MIRA INFORM REPORT

Report Date :

12.12.2014

IDENTIFICATION DETAILS

Name :	JFE SHOJI TRADE CORPORTION
Registered Office :	1-9-5 Ohtemachi Chiyodaku Tokyo 100-8070
Country :	Japan
Financials (as on) :	31.03.2014
Date of Incorporation :	1948
Com. Reg. No.:	0100-01-01-013552
Legal Form :	Limited Company
Line of Business :	Import, export, wholesale of steel, iron ore, chemicals, machinery, other
No. of Employees :	927

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

Status :	Satisfactory
Payment Behaviour :	No complaints
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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy

Source : CIA

Company name and address

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) 22 locations

OVERSEAS

Korea (2), China (3), Taiwan (2), Vietnam (2), India (4), Australia (2), USA (3), India, other. (Total 34 in 18 countries)

OFFICERS

TSUTOMU YAJIMA, PRES Kohei Yoshioka, v pres

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

Masaru Saruwatari, s/mgn dir Toshihiro Kabasawa, s/mgn dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 1,321,586 M

PAYMENTS No Complaints CAPITAL Yen 14,539 M

TREND \SLOW WORTH Yen 95,637 M

STARTED 1948 EMPLOYES 927

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

Financials are consolidated by the parent, JFE Shoji Holdings Inc, and only non-consolidated financials are disclosed.

The sales volume for Mar/2014 fiscal term amounted to Yen 1,321,586 million, a 1% down from 1,334,787 million in the previous term. The recurring profit was posted at Yen 15,373 million and the net profit at Yen 5,535 million, respectively, compared with Yen 11,322 million recurring profit and Yen 7,185 million net profit, respectively, a year ago.

For the current term ending Mar 2015 the recurring profit is projected at Yen 16,000 million and the net profit at Yen 5,600 million, respectively, on a 5% rise in turnover, to Yen 1,387,500 million.

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

REGISTRATION

Date Registered: Aug 2004

Regd No.: 0100-01-01-013552 (Osaka-Kitaku)

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 S/E, capital Yen 147,143 million, sales Yen 3,666,859 million, operating profit Yen 153,327 million, recurring profit Yen 173,676 million, net profit Yen 102,382 million, total assets Yen 4,241,700 million, net worth Yen 1,702,119 million, employees 57,210, 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%)

Overseas Trading Ratio (45%)

Clients: [Mfrs, wholesalers] JFE Steel, KK Tohsen, Okakin Corp, Mizushima Kohan Kogyo (Steel maker), Hanwa Kozai Co, 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, Hitachi Ltd, other.

Payment record: no complaints

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

Bank References:

Mizuho Bank (Osaka)

MUFG (H/O)

Relations: Satisfactory

FINANCIALS　

(Non-Consolidated)

Terms Ending:		31/03/2015	31/03/2014	31/03/2013	31/03/2012
Annual Sales		1,387,500	1,321,586	1,334,787	1,684,271
Recur. Profit		16,000	15,373	11,322	11,531
Net Profit		5,600	5,535	7,185	9,351
Total Assets			382,970	346,446	413,837
Current Assets			267,340	246,359	317,097
Current Liabs			245,738	226,815	318,934
Net Worth			95,637	89,160	69,563
Capital, Paid-Up			14,539	14,539	14,539
Div.Ttl in Million (¥)			743	707	2,400
<Analytical Data>		(%)	(%)	(%)	(%)
S.Growth Rate		4.99	-0.99	-20.75	3.55
Current Ratio		..	108.79	108.62	99.42
N.Worth Ratio		..	24.97	25.74	16.81
R.Profit/Sales		1.15	1.16	0.85	0.68
N.Profit/Sales		0.40	0.42	0.54	0.56
Return On Equity		..	5.79	8.06	13.44

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.21
UK Pound	1	Rs.97.80
Euro	1	Rs.77.48

INFORMATION DETAILS

Report Prepared by :

TPT

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.