MIRA INFORM REPORT

 

 

Report Date :

07.05.2014

 

IDENTIFICATION DETAILS

 

Name :

SHINTOA CORPORATION

 

 

Registered Office :

Marunouchi Center Bldg, 1-6-1 Marunouchi Chiyodaku Tokyo 100-8383

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

February 1952

 

 

Com. Reg. No.:

(Tokyo-Chiyodaku) 018290

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Wholesales foods (12%), pet-care goods (19%), health foods, health-care equipment (12.7%), food & beverage vending machines (33.3%), metal & materials (8.8%), aircraft engines, parts, other (14.4%).

(Overseas trading ratio 20%)

 

 

No. of Employees

162

 

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

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  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 and address

 

SHINTOA CORPORATION

REGD NAME:   Shintoa Koeki KK

MAIN OFFICE:  Marunouchi Center Bldg, 1-6-1 Marunouchi Chiyodaku Tokyo 100-8383 JAPAN

      Tel: 03-3286-0211     Fax: 03-3213-2405

 

                        *.. Moved to the caption address in Feb 2014 from the one as given

 

URL:                 http://www.shintoa.co.jp/

E-Mail address: info@sda.shintoa.co.jp

 

 

ACTIVITIES       

 

Import, export, wholesale of foodstuffs, beverages,       vending machines

(operation), fuels, chemicals, aircraft engines, others

 

 

BRANCHES

 

Osaka, Nagoya, Fukuoka, Sapporo, Sendai, Hiroshima, Takamatsu

 

 

OVERSEAS   

 

Taipei, Perth (Australia), Vietnam

 

 

OVERSEAS SUBSIDIARIES

 

USA (2), UK (1), China

 

 

OFFICER(S)  

 

KAZUO SHIGEMOTO, PRES     Takao Takahashi, v pres                                                             Masataka Ozawa, dir            Morihiro Toida, dir

                       

Yen Amount:     In million Yen, unless otherwise stated


SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 92,188 M

PAYMENTS      No complaints   CAPITAL           Yen 500 M

TREND             SLOW               WORTH            Yen 6,530 M

STARTED         1952                 EMPLOYES      162

 

 

COMMENT    

 

TRADING HOUSE, OWNED BY KANEMATSU CORP. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

           

HIGHLIGHTS

 

The subject company was established jointly by voluntary groups of Mitsubishi Corp and former body of Bank of Tokyo-Mitsubishi, as a trading firm dealing with foods, metals, resources & materials, household items, etc.  In Jan 2006, 60% of Mitsubishi Corp & its group shares were transferred to Kanematsu Corp, which became 77.4% owning parent company.  Further in Oct 2010 Kanematsu Corp bought the whole shares and the firm became a 100% owned subsidiary of Kanematsu Corp (See REGISTRATION).  This is a trading firm specializing in farm products, animal feeds, livestock products, vending machines for beverages, building materials, oil products, aerospace products, aluminum scraps, etc.  Has overseas subsidiaries in USA (2), UK and China.  In Aug/2006, took over 50% shares of nestle Vending KK from Nestle Japan Corp.  Major activities are centered in domestic operations with overseas trading accounting for 15%.  Aircraft engines and peripherals division is expanding and the vending machine division keeps rising.  Health foods also continue growing.  In Mar 2008, sold a subsidiary oil dealer, Shinto Petroleum Corporation, to Kanematsu Petro KK.  In Jul 2012, transferred the food division business to Kanematsu Corp.  In Jan 2014 established a JV for trading machinery & parts, equipment, other.

           

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2013 fiscal term amounted to Yen 92,188 million, an 11% down from Yen 103,963 million in the previous term.  This is referred to the separation of some food operations to Kanematsu Corp.  The recurring profit was posted at Yen 825 million and the net profit at Yen 215 million, respectively, compared with Yen 1,158 million recurring profit and Yen 676 million net profit, respectively, a year ago.

 

For the term that ended Mar 2014 the recurring profit was projected at Yen 840 million and the net profit at Yen 230 million, respectively, on a 5% rise in turnover, to Yen 96,500 million.  Final results are yet to be released.

 

 

 

 

REGISTRATION

 

Date Registered: Feb 1952

Regd No.:       (Tokyo-Chiyodaku) 018290

Legal Status:    Limited Company (Kabushiki Kaisha)

Authorized:      40,000 shares

Issued:             10,000 shares

Sum:                 Yen 500 million

Major shareholders (%): Kanematsu Corp*(100)

 

*.. Trading house, formerly general trading businesses, now specializes in foods, IT-related areas, founded 1961, listed Tokyo S/E, capital Yen 27,781 million, turnover Yen 1,019,232 million, operating profit Yen 18,262 million, recurring profit Yen 16,705 million, net profit Yen 9,564 million, total assets Yen 419,638 million, net worth Yen 68,270 million, employees 5,522, pres Masayuki Shimojima

           

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

 

 

OPERATION

 

Activities: Wholesales foods (12%), pet-care goods (19%), health foods, health-care equipment (12.7%), food & beverage vending machines (33.3%), metal & materials (8.8%), aircraft engines, parts, other (14.4%).

(Overseas trading ratio 20%)

 

(Products):

Machinery: industrial machinery, transportation machinery, machines & tools, prime mover,         plant machinery & equipment for petrochemicals, fertilizer, pulp & paper, power generation systems;

Aerospace products: airplane engines & electronic instruments, the products of: Rolls Royce, Honeywell, MOOG (--USA), Dowty Propellers, Goodrich Control Systems (--UK);

Food & Provisions: agricultural products, sugar, fruits & vegetables, livestock, meat & dairy products, marine products, processed foods, other;

Metals: ferrous & non-ferrous metals

 

Clients: [Mfrs, wholesalers] Japan Beverage, Self Defense Agency, Gastech Service, Zen-Noh, Neos Co, Daiwa House Ind, Glocal Petcare Japan, Shinko Service, Daiki Aluminum Ind, Summit Showa Aluminum, Nosan Corp, Chubu Shiryo, Japell Co, Nakaya Shoji, Arata Corp, Yuka Co, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsubishi Corp, Otsuka Beverage, Shinko Service, Kurabo, Otsuka Pharmaceutical, Asahi Calpis Beverage, Suntory Foods, Pokka Corp, Royal Canin Japon, other

 

Payment record: Regular

 

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

 

Bank References:

MUFG (H/O)

Mitsubishi Trust Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

96,500

92,188

103,963

98,801

Recur. Profit

 

840

825

1,158

812

Net Profit

 

230

215

676

451

Total Assets

 

 

28,245

33,036

32,528

Current Assets

 

 

24,241

26,865

25,926

Current Liabs

 

 

20,702

25,220

24,585

Net Worth

 

 

6,530

6,616

5,976

Capital, Paid-Up

 

 

500

500

500

Div.Ttl in Million (¥)

 

 

310

25

24

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.68

-11.33

5.22

-7.76

    Current Ratio

..

117.09

106.52

105.45

    N.Worth Ratio

..

23.12

20.03

18.37

    R.Profit/Sales

0.87

0.89

1.11

0.82

    N.Profit/Sales

0.24

0.23

0.65

0.46

    Return On Equity

..

3.29

10.22

7.55

 

Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.20

UK Pound

1

Rs.101.67

Euro

1

Rs.83.55

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

PDT

 

               

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.