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MIRA INFORM REPORT
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Report No. : |
498448 |
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Report Date : |
16.03.2018 |
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 : |
Dec., 1982 |
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Com. Reg. No.: |
(Tokyo-Minatoku) 049977 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export, 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++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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Status : |
Excellent |
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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 (30.09.2017) |
Current Rating (31.12.2017) |
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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
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 64.94 |
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1 |
INR 90.73 |
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Euro |
1 |
INR 80.32 |
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Yen |
1 |
INR 0.61 |
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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DIV |
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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
·
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.