MIRA INFORM REPORT

 

 

Report No. :

324388

Report Date :

25.05.2015

 

IDENTIFICATION DETAILS

 

Name :

SHIMA TRADING CO LTD

 

 

Registered Office :

2-12-14 Ginza Chuoku Tokyo 104-0061

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2014

 

 

Date of Incorporation :

July 1921

 

 

Com. Reg. No.:

0100-01-045959

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, wholesale of industrial chemicals, lubricating oils, machinery, other

 

 

No of Employees :               

141

 

 

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 1,446.6 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 Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

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

 

SHIMA TRADING CO LTD

 

 

REGD NAME 

 

Shima Boeki KK

 

 

MAIN OFFICE

 

2-12-14 Ginza Chuoku Tokyo 104-0061 JAPAN

Tel: 03-3542-3111     Fax: 03-3542-3345

 

*.. Your 1047-0061 is a mistake; Japanese Postal Code No. is 7-digit as above

 

URL:                 http://www.shima-tra.co.jp/

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Import, wholesale of industrial chemicals, lubricating oils, machinery, other

 

 

BRANCHES   

 

Osaka, Nagoya

 

 

OVERSEAS   

 

USA, China, Singapore, Malaysia, Taiwan, Korea, Thailand, Indonesia (--subsidiaries)

 

 

OFFICER(S)  

 

KOSHI SHIMA, PRES                Shin’ichiro Taki, s/mgn dir

Keitaro Hirai, mgn dir                             Kazuki Takahashi, mgn dir

Motoshi Yoshimura, dir              Masatomo Nakamura, dir

 

Yen Amount:                             In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 39,021 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 330 M

TREND UP                                WORTH            Yen 9,273 M

STARTED         1921                             EMPLOYES      141

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN INDUSTRIAL CHEMICALS, MACHINERY, OTHER. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 1,446.6 MILLION, 30 DAYS NORMAL TERMS

 

HIGHLIGHTS

           

            The subject company was established originally in 1905 by Sadajiro Shima, on his account, for wholesaling industrial chemicals & machinery.  Incorporated in 1921 the firm has been succeeded by his descendants.  Koshi Shima took the pres office in Dec 1994.  This is a trading firm for import, export and wholesale of industrials chemicals, pharmaceuticals, lubricating oils, plastics, machinery, other.  Operates 8 overseas subsidiaries for import/export businesses, with Indonesian subsidiary established in Oct 2014. 

 

 

FINANCIAL INFORMATION

 

            The sales volume for Sept/2014 fiscal term amounted to Yen 39,021 million, a 2% up from Yen 38,323 million in the previous term.  The recurring profit was posted at Yen 1068 million and the net profit at Yen 617 million, respectively, compared with Yen 1,197 million recurring profit and Yen 697 million net profit, respectively, a year ago.

 

For the current term ending Sept 2015 the recurring profit is projected at Yen 1,150 million and the net profit at Yen 650 million, respectively, on a 5% rise in turnover, to Yen 41,000 million.  The newly opened Indonesian subsidiary will contribute in full-term.

           

            The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,446.6 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:                       Jul 1921

Regd No.:                                 0100-01-045959 (Tokyo-Chuoku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              28 million shares

Issued:                         7.56 mill shares

Sum:                            Yen 330 million

Major shareholders (%):           Koshi Shima (20), Employees’ S/Holding Assn (13), NGC Corp (5)

No. of shareholders:     95

           

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

 

 

OPERATION

 

Activities: Imports, exports and wholesales industrial chemicals, fine chemicals, pharmaceutical & cosmetic materials, plastics, electronics (55%), lubricating oils, additives, oils & fats (17%), machinery & machine parts, metal products (24%), food/confectionery materials, others (--4%). (% is all about) Imports/Exports (50%).

 

Clients: [Mfrs, wholesalers] Shima American Corp, Toppan Printing, FIC America, Futaba Indiana of America, other.

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Futaba Trading, Mitsui Chemical, Mitsubishi Chemical, Nippon Kayaku, Kao Corp, Sanyo Chemical Ind, Sonneborn Inc, other.

 

Payment record: No Complaints

 

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

 

Bank References:

                        SMBC (Tokyo)

                        MUFG (Kyobashi)

                        Relations: Satisfactory

 

FINANCES: (In Million Yen)

 

       Terms Ending:

30/09/2015

30/09/2014

30/09/2013

30/09/2012

Annual Sales

 

41,000

39,021

38,328

37,860

Recur. Profit

 

1,150

1,068

1,197

1,289

Net Profit

 

650

617

697

712

Total Assets

 

 

19,245

19,478

19,158

Current Assets

 

 

17,410

17,557

17,775

Current Liabs

 

 

9,532

10,363

10,677

Net Worth

 

 

9,273

8,711

8,070

Capital, Paid-Up

 

 

330

330

330

Div.Ttl in Million (¥)

 

 

56.1

56.1

62.8

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.07

1.81

1.24

-3.06

    Current Ratio

 

..

182.65

169.42

166.48

    N.Worth Ratio

 

..

48.18

44.72

42.12

    R.Profit/Sales

 

2.80

2.74

3.12

3.40

    N.Profit/Sales

 

1.59

1.58

1.82

1.88

    Return On Equity

 

..

6.65

8.00

8.82

 

Notes: Forecast (or estimated) figures for the 30/09/2015 fiscal term. 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 63.57

UK Pound

1

Rs. 99.66

Euro

1

Rs. 70.92

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

DPT

 

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.