MIRA INFORM REPORT

 

 

Report No. :

323627

Report Date :

20.05.2015

 

IDENTIFICATION DETAILS

 

Name :

SUMITOMO SHOJI CHEMICALS CO LTD

 

 

Registered Office :

Harumi Island Triton Square Office Tower Z 23/24 F’s, 1-8-12 Harumi Chuoku Tokyo 104-0053

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

February 1998

 

 

Com. Reg. No.:

0100-01-020579

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is engaged in Import, export and wholesale of plastics & industrial chemicals

 

 

No. of Employee :

240

 

 

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 and address

 

SUMITOMO SHOJI CHEMICALS CO LTD

 

REGD NAME:               Sumitomo Shoji Chemical KK

MAIN OFFICE:                          Harumi Island Triton Square Office Tower Z 23/24 F’s, 1-8-12 Harumi Chuoku Tokyo 104-0053 JAPAN

                                                Tel: 03-5166-9300     Fax: 03-5166-9303

URL:                             http://www.sc-chem.co.jp/

E-Mail address:             info@sc-chem.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of plastics, industrial chemicals

 

 

BRANCHES

 

Osaka, Nagoya

 

 

OFFICER(S)

 

YOSHITO HORIUCHI, PRES      

                                    Yukinobu Yokoo, dir

                                    Tatsuya Katsurada, dir

                       

Yen Amount:                 In million Yen, unless otherwise stated

 

 

SUMMARY

 

                        FINANCES        FAIR                 A/SALES          Yen 148,890 M

                        PAYMENTS      REGULAR         CAPITAL           Yen 900 M

                        TREND             UP                    WORTH            Yen 8,092 M

                        STARTED         1998                 EMPLOYES      240

 

 


COMMENT

 

TRADING FIRM SPECIALIZING IN INDUSTRIAL CHEMICALS, WHOLLY                                     OWNED BY SUMITOMO CORP. 

                                    FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

 

                       

HIGHLIGHTS

 

The subject company was established on the basis of Chemical Business Unit Plastic Division separated from Sumitomo Corp (see REGISTRATION), named Sumitomo Shoji Plastics Co Ltd, dealing mainly in construction materials, industrial & wrapping materials.  In Jul 2004 acquired Organic Chemicals Division from a sister company, Sumitomo Shoji Chemicals Co Ltd, handling functional chemical products.  In Oct 2005, merged with Sumitomo Shoji Chemicals Co Ltd and Sumitomo Chemicals & Plastics Nagoya Co Ltd, with Sumitomo Shoji Plastics Co Ltd as a surviving entity and then renamed as captioned.  This is a specialized trader for import, export and wholesale of plastics and chemicals (see OPERATION).  The merger was conducted in order to integrate and streamline chemicals & plastics operations of the Sumitomo Group. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 148,890 million, a 9% up from Yen 136,546 million in the previous term.  The recurring profit was posted at Yen 2,747 million and the net profit at Yen 1,705 million, respectively, compared with Yen 1,882 million recurring profit and Yen 1,125 million net profit, respectively, a year ago.

 

For the term that ended Mar 2015 the recurring profit was projected at Yen 2,850 million and the net profit at Yen 1,800 million, respectively, on a 5% rise in turnover, to Yen 156,300 million.   Final results are yet to be released. 

 

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

 

 

REGISTRATION

 

            Date Registered:           Feb 1998

            Regd No.:                     0100-01-020579 (Tokyo-Chuoku)

            Legal Status:                Limited Company (Kabushiki Kaisha)

            Authorized:                  36,000 shares

            Issued:                         9,000 shares

            Sum:                            Yen 900 million

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

           

*.. One of leading general trading houses, nucleus of Sumitomo group, founded 1919, listed Tokyo, Nagoya, Fukuoka S/E’s, capital Yen 219,279 million, turnover Yen 8,596,699 million, operating loss Yen 84,374 million, recurring loss Yen 18,561 million, net loss Yen 70,817 million, total assets Yen 9,021,370 million, net worth Yen 2,617,250 million, employees 76,324, pres Kuniharu Nakamura

 

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

 

 

OPERATION

           

            Activities: Import, export, wholesale of plastics & industrial chemicals:

 

(Sales Breakdown by Divisions):

Plastic Division (38%): resin materials & subsidiary materials, plastic film/sheet molding, FRP products, packaging materials, agricultural materials, plastic processing machinery, metal molds, other;

Organic Chemicals Division (23%): aromatics & organic solvents, industrial organic chemicals, resin/rubber materials & fibers, coat chemical products, organic halides, resin additives, catalytic agents;

Functional Chemicals Division (39%): fine chemicals, polyurethane raw materials, epoxy resin, food chemicals, health foods, base materials for cosmetics, dye, textile chemicals, cosmetic & toiletry materials, fine chemical products, inorganic chemicals, resource products, other;

Import/Export (39%)

 

Clients: [Mfrs, wholesalers] Sumitomo Corp, Sumitomo Corp (Hong Kong), Lilycolor Co,            Sumitomo Electric Ind, Sumitomo Chemical, Interflex, Dainippon Ink & Chemicals,

Samsung Japan, Mitsubishi Electric, Taoka Chemical, Tenma Corp, other.

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Sumitomo Corp, Sumitomo Chemical, Daikin Ind, Arisawa Mfg, Sumitomo Bakelite, Takeda Chemical Ind, Toyobo Co, Asahi Kasei Chemicals, Sumika Bayer Urethane, Sumitomo Mitsubishi Silicon Corp, Asahi Glass, Sumitomo Metal Ind, Sumitomo Metal Mining, Sumitomo Seika Chemicals, Toyo Styrene, Japan Polypropylene Corp, other.

 

            Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned by the parent, Sumitomo Corp, and maintained satisfactorily.

 

            Bank References:

                        SMBC (Tokyo, Osaka & Nagoya)

                        Relations: Satisfactory

 

 


FINANCIALS

 

(In Million Yen)

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

156,300

148,890

136,546

147,945

Recur. Profit

 

2,850

2,747

1,882

2,387

Net Profit

 

1,800

1,705

1,125

1,467

Total Assets

 

 

45,819

44,931

47,445

Current Assets

 

 

41,434

40,649

43,196

Current Liabs

 

 

35,503

35,160

38,010

Net Worth

 

 

8,092

7,656

7,655

Capital, Paid-Up

 

 

900

900

900

Div.P.Share(¥)

 

 

70,800.00

62,600.00

54,500.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.98

9.04

-7.70

-7.35

    Current Ratio

 

..

116.71

115.61

113.64

    N.Worth Ratio

 

..

17.66

17.04

16.13

    R.Profit/Sales

 

1.82

1.84

1.38

1.61

    N.Profit/Sales

 

1.15

1.15

0.82

0.99

    Return On Equity

 

..

21.07

14.69

19.16

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.87

UK Pound

1

Rs.98.89

Euro

1

Rs.70.73

 

INFORMATION DETAILS

 

Analysis Done by :

SAN

 

 

Report Prepared by :

ASH

 

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.