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MIRA INFORM REPORT
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Report No. : |
490230 |
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Report Date : |
03.02.2018 |
IDENTIFICATION DETAILS
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Name : |
SOJITZ CORPORATION |
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Registered Office : |
2-1-1 Uchisaiwaicho Chiyodaku Tokyo
100-8691 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
December 1982 |
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Com. Reg. No.: |
049977 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, export and wholesale of machinery, energy & metals,
chemicals, other |
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No. of Employees : |
2,318 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous
Rating (30.06.2017) |
Current
Rating (30.09.2017) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II 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 have significantly eroded under the dual pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2016 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. For three postwar decades, overall real economic growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which entailed considerable 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.
Japan enjoyed an 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. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the necessity of addressing its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to another recession, so Prime Minister ABE has twice postponed the next increase, now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Japan was the second country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP on January 23, 2017, and as of April 2017 the agreement has not gone into effect.
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Source
: CIA |
Company
summery
SOJITZ CORPORATION
REGD NAME: Sojitz
KK
MAIN OFFICE: 2-1-1
Uchisaiwaicho Chiyodaku Tokyo 100-8691 Japan
Tel:
03-6871-5000 Fax: 03-6871-2430
E-Mail
address: info@sojitz.com
ACTIVITIES: Import, export, wholesale of machinery,
energy & metals, chemicals, other
BRANCHES: 4 domestic, 84 overseas
(Subsidiaries/affiliates): 117
domestic, 322 overseas
OFFICERS: MASAYOSHI FUJIMOTO, PRES Yoji Sato, ch
Futoshi Hara, v pres Satoshi Nagai, v
pres
Seiichi
Tanaka, s/mgn dir Yoko
Kurita, dir
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY: FINANCES FAIR A/SALES Yen 1,555,349 M
PAYMENTS REGULAR CAPITAL Yen 160,339 M
TREND SLOW WORTH Yen 550,513 M
STARTED 2003 EMPLOYES 2,318
COMMENT
GENERAL TRADING HOUSE.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
HIGHLIGHTS
The
subject company was established in Apr 2003 by forming a joint holding company,
named Nissho Iwai-Nichimen Holdings Company, by the then Nissho Iwai Co and Nichimen
Co, and subsequently in Apr 2004 the two merged into Sojitz Corp as
captioned. The holding company, at the
same time, renamed Sojitz Holdings Corporation.
The merger was formed in order to restructure the two firms through
supports from financial institutions including the then UFJ Bank (now MUFG),
the main bank for the two firms. On
01/Oct/2005, in order to further streamline the Group’s management framework, Sojitz
Holdings merged with its principal operating arm and wholly owned subsidiary, Sojitz
Corporation. The company’s name was then
changed to Sojitz Corporation. This is a
general trading house succeeding the business rights & operations of the
said two firms, excluding liquidation or separation of unprofitable divisions
& operations. This is the
sixth-ranked general trading house.
Major handling items are machinery, energy & resources, which former
Nissho Iwai Corp was the stronger, and textiles, etc, which the former Nichimen
Corp was stronger. Highly competitive in
fields of aircraft, lumber and urban development. The company is the Japanese agent for
aircraft of Boeing of the US and also has strengths in lumber, feeds and the
automobile sales business overseas. The
company is intensifying Brazil’s cereal crop cargo pickup/export business for
Asia. It is investing Yen 16 billion in
local major firm to expand commercial distribution channels.
FINANCIAL
INFORMATION
The
operating revenue for Mar/2017 fiscal term amounted to Yen 1,555,349 million, a
6% down from Yen 1,658,072 million in the previous term. The recurring profit was posted at Yen
57,955 million and the net profit at Yen 40,760 million respectively, compared
with Yen 44,269 million recurring profit and Yen 36,526 million net profit,
respectively, a year ago
For
the current term ending Mar 2018 the recurring profit is projected at Yen
69,000 million and the net profit at Yen 50,000 million, respectively, on a 6%
rise in revenue turnover, to Yen 1,650,000 million.
The
financial situation is considered FAIR and good for ORDINARY business
engagements.
REGISTRATION
Date Registered: Dec 1982
Regd No.: (Tokyo-Minatoku) 049977
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
2,500 million shares
Issued:
1,251,499,501 shares
Sum: Yen 160,339 million
Major shareholders (%): Japan Trustee Services T
(11.1), Ichigo Trust (8.8), Chase Manhattan GTS Escrow (5.0), Master Trust Bank
of Japan (3.5), JPMCB ITS (London) Morgan Stanley (3.0); foreign owners (45.7)
No. of shareholders: 142,955
Listed on the S/Exchange (s) of:
Tokyo
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Sojitz Marine & Engineering,
Sojitz Building Materials Corp, other
OPERATION
Activities: A general trading house:
(Sales breakdown by Divisions):
Machinery Division (26%): Automotive Unit, Environment
& Infrastructure Unit, IT Business Unit, Marine & Aerospace Unit;
Energy & Metals Division (17%):
Energy & Nuclear Unit, Coal & Non-ferrous Metals Unit, Ferrous Metals
& Steel Products Unit;
Chemicals & Functional Materials Division (12%):
Chemicals Unit, Functional Materials Unit;
Lifestyle Business Division (18%): Foods
Resources Unit, General Commodities & Textile Unit, Forest Products &
Real Estate Development Unit;
Others (28%)
Overseas trading (51%)
Clients:
[Mfrs, wholesalers] Kobe Steel, NM Life, First Retailing, Uto Kosan, Zao
Severstal, Varig S.A., Auto-Isuzu PT Indofood Sukses Makmur TBK, MMC Automotriz
SA, Tata Steel, other
No. of accounts: 1,000
Domestic areas of activities:
Nationwide
Suppliers:
[Mfrs, wholesalers] Hitachi Zosen, Hitachi Ltd, Toyo Rubber, Yamazaki
Nabisco, Sun Building Materials Corp, Sumitomo Metal Mining,
Fuji Electric Systems,
Sojitz Asia, Philip Morris Japan, Sojitz USA, other.
Payment record: Regular
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactorily.
Bank References:
MUFG
(H/O)
Mizuho Bank (H/O)
Relations: Satisfactory
FINANCIALS
(In Million Yen)
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Terms Ending: |
31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual
Sales |
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1,650,000 |
1,555,349 |
1,658,072 |
1,809,701 |
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Recur.
Profit |
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69,000 |
57,955 |
44,269 |
52,584 |
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Net
Profit |
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50,000 |
40,760 |
36,526 |
33,075 |
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Total
Assets |
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2,138,466 |
2,056,670 |
2,297,358 |
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Current
Assets |
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1,229,747 |
1,146,344 |
1,323,497 |
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Current
Liabs |
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717,748 |
673,776 |
780,538 |
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Net
Worth |
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550,513 |
520,353 |
550,984 |
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Capital,
Paid-Up |
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160,339 |
160,339 |
160,339 |
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Div.Ttl
in Million (¥) |
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10,008 |
9,382 |
5,629 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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6.09 |
-6.20 |
-8.38 |
0.37 |
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Current Ratio |
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.. |
171.33 |
170.14 |
169.56 |
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N.Worth Ratio |
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.. |
25.74 |
25.30 |
23.98 |
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R.Profit/Sales |
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4.18 |
3.73 |
2.67 |
2.91 |
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N.Profit/Sales |
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3.03 |
2.62 |
2.20 |
1.83 |
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Return On Equity |
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.. |
7.40 |
7.02 |
6.00 |
Notes: Forecast (or estimated) figures for the 31/03/2018 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.08 |
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1 |
INR 91.34 |
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Euro |
1 |
INR 80.03 |
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YEN |
1 |
INR 0.58 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
VIV |
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Report Prepared
by : |
SYL |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.