MIRA
INFORM REPORT
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Report Date : |
09.03.2013 |
IDENTIFICATION DETAILS
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Name : |
SHOWA CORPORATION |
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Registered Office : |
1-14-1 Fujiwaracho Gyoda City Saitama-Pref 361-8506 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
1918 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufactures hydraulic shock absorbers, power steerlings,
others |
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No. of Employees : |
2,785 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 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.
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Source : CIA |
Company name
SHOWA CORPORATION
REGD NAME: KK
Showa
MAIN OFFICE: 1-14-1
Fujiwaracho Gyoda City Saitama-Pref 361-8506 JAPAN
Tel:
048-554-1151 -
URL: http://www.showa1.com
E-Mail
address: (thru the URL)
ACTIVITIES
Mfg of
hydraulic shock absorbers, power steering
BRANCHES
Saitama,
Nagoya
OVERSEAS
USA,
China, Canada
FACTORIES
At the
caption address, Nagoya, Hadano, Gotemba, other (Tot 10)
OVERSEAS
USA
(2), China (5), Canada, other
CHIEF EXEC
YOICHI
HOJO, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 215,889 M
PAYMENTS REGULAR CAPITAL Yen
12,698 M
TREND SLOW WORTH Yen
81,010 M
STARTED 1918 EMPLOYES 2,785
COMMENT
MFR OF AUTOMOTIVE PARTS, AFFILIATED TO HONDA MOTOR
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast figures for the 31/03/2013
fiscal term.
HIGHLIGHTS
This
is the Honda Motor-affiliated mfr of hydraulic shock absorbers & power
steerlings. About 80% of consolidated
sales goes to Honda Motor, and strong in motorcycle shock absorbers. Diversifying into hydraulic equipment for
marine and industrial use. Has plants in
N America and China. The plant operating
rate in China is assumed to fall 50% before the current term-end.
FINANCIAL INFORMATION
The sales
volume for Mar/2012 fiscal term amounted to Yen 215,889 million, a 7.5% down
from Yen 233,381 million in the previous term.
The recurring profit was posted at Yen 7,330 million and the net profit
at Yen 2,549 million, respectively, compared with Yen 8,062 million recurring
profit and Yen 122 million net profit, respectively, a year ago.
(Apr/Dec/2012
results): Sales Yen 176,119 million (up 11%), operating profit Yen 10,269
million (up 83.8%), recurring profit Yen 10,601 million (up 116.0%), net profit
Yen 6,682 million (up from Yen 103 million).
(% compared with the corresponding period a year ago).
For the
current term ending Mar 2013 the recurring profit is projected at Yen 13,000
million and the net profit at Yen 7,000 million, on a 7.9% rise in turnover, to
Yen 233,000 million.
The
financial situation is considered FAIR and good for ORDINARY business
engagements.
REGISTRATION
Date Registered: Oct 1938
Legal Status:
Limited Company (Kabushiki Kaisha
Authorized: 186 million shares
Issued:
76,020,019
Sum: Yen 12,698
million
Major shareholders (%): Honda Motor (33.4), Japan
Trustee Services T (5.8), Japan Trustee Services T9 (3.5), Master Trust Bank of
Japan T (3.5), Bank of New York Treaty3.0), Customers’ S/Holding Assn (2.3),
MUFG (1.6); foreign owners (23.8)
No. of shareholders: 6,155
Listed on the S/Exchange (s) of: Tokyo
Managements: Yoichi Hojo, pres; Takeyuki Hirai, v
pres; Akira Kadoya, s/mgn dir; Hajime Hirata, mgn dir; Mitsuo Sugino, mgn dir;
Tetsuo Nishigori, dir; Nobuyuki Sugiyama, dir; Masaharu Sofue, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies:
American Showa, Showa Canada, other.
OPERATION
Activities: Manufactures hydraulic shock absorbers,
power steerlings, others (--100%)
Clients: [Automakers, mfrs, wholesalers] Honda
Motor, Suzuki Motor, Kawasaki Heavy Ind, Mitsubishi Motor, Fuji Heavy Ind,
Mazda Motor, Daihatsu, other
No. of
accounts: 500
Domestic
areas of activities: Nationwide
Suppliers:
[Mfrs, wholesalers] NTN, NOK, Mitsubishi Electric, other
Payment record:
Regular
Location:
Business area in Gyoda City, Saitama-Pref.
Office premises at the caption address are owned and maintained
satisfactorily.
Bank References:
MUFG
(H/O)
Saitama
Resona Bank (Saitama)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2012 |
31/03/2011 |
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INCOME STATEMENT |
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Annual Sales |
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215,889 |
233,381 |
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Cost of Sales |
186,587 |
202,655 |
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GROSS PROFIT |
29,301 |
30,726 |
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Selling & Adm Costs |
21,794 |
21,831 |
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OPERATING PROFIT |
7,507 |
8,895 |
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Non-Operating P/L |
-177 |
-833 |
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RECURRING PROFIT |
7,330 |
8,062 |
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NET PROFIT |
2,549 |
122 |
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BALANCE SHEET |
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Cash |
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17,289 |
20,402 |
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Receivables |
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32,382 |
28,026 |
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Inventory |
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15,725 |
14,759 |
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Securities, Marketable |
3,800 |
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Other Current Assets |
15,363 |
17,013 |
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TOTAL CURRENT ASSETS |
84,559 |
80,200 |
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Property & Equipment |
57,411 |
53,899 |
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Intangibles |
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1,763 |
732 |
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Investments, Other Fixed Assets |
11,807 |
23,509 |
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TOTAL ASSETS |
155,540 |
158,340 |
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Payables |
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26,952 |
25,077 |
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Short-Term Bank Loans |
11,105 |
16,158 |
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Other Current Liabs |
15,079 |
14,834 |
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TOTAL CURRENT LIABS |
53,136 |
56,069 |
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Debentures |
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Long-Term Bank Loans |
10,812 |
8,851 |
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Reserve for Retirement Allw |
5,985 |
5,261 |
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Other Debts |
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4,596 |
5,405 |
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TOTAL LIABILITIES |
74,529 |
75,586 |
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MINORITY INTERESTS |
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Common
stock |
12,698 |
12,698 |
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Additional
paid-in capital |
13,455 |
13,455 |
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Retained
earnings |
52,440 |
49,906 |
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Evaluation p/l on investments/securities |
3,174 |
4,176 |
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Others |
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(704) |
2,571 |
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Treasury stock, at cost |
(53) |
(53) |
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TOTAL S/HOLDERS`
EQUITY |
81,010 |
82,753 |
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TOTAL EQUITIES |
155,540 |
158,340 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2012 |
31/03/2011 |
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Cash
Flows from Operating Activities |
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9,720 |
1,557 |
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Cash
Flows from Investment Activities |
-717 |
-10,340 |
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Cash
Flows from Financing Activities |
-1,870 |
-6,572 |
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Cash,
Bank Deposits at the Term End |
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20,618 |
12,846 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
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Net
Worth (S/Holders' Equity) |
81,010 |
82,753 |
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Current
Ratio (%) |
159.14 |
143.04 |
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Net
Worth Ratio (%) |
52.08 |
52.26 |
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Recurring
Profit Ratio (%) |
3.40 |
3.45 |
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Net
Profit Ratio (%) |
1.18 |
0.05 |
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Return
On Equity (%) |
3.15 |
0.15 |
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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.54.40 |
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1 |
Rs.81.56 |
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Euro |
1 |
Rs.71.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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 |
-- |
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.