MIRA INFORM REPORT

 

 

Report Date :

19.11.2014

 

IDENTIFICATION DETAILS

 

Name :

SAWADA INDUSTRY CO LTD

 

 

Registered Office :

2-17-8 Senzoku Taitoku Tokyo 111-0031

 

 

Country :

Japan

 

 

Financials (as on) :

30.11.2013

 

 

Date of Incorporation :

May 1953

 

 

Com. Reg. No.:

005013

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Wholesale of steel products

 

 

No. of Employees :

60

 

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 :

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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

 

SAWADA INDUSTRY CO LTD

 

 

REGD NAME

 

Sawada Sangyo KK

 

 

MAIN OFFICE

 

2-17-8 Senzoku Taitoku Tokyo 111-0031 JAPAN

Tel: 03-3875-1871    

Fax: 03-3875-1989

 

URL:                 N/A      

 

 

ACTIVITIES

 

Wholesale of steel products

 

 

BRANCHES

 

Nagano, Yamanashi (Fuefuki)

 

 

OFFICER(S)

 

SHIGEYOSHI SAWADA, PRES  Kenshiro Kato, mgn dir

Koichi Shigeta, dir                     Atsuko Sawada, dir      

Sawako Sawada, dir

 

Yen Amount:    In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 2,650 M

PAYMENTS      SOW BUT CORRECT     CAPITAL           Yen 50 M

TREND SLOW                           WORTH            Yen 1,930 M

STARTED         1953                             EMPLOYES      60

 

 

COMMENT

 

WHOLESALER SPECIALIZING IN STEEL PRODUCTS. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

           

 

HIGHLIGHTS

           

The subject company was established by father of Shigeyoshi Sawada in order to make most of his experience in the subject line of business.  This is a family based trading firm for import, export and wholesale of steel products: steel plates, bars, sheets, and strap steel, other, as dealership appointed by Sumitomo Metal Industries Ltd, 3rd ranked steel maker, Tokyo.  Goods are actively exported.  Clients include major steel mfrs, wholesalers, other.

 

 

FINANCIAL INFORMATION

 

Financials are only partially disclosed as is the case with family-based companies.

 

The sales volume for Nov/2013 fiscal term amounted to Yen 2,650 million, a 7% down from Yen 2,845 million in the previous term.  Exports were hurt by the rising Yen, substantially reducing revenues & profits in Yen terms.  The net profit was posted at Yen 50 million, compared with Yen 60 million a year ago.  .

 

For the current term ending Nov 2014 the net profit is projected at Yen 60 million, on a 4% rise in turnover, to Yen 2,750 million.  The weaker Yen may increase earnings in Yen terms.

           

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

 

 

REGISTRATION

 

Date Registered:  May 1953

Regd No.:            (Tokyo-Taitoku) 005013

Legal Status:    　Limited Company (Kabushiki Kaisha)

Authorized:      　400,000 shares

Issued:             　100,000 shares

Sum:                　Yen 50 million

Major shareholders (%): Shigeyoshi Sawada (36), Sawako Sawada (20), Harumi Sawada (12), Hiromi Sawada (12)

No. of shareholders: 8

           

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

 

 

OPERATION

 

Activities: Imports, exports and wholesales steel products: steel sheets, steel plates, cold-rolled plates, rolled steel plates, bars, strap steel, other, as agent dealership of Sumitomo Metal Industries Ltd (--100%)

 

Clients: [Mfrs, wholesalers] MK Seiko Co, Hitachi Ltd, Kotohira Kogyo, Tokyo Precision Pipes Co, Takita Mfg Co, Matsuyama Co, Takano Co, Ogihara Mfg Co, other

            No. of accounts: 500

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Sumikin Bussan Corp (90%), Sumitomo Corp, Shinsei Shoji, other

 

Payment record: Slow but Correct

 

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

 

Bank References:

MUFG (Kaminarimon)

SMBC (Asakusa)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

Terms Ending:

　

30/11/2014

30/11/2013

30/11/2012

30/11/2011

Annual Sales

　

2,750

2,650

2,845

2,900

Recur. Profit

　

..

..

..

..

Net Profit

　

60

50

60

60

Total Assets

　

　

N/A

N/A

N/A

Net Worth

　

　

1,930

1,895

1,853

Capital, Paid-Up

　

　

50

50

50

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

3.77

-6.85

-1.90

-4.92

    Current Ratio

　

　

..

..

..

    N.Worth Ratio

　

　

..

..

..

    N.Profit/Sales

　

2.18

1.89

2.11

2.07

 

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 30/11/2014 fiscal term. 

 

           

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.83

UK Pound

1

Rs.96.56

Euro

1

Rs.77.42

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

SHG

 

               

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.