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MIRA INFORM REPORT
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Report No. : |
492364 |
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Report Date : |
15.02.2018 |
IDENTIFICATION DETAILS
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Name : |
SUMITOMO CORPORATION KYUSHU CO LTD |
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Registered Office : |
Hakata Kangen Bldg 6F, 3-30-23 Hakata-Ekimae Hakataku Fukuoka-Pref
812-8662 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
Sept., 1993 |
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Com. Reg. No.: |
2900-01-014029 (Hakata-Hakataku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export and wholesale of steel products, chemicals,
foods, other. |
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No. of Employees : |
96 |
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 |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 2017 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 first country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP in January 2017, and in November 2017 the remaining 11 countries agreed on the core elements of a modified agreement, which they renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
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Source
: CIA |
Company
name and address
SUMITOMO CORPORATION KYUSHU CO LTD
REGD NAME: Sumitomo
Shoji Kyushu KK
MAIN OFFICE: Hakata Kangen Bldg
6F, 3-30-23 Hakata-Ekimae Hakataku Fukuoka-Pref 812-8662 JAPAN
Tel: 092-441-4111 Fax: 092-451-9354
URL: http://www.sumitomocorp-kyushu.co.jp
E-Mail address: scq-hp@sumitomocorp.co.jp
ACTIVITIES
Import,
export, wholesale of steel products, chemicals, foods, other
BRANCHES
Nagasaki,
Okinawa, Kita-Kyushu, Kagoshima (Tot 4)
FACTORIES
Kita-Kyushu
(photovoltaic power plant, completed in Jul 2014)
OFFICERS
TSUNEAKI
MAEDA, PRES Masahiro
Shirotsuka, dir
Kei
Haramoto, dir Hideo
Suzuki, dir
Koji
Yamashita, dir Hideto
Kimura, dir
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen
38,237 M
PAYMENTS NO COMPLAINTS CAPITAL Yen
2,000 M
TREND SLOW WORTH Yen
3,345 M
STARTED 1993 EMPLOYES 96
COMMENT
TRADING FIRM, OWNED BY SUMITOMO
CORPORATION.
FINANCIAL SITUATION CONSIDERED FAIR
AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
HIGHLIGHTS
The
subject company was established by on the basis of a Fukuoka Branch Office
separated from Sumitomo Corporation (See REGISTRATION),
jointly with 4 group firms of Sumitomo Corp.
This is a trading firm for import, export and wholesale of iron/steel
products, chemicals, foods, other (See OPERATION). Covering area is Kyushu & Okinawa, with 4
branch offices located. Completed
photovoltaic power plant in July 2014, jointly with the parent, Sumitomo Corp.
FINANCIAL
INFORMATION
The sales volume for Mar/2017 fiscal term amounted to Yen
38,005 million, a 12% down from Yen 43,237 million in the previous term. The recurring profit was posted at Yen 560 million
and the net profit at Yen 396 million, respectively, compared with Yen 401
million recurring profit and Yen 257 million net losses, respectively, a year
ago.
For
the current term ending Mar 2018 the recurring profit is projected at Yen 570
million and the net profit at Yen 410 million, respectively, on a 3% rise in
turnover, to Yen 39,150 million.
The
financial situation is considered FAIR and good for ORDINARY business
engagements.
REGISTRATION
Date
Registered: Sept 1993
Regd
No.: 2900-01-014029
(Hakata-Hakataku)
Legal
Status: Limited
Company (Kabushiki Kaisha)
Authorized: 192,000 shares
Issued:
48,000 shares
Sum:
Yen
2,000 million
Major shareholders (%): Sumitomo Corporation* (100)
*.. One of
leading general trading companies, Tokyo, founded 1919, listed Tokyo S/E,
capital Yen 219,279 million, sales Yen 3.996,974 million, operating profit Yen
109.128 million, recurring profit Yen 213,101 million, net profit Yen 170,889
million, total assets Yen 7,951,792 million, net worth Yen 2,523,906 million,
employees 72,163, pres Kuniharu Nakamura
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Trading
firm for import, export and wholesale of: iron/steel division (17%),
electric/electronic equipment, information systems division (10%), chemicals
division (30%), branch operation division (43%)
Overseas
Sales Ratio (12%)
(Handling
Items): iron/steel products, nonferrous metal products, building
materials, information systems & equipment, chemicals, foods, fuels,
cement, other
Clients:
[Mfrs, wholesalers] Mitsubishi Heavy Ind, Kyushu Electric Power, Nippon Steel
& Sumitomo Metal Corp, Kyoei Steel Ltd, RIKEN Nosan-Kako Co, Adventure Co,
Kyushu Telecommunication Network Inc, Okinawa Gas, Ryuseki Corp, Yasukawa
Electric, Kyocera Corp, other
No. of accounts: 500
Domestic areas of activities:
Centered in Kyushu & Okinawa
Suppliers:
[Mfrs, wholesalers] Sumitomo Corp, NEC Corp, JX Nippon Energy & Sumitomo
Metal Ind, Nansei Sekiyu KK, Sumitomo Precision Products, Nissin Electric, UACJ
Corp, Sumitomo Heavy Industries Handling System Co, other
Payment record: Regular
Location:
Business area in Fukuoka. Office
premises at the caption address are leased and maintained satisfactory.
Bank References:
SMBC
(Tokyo & Fukuoka)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
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31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual
Sales |
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39,150 |
38,005 |
43,237 |
52,922 |
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Recur.
Profit |
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570 |
560 |
401 |
554 |
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Net
Profit |
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410 |
396 |
257 |
472 |
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Total
Assets |
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17,207 |
17,468 |
19,505 |
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Net
Worth |
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3,345 |
3,176 |
3,423 |
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Capital,
Paid-Up |
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2,000 |
2,000 |
2,000 |
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Div.Ttl
in Million (¥) |
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283.364 |
520.073 |
295.590 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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3.01 |
-12.10 |
-18.30 |
-3.98 |
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Current Ratio |
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.. |
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.. |
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N.Worth Ratio |
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19.44 |
18.18 |
17.55 |
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N.Profit/Sales |
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1.05 |
1.04 |
0.59 |
0.89 |
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 64.13 |
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1 |
INR 89.17 |
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Euro |
1 |
INR 79.39 |
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Yen |
1 |
INR 0.60 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIS |
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Report Prepared
by : |
NIT |
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
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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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.