MIRA INFORM REPORT

 

 

Report No. :

321510

Report Date :

11.05.2015

 

IDENTIFICATION DETAILS

 

Name :

FUJIDEN INTERNATIONAL CORPORATION

 

 

Registered Office :

Hase Bldg 8F, 3-2-8 Bingomachi Chuoku Osaka541-0051

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

April 1967

 

 

Com. Reg. No.:

1200-01-088419

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Imports, exports and wholesales iron & steel products, non-ferrous products (96%), machinery & equipment, others (--4%)

 

 

No. of Employees :

19

 

 

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 Limit :

Yen 325.6 Million

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 – 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

 

FUJIDEN INTERNATIONAL CORPORATION

 

 

REGD NAME

 

Fujiden KK

 

 

MAIN OFFICE

 

Hase Bldg 8F, 3-2-8 Bingomachi Chuoku Osaka541-0051 JAPAN

Tel: 06-6261-2471      Fax: 06-6261-5489

 

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

E-Mail address: info@fujiden.co.jp

 

ACTIVITIES:     Import, export, wholesale of steel products, non-ferrous products, machinery

BRANCHES:     Tokyo

OVERSEAS:     Taiwan (3), China, Malaysia, Uganda

 

OFFICERS:       RYUICHI YOSHIDA, PRES        

Tetsuyuki Nakamura, advisor

Hideaki Arashima, dir    

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                                         A/SALES          Yen 9,805 M

PAYMENTS      SLOW BUT CORRECT   CAPITAL           YEN 50 M

TREND SLOW                                       WORTH            Yen 1,116 M

STARTED         1967                                         EMPLOYES      19

 

COMMENT:      TRADING FIRM SPECIALIZING IN STEEL PRODUCTS. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 325.6 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established by Ryuichi Yoshida in order to make most of his experience in the subject line of business.  This is a trading from for import, export and wholesale of steel products, non-ferrous products, machinery, other.  Exports to Africa, S/E Asia, other.  Operates overseas office/JV in China, Taiwan (3), Malaysia and Uganda.  Clients include steel makers, wholesalers, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 9,805 million, an almost similar amount of Yen 9,884 million in the previous term.  The recurring profit was posted at Yen 66 million and the net profit at Yen 98 million, respectively, compared with Yen 22 million recurring loss and Yen 128 million net profit, respectively, a year ago.

 

For the term that ended Mar 2015 the recurring profit was projected at Yen 70 million and the net profit at Yen 100 million, respectively, on a 3% rise in turnover, to Yen 10,100 million.  Final results are yet to be released. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 325.6 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:                       Apr 1967

Regd No.:                                 1200-01-088419 (Osaka-Chuoku)

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              400,000 shares

Issued:                                     100,000 shares

Sum:                                        Yen 50 million

Major shareholders (%):           Yodogawa Steel Works Ltd* (33), Ryuichi Yoshida (12), Satoshi Ito (8), Takayuki Onishi (8)

No. of shareholders:                 16

 

*.. Steel maker, Osaka, founded 1935, listed Tokyo S/E, capital Yen 23,220 million, turnover Yen 157,551 million, operating profit Yen 6,122 million, recurring profit Yen 7,590 million, net profit Yen 3,270 million, total assets Yen 216,297 million, net worth Yen 144,322 million, employees 2,505, pres Takaaki Kawamoto

 

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

 

Overseas offices/JV’s: Fujiden International Asia (Taiwan), Sheng Yu Steel Co Ltd (Taiwan), PCM Steel Processing Sdn (Malaysia), Yodoko International Ltd (Taiwan), Yodoko Building Materials Co Ltd (China), Roofings Rolling Mills Ltd (Uganda)

 

 


OPERATION

           

Activities: Imports, exports and wholesales iron & steel products, non-ferrous products (96%), machinery & equipment, others (--4%)

 

(Handling Items):

Iron & Steel Products: hot rolled steel coil, cold rolled steel coil, hot dip zinc-coated steel coil, pre-painted hot-dip zinc-coated steel coil, hot dip 55% aluminum-zinc alloy coated steel coil, pre-painted hot dip 55% aluminum-zinc alloy coated steel coil, porcelain enamel coated steel sheet, sub raw materials as aluminum ingot, paint, others;

Rolls: work roll for hot rolled heavy plate mill, work roll for hot strip mill, work roll for cold rolling mill, roll for paper mill, roll for continuous galvanizing line (CGL), roll for mfg process of plastic/rubber products, other;

Machinery & Equipment: continuous galvanizing line, continuous color coating line, various forming machine, Barrel corrugating machine, shearing machine, slitting machine, pressing machine, bending machine, other.

 

Clients: [Mfrs, wholesalers] Exports to Africa, China, S/E Asia, ASEAN countries, other.

Domestically: Yodogawa Steel Corp, other 

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Yodogawa Steel Corp (40%), China Steel, Sengyu, Rio Tint Japan, Koyo Ind, Daido Kogyo Co, JFE Shoji Trade Corp, Sengyu, Koyo Sangyo Co, other

Imports from Taiwan, China, other

 

Payment record: Slow but correct

 

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

 

Bank References:

MUFG (Kawaramachi)

Resona Bank (Osaka)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

 Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

10,100

9,805

9,884

13,953

Recur. Profit

 

70

66

-22

82

Net Profit

 

100

98

128

57

Total Assets

 

 

2,769

2,558

3,864

Current Assets

 

 

1,877

1,730

3,013

Current Liabs

 

 

1,442

1,429

2,964

Net Worth

 

 

1,116

999

850

Capital, Paid-Up

 

 

50

50

50

Div.Ttl in Million (¥)

 

 

3.43

3.43

3.43

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

3.01

-0.80

-29.16

-3.17

    Current Ratio

 

..

130.17

121.06

101.65

    N.Worth Ratio

 

..

40.30

39.05

22.00

    R.Profit/Sales

 

0.69

0.67

-0.22

0.59

    N.Profit/Sales

 

0.99

1.00

1.30

0.41

    Return On Equity

 

..

8.78

12.81

6.71

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.05

UK Pound

1

Rs.99.04

Euro

1

Rs.71.76

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.