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Report No. : |
316977 |
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Report Date : |
13.04.2015 |
IDENTIFICATION DETAILS
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Name : |
SOJITZ CORPORATION |
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Registered Office : |
2-1-1 Uchisaiwaicho Chiyodaku Tokyo
100-8691 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 (consolidated) |
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Date of Incorporation : |
December, 1982 |
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Com. Reg. No.: |
(Tokyo-Minatoku) 049977 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Subject is a general trading house: Subject operates through following divisions :- Machinery Division Automotive Unit, Environment & Infrastructure Unit, IT Business Unit, Marine & Aerospace Unit Energy & Metals Division Energy & Nuclear Unit, Coal & Non-ferrous Metals Unit, Ferrous Metals & Steel Products Unit Chemicals & Functional Materials Division Chemicals Unit & Functional Materials Unit Lifestyle Business Division Foods Resources Unit,
General Commodities & Textile Unit, Forest Products & Real Estate
Development Unit |
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No. of Employees |
15,915 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
No complaints |
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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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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 |
SOJITZ CORPORATION
Sojitz KK
2-1-1
Uchisaiwaicho Chiyodaku Tokyo 100-8691 JAPAN
Tel:
03-6871-5000 Fax: 03-6871-2430
E-Mail address: info@sojitz.com
Subject is a general trading house:
Subject operates through following divisions:-
Machinery Division
Automotive Unit, Environment & Infrastructure Unit, IT Business Unit, Marine & Aerospace Unit
Energy & Metals Division
Energy & Nuclear Unit, Coal & Non-ferrous Metals Unit, Ferrous Metals & Steel Products Unit
Chemicals & Functional Materials Division
Chemicals Unit & Functional Materials Unit
Lifestyle Business Division
Foods Resources Unit, General Commodities & Textile Unit, Forest Products & Real Estate Development Unit
7
domestic, 87 overseas
(Subsidiaries/affiliates):
117 domestic, 322 overseas
YOJI
SATO, PRES
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 4,056,577 M
PAYMENTSno complaints CAPITAL Yen 160,339 M
TREND STEADY WORTH Yen 459,853 M
STARTED 2003 EMPLOYES 15,915
GENERAL TRADING HOUSE.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
|
Business |
Terms Ending |
Annual
Sales* |
R.Profit* |
N.Profit* |
S.Growth |
Net Worth* |
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Results: |
31/03/2011 |
4,014,639 |
45,316 |
15,981 |
(%) |
346,286 |
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(Consolidated) |
31/03/2012 |
4,494,237 |
62,228 |
-3,649 |
11.95 |
329,962 |
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31/03/2013 |
3,934,456 |
28,052 |
13,448 |
-12.46 |
411,298 |
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31/03/2014 |
4,046,577 |
44,033 |
27,250 |
2.85 |
492,959 |
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31/03/2015 |
4,230,000 |
55,000 |
33,000 |
4.53 |
.. |
Unit: In Million Yen
Forecast figures for the 31/03/2015 fiscal term.
The subject company was
established in Apr 2003 by forming a joint holding company, named Nissho
Iwai-Nichimen Holdings Company, by the then Nissho Iwai Co and Nichimen Co, and
subsequently in Apr 2004 the two merged into Sojitz Corp as captioned. The holding company, at the same time,
renamed Sojitz Holdings Corporation. The
merger was formed in order to restructure the two firms through supports from
financial institutions including the then UFJ Bank (now MUFG), the main bank
for the two firms. On 01/Oct/2005, in
order to further streamline the Group’s management framework, Sojitz Holdings
merged with its principal operating arm and wholly owned subsidiary, Sojitz
Corporation. The company’s name was then
changed to Sojitz Corporation. This is a
general trading house succeeding the business rights & operations of the
said two firms, excluding liquidation or separation of unprofitable divisions
& operations. This is the
sixth-ranked general trading house.
Major handling items are machinery, energy & resources, which former
Nissho Iwai Corp was the stronger, and textiles, which the former Nichimen Corp
was stronger. Highly competitive in
fields of aircraft, lumber and urban development. The company is intensifying Brazil’s cereal
crop cargo pickup/export business for Asia.
It is investing Yen 16 billion in local major firm to expand commercial
distribution channels. The number of
electricity IPP projects has reached 10 in total, with 3 IPP projects became
operational in 2013.
The sales volume for
Mar/2014 fiscal term amounted to Yen 4,046,577 million, a 2.8% up from Yen
3,934,456 million in the previous term.
Earnings were led by brisk automobile sales in Russia and stronger
demand for chemicals and fertilizers in Southeast Asia. The recurring profit was posted at Yen 44,033
million and the net profit at Yen 27,250 million respectively, compared with
Yen 28,052 million recurring profit and Yen 13,448 million net profit,
respectively, a year ago
For the current term
ending Mar 2015 the recurring profit is projected at Yen 55,000 million and the
net profit at Yen 33,000 million, respectively, on a 4.5% rise in turnover, to
Yen 4,230,000 million. Earnings &
operating profits will expand, led by sales growth of automobiles and
foodstuff.
The financial
situation is considered FAIR and good for ORDINARY business engagements.
Date Registered: Dec 1982
Regd No.: (Tokyo-Minatoku)
049977
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 2,500 million shares
Issued:
1,251,499,501 shares
Sum: Yen 160,339 million
Major shareholders (%): Japan Trustee Services T (4.5), Master Trust Bank of Japan T (2.8), BBH-Boston GMO Int’l Intrinsic V (1.5), State Street Bank & Trust 505225 (1.3), State Street Bank West Treaty (1.1), Japan Trustee Services T6 (1.1), Japan Trusty Services T5 (1.0), Japan Trustee Services T3 (1.0), Japan Trustee Services T2 (1.0), Japan Trustee Services T1 (1.0); foreign owners (32.7)
No. of shareholders: 162,899
Listed on the S/Exchange (s) of: Tokyo
Managements: Yutaka Kase, ch; Takashi Hara, v ch; Yoji Sato, pres; Shigeki Dantani, v pres; Shinichi Taniguchi, v pres; Yoshio Mogi, v pres; Satoshi Mizui, s/mgn dir; Tetsuya Konoda, mgn dir; Masahiro Komiyama, mgn dir; Shinichi Teranishi, mgn dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies: Sojitz Marine & Engineering, Sojitz Building Materials Corp, other (Tot 117 domestic &322 overseas)
Activities: A general trading house:
(Sales breakdown by Divisions):
Machinery Division (24%): Automotive Unit, Environment & Infrastructure Unit, IT Business Unit, Marine & Aerospace Unit;
Energy & Metals Division (19%): Energy & Nuclear Unit, Coal & Non-ferrous Metals Unit, Ferrous Metals & Steel Products Unit;
Chemicals & Functional Materials Division (16%): Chemicals Unit, Functional Materials Unit;
Lifestyle Business Division (38%): Foods Resources Unit, General
Commodities & Textile Unit, Forest Products & Real Estate Development
Unit;
Others (2%)
Overseas trading (35%)
Clients: [Mfrs, wholesalers] Kobe Steel, NM Life, First Retailing, Uto Kosan, Zao Severstal, Varig S.A., Auto-Isuzu PT Indofood Sukses Makmur TBK, MMC Automotriz SA, other
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Hitachi Zosen, Hitachi Ltd, Toyo Rubber, Yamazaki
Nabisco, Sun Building Materials Corp, Sumitomo Metal Mining, Fuji Electric Systems,
Sojitz Asia, other.
Payment record: No Complaints
Location: Business area in Tokyo. Office premises at the caption address are leased and maintained satisfactorily.
Bank References:
MUFG (Tokyo)
Mizuho Bank (H/O)
Relations: Satisfactory
(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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4,046,577 |
3,934,456 |
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Cost of Sales |
3,848,356 |
3,747,211 |
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GROSS PROFIT |
198,221 |
187,245 |
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Selling & Adm Costs |
174,527 |
161,752 |
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OPERATING PROFIT |
23,694 |
25,493 |
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Non-Operating P/L |
20,339 |
2,559 |
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RECURRING PROFIT |
44,033 |
28,052 |
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NET PROFIT |
27,250 |
13,448 |
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BALANCE SHEET |
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Cash |
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120,658 |
424,371 |
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Receivables |
524,826 |
508,690 |
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Inventory |
301,979 |
297,389 |
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Securities, Marketable |
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Other Current Assets |
374,361 |
60,728 |
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TOTAL CURRENT ASSETS |
1,321,824 |
1,291,178 |
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Property & Equipment |
213,934 |
231,840 |
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Intangibles |
107,222 |
108,932 |
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Investments, Other Fixed Assets |
577,256 |
518,100 |
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TOTAL ASSETS |
2,220,236 |
2,150,050 |
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Payables |
514,585 |
515,989 |
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Short-Term Bank Loans |
227,216 |
258,375 |
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Other Current Liabs |
70,049 |
74,562 |
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TOTAL CURRENT LIABS |
811,850 |
848,926 |
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Debentures |
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Long-Term Bank Loans |
838,060 |
818,632 |
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Reserve for Retirement Allw |
16,917 |
16,158 |
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Other Debts |
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60,450 |
55,035 |
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TOTAL LIABILITIES |
1,727,277 |
1,738,751 |
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MINORITY INTERESTS |
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Common
stock |
160,339 |
160,339 |
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Additional
paid-in capital |
10,463 |
9,816 |
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Retained
earnings |
33,538 |
13,053 |
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Evaluation
p/l on investments/securities |
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Others |
288,776 |
228,238 |
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Treasury
stock, at cost |
(157) |
(148) |
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TOTAL S/HOLDERS` EQUITY |
492,959 |
411,298 |
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TOTAL EQUITIES |
2,220,236 |
2,150,050 |
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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 |
|
46,997 |
55,124 |
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Cash
Flows from Investment Activities |
-24,469 |
-11,652 |
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Cash
Flows from Financing Activities |
-30,931 |
-56,177 |
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Cash,
Bank Deposits at the Term End |
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620,658 |
424,371 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
492,959 |
411,298 |
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Current
Ratio (%) |
162.82 |
152.10 |
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Net
Worth Ratio (%) |
22.20 |
19.13 |
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Recurring
Profit Ratio (%) |
1.09 |
0.71 |
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Net
Profit Ratio (%) |
0.67 |
0.34 |
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Return
On Equity (%) |
5.53 |
3.27 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.62.19 |
|
|
1 |
Rs.92.93 |
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Euro |
1 |
Rs.68.03 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
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 |
-- |
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.