MIRA INFORM REPORT
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Report No. : |
337869 |
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Report Date : |
22.08.2015 |
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) : |
31.03.2015 |
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Date of Incorporation : |
November 1946 |
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Legal Form : |
Limited Company |
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Line of Business : |
Imports, exports and wholesales steel (32%), steel materials (37%), nonferrous
metals (20%), machinery & information (7%), welding materials (4%) |
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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 : |
Satisfactory |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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
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
PAYMENTS REGULAR 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
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 |
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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.65.83 |
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|
1 |
Rs.103.39 |
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Euro |
1 |
Rs.74.27 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
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.