MIRA INFORM REPORT

 

 

Report Date :

03.09.2014

 

IDENTIFICATION DETAILS

 

Name :

SHINSHO CORPORATION

 

 

Registered Office :

2-6-18 Kitahama Chuoku Osaka 541-8557

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

November 1946

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Imports, exports and wholesales steel

 

 

No. of Employees

1,277

 

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 – 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 and address

 

SHINSHO CORPORATION

 

REGD NAME:    Shinko Shoji KK

MAIN OFFICE:  2-6-18 Kitahama Chuoku Osaka 541-8557 JAPAN

Tel: 06-6206-7010     Fax: 06-6206-7018

 

*.. The is its Shizuoka Office     -

 

URL:                 http://www.shinsho.co.jjp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Steel trader

 

 

BRANCHES   

 

Tokyo, Nagoya, Kobe, other (Tot16)

 

 

OVERSEAS

 

USA (6), China (16), India (3), Vietnam (2), other (Tot 38 branches & subsidiaries)

 

 

CHIEF EXEC

 

IKUHIRO YAMAGUCHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 840,945 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 5,650 M

TREND UP                                WORTH        Yen 37,537 M

STARTED         1946                             EMPLOYES      1,277

 

COMMENT    

 

STEEL TRADER AFFILIATED WITH KOBE STEEL 

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 a steel trader affiliated with Kobe Steel.  Mainly dealing in iron ore and other products turned out by Kobe Steel and group firms.  Fostering diversified product lines, including IC lead frames, aluminum magnetic disk inspection devices and powder metallurgy-mfg equipment.  Active in overseas business operations, for example: involved in an HBI (hot-briquetted iron) project in Venezuela, and a coal mining project in Australia supplying high-quality iron resources to customers worldwide.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 840,945 million, a 9.3% up from Yen 769,660 million in the previous term.  The recurring profit was posted at Yen 5,318 million and the net profit at Yen 3,160 million, respectively, compared with Yen 4,860 million recurring profit and Yen 1,880 million net profit, respectively, a year ago.

 

(Apr/Jun/2014 results): Sales Yen 214,042 million (up 3.9%), operating profit Yen 1,490 million (up 16.0%), recurring profit Yen 1,638 million (up 29.7%), net profit Yen 1,184 million (up 112.4%).  (% compared with the corresponding period a year ago).

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 6,400 million and the net profit at Yen 4,000 million, respectively, on an 11.8% rise in turnover, to Yen 940,000 million.  Steel materials and materials wholesaling will remain sound in light of the high level of production by Kobe Steel. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 11,005.6 million, on 30 days normal terms.

 

 

REGISTRATION

           

     Date Registered:　    Nov 1946

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:                270 million shares

Issued:                88,605,625 shares

Sum:                   Yen 5,650 million

 

Major shareholders (%): TCSB (Kobe Steel) (21.5), Kobe Steel (13.3), Customers’ S/Holding Assn (7.2), Masayoshi Yamauchi (1.8), Goldman Sachs International (1.8), Sinfonia Technology (1.6), Employees’ S/Holding Assn (1.4), Master Trust Bank of Japan T (1.2), MUFG (1.2), SMBC (1.1); foreign owners (7.4)

 

No. of shareholders: 4,278

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Ikuhiro Yamaguchi, pres; Hiroshi Sasagawa, s/mgn dir; Takura Tsumura, s/mgn dir; Kiyofumi Kobayashi, s/mgndir; Kenji Onishi, mgn dir; Tetsuya Morita, mgn dir; Hisayuki Matsuo, mgn dir; Toshikazu Okamoto, mgn dir

 

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

 

Related companies: Shinsho Nonferrous, Asia Chemical Ind, Shinsho Steel Sales, etc.

 

 

OPERATION

           

Activities: Imports, exports and wholesales steel (32%), steel materials (37%), nonferrous metals (20%), machinery & information (7%), welding materials (4%)

 

Overseas Sales Ratio (12%)

(Handling Items)

Iron & Steel Products: wire rod, cold roll steel wire, steel wire, wire rope, twisted steel wire, bolts, nuts, washers, screws, other secondary and tertiary wire rods products, steel plate, steel sheet, zinc coated, electromagnetic, other steel sheets, bar steel, section steel, lightweight section steel, round reinforcing bar, cold finished steel bar, polished steel bar, steel tube & pipe, columns, special steels, stainless steel (wire, bar, sheet & plate, pipe), lithium & titanium alloys, gratings, tie rod, guard rails, guard cables, studs dowel, steel powders, pig iron for casting, forget products, steel ingot, billets, other

 

Raw Materials: coal, coke, limestone, iron scraps & ferroalloys in blast furnace, fuels for IPP (independent power producers) power stations,

 

Clients: [Mfrs, wholesalers] Kobe Steel, Shinsho Steel Sales, Mitsui Engineering & Shipbuilding, Yazaki Sogyo, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] All Star Funding, Kobe Steel, Kobelco Material Tubes,

Osaka Titanium Technologies, other

 

Payment record: No complaints

 

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

 

Bank References:

Mizuho Bank (Osaka)

MUFG (Osaka)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

　

　

  Annual Sales

　

840,945

769,660

　

  Cost of Sales

817,368

747,121

　

      GROSS PROFIT

23,577

22,539

　

  Selling & Adm Costs

17,840

17,083

　

      OPERATING PROFIT

5,736

5,455

　

  Non-Operating P/L

-418

-595

　

      RECURRING PROFIT

5,318

4,860

　

      NET PROFIT

3,160

1,880

BALANCE SHEET

 

 

　

　

  Cash

　

16,288

18,535

　

  Receivables

 

137,420

130,101

　

  Inventory

 

22,906

22,157

　

  Securities, Marketable

　

　

　

  Other Current Assets

17,857

10,866

　

      TOTAL CURRENT ASSETS

194,471

181,659

　

  Property & Equipment

6,877

5,235

　

  Intangibles

 

1,326

1,551

　

  Investments, Other Fixed Assets

29,644

25,761

　

      TOTAL ASSETS

232,318

214,206

　

  Payables

 

121,947

115,728

　

  Short-Term Bank Loans

20,894

25,872

　

　

 

　

　

　

  Other Current Liabs

22,108

15,832

　

      TOTAL CURRENT LIABS

164,949

157,432

　

  Debentures

 

　

　

　

  Long-Term Bank Loans

27,436

23,402

　

  Reserve for Retirement Allw

627

602

　

  Other Debts

　

1,768

1,291

　

      TOTAL LIABILITIES

194,780

182,727

　

      MINORITY INTERESTS

 

　

　

Common stock

5,650

5,650

　

Additional paid-in capital

2,703

2,703

　

Retained earnings

25,463

22,844

　

Evaluation p/l on investments/securities

1,501

705

　

Others

 

2,237

(406)

　

Treasury stock, at cost

(17)

(17)

　

      TOTAL S/HOLDERS` EQUITY

37,537

31,479

　

      TOTAL EQUITIES

232,318

214,206

CONSOLIDATED CASH FLOWS

 

　

　

 

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

3,728

3,592

　

Cash Flows from Investment Activities

-4,017

-4,311

　

Cash Flows from Financing Activities

-2,708

1,335

　

Cash, Bank Deposits at the Term End

　

16,282

18,513

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

 

Net Worth (S/Holders' Equity)

37,537

31,479

　

 

Current Ratio (%)

117.90

115.39

　

 

Net Worth Ratio (%)

16.16

14.70

　

 

Recurring Profit Ratio (%)

0.63

0.63

　

 

Net Profit Ratio (%)

0.38

0.24

　

　

Return On Equity (%)

8.42

5.97

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.61

UK Pound

1

Rs.100.48

Euro

1

Rs.79.56

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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%)

 

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.