MIRA INFORM REPORT

 

 

Report No. :

310768

Report Date :

09.03.2015

 

IDENTIFICATION DETAILS

 

Name :

JGC TRADING & SERVICES CO LTD

 

 

Registered Office :

Queen’s Tower A 12F, 2-3-1 Minato Mirai Nishiku Yokohama 220-0012

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

February, 1968

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, Export and Wholesale of Petroleum/Chemical Plant Equipment & Machinery. 

 

 

No. of Employees :

25

 

 

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

 

Maximum Credit Limits :

YEN 297.7 MILLION

 

 

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. 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.

 

Source : CIA

 

COMPANY NAME

    

JGC TRADING & SERVICES CO LTD

 

REGD NAME:               Nikki Shoji KK

 

MAIN OFFICE:              Queen’s Tower A 12F, 2-3-1 Minato Mirai Nishiku Yokohama 220-0012 JAPAN

                                    Tel: 045-682-8692      Fax: 045-682-8693

 

URL:                             http://www.jgctrading.com

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Import, export, wholesale of petroleum/chemical plant equipment & machinery 

 

 

BRANCHES

 

Nil

 

 

OVERSEAS

 

Singapore (Partners)

 

 

OFFICERS

 

KEN’ICHI HANAHARA, PRES                 Fumihiro Kodama, s/mgn dir

Akira Sasaki, dir                                    Koshi Shima, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 5,699 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 40 M

TREND SLOW                           WORTH            Yen 31,166 M   

STARTED         1968                             EMPLOYES      25

 

 

COMMENT    

 

TRADING FIRM SPECIALIZING IN PLANT MACHINERY & EQUIPMENT.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: ESTIMATED AT YEN 297.7 MILLION, ON 30 DAYS NORMAL TERMS.

                       

 

HIGHLIGHTS

           

This is a trading firm for import, export and wholesale of petroleum & chemical plant machinery & equipment, other.  The firm is affiliated to JGC Corp, plant engineering firm, at the caption address in Yokohama, and owns a number of shares in JGC Corp, by which the total assets amount to greater number.  The owned JGC’s shares are counted on the share market prices.  40% of the dealing products are supplied to JGC Corp.  Clients include petroleum refiners, chemical mfrs, ship builders, other

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 5,699 million, a 14% down from Yen 6,654 million in the previous term.  The recurring profit was posted at Yen 681 million and the net profit at Yen 529 million, respectively, compared with Yen 517 million recurring profit and Yen 366 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 730 million and the net profit at Yen 550 million, respectively, on a 5% rise in turnover, to Yen 5,980 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 297.7 million, on 30 days normal terms.

 

 

REGISTRATION

    

Date Registered:                       Feb 1968

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              320,000 shares

Issued:                                     80,000 shares

Sum:                                        Yen 40 million

Major shareholders (%):           JGC Corp (24.5), Shima Trading (13.7), Mitsubishi Estate Home (9.3), Nikkiso Co (9.3), Kyokuto Boeki (9.3)

No. of shareholders:                 25

 

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

 

 

OPERATION

           

Activities: Trading firm for import, export and wholesale of petroleum & chemical plant machinery & equipment, other (--100%)

 

Clients: [Mfrs, wholesalers] JGC Corp (40%), Mitsubishi Heavy Ind, Jurong Aromatic Inc, Chiyoda Corp, Hitachi Zosen Corp, JGC Gulf, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Shin Nippon Machinery, Sasakura Engineering Co, Coke Asia Pacific, Elster Intronet Inc, other

 

Payment record: No Complaints

 

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

 

Bank References:

SMBC (H/O)

MUFG (Tokyo)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

5,980

5,699

6,654

2,611

Recur. Profit

 

730

681

517

 

Net Profit

 

550

529

366

239

Total Assets

 

 

48,736

35,161

34,099

Current Assets

 

 

5,193

6,284

 

Current Liabs

 

 

2,335

3,959

 

Net Worth

 

 

31,166

20,676

21,006

Capital, Paid-Up

 

 

40

40

40

Div.Ttl in Million (¥)

 

 

8

8

8

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.93

-14.35

154.84

-21.47

    Current Ratio

 

..

222.40

158.73

..

    N.Worth Ratio

 

..

63.95

58.80

61.60

    R.Profit/Sales

 

12.21

11.95

7.77

..

    N.Profit/Sales

 

9.20

9.28

5.50

9.15

    Return On Equity

 

..

1.70

1.77

1.14

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.20

UK Pound

1

Rs.94.71

Euro

1

Rs.68.60

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

               

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.