MIRA INFORM REPORT

 

 

Report No. :

327013

Report Date :

16.06.2015

 

IDENTIFICATION DETAILS

 

Name :

SHINWA CORPORATION

 

 

Registered Office :

Harmony Tower 28F, 1-32-2 Honcho Nakanoku Tokyo 164-0012

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

February 1946

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Imports, exports and wholesales commercial & industrial filters, silencers, deodorization & gas removable filters & system, air pollution control system, air filters & systems for gas turbine, electric mechanical parts/components, air filters for blowers & meters, lasers/heat exchangers, air filters & systems for nuclear application, air filters for sewage treatment, others (--100%)

 

 

No. of Employees :

199

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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. 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.

 

Source : CIA

 


Company Name

 

SHINWA CORPORATION

 

REGD NAME:   Shinwa Tec KK

MAIN OFFICE:  Harmony Tower 28F, 1-32-2 Honcho Nakanoku Tokyo 164-0012 JAPAN

                                    Tel: 03-5352-7200      Fax: 03-5352-7230

 

URL:                 http://www.shinwatec.co.jp

E-Mail address: (thru the URL)

 

ACTIVITIES:     Import/export/wholesale of air conditioners, air filters, other

BRANCHES:     Osaka, Nagoya, Fukuoka, Chiba, Saitama, Yokohama, other (Tot 13)

FACTORIES:    (subcontracted)

 

OFFICERS:       HIROMOTO WATANABE, PRES

                        Masataka Yoshida, s/mgn dir     Toshio Senda, mgn dir

                        Yasutaka Watanabe, mgn dir      Masanori Watanabe, ch dir        

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 15,089 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 300 M

TREND SLOW                           WORTH            Yen 6,857 M*

STARTED         1946                             EMPLOYES      199

 

*.. Only estimated as not precisely disclosed

 

COMMENT:      TRADING FIRM SPECIALIZING IN AIR FILTER, AIR CONDITIONERS.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established by Takeo Watanabe in order to make most of his experience in the subject line of business.  Hiromoto Watanabe is his son, who took the pres office in Apr 2013.  This is a trading firm specializing in air filters, heat exchangers, air conditioner, other (see OPERATION).  Goods are imported from USA, Korea, China, Brazil, other.  70% of the goods are imported from/exported to USA.  Clients include Hitachi Ltd, Nippon Steel & Sumikin Corp, Mitsubishi Heavy Industries, and other, nationwide.

 

 


FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 15,089 million, a 12% down from Yen 17,192 million in the previous term.  The net profit was posted at Yen 189 million, compared with Yen 209 million a year ago.  Only the sales and profit figures are disclosed for the term.

 

For the term that ended Mar 2015 the net profit was projected at Yen 200 million, on a 5% rise in turnover, to Yen 15,850 million.  Final results are yet to be released. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:                                   Feb 1946

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              24,000 shares

Issued:                                     6.000 shares

Sum:                                        Yen 300 million

Major shareholders (%):                       Masanori Watanabe (7), Soyo Corp (6), Hiromoto Watanabe (5)

No. of shareholders:                 65 (about)

 

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

 

 

OPERATION

           

Activities: Imports, exports and wholesales commercial & industrial filters, silencers, deodorization & gas removable filters & system, air pollution control system, air filters & systems for gas turbine, electric mechanical parts/components, air filters for blowers & meters, lasers/heat exchangers, air filters & systems for nuclear application, air filters for sewage treatment, others (--100%)

 

Clients: [Mfrs, wholesalers] Hitachi Ltd, Japan Climate Systems, Nippon Steel & Sumikin Metals Corp Mitsubishi Heavy Industries, Takasago Thermal Engineering, others 

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Japan Air Filters, Senate Technologies Japan, Armstrong International, Bristol Compressors (-- both USA), other

 

Imports from USA (70%), Korea, China, Brazil, other

 

Payment record: No Complaints

 

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

 

Bank References:

SMBC (Asakusabashi)

MUFG (Kojimachi)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

15,089

17,192

18,104

18,324

Recur. Profit

 

 

374

538

 

Net Profit

 

189

209

193

305

Total Assets

 

 

14,454

14,828

14,695

Current Assets

 

 

10,483

11,080

 

Current Liabs

 

 

6,288

6,767

 

Net Worth

 

 

6,725

6,514

6,456

Capital, Paid-Up

 

 

306

306

306

Div.Ttl in Million (¥)

 

60.5

90.75

121.00

105.88

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

-12.23

-5.04

-1.20

-2.58

    Current Ratio

..

166.71

163.74

..

    N.Worth Ratio

..

46.53

43.93

43.93

    R.Profit/Sales

..

2.18

2.97

..

    N.Profit/Sales

1.25

1.22

1.07

1.66

    Return On Equity

..

3.11

2.96

4.72

 

Notes: Resulted figures for the 31/03/2014 fiscal term, no other figures have been disclosed.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.09

UK Pound

1

Rs.99.57

Euro

1

Rs.71.84

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

TPT

 

               

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.