MIRA INFORM REPORT
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Report No. : |
310841 |
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Report Date : |
05.03.2015 |
IDENTIFICATION DETAILS
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Name : |
PACIFIC SOWA CORPORATION |
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Registered Office : |
Shinkawa Miyuki Bldg 10F, 1-3-17 Shinkawa Chuoku Tokyo 104-0033 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
October 1956 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Trading firm for import, export and wholesale of steel materials,
casting products, forged products, ferroalloys, nickel & stainless
products |
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No. of Employee : |
128 |
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 : |
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 |
Company
name and address
PACIFIC SOWA CORPORATION
REGD NAME: KK
Pacific Sowa
MAIN OFFICE: Shinkawa
Miyuki Bldg 10F, 1-3-17 Shinkawa Chuoku Tokyo 104-0033 JAPAN
Tel: 03-5540-1234
Fax: 03-5540-1235
URL: http://www.pacificsowa.co.jp
E-Mail
address: (thru the URL)
ACTIVITIES
Wholesale
of steel products, casting products, stainless products, other
BRANCHES
Osaka,
Nagoya, Aomori, Numazu, Chiba, Okayama, Hiroshima, other (Tot 15)
OVERSEAS
Singapore,
China, Taiwan
OFFICERS
MOTOJI
SHIZUMA, PRES Shinro Morita, dir
Hiroshi
Kondo, dir Keiichi
Shijo, dir
Masahito
Manaka, dir Etsuro Kashu,
dir
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 27,307 M
PAYMENTSNO COMPLAINTS CAPITAL Yen
432 M
TREND SLOW WORTH Yen 6,795 M
STARTED 1956 EMPLOYES 128
COMMENT
TRADING FIRM SPECIALIZING IN
STEEL PRODUCTS.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
HIGHLIGHTS
The subject company was established originally in 1949 on the spun off from Pacific Metals Co Ltd, and was incorporated in 1956. This is a trading firm for import, export and wholesale of steel materials, casting products, forged products ferroalloys, nickel & stainless products, other. Clients include steel mfrs, heavy machinery mfrs, other, nationwide
FINANCIAL
INFORMATION
The sales volume for Dec/2013
fiscal term amounted to Yen 27,307 million, a 4% down from Yen 28,462 million
in the previous term. The recurring
profit was posted at Yen 941 million and the net profit at Yen 580 million,
respectively, compared with Yen 1,011 million recurring profit and Yen 573
million net profit, respectively, a year ago.
For the term that ended Dec 2014
the recurring profit was projected at Yen 960 million and the net profit at Yen
610 million, respectively, on a 5% rise in turnover, to Yen 28,670
million. Final results are yet to be
released.
The financial situation is
considered FAIR and good
for ORDINARY business engagements.
REGISTRATION
Date Registered: Oct
1956
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
3.5 shares
Issued:
864,000 shares
Sum: Yen 432 million
Major shareholders (%): Pacific Metals Co (33.7), Company’s Treasury Stock (3.0), Employees’
S/Holding Assn (3.0), Kobe Steel (2.8), other
No. of shareholders: 67
Nothing detrimental is known as
to the commercial morality of executives.
OPERATION
Activities: Trading firm for import, export and wholesale
of steel materials, casting products, forged products, ferroalloys, nickel
& stainless products, other (--100%)
Clients: [Mfrs, wholesalers] Mitsubishi Heavy
Ind (10.3%), Hitachi Ltd, JFE Steel, Ebara Eliott, Nippon Steel & Sumikin
Ind, Toshiba Corp, other
No. of accounts: 300
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs, wholesalers] Pacific Metals
(25.3%), Pacific Special Alloy Castings Co (13.2%), Epson Atomics, Yonago Steel
Co, Nippon Accumulator Co, other
Payment record: No complaints
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactory.
Bank References:
MUFG
(Nihombashi)
Mizuho
Bank (H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
|
Terms Ending: |
31/12/2014 |
31/12/2013 |
31/12/2012 |
31/12/2011 |
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Annual
Sales |
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28,670 |
27,307 |
28,462 |
28,799 |
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Recur.
Profit |
|
960 |
941 |
1,011 |
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Net
Profit |
|
610 |
580 |
573 |
564 |
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Total
Assets |
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17,492 |
16,817 |
17,207 |
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Current
Assets |
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12,911 |
11,573 |
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Current
Liabs |
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9,729 |
8,278 |
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Net
Worth |
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6,795 |
6,230 |
5,695 |
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Capital,
Paid-Up |
|
|
432 |
432 |
432 |
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Div.P.Share(¥) |
|
|
5.00 |
5.00 |
5.00 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
|
4.99 |
-4.06 |
-1.17 |
0.97 |
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Current Ratio |
|
.. |
132.71 |
139.80 |
.. |
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N.Worth Ratio |
|
.. |
38.85 |
37.05 |
33.10 |
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R.Profit/Sales |
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3.35 |
3.45 |
3.55 |
.. |
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N.Profit/Sales |
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2.13 |
2.12 |
2.01 |
1.96 |
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Return On Equity |
|
.. |
8.54 |
9.20 |
9.90 |
Notes:
Forecast (or estimated) figures for the 31/12/2014 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.85 |
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|
1 |
Rs.94.96 |
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Euro |
1 |
Rs.69.10 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
ANK |
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.