MIRA INFORM REPORT

 

 

Report Date :

11.06.2014

 

IDENTIFICATION DETAILS

 

Name :

SHIKISHIMA ALUMINUM CO LTD

 

 

Registered Office :

1-3-5 Deguchi Hirakata Osaka-Pref 573-0065

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2013

 

 

Date of Incorporation :

September 1958

 

 

Com. Reg. No.:

1200-01-149729

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of aluminum alloys & products

 

 

No of Employees :

51

 

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

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:

 

SHIKISHIMA ALUMINUM CO LTD

 

 

REGD NAME:

 

Shikishima Aluminum KK

 

 

MAIN OFFICE:    

 

1-3-5 Deguchi Hirakata Osaka-Pref 573-0065 JAPAN

Tel: 072-832-1121          Fax: 072-832-1103

 

URL:                 N/A

 

 

ACTIVITIES: 

 

Mfg of aluminum alloys & products

 

 

FACTORIES: 

 

At the caption address, Sakai

 

 

OFFICERS:    

 

SHIGERU TAKAGI, PRES          Akio Okamoto, s/mgn dir

Eiji Fujishima, dir                       Shoichi Yamamoto, dir

Hirofumi Kawamura, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY:   

 

FINANCES        FAIR                             A/SALES          Yen 8,015 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 50 M

TREND UP                                WORTH            Yen 673 M

STARTED         1958                             EMPLOYES      51

 

 

COMMENT:   

 

TRADING FIRM SPECIALIZING IN ALUMINUM & PRODUCTS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: US$500K.

                       

 

HIGHLIGHTS:

           

The subject company was established by Shigeru Takagi in order to make most of his experience in the subject line of business.  This is a specialized mfr of aluminum alloys & products particularly for automobile industry.  Products are also exported to USA, other.  Clients include automakers, heavy metal industries, other.

 

 

FINANCIAL INFORMATION:

           

The sales volume for Sept/2013 fiscal term amounted to Yen 8,015 million, a 7% up from Yen 7,515 million in the previous term.  This is attributed to eh price hike of the aluminum and demand also rose from automakers.   The recurring profit was posted at Yen 84 million and the net profit at Yen 53 million, respectively, compared with Yen 97 million recurring loss and Yen 135 million net losses, respectively, a year ago.

 

For the current term ending Sept 2014 the recurring profit is projected at Yen 90 million and the net profit at Yen 60 million, respectively, on a 3% rise in turnover, to Yen 8,250 million.   . 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.   The proposed amount of US$500K comes well within the firm’s financial capabilities.

 

 

REGISTRATION:

 

Date Registered:                                   Sept 1958

Regd No.:                                             1200-01-149729 (Osaka-Hirakata)

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              400,000 shares

Issued:                                     100,000 shares

Sum:                                        Yen 50 million

      Major shareholders (%):                 Shigeru Takagi (23), Shikishima Unyu (15), Nikkei Sangyo  (15), Kawasaki

                                                            Heavy Ind (10), Akio Okamoto (10)

     No. of shareholders:                        10

 

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

 

 

 

OPERATION:

           

Activities: Imports, exports and wholesales aluminum & products: aluminum sheets, aluminum coils, aluminum plates, tubes, rods, others particularly for automakers (--100%)

 

 

Clients: [Mfrs, wholesalers] Mazda Motors, Kawasaki Heavy Ind, Honda Trading, Aisin Keikinzoku Co, Ryobi Limited, Mitsui Bussan Light Metals, other 

            No. of accounts: 300

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Honda Trading, Al Conix Corp, Marubeni Metals, Itochu Metals, Mitsui Bussan Metals, Marubeni Corp, ALCONIX Corp, other

 

Payment record: No Complaints

 

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

 

Bank References:

                        Mizuho Bank (Osaka-Chuo)

                        Shoko Chukin Bank (Osaka)

                        Relations: Satisfactory

 

FINANCES (In Million Yen)

 

       Terms Ending:

30/09/2014

30/09/2013

30/09/2012

30/09/2011

Annual Sales

 

8,250

8,015

7,515

8,086

Recur. Profit

 

90

84

-97

29

Net Profit

 

60

53

-135

-45

Total Assets

 

 

3,284

3,377

3,534

Current Assets

 

 

2,726

2,776

2,922

Current Liabs

 

 

1,154

1,089

926

Net Worth

 

 

673

621

762

Capital, Paid-Up

 

 

50

50

50

Div.Ttl in Million (¥)

 

 

5

5

5

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.93

6.65

-7.06

5.41

    Current Ratio

..

236.22

254.91

315.55

    N.Worth Ratio

..

20.49

18.39

21.56

    R.Profit/Sales

1.09

1.05

-1.29

0.36

    N.Profit/Sales

0.73

0.66

-1.80

-0.56

    Return On Equity

..

7.88

-21.74

-5.91

 

Notes: Forecast (or estimated) figures for the 30/09/2014 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 59.26

UK Pound

1

Rs. 99.62

Euro

1

Rs. 80.59

 

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

Report Prepared by :

DPT

 

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.