|
Report Date : |
12.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
SHOKO CO LTD |
|
|
|
|
Registered Office : |
2-4-1 Shibakoen Minatoku |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
May 1947 |
|
|
|
|
Com. Reg. No.: |
0104-01-013769 |
|
|
|
|
Legal Form : |
Limited Company (Kabushiki Kaisha) |
|
|
|
|
Line of Business : |
Import, export, wholesale of chemicals, synthetic resins, metals,
electronics |
|
|
|
|
No. of Employees : |
432 |
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 |
SHOKO CO LTD
REGD NAME: Shoko
Tsusho KK
MAIN OFFICE: 2-4-1
Shibakoen Minatoku
Tel:
03-3459-5111 Fax: 03-3459-5390
E-Mail address: info@shoko.co.jp
Import, export,
wholesale of chemicals, synthetic resins, metals, electronics
Osaka, Nagoya,
Fukuoka, Sendai, Oita, Otaku (Tokyo)
China (2), Korea,
Taiwan, Singapore, Thailand, USA (--subsidiaries)
Chiba
TAKASHI MIYAZAKI,
PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 163,531 M
PAYMENTS NO COMPLAINTS CAPITAL Yen
8,021 M
TREND UP WORTH Yen 18,324 M
STARTED 1945 EMPLOYES 432
TRADING HOUSE SPECIALIZING IN CHEMICALS & SYNTHETIC RESINS,
AFFILIATED WITH SHOWA DENKO KK.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
|
Business |
Terms Ending |
Annual Sales* |
R.Profit* |
N.Profit* |
S.Growth |
Net Worth* |
|
Results: |
31/03/2010 |
137,030 |
1,353 |
863 |
(%) |
14,782 |
|
(Consolidated) |
31/12/2011 |
139,353 |
1,717 |
1,349 |
1.70 |
15,543 |
|
|
31/12/2012 |
133,049 |
1,722 |
981 |
-4.52 |
16,195 |
|
|
31/12/2013 |
165,531 |
2,320 |
1,440 |
24.41 |
18,324 |
|
|
31/12/2014 |
180,000 |
2,300 |
1,200 |
8.74 |
.. |
Notes: Unit: In Million Yen
Forecast figures for the 31/12/2014 fiscal term.
The subject company was established by Showa Denko KK, a comprehensive
chemicals mfr, Tokyo (see REGISTRATION),
as a trading firm primarily dealing in chemicals and fertilizers. Since incorporated, the firm has expanded
operations into synthetic resins, light metals, iron/steel products,
construction materials and recently electronics. Synthetic resins & chemicals account for
nearly 50% of total sales. Emphasis on
fine chemicals. Diversifying into
metals, including aluminum alloys & foils, and electronic materials as well
as real estate business including condominium sales. Also, actively diversifying into
pharmaceuticals, analyzers, reagents, computers, etc. Moving toward a general trader on R&D,
with mfg division in fertilizers, molding, soil improvement agents, etc
domestically, and heavy nitrogen compounds, calium arsenic boards, etc in
USA. The firm acquired a stake in two
customer firms owned by the parent company.
The company will introduce red LED products for vegetable plants. Own-brand construction materials will take
hold in the Tohoku area (North East Japan).
The company plans to start a PV business on the former plant in
China. It will also start imports and sales
of woodchips. The LED-manufacturing
subsidiary will start operations as early as April/May. The company will provide support to a plastic
container-mfg customer by guaranteeing preferred shares.
The sales volume for Dec/2013 fiscal term amounted to Yen 165,531
million, a 24.4% up from Yen 133,049 million in the previous term. The recurring profit was posted at Yen 2,320
million and the net profit at Yen 1,440 million, respectively, compared with
Yen 1,722 million recurring profit and Yen 981 million net profit,
respectively, a year ago.
(Jan/Mar/2014 results): Sales Yen 46,981 million (up 25.1%), operating
profit Yen 941 million (up 31.7%), recurring profit Yen 910 million (up 30.5%),
net profit Yen 466 million (up 0.2%). (%
compared with the corresponding period a year ago).
For the current term ending Dec 2014 the recurring profit is projected
at Yen 2,300 million and the net profit at Yen 1,200 million, respectively, on
an 8.7% rise in turnover, to Yen 180,000 million. Iron ore sales to China will remain at a high
level after surging. Sales of aluminum
parts for mobile phone base stations will also grow. Sales of chemicals will benefit from the
buyout of a chemicals trading firm.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
Date Registered: May
1947
Regd No.:
0104-01-013769 (Tokyo-Minatoku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 400 million shares
Issued: 112,714,687 shares
Sum: Yen 8,021 million
Major
shareholders (%): Showa Denko (42.4), Company’s Treasury Stock (2.8), Master Trust Bank of
Japan T (1.5), Japan Trustee Services T (1.1), Sompo Japan Ins (0.9), Mizuho
Bank (0.8), Matsui Securities (0.7), Employees’ S/Holding Assn (0.7), Japan
Trustee Services T1 (0.6), Fukoku Life Ins (0.5); foreign owners (2.4)
No.
of shareholders: 8,350
Listed on the S/Exchange (s) of: Tokyo
Managements: Takashi Miyazaki,
pres & CEO; Jun Ono, dir; Shunji Seki, dir; Toshinori Takagi, dir; Katsuaki
Iwabuchi, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related
companies: Shoko Tsusho Agri, Mie Kasei, Showa Baido, Cosmo Kasei Kogyo,
Shoko Tsusho (Shanghai), other
Activities: A trading house for
import, export and wholesale of (Sales breakdown):
Chemicals
Div (20%): (organic chemicals) raw materials for resins & organic synthesis,
solvents & cleaning agents, resin additives, adhesives, synthetic rubber,
food/feed additives, (inorganic chemicals) ammonia products, acid, alkalis
& salts, chemicals for plating, minerals, water treatment agents, other;
Synthetic
Resins Div (24%): LDPE, HDPE, PP, PS, other plastic raw materials, plastic sheets, films
& multi-layered products, plastic molding & packing materials, other;
Light
Metals Div (21%): aluminum ingots & alloy, aluminum scraps, aluminum sheets,
extrusions, electrolytic foils, rare metals, ceramics, other;
Commodities
& Construction Materials Div (8%): storage tanks, food refrigeration units, industrial
containers, reactors, heat exchangers, pumps, cement, plaster materials &
waterproofing agents, aluminum construction materials, housing fixtures, other;
Electronics
& Other Div (27%): LED chips, modules, polymer aluminum electrolytic
capacitors, semiconductors; real estate management, sale of condominiums, land
& houses, including designing, planning, construction services; property
& life insurance broking, other.
Overseas
Sales Ratio (15%)
Clients: [Mfrs,
wholesalers] Showa Denko, Showa Aluminum Can Recycling Center,
Kodama Plastics, Focus Trading, Nippon
Chemi-Con, Showa Highpolymer, Tohoku Metal Ind, Chuo Denki Kogyo (Rare Earth),
Toyotaka Co, Summit Alumi, Asahi Seiren, Summit Showa Aluminum, Tian Gong
International Trade, Tokuen HK Technology Ltd, other.
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Showa Denko, Focus Trading Co Ltd, Japan Polyolefin,
Japan Polyethylene, Showa Highpolymer, Showa
Denko Kenzai, Sun Allomer Ltd, Showa Light Metal,New Town Ltd, Summit Showa
Aluminum, PS Japan, Showa Denko Packaging, Asahi Seiren, other
Payment record: No complaints
Location: Business area in
Tokyo. Office premises at the caption
address are owned by the parent, Showa Denko, and maintained satisfactorily.
Bank
References:
Mizuho Bank
(Ohtemachi)
Mizuho Trust Bank
(H/O)
Relations:
Satisfactory
(In Million
Yen)
|
FINANCES: (Consolidated
in million yen) |
|
|||
|
|
|
Terms Ending: |
31/12/2013 |
31/12/2012 |
|
INCOME STATEMENT |
|
|
||
|
|
Annual Sales |
|
165,531 |
133,049 |
|
|
Cost of Sales |
155,475 |
124,699 |
|
|
|
GROSS PROFIT |
10,055 |
8,350 |
|
|
|
Selling & Adm Costs |
7,720 |
6,622 |
|
|
|
OPERATING PROFIT |
2,335 |
1,727 |
|
|
|
Non-Operating P/L |
-15 |
-5 |
|
|
|
RECURRING PROFIT |
2,320 |
1,722 |
|
|
|
NET PROFIT |
1,440 |
981 |
|
|
BALANCE SHEET |
|
|
|
|
|
|
Cash |
|
4,299 |
4,470 |
|
|
Receivables |
|
47,433 |
35,480 |
|
|
Inventory |
|
3,214 |
2,711 |
|
|
Securities, Marketable |
|
|
|
|
|
Other Current Assets |
4,256 |
2,288 |
|
|
|
TOTAL CURRENT ASSETS |
59,202 |
44,949 |
|
|
|
Property & Equipment |
6,822 |
6,664 |
|
|
|
Intangibles |
|
372 |
307 |
|
|
Investments, Other Fixed Assets |
4,996 |
3,471 |
|
|
|
TOTAL ASSETS |
71,392 |
55,391 |
|
|
|
Payables |
|
37,901 |
30,639 |
|
|
Short-Term Bank Loans |
4,240 |
839 |
|
|
|
|
|
|
|
|
|
Other Current Liabs |
6,494 |
2,412 |
|
|
|
TOTAL CURRENT LIABS |
48,635 |
33,890 |
|
|
|
Debentures |
|
|
|
|
|
Long-Term Bank Loans |
2,000 |
2,000 |
|
|
|
Reserve for Retirement Allw |
867 |
822 |
|
|
|
Other Debts |
|
1,566 |
2,483 |
|
|
TOTAL LIABILITIES |
53,068 |
39,195 |
|
|
|
MINORITY INTERESTS |
|
|
|
|
|
Common
stock |
8,021 |
8,021 |
|
|
|
Additional
paid-in capital |
0 |
0 |
|
|
|
Retained
earnings |
8,130 |
7,214 |
|
|
|
Evaluation
p/l on investments/securities |
900 |
316 |
|
|
|
Others |
|
1,749 |
1,109 |
|
|
Treasury
stock, at cost |
(476) |
(465) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
18,324 |
16,195 |
|
|
|
TOTAL EQUITIES |
71,392 |
55,391 |
|
|
CONSOLIDATED CASH FLOWS |
|
|
||
|
|
|
Terms ending: |
31/12/2013 |
31/12/2012 |
|
|
Cash
Flows from Operating Activities |
|
-6,243 |
4,598 |
|
|
Cash
Flows from Investment Activities |
-47 |
231 |
|
|
|
Cash
Flows from Financing Activities |
5,772 |
-2,673 |
|
|
|
Cash,
Bank Deposits at the Term End |
|
4,281 |
4,461 |
|
ANALYTICAL RATIOS Terms ending: |
31/12/2013 |
31/12/2012 |
||
|
|
|
Net
Worth (S/Holders' Equity) |
18,324 |
16,195 |
|
|
|
Current
Ratio (%) |
121.73 |
132.63 |
|
|
|
Net
Worth Ratio (%) |
25.67 |
29.24 |
|
|
|
Recurring
Profit Ratio (%) |
1.40 |
1.29 |
|
|
|
Net
Profit Ratio (%) |
0.87 |
0.74 |
|
|
|
Return
On Equity (%) |
7.86 |
6.06 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.05 |
|
|
1 |
Rs.101.65 |
|
Euro |
1 |
Rs.83.07 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
NIS |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.