MIRA INFORM REPORT

 

 

Report Date :

08.01.2014

 

IDENTIFICATION DETAILS

 

Name :

SHUKO BUILD CO LTD

 

 

Registered Office :

29-54 Yamashiro Onsen Kaga City Ishikawa-Pref 922-0242

 

 

Country :

Japan

 

 

Date of Incorporation :

October, 1991

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Construction company specializing in house building (standardized houses and/or free plan houses, other (--100%)

 

 

No. of Employees :

260

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 


 

Maximum Credit Limit :

Yen 24.8 million

Status :

Moderate

Payment Behaviour :

Slow but correct

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, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 & address

 

SHUKO BUILD CO LTD

REGD NAME:    KK Shuko Build

MAIN OFFICE:  29-54 Yamashiro Onsen Kaga City Ishikawa-Pref 922-0242 JAPAN

Tel: 0761-77-8866      Fax: 0761-77-8869

 

URL:                 http://www.shukobuild.com

E-Mail address: info@shukobuild.com

 

 

ACTIVITIES

 

Construction company, house building

 

 

BRANCHES

 

Fukui, Osaka, Toyama, Shiga, Nara, Kyoto, Hyogo, Aichi, Gifu, Miyagi (Tot 11)

 

 

FACTORIES

 

(subcontracted)

 

 

OFFICERS

 

TAKAYA HONMA, PRES                       Kuniyuki Hiyama, ch

Mitsuyoshi Yamashita, s/mgn dir                        Seiiichi Fujita, s/mgn dir

Kunihiro Koh, mgn dir                             Yasuhiko Yamashina, dir           

           

 

Yen Amount

 

In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 14,605 M

PAYMENTS      SLOW BUT CORRECT   CAPITAL           Yen 63 M

TREND             UP                                WORTH            Yen 136 M

STARTED         1991                             EMPLOYES      260

 

 

COMMENT    

 

HOUSE BUILDER.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 24.8 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established by Kuniyuki Hiyama in order to make most of his experience in the subject line of business.  This is a construction company specializing in house building: standardized houses and/or free plan houses.  Has 11 offices in 11 prefectures nationwide, serving local needs. 

 

 

FINANCIAL INFORMATION

           

The sales volume for Aug/2013 fiscal term amounted to Yen 14,605 million, a 70% up from Yen 8,619 million in the previous term.  House buildings increased abruptly after the earthquake in North Japan.  The recurring profit was posted at Yen 107 million and the net profit at Yen 24 million, respectively, compared with Yen 51 million recurring profit and yen 27 million net profit, respectively, a year ago.

 

For the current term ending Aug 2014 the recurring profit is projected at Yen 120 million and the net profit at Yen 30 million, respectively, on a 6% rise in turnover, to Yen 5,500 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 24.8 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:          Oct 1991

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  5,040 shares

Issued:                          1,260 shares

Sum:                            Yen 63 million

Major shareholders (%): Kuniyuki Hiyama (69), Eiko Hiyama (22), Takaya Honma (6), Hideki Matsumoto (3)

No. of shareholders:    4

 

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

 

OPERATION

           

Activities: Construction company specializing in house building (standardized houses and/or free plan houses, other (--100%)

 

Clients: Consumers 

            No. of accounts: Unavailable

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] YKK, Ko-Ken Tool Co, Hokuetsu Precut Hokuetsu Aluminum Ind, other

 

Payment record: Slow but correct

 

Location: Business area in Kaga City, Ishikawa-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

                        Hokkoku Bank (Matsugaoka)

                        Shoko Chukin Bank (Kanazawa)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

       Terms Ending:

31/08/2014

31/08/2013

31/08/2012

Annual Sales

 

15,500

14,605

8,619

Recur. Profit

 

120

107

51

Net Profit

 

30

24

27

Total Assets

 

 

6,071

3,286

Current Assets

 

 

5,005

2,587

Current Liabs

 

 

4,873

2,817

Net Worth

 

 

136

97

Capital, Paid-Up

 

 

63

63

Div.P.Share(¥)

 

 

 

 

<Analytical Data>

(%)

(%)

(%)

    S.Growth Rate

6.13

69.45

92.99

    Current Ratio

 

..

102.71

91.84

    N.Worth Ratio

..

2.24

2.95

    R.Profit/Sales

 

0.77

0.73

0.59

    N.Profit/Sales

0.19

0.16

0.31

    Return On Equity

..

17.65

27.84

 

Notes: Forecast (or estimated) figures for the 31/08/2014 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.38

UK Pound

1

Rs.102.25

Euro

1

Rs.84.97

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.