MIRA INFORM REPORT
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Report No. : |
320541 |
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Report Date : |
29.04.2015 |
IDENTIFICATION DETAILS
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Name : |
SHINSHO CORPORATION |
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Registered Office : |
2-6-18 Kitahama Chuoku Osaka 541-8557 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
Nov., 1946 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Trader of Steel. |
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No. of Employees : |
1,344 |
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 : |
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 – December 31, 2014
|
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. Since the complete
shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster
in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to
contract during the 2nd and 3rd quarters of 2014. The economy has largely
recovered in the three years since the disaster, but reconstruction in the
Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a longstanding debate on
restructuring the economy and reining in Japan's huge government debt, which
amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the
final phase of the increase until 2017 to give the economy time to recover from
the 2014 increase. 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
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 Nagoya Branch Office -
URL: http://www.shinsho.co.jjp
E-Mail address: (thru the URL)
ACTIVITIES
Steel trader
BRANCHES
Tokyo, Nagoya,
Kobe, other (Tot16)
OVERSEAS
USA, China, India,
Vietnam, Thailand, other (Tot 38 branches & subsidiaries)
CHIEF
EXEC
IKUHIRO YAMAGUCHI,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 870,407 M
PAYMENTSREGULAR CAPITAL Yen 5,650 M
TREND UP WORTH Yen 45,692 M
STARTED 1946 EMPLOYES 1,344
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 31/03/2016 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/2015 fiscal term amounted to Yen 870,407
million, a 3.5% up from Yen 840,945 million in the previous term. The recurring profit was posted at Yen 6,575
million and the net profit at Yen 3,974 million, respectively, compared with
Yen 5,318 million recurring profit and Yen 3,160 million net profit,
respectively, a year ago.
For the current term ending Mar 2016 the recurring profit is projected
at Yen 5,700 million and the net profit at Yen 3,500 million, respectively, on
a 1.1% rise in turnover, to Yen 880,000 million.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
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: 4,006
Listed on the S/Exchange (s) of: Tokyo
Managements: Ikuhiro
Yamaguchi, pres; Hiroshi Sasagawa, s/mgn dir; Hiroaki Matsumoto, s/mgn dir;
Takura Tsumura, s/mgn dir; Kiyofumi Kobayashi, s/mgn dir; 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: Regular
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)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2015 |
31/03/2014 |
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INCOME STATEMENT |
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Annual Sales |
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870,407 |
840,945 |
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Cost of Sales |
844,509 |
817,368 |
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GROSS PROFIT |
25,897 |
23,577 |
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Selling & Adm Costs |
19,108 |
17,840 |
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OPERATING PROFIT |
6,788 |
5,736 |
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Non-Operating P/L |
-213 |
-418 |
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RECURRING PROFIT |
6,575 |
5,318 |
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NET PROFIT |
3,974 |
3,160 |
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BALANCE SHEET |
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Cash |
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18,635 |
16,288 |
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Receivables |
149,776 |
136,420 |
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Inventory |
31,984 |
22,906 |
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Securities, Marketable |
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Other Current Assets |
18,048 |
18,857 |
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TOTAL CURRENT ASSETS |
218,443 |
194,471 |
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Property & Equipment |
7,172 |
6,877 |
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Intangibles |
1,062 |
1,326 |
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Investments, Other Fixed Assets |
33,109 |
29,644 |
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TOTAL ASSETS |
259,786 |
232,318 |
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Payables |
130,843 |
121,947 |
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Short-Term Bank Loans |
31,293 |
20,894 |
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Other Current Liabs |
25,710 |
22,108 |
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TOTAL CURRENT LIABS |
187,846 |
164,949 |
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Debentures |
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Long-Term Bank Loans |
23,116 |
27,436 |
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Reserve for Retirement Allw |
693 |
627 |
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Other Debts |
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2,439 |
1,768 |
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TOTAL LIABILITIES |
214,094 |
194,780 |
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MINORITY INTERESTS |
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Common
stock |
5,650 |
5,650 |
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Additional
paid-in capital |
2,703 |
2,703 |
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Retained
earnings |
28,907 |
25,463 |
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Evaluation
p/l on investments/securities |
3,261 |
1,501 |
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Others |
5,188 |
2,237 |
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Treasury
stock, at cost |
(17) |
(17) |
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TOTAL S/HOLDERS` EQUITY |
45,692 |
37,537 |
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TOTAL EQUITIES |
259,786 |
232,318 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2015 |
31/03/2014 |
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Cash
Flows from Operating Activities |
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-1,701 |
3,728 |
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Cash
Flows from Investment Activities |
-1,632 |
-4,017 |
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Cash
Flows from Financing Activities |
5,122 |
-2,708 |
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Cash,
Bank Deposits at the Term End |
|
18,589 |
16,282 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
45,692 |
37,537 |
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Current
Ratio (%) |
116.29 |
117.90 |
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Net
Worth Ratio (%) |
17.59 |
16.16 |
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Recurring
Profit Ratio (%) |
0.76 |
0.63 |
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Net
Profit Ratio (%) |
0.46 |
0.38 |
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Return
On Equity (%) |
8.70 |
8.42 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.33 |
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|
1 |
Rs.96.52 |
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Euro |
1 |
Rs.68.93 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
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.