MIRA INFORM REPORT

 

 

Report Date :

14.05.2013

 

IDENTIFICATION DETAILS

 

Name :

SOJITZ CORPORATION

 

 

Registered Office :

2-1-1 Uchisaiwaicho Chiyodaku Tokyo 100-8691

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

December, 1982

 

 

Com. Reg. No.:

049977

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, wholesale of machinery, energy & metals, chemicals, other

 

 

No. of Employees :

16,614

 

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


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

                       

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

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

PAYMENTSNO 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.

           

MAX CREDIT LIMIT: YEN 57,507.4 MILLION, 30 DAYS NORMAL TERMS

           

                             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.  Max credit limit is estimated at Yen 57,507.4 million, on 30 days normal terms. 

 

 

 

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)

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

 

3,955,907

4,494,237

 

  Cost of Sales

3,763,842

4,262,671

 

      GROSS PROFIT

192,064

231,566

 

  Selling & Adm Costs

158,759

167,044

 

      OPERATING PROFIT

33,305

64,522

 

  Non-Operating P/L

1,173

-2,294

 

      RECURRING PROFIT

34,478

62,228

 

      NET PROFIT

14,263

-3,649

BALANCE SHEET

 

 

 

 

  Cash

 

433,584

442,706

 

  Receivables

 

456,455

490,708

 

  Inventory

 

292,105

270,645

 

  Securities, Marketable

100

1,297

 

  Other Current Assets

82,027

92,795

 

      TOTAL CURRENT ASSETS

1,264,271

1,298,151

 

  Property & Equipment

228,332

233,260

 

  Intangibles

 

126,114

124,497

 

  Investments, Other Fixed Assets

467,693

464,688

 

      TOTAL ASSETS

2,086,410

2,120,596

 

  Payables

 

436,696

461,799

 

  Short-Term Bank Loans

242,267

282,524

 

 

 

 

 

 

  Other Current Liabs

180,047

203,099

 

      TOTAL CURRENT LIABS

859,010

947,422

 

  Debentures

 

60,000

80,000

 

  Long-Term Bank Loans

715,478

691,018

 

  Reserve for Retirement Allw

14,998

14,232

 

  Other Debts

 

54,386

57,453

 

      TOTAL LIABILITIES

1,703,872

1,790,125

 

      MINORITY INTERESTS

 

 

 

Common stock

160,339

160,339

 

Additional paid-in capital

152,160

152,160

 

Retained earnings

158,488

151,706

 

Evaluation p/l on investments/securities

13,710

7,626

 

Others

 

(101,981)

(141,181)

 

Treasury stock, at cost

(179)

(179)

 

      TOTAL S/HOLDERS` EQUITY

382,537

330,471

 

      TOTAL EQUITIES

2,086,410

2,120,596

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

 

51,524

91,600

 

Cash Flows from Investment Activities

-13,580

-42,287

 

Cash Flows from Financing Activities

-52,737

-36,376

 

Cash, Bank Deposits at the Term End

 

424,371

427,274

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

382,537

330,471

 

 

Current Ratio (%)

147.18

137.02

 

 

Net Worth Ratio (%)

18.33

15.58

 

 

Recurring Profit Ratio (%)

0.87

1.38

 

 

Net Profit Ratio (%)

0.36

-0.08

 

 

Return On Equity (%)

3.73

-1.10

 

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.