MIRA INFORM REPORT

 

 

Report No. :

341861

Report Date :

21.09.2015

 

IDENTIFICATION DETAILS

 

Name :

JFE SHOJI TRADE CORPORTION

 

 

Registered Office :

Ohtemachi Financial City North Tower 26F, 1-9-5 Ohtemachi Chiyodaku Tokyo

100-8070

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

August 2004

 

 

Com. Reg. No.:

0100-01-01-013552 (Osaka-Kitaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Imports, exports and wholesales steel, steel products (60%), materials, chemicals, oil & fuels (20%), machinery & equipment, others (10%)

 

 

No. of Employee :

1,297

 

 

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 and address

 

JFE SHOJI TRADE CORPORTION

 

REGD NAME:               JFE Shoji KK

MAIN OFFICE:              Ohtemachi Financial City North Tower 26F, 1-9-5 Ohtemachi Chiyodaku Tokyo 100-8070 JAPAN

                                                Tel: 03-5203-5510     Fax: 03-5203-5289

                                   

*.. Registered at: 1-6-20 Dojima Kitaku Osaka

.

URL:                             http://www.jfe-shoji.co.jp

E-Mail address:                        (through the URL)

 

 

ACTIVITIES

 

Import, export, wholesale of steel, iron ore, chemicals, machinery, other

 

 

BRANCHES

 

(Domestic) 22 locations

 

 

OVERSEAS

 

Korea (2), China (3), Taiwan (2), Vietnam (2), India (4), Australia (2), USA (3), India, other. 

(Total 34 in 18 countries)

 

 

OFFICERS

 

TSUTOMU YAJIMA, PRES                     Kohei Yoshioka, v pres

Katsuyoshi Takaya, s/mgn dir                Hidehiko Ogawa, s/mgn dir

Masaru Saruwatari, s/mgn dir                 Toshihiro Kabasawa, s/mgn dir                         

 

Yen Amount:    In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 1,362,894 M

PAYMENTSREGULAR               CAPITAL           Yen 14,539 M

TREND STEADY                       WORTH            Yen 100,430 M

STARTED         1948                             EMPLOYES      1,297

 

 

COMMENT

 

TRADING HOUSE, OWNED BY JFE SHOJI HOLDINGS INC. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

This is a trading company belonging to JFE Shoji Holdings Inc, which was created on 01/Aug/2004 by Kawasho Corp, Kawasaki Steel group trading house.  On 01/Oct/2004, Kawasho Corp and NKK Trading Inc, NKK group trading house, merged when the two parents, Kawasaki Steel and NKK merged to become JFE Holdings Inc.  At the same time, the group reorganized into four individual companies under the control of JFE Shoji Holdings Inc: JFE Shoji Trade Corporation (consolidated steel business), Kawasho Foods Corporation (foods business), Kawasho Semiconductor Corporation (semiconductor business) and Kawasho Real Estate Corporation (real estate business).  98% of sales are generated by the subject firm and this is the core of the group firms.  In Oct 2010 acquired of all issued shares in Republic Coal Pty Ltd, Australia.  In Jun 2010 established JV with Summit Corp Thailand, as Steel Alliance Service Center Co Ltd, a steel processing center mainly serving the automobile industry.  The firm was listed on the Tokyo S/E Apr 2012.  The firm became a wholly-owned subsidiary of JFE Holdings in Oct 2012 through a stock swap, and the company was delisted on September 26, 2012.  Clients include Group firms, steel mfg, wholesalers, other, nationwide.

 

 

FINANCIAL INFORMATION

 

Financials are consolidated by the parent, JFE Shoji Holdings Inc, and only non-consolidated financials are disclosed.

 

The sales volume for Mar/2015 fiscal term amounted to Yen 1,362,894 million, a 3% up from 1,321,586 million in the previous term.  Brisk demand for steel/irons from the automobile and shipbuilding industries contributed.  Also the weaker Yen helped to rise the earnings in Yen terms.  Mfg & construction industries rose.  The recurring profit was posted at Yen 17,176 million and the net profit at Yen 4,271 million, respectively, compared with Yen 15,313 million recurring profit and Yen 5,535 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 18,000 million and the net profit at Yen 4,300 million, respectively, on a 3% rise in turnover, to Yen 1,404,000 million.  The weaker Yen continues to contribute to raise earnings in Yen terms.  Business is seen expanding steadily.

 

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

 

 

REGISTRATION

 

Date Registered:                       Aug 2004

Regd No.:                     0100-01-01-013552 (Osaka-Kitaku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  115 million shares

Issued:                         29 million shares

Sum:                            Yen 14,539 million

 

Major shareholders: JFE Holdings Inc* (100)

 

*.. Holding company formed thru business combination between Kawasaki Steel and NKK, Tokyo, founded 2002, listed Tokyo S/E, capital Yen 147,143 million, sales Yen 3,850,355 million, operating profit Yen 222,559 million, recurring profit Yen 231,001 million, net profit Yen 139,357 million, total assets Yen 4,639,412 million, net worth Yen 1,938,937 million, employees 58,885, pres Eiji Hayashida

 

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

 

 

OPERATION

 

Activities:  Imports, exports and wholesales steel, steel products (60%), materials, chemicals, oil & fuels (20%), machinery & equipment, others (10%)

Overseas Trading Ratio (45%)

 

Clients: [Mfrs, wholesalers] JFE Steel (11.8%), KK Tohsen, Okakin Corp, Mizushima Kohan Kogyo (Steel maker), Hanwa Kozai Co, San-Ei Metal, Kowa Kinzoku Corp, Daiei Kogyo, other.

No. of accounts: 800

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] JFE Steel (28.4%), JFE Chemical, JFE Steel Plate, Tokyo Steel, Mizushima Kohan Kogyo, Hitachi Ltd, Asahi Seiren Co, Toyo Dengyo Co, Toyo Kotetsu Co, other.

 

Payment record: Regular

 

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

 

           

Bank References:

Mizuho Bank (Osaka)

MUFG (H/O)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2016

31/03/2015

31/03/2014

31/03/2013

Annual Sales

 

1,404,000

1,362,894

1,321,586

1,334,787

Recur. Profit

 

18,000

17,176

15,373

11,322

Net Profit

 

4,300

4,271

5,535

7,185

Total Assets

 

 

420,725

382,970

346,446

Current Assets

 

 

264,705

267,340

246,359

Current Liabs

 

 

234,020

245,738

226,815

Net Worth

 

 

100,430

95,637

89,160

Capital, Paid-Up

 

 

14,559

14,539

14,539

Div.Ttl in Million (¥)

 

 

5,423

743

2,365

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

3.02

3.13

-0.99

-20.75

    Current Ratio

 

..

113.11

108.79

108.62

    N.Worth Ratio

 

..

23.87

24.97

25.74

    R.Profit/Sales

 

1.28

1.26

1.16

0.85

    N.Profit/Sales

 

0.31

0.31

0.42

0.54

    Return On Equity

 

..

4.25

5.79

8.06

 

Notes: Forecast (or estimated) figures for the 31/03/2016 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.92

UK Pound

1

Rs.102.75

Euro

1

Rs.75.13

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ANK

 


 

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.