MIRA INFORM REPORT

 

 

Report No. :

329103

Report Date :

24.06.2015

 

IDENTIFICATION DETAILS

 

Name :

SOJITZ BUILDING MATERIALS CORPORATION

 

 

Registered Office :

Tokyo Sankei Bldg 21F, 1-7-2 Ohtemachi Chiyodaku Tokyo 100-0004

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

April 1982

 

 

Com. Reg. No.:

0100-01-053740 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Trading firm for import, export and wholesale of: plywood (37%), wooden products (22%), building materials (wooden) (9%), plastic board (7), construction works (4%), household appliances (3%), others (18%)

 

 

No. of Employee :

350

 

 

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 :

Slow but correct

 

 

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)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

 

Company name and address

 

SOJITZ BUILDING MATERIALS CORPORATION

 

REGD NAME:   Sojitz Kenzai KK

MAIN OFFICE:  Tokyo Sankei Bldg 21F, 1-7-2 Ohtemachi Chiyodaku Tokyo 100-0004 JAPAN

                        Tel: 03-6870-7800      Fax: 03-6870-7801

 

*... The is its Osaka Branch Office

 

URL:                 http://www.sojitz-bm.com

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Import, export, wholesale of construction materials

 

 

BRANCHES

 

Osaka, Nagoya, Sapporo, Sendai, Fukuoka, other (Tot 9)

 

 

OFFICERS

 

TETSUYA ONISHI, PRES           Teruyasu Yoneda, v pres

Satoru Yasuda, mgn dir             Tadahiro Kinoshita, dir

Koji Kiriyama, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                                         A/SALES          Yen 165,957 M

PAYMENTS      SLOW BUT CORRECT               CAPITAL           Yen 1,039 M

TREND             SLOW                                       WORTH            Yen 7,080 M     

STARTED         1982                                         EMPLOYES      350

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN BUILDING MATERIALS, OWNED BY SOJITZ CORP.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

This is a trading firm for import, export and wholesale of building materials: plywood, fireboard, lumber, other (See OPERATION).  The firm is owned by Sojitz Corp (See REGISTRATION).  One of top-ranked in dealing of plywood & plaster board.  Clients include major building firms, construction firms, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2015 fiscal term amounted to Yen 165,957 million, a 7% down from Yen 178,919 million in the previous term.  The recurring profit was posted at Yen 694 million and the net profit at Yen 491 million, respectively, compared with Yen 1,958 million recurring profit and Yen 1,079 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 730 million and the net profit at Yen 500 million, respectively, on a 5% rise/fall in turnover, to Yen 174,000 million.

 

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

 

 

REGISTRATION

 

Date Registered:           Apr 1982

Regd No.:                     0100-01-053740 (Tokyo-Chiyodaku)

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                   19.44 million shares

Issued:                         4.86 million shares

Sum:                            Yen 1,039 million

 

 

Major shareholders (%): Sojitz Corp* (100)

 

*.. Trading house, Tokyo, founded 2003, listed Tokyo S/E, capital Yen 160,339, sales Yen 4,105,295 million, operating profit Yen 33,550 million, recurring profit Yen 52,584 million, net profit Yen 37,650 million, total assets Yen 2,297,358 million, net worth Yen 590,658 m     million, employees 16,132, pres Yoji Sato

 

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

 

 

OPERATION

           

Activities: Trading firm for import, export and wholesale of: plywood (37%), wooden products (22%), building materials (wooden) (9%), plastic board (7), construction works (4%), household appliances (3%), others (18%)

 

Clients: [Mfrs, wholesalers] Japan Kenzai Co, Nice Corp, Kanae Co, Jutec Corp, Tama Home, Fuji Chemical Ind, other 

No. of accounts: 350

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Wood One Co, Yoshino Gypsum Co, Hayashi Plywood Ind, Eidai Co, Dow Kako, other

 

Payment record: slow but correct

 

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

 

Bank References:

MUFG (Tokyo)

Norin Chukin Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

 

       Terms Ending:

31/03/2016

31/03/2015

31/03/2014

31/03/2013

Annual Sales

 

174,000

165,957

178,919

158,470

Recur. Profit

 

730

694

1,958

1,346

Net Profit

 

500

491

1,079

820

Total Assets

 

 

55,668

58,813

62,417

Current Assets

 

 

54,268

57,147

61,535

Current Liabs

 

 

46,329

48,652

50,533

Net Worth

 

 

7,080

7,885

7,626

Capital, Paid-Up

 

 

1,039

1,039

1,039

Div.P.Share(¥)

 

 

184.00

184.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.85

-7.24

12.90

-1.29

    Current Ratio

 

..

117.14

117.46

121.77

    N.Worth Ratio

 

..

12.72

13.41

12.22

    R.Profit/Sales

 

0.42

0.42

1.09

0.85

    N.Profit/Sales

 

0.29

0.30

0.60

0.52

    Return On Equity

 

..

6.94

13.68

10.75

 

Notes: Forecast (or estimated) figures for the 31/03/2016 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.64

UK Pound

1

Rs.100.41

Euro

1

Rs.71.63

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ANK

 


 

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%)

 

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.