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MIRA INFORM REPORT
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Report No. : |
486038 |
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Report Date : |
13.01.2018 |
IDENTIFICATION DETAILS
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Name : |
JFE SHOJI TRADE CORPORTION |
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Registered Office : |
1-6-20 Dojima Kitaku Osaka |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
Aug 2004 |
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Com. Reg. No.: |
1200-01-062403 (Osaka-Kitaku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, Export, Wholesale of Steel, Iron
Ore, Chemicals, Machinery, Other |
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No. of Employees : |
961 |
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
name & 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:
03-5203-5055 Fax: 03-5203-5290
*.. 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)
21 locations
OVERSEAS: Korea, China, Taiwan, Vietnam,
India, Australia, USA, India, other.
(Total 35 locations in 18 countries)
OFFICERS: OOSUKE ODA, PRES Hidehiko Ogawa, v pres
Toshihiro Kabasawa, v pres Keiichi Nishino, dir
Masahiko Kakizaki, dir Masashi Terahata, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,129,658 M
PAYMENTS REGULAR CAPITAL Yen 14,539 M
TREND SLOW WORTH Yen
113,395 M
STARTED 1948 EMPLOYES 961
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/2017 fiscal term amounted to Yen 1,129,658 million, a 5% fall from Yen 1,188,233 million in the previous term. The recurring profit was posted at Yen 14,107 million and the net profit at Yen 9,351 million, respectively, compared with Yen 16,082 million recurring profit and Yen 8,317 million net profit, respectively, a year ago.
For the current term ending Mar 2018 the recurring profit is projected at Yen 14,300 million and the net profit at Yen 9,400 million, respectively, on a 3% rise in turnover, to Yen 1,163,600 million.
The financial situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date Registered:
Aug 2004
Regd No.:
1200-01-062403
(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 3,308,942 million, operating profit Yen 96,746 million, recurring profit Yen 84,735 million, net profit Yen 67,939 million, total assets Yen 4,343,233 million, net worth Yen 1,921,094 million, employees 61,687, 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 (13.6%), 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 (28.1%), 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)
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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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1,163,600 |
1,129,658 |
1,188,233 |
1,362,894 |
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Recur.
Profit |
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14,300 |
14,107 |
16,082 |
17,176 |
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Net
Profit |
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9,400 |
9,351 |
8,317 |
4,271 |
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Total
Assets |
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403,582 |
374,111 |
420,725 |
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Current
Assets |
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260,708 |
231,687 |
264,705 |
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Current
Liabs |
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226,501 |
192,717 |
234,020 |
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Net
Worth |
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113,395 |
102,712 |
199,430 |
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Capital,
Paid-Up |
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14,539 |
14,539 |
14,539 |
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Div.Ttl
in Million (¥) |
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1,889 |
1,603 |
5,423 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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3.00 |
-4.93 |
-12.82 |
3.13 |
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Current Ratio |
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115.10 |
120.22 |
113.11 |
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N.Worth Ratio |
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.. |
28.10 |
27.45 |
47.40 |
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R.Profit/Sales |
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1.23 |
1.25 |
1.35 |
1.26 |
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N.Profit/Sales |
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0.81 |
0.83 |
0.70 |
0.31 |
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Return On Equity |
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.. |
8.25 |
8.10 |
2.14 |
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 63.52 |
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1 |
INR 86.05 |
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Euro |
1 |
INR 76.53 |
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YEN |
1 |
INR 0.57 |
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 : |
TPT |
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.