MIRA INFORM REPORT

 

 

Report No. :

337043

Report Date :

02.09.2015

 

IDENTIFICATION DETAILS

 

Name :

SHINKOSHA CO LTD

 

 

Registered Office :

2-4-1 Kosugaya Sakaeku Yokohama 247-0007

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

May 1947

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Subject is manufactures synthetic gems, oxide single crystals, sapphire, prism

 

 

No. of Employee :

116

 

 

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 :

UP TO USD 300,000

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

 

Company name and address

                   

SHINKOSHA CO LTD

 

2-4-1 KOSUGAYA SAKAEKU YOKOHAMA 247-0007, JAPAN

TEL: 81-045-892-2171   FAX: 81-045-892-2191

 

 

EXECUTIVE SUMMARY

 

INCORPORATION DATE            : MAY 1947

REGISTRATION NO.                  : N/A

LEGAL FORM                              : LIMITED COMPANY (KABUSHIKI KAISHA)

CHIEF EXECUTIVE                   : KATSUYUKI YONEZAWA (PRESIDENT)

STAFF STRENGTH                    : 116

PAID-UP CAPITAL                     : JPY 90 M

BUSINESS LINE                        : MANUFACTURE

TURNOVER                              : JPY 3,418 M (AS OF DEC. 31, 2012)

EQUITIES                                 : JPY 851 M (AS OF DEC. 31, 2012)

PAYMENT                                : NO COMPLAINTS

RECOMM. CREDIT RANGE       : UP TO USD 300,000

MARKET CONDITION                : AVERAGE

FINANCIAL CONDITION             : STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION           : AVERAGE

EXCHANGE RATE                    : JPY 120.09 = US$

 

 

Adopted abbreviations:

ANS - amount not stated           NS - not stated  SC - subject company (the company inquired by you)

NA - not available          M - million         JPY-Japan Yen

 

 

HISTORY

 

REGD NAME

 

KK Shinkosha

 

 

REGISTRATION

 

Authorized:                               720,000

Issued:                         180,000 shares

 

HIGHLIGHTS

 

The subject company was established on the basis of a division separated from Ogura Jewel Industry Ltd. This is a specialized mfr of oxide single crystals, sapphire, prism, other.  Goods are delivered to major LED makers, other

 

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

 

*Company History*

===============

May, 1947                  - Established as a synthetic jewelry manufacturing company.

1970                            - Started production of sapphire watch windows.

1987                            - Entered the optical communication area.

1989                            - Started sales of single crystal substrates for superconductive thin films

1995                            - Started sales of sapphire substrates for blueLEDs.

2001                            - Head office moved to Kosugaya, Sakae-ku, Yokohama.

2002                            - Started the operation of Tochigi Factory.

2004                            - Started sales of optical fiber sensor. 

 

 

WEB SITE

 

http://www.shinkosha.com/ The design is professional and the content is well organized. At present it is in Japanese and English versions.

 

E-mail: sales@shinkosha.com 

 

 

LITIGATION

 

For the past two years there is no record of litigation.

 

 

OWNERSHIP/MANAGEMENT BACKGROUND

 

Major shareholders (%):           Ogura Jewel Industry Ltd, Katsuyuki Yonezawa

No. of shareholders:                 5

 

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

 

 


MANAGEMENT

 

OFFICERS

 

Katsuyuki Yonezawa, president

Atsushi Takeuchi, director

Akihiro Tateno, director

 

 

BUSINESS OPERATIONS

 

Activities: Manufactures synthetic gems, oxide single crystals, sapphire, prism, other (--100%)

 

Clients: [Mfrs, wholesalers] Gaboriau Ltd, Seiko Instruments, other

            No. of accounts: 200

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Bikowski Japan, other,

 

Payment record: No Complaints

 

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. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 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 exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

 

RELATED COMPANIES

 

BRANCHES     

 

Sano   

 

FACTORIES    

 

Tochigi `Plant

Address: 1043 Mizuki-Cho Sano 327 0516 Tochigi

 

 

FINANCIAL HIGHLIGHTS

 

FINANCES

 

 (In Million JPY)

 

       Terms Ending:

31/12/2013

31/12/2012

31/12/2011

31/12/2010

Annual Sales

 

3,520

3,418

4,261

3,549

Recur. Profit

 

260

254

237

92

Net Profit

 

140

139

125

39

Total Assets

 

 

5,170

5,261

5,311

Current Assets

 

 

3,232

3,237

2,936

Current Liabs

 

 

1,130

1,216

1,311

Net Worth

 

 

851

711

594

Capital, Paid-Up

 

 

90

90

90

Div. P. Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S. Growth Rate

2.98

-19.78

20.06

73.89

    Current Ratio

 

..

286.02

266.20

223.95

    N. Worth Ratio

..

16.46

13.51

11.18

    R. Profit/Sales

 

4.55

7.43

5.56

2.59

    N. Profit/Sales

3.98

4.07

2.93

1.10

    Return On Equity

..

16.33

17.58

6.57

 

Notes: Forecast (or estimated) figures for the 31/12/2013 fiscal term. 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2012 fiscal term amounted to JPY 3,418 million, a 20% down from JPY 4,261 million in the previous term.  The recurring profit was posted at JPY 254 million and the net profit at JPY 139 million, respectively, compared with JPY 237 million recurring profit and JPY 125 million net profit, respectively, a year ago.  .

 

For the current term ending Dec/2013 the recurring profit is projected at JPY 260 million and the net profit at JPY 140 million, respectively, on a 3% rise in turnover, to JPY 3,520 million. 

           

The financial situation is considered STABLE for ORDINARY business engagements. 

 

 

BANKING

 

Tokyo Tomin Bank (H/O)

Shoko Chukin Bank (Yokohama)

 

Relations: Satisfactory

 

 

REMARKS

 

SC is considered medium-sized in its line with a long development history. Taking into consideration of SC’s general performance.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.26

UK Pound

1

Rs.101.99

Euro

1

Rs.74.79

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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.