MIRA INFORM REPORT
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Report Date : |
18.10.2014 |
IDENTIFICATION DETAILS
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Name : |
SHOWA CORPORATION |
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Registered Office : |
1-14-1 Fujiwaracho Gyoda City Saitama-Pref 361-8506 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
1918 |
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Com. Reg. No.: |
0300-01-086904 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacture of hydraulic shock
absorbers, power steering |
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No. of Employees : |
3,101 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
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Source
: CIA |
Company
name and address
SHOWA CORPORATION
REGD NAME: KK
Showa
MAIN OFFICE: 1-14-1
Fujiwaracho Gyoda City Saitama-Pref 361-8506 JAPAN
Tel:
048-554-1151 Fax: 048-556-8393 -
URL: http://www.showa1.com
E-Mail
address: (thru the URL)
ACTIVITIES
Mfg of
hydraulic shock absorbers, power steering
BRANCHES
Saitama,
Nagoya
OVERSEAS
USA,
China, Canada
FACTORIES
At the
caption address, Nagoya, Hadano, Gotemba, other (Tot 5)
OVERSEAS
USA
(2), China (5), Canada, other
CHIEF
EXEC
YOICHI
HOJO, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 272,794 M
PAYMENTS REGULAR CAPITAL Yen 12,698 M
TREND UP WORTH Yen 103,006 M
STARTED 1918 EMPLOYES 3,101
COMMENT
MFR OF AUTOMOTIVE PARTS, AFFILIATED TO HONDA MOTOR
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast figures for the 31/03/2015 fiscal term.
HIGHLIGHTS
This
is the Honda Motor-affiliated mfr of hydraulic shock absorbers & power
steerlings. About 80% of consolidated
sales goes to Honda Motor, and strong in motorcycle shock absorbers. Diversifying into hydraulic equipment for
marine and industrial use. Has plants in
N America and China.
FINANCIAL
INFORMATION
The sales volume
for Mar/2014 fiscal term amounted to Yen 272,794 million, a 17.1% up from Yen
232,962 million in the previous term.
The recurring profit was posted at Yen 21,521 million and the net profit
at Yen 6,860 million, respectively, compared with Yen 13,916 million recurring
profit and Yen 7,984 million net profit, respectively, a year ago.
(Apr/Jun/2024
results): Sales Yen 66,986 million (down 0.1%), operating profit Yen 4,037
million (down 19.3%), recurring profit Yen 4,178 million (down 23.8%), net profit
Yen 1,594 million (down 41.8%). (% as
compared with the corresponding period a year ago).
For the
current term ending Mar 2015 the recurring profit is projected at Yen 20,000
million and the net profit at Yen 10,400 million, respectively on a 0.7% fall
in turnover, to Yen 271,000 million.
The
financial situation is considered FAIR and good for ORDINARY business
engagements.
REGISTRATION
Date Registered: Oct 1938
Regd No.: 0300-01-086904 (Saitama-Gyoda)
Legal Status:
Limited Company (Kabushiki Kaisha
Authorized: 186 million shares
Issued:
76,020,019
Sum: Yen 12,698
million
Major shareholders (%): Honda Motor (33.4), Japan
Trustee Services T (5.9), Japan Trustee Services T9 (4.6), Master Trust Bank of
Japan T (2.8), Customers’ S/Holding Assn (2.1), Bank of New York Treaty Jasdec
(1.9), MUFG (1.6); Mellon Bank Mellon Omnibus USP (1.6), Chase London SL
Omnibus Acct (1.3), Sanyo Foods Corp (1.3); foreign owners (26.8)
No. of shareholders: 5,667
Listed on the S/Exchange (s) of:
Tokyo
Managements: Yoichi Hojo, pres; Akira Kadoya, v
pres; Hajime Hirata, s/mgn dir; Takeshi Nagao, mgn dir; Nobuyuki Sugiyama, mgn
dir; Ken’ichi Ono, dir; Masaharu Sobue, dir; Tetsuya Matsumura, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies:
American Showa, Showa Canada, other.
OPERATION
Activities: Manufactures hydraulic shock
absorbers, power steerlings, others:
(Sales Breakdown):
Motorcycle & General use (29%), Four Wheelers (35%), Steerings
(31%), Gas Spring (1%), Others (5%)
Overseas Sales Ratio (64%)
Clients: [Automakers, mfrs, wholesalers] Honda
Motor, Suzuki Motor, Kawasaki Heavy Ind, Mitsubishi Motor, Fuji Heavy Ind,
Mazda Motor, Daihatsu, American Showa, Daihatsu Motor, Tohatsu Marine, Otsuka
Koki Co, other
No. of
accounts: 500
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] NTN, NOK,
Mitsubishi Electric, Ogawa Spring, Hanwa Co,
Metal Act, Oiles Corp, other
Payment record:
Regular
Location:
Business area in Gyoda City, Saitama-Pref.
Office premises at the caption address are owned and maintained
satisfactorily.
Bank References:
MUFG
(H/O)
Saitama
Resona Bank (Saitama)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME STATEMENT |
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Annual Sales |
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272,794 |
232,962 |
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Cost of Sales |
224,600 |
197,095 |
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GROSS PROFIT |
48,194 |
35,866 |
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Selling & Adm Costs |
27,986 |
23,110 |
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OPERATING PROFIT |
20,207 |
12,756 |
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Non-Operating P/L |
1,314 |
1,160 |
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RECURRING PROFIT |
21,521 |
13,916 |
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NET PROFIT |
6,860 |
7,984 |
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BALANCE SHEET |
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Cash |
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21,466 |
20,055 |
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Receivables |
32,753 |
29,989 |
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Inventory |
29,352 |
15,191 |
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Securities, Marketable |
2,000 |
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Other Current Assets |
10,468 |
18,173 |
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TOTAL CURRENT ASSETS |
96,039 |
83,408 |
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Property & Equipment |
64,831 |
57,667 |
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Intangibles |
2,819 |
2,275 |
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Investments, Other Fixed Assets |
15,728 |
14,508 |
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TOTAL ASSETS |
179,417 |
157,858 |
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Payables |
28,621 |
24,493 |
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Short-Term Bank Loans |
6,470 |
7,235 |
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Other Current Liabs |
26,077 |
15,222 |
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TOTAL CURRENT LIABS |
61,168 |
46,950 |
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Debentures |
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Long-Term Bank Loans |
1,658 |
6,768 |
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Reserve for Retirement Allw |
8,024 |
6,790 |
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Other Debts |
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5,560 |
5,069 |
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TOTAL LIABILITIES |
76,410 |
65,577 |
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MINORITY INTERESTS |
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Common
stock |
12,698 |
12,698 |
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Additional
paid-in capital |
13,455 |
13,455 |
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Retained
earnings |
63,399 |
58,810 |
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Evaluation
p/l on investments/securities |
4,262 |
3,774 |
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Others |
9,246 |
3,596 |
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Treasury
stock, at cost |
(54) |
(53) |
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TOTAL S/HOLDERS` EQUITY |
103,006 |
92,280 |
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TOTAL EQUITIES |
179,417 |
157,858 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash Flows
from Operating Activities |
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26,966 |
21,066 |
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Cash
Flows from Investment Activities |
-11,258 |
-7,481 |
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Cash
Flows from Financing Activities |
-12,615 |
-13,157 |
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Cash,
Bank Deposits at the Term End |
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24,794 |
20,691 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
103,006 |
92,280 |
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Current
Ratio (%) |
157.01 |
177.65 |
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Net
Worth Ratio (%) |
57.41 |
58.46 |
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Recurring
Profit Ratio (%) |
7.89 |
5.97 |
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Net
Profit Ratio (%) |
2.51 |
3.43 |
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Return
On Equity (%) |
6.66 |
8.65 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.61 |
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|
1 |
Rs.99.11 |
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Euro |
1 |
Rs.78.89 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
PDT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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.