MIRA INFORM REPORT

 

 

 

 

Report No. :

337869.2

Report Date :

02.09.2015

 

IDENTIFICATION DETAILS

 

Name :

SHINSHO CORPORATION

 

 

Registered Office :

2-6-18 Kitahama Chuoku Osaka 541-8557

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

November 1946

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is Imports, exports and wholesales steel, steel materials, nonferrous metals, machinery & information, welding materials.

 

 

No. of Employee :

1,344

 

 

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 :

Regular

 

 

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

 

SHINSHO CORPORATION

 

REGD NAME:   Shinko Shoji KK

MAIN OFFICE:  2-6-18 Kitahama Chuoku Osaka 541-8557 JAPAN

                                    Tel: 06-6206-7010     Fax: 06-6206-7018

 

*.. The is its Tokyo Headquarter Office     -

 

URL:                 http://www.shinsho.co.jjp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Steel trader

 

 

BRANCHES

 

Tokyo, Nagoya, Kobe, other (Tot16)

 

 

OVERSEAS

 

USA, China, India, Vietnam, Thailand, other (Tot 38 branches & subsidiaries)

 

 

CHIEF EXEC

 

IKUHIRO YAMAGUCHI, PRES

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 870,407 M

PAYMENTSREGULAR   CAPITAL           Yen 5,650 M

TREND UP                    WORTH            Yen 45,692 M

STARTED         1946                 EMPLOYES      1,344

COMMENT

 

STEEL TRADER AFFILIATED WITH KOBE STEEL 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

Unit: In Million Yen

Forecast figures for the 31/03/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is a steel trader affiliated with Kobe Steel.  Mainly dealing in iron ore and other products turned out by Kobe Steel and group firms.  Fostering diversified product lines, including IC lead frames, aluminum magnetic disk inspection devices and powder metallurgy-mfg equipment.  Active in overseas business operations, for example: involved in an HBI (hot-briquetted iron) project in Venezuela, and a coal mining project in Australia supplying high-quality iron resources to customers worldwide.  Operates a coil center for steel and nonferrous metals in China.  Accelerating advances into Mexico and the Middle East, and reinforcing a global strategy, including participation in a ferroalloy project in Malaysia. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 870,407 million, a 3.5% up from Yen 840,945 million in the previous term.  The recurring profit was posted at Yen 6,575 million and the net profit at Yen 3,974 million, respectively, compared with Yen 5,318 million recurring profit and Yen 3,160 million net profit, respectively, a year ago.

 

(Apr/Jun/2015 results): Sales Yen 216,360 million (up 1.1%), operating profits Yen 1,699 million (up 14.0%), recurring profit Yen 2,049 million (up 25.0%), net profit Yen 1,348 million (up 13.8%).  (% as compared with the corresponding period a year ago)

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 5,700 million and the net profit at Yen 3,500 million, respectively, on a 1.1% rise in turnover, to Yen 880,000 million.  Sales of steel products will benefit from the contribution to earnings throughout the term from the distribution base in Mexico.  Sales of nonferrous metals will increase to the mfrs of automobiles and aluminum cans. 

 

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

 

 

REGISTRATION

           

Date Registered:　      Nov 1946

Legal Status:       Limited Company (Kabushiki Kaisha

Authorized:       270 million shares

Issued:                88,605,625 shares

Sum:                   Yen 5,650 million

 

Major shareholders (%): TCSB (Kobe Steel) (21.5), Kobe Steel (13.3), Customers’ S/Holding Assn (7.3), Masayoshi Yamauchi (2.4), Goldman Sachs International (2.3), Sinfonia Technology (1.6), Employees’ S/Holding Assn (1.5), Japan Trustee Services T (1.5), Master Trust Bank of Japan T (1.2), MUFG (1.2); foreign owners (8.9)

 

No. of shareholders: 3,857

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Ikuhiro Yamaguchi, pres; Takura Tsumura, s/mgn dir; Kiyofumi Kobayashi, s/mgn dir; Kenji Onishi, mgn dir; Toshikazu Okamoto, mgn dir; Akio Matsuda, s/mgn dir; Tetsuya Morita, mgn dir; Hisayuki Matsuo, mgn dir; Hidenori Ota, mgn dir; Yasuo Hirono, mgn dir; Hiroshi Watanabe, mgn dir; Yoshihiro Matsubara, mgn dir; Michio Nakai, mgn dir

 

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

 

Related companies: Shinsho Nonferrous, Asia Chemical Ind, Shinsho Steel Sales, etc.

 

 

OPERATION

           

Activities: Imports, exports and wholesales steel (32%), steel materials (33%), nonferrous metals (23%), machinery & information (7%), welding materials (4%)

Overseas Sales Ratio (21%)

 

(Handling Items)

Iron & Steel Products: wire rod, cold roll steel wire, steel wire, wire rope, twisted steel wire, bolts, nuts, washers, screws, other secondary and tertiary wire rods products, steel plate, steel sheet, zinc coated, electromagnetic, other steel sheets, bar steel, section steel, lightweight section steel, round reinforcing bar, cold finished steel bar, polished steel bar, steel tube & pipe, columns, special steels, stainless steel (wire, bar, sheet & plate, pipe), lithium & titanium alloys, gratings, tie rod, guard rails, guard cables, studs dowel, steel powders, pig iron for casting, forget products, steel ingot, billets, other

Raw Materials: coal, coke, limestone, iron scraps & ferroalloys in blast furnace, fuels for IPP (independent power producers) power stations,

           

Clients: [Mfrs, wholesalers] Kobe Steel, Shinsho Steel Sales, Mitsui Engineering & Shipbuilding, Yazaki Corp, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] All Star Funding, Kobe Steel, Kobelco Material Tubes,

Osaka Titanium Technologies, other

Payment record: Regular

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

 

Bank References:

Mizuho Bank (Osaka)

MUFG (Osaka)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

870,407

840,945

　

  Cost of Sales

844,509

817,368

　

      GROSS PROFIT

25,897

23,577

　

  Selling & Adm Costs

19,108

17,840

　

      OPERATING PROFIT

6,788

5,736

　

  Non-Operating P/L

-213

-418

　

      RECURRING PROFIT

6,575

5,318

　

      NET PROFIT

3,974

3,160

BALANCE SHEET

　

　

  Cash

　

18,635

16,288

　

  Receivables

149,776

136,420

　

  Inventory

31,984

22,906

　

  Securities, Marketable

　

　

　

  Other Current Assets

18,048

18,857

　

      TOTAL CURRENT ASSETS

218,443

194,471

　

  Property & Equipment

7,172

6,877

　

  Intangibles

1,062

1,326

　

  Investments, Other Fixed Assets

33,109

29,644

　

      TOTAL ASSETS

259,786

232,318

　

  Payables

130,843

121,947

　

  Short-Term Bank Loans

31,293

20,894

　

　

　

　

　

  Other Current Liabs

25,710

22,108

　

      TOTAL CURRENT LIABS

187,846

164,949

　

  Debentures

　

　

　

  Long-Term Bank Loans

23,116

27,436

　

  Reserve for Retirement Allw

693

627

　

  Other Debts

　

2,439

1,768

　

      TOTAL LIABILITIES

214,094

194,780

　

      MINORITY INTERESTS

　

　

Common stock

5,650

5,650

　

Additional paid-in capital

2,703

2,703

　

Retained earnings

28,907

25,463

　

Evaluation p/l on investments/securities

3,261

1,501

　

Others

5,188

2,237

　

Treasury stock, at cost

(17)

(17)

　

      TOTAL S/HOLDERS` EQUITY

45,692

37,537

　

      TOTAL EQUITIES

259,786

232,318

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

-1,701

3,728

　

Cash Flows from Investment Activities

-1,632

-4,017

　

Cash Flows from Financing Activities

5,122

-2,708

　

Cash, Bank Deposits at the Term End

　

18,589

16,282

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

45,692

37,537

　

Current Ratio (%)

116.29

117.90

　

Net Worth Ratio (%)

17.59

16.16

　

Recurring Profit Ratio (%)

0.76

0.63

　

Net Profit Ratio (%)

0.46

0.38

　

　

Return On Equity (%)

8.70

8.42

 

 

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 :

DIV

 

 

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.