES      137

 

COMMENT

           

TRADING FIRM SPECIALIZING IN INDUSTRIAL CHEMICALS, MACHINERY, OTHER. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established originally in 1905 by Sadajiro Shima, on his account, for wholesaling industrial chemicals & machinery.  Incorporated in 1921 the firm has been succeeded by his descendants.  This is a trading firm for import, export and wholesale of industrials chemicals, pharmaceuticals, lubricating oils, plastics, machinery, other.  Operates 6 overseas subsidiaries for import/export businesses.  Imports/exports account for 44% of total sales.

 

 

FINANCIAL INFORMATION

 

The sales volume for Sept/2012 fiscal term amounted to Yen 37,860 million, a 3% down from Yen 39,055 million in the previous term.  High Yen hurt imports/exports, reducing revenues in Yen terms.  The recurring profit was posted at Yen 1,289 million and the net profit at Yen 712 million, respectively, compared with Yen 1,208 million recurring profit and Yen 654 million net profit, respectively, a year ago.

 

For the current term ending Sept 2013 the recurring profit is projected at Yen 1,350 million and the net profit at Yen 750 million, respectively, on a 5% rise in turnover, to Yen 39,700 million. 

           

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

 

 

REGISTRATION

 

      Date Registered:       Jul 1921

Regd No.:                 0100-01-045959 (Tokyo-Chuoku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         28 million shares

Issued:              7.56 mill shares

Sum:                   Yen 330 million

 

Major shareholders (%):Employees’ S/Holding Assn (16.5), Shintaro Yoshimura (11.4), Koshi Shima (11.0), Treasury Stock (10.8), JGC Corp (8.0)

 

No. of shareholders: 97

 

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

 

 

OPERATION

 

Activities: Imports, exports and wholesales industrial chemicals, fine chemicals, pharmaceutical & cosmetic materials, plastics, electronics (55%), lubricating oils, additives, oils & fats (17%), machinery & machine parts, metal products (24%), food/confectionery materials, others (--4%).

Imports/Exports (44%).

 

Clients: [Mfrs, wholesalers] Shima Trading Co (USA), FIC America, Shiseido Ltd, Shin-Etsu Chemical Ind, Tappan Printing, Futaba Indiana of America, Dongquan Futaba metal Products, SKH Metals, Warker Australia, Mark Exhaust, other.

           

No. of accounts: 800

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Futaba Trading, Mitsui Chemical, Sonneborn Inc, Japan Epoxy Resin, Clayton Polymer Japan, Japan Chemical, Kao Corp, Sanyo Chemical Ind, Aica Kogyo, Fuji Kasei Co, other.

 

Payment record: Regular

 

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

 

Bank References:

SMBC (H/O)

MUFG (Kyobashi)

Relations: Satisfactory

 

FINANCES

(In Million Yen)

 

       Terms Ending:

30/09/2013

30/09/2012

30/09/2011

30/09/2010

Annual Sales

 

39,700

37,860

39,055

36,849

Recur. Profit

 

1,350

1,289

1,208

1,218

Net Profit

 

750

712

654

666

Total Assets

 

 

19,158

16,233

15,620

Current Assets

 

 

17,775

14,899

 

Current Liabs

 

 

10,677

8,364

 

Net Worth

 

 

8,070

7,422

6,798

Capital, Paid-Up

 

 

330

330

330

Div.P.Share(¥)

 

 

8.00

8.00

8.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.86

-3.06

5.99

4.74

    Current Ratio

 

..

166.48

178.13

..

    N.Worth Ratio

..

42.12

45.72

43.52

    R.Profit/Sales

 

3.40

3.40

3.09

3.31

    N.Profit/Sales

1.89

1.88

1.67

1.81

    Return On Equity

..

8.82

8.81

9.80

 

Notes: Forecast (or estimated) figures for the 30/09/2013 fiscal term. 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.79

UK Pound

1

Rs.91.03

Euro

1

Rs.78.52

 

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.