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MIRA INFORM REPORT
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Report No. : |
512376 |
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Report Date : |
30.05.2018 |
IDENTIFICATION DETAILS
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Name : |
SHINKAWA ELECTRIC CO LTD |
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Registered Office : |
10-9 Mikawacho Nakaku Hiroshima 730-0029 |
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Country : |
Japan |
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Financials (as on) : |
31.01.2018 |
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Date of Incorporation : |
Nov., 1951 |
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Com. Reg. No.: |
2400-01-004583 (Hiroshima-Nakaku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export and wholesale of industrial instruments, measuring
instruments, analytical appliances, electric appliances, others. |
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No. of Employees : |
668 |
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 : |
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 (30.09.2017) |
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 - averaging 10% 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 resulted in several years of economic stagnation as firms sought 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 since 2013, supported by 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 need to address 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 a sharp contraction, so Prime Minister ABE has twice postponed the next increase, which is 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.
Under the Abe Administration, Japan’s government sought to open the country’s economy to greater foreign competition and create new export opportunities for Japanese businesses, including by joining 11 trading partners in the Trans-Pacific Partnership (TPP). Japan became the first country to ratify the TPP in December 2016, but the United States signaled its withdrawal from the agreement in January 2017. 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). Japan also reached agreement with the European Union on an Economic Partnership Agreement in July 2017, and is likely seek to ratify both agreements in the Diet this year.
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Source
: CIA |
Company
name and address
SHINKAWA ELECTRIC CO LTD
REGD NAME: Shinkawa
Denki KK
MAIN OFFICE: 10-9
Mikawacho Nakaku Hiroshima 730-0029 JAPAN
Tel:
082-247-4211 Fax: 082-249-6438
*..
The given address is its Tokyo Office
URL: http://www.shinkawa.co.jp
E-Mail address: (thru
the URL)
ACTIVITIES
Import, export, wholesale of industrial instruments, measuring instruments, analytical appliances, electric appliances, others
BRANCHES
Tokyo, Yokohama,
Aomori, Sendai, Hitachi, Chiba, other (Tot 39)
OVERSEAS
USA, China,
Malaysia, Singapore (-subsidiaries)
OFFICERS
FUMITO SHINKAWA,
PRES Kotaro Matsumoto,
mgn dir
Mitsunobu Ogino,
dir Akinori
Fujii, dir
Kuniharu Kiyohara,
dir Tadaaki
Ohta, dir
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 29,217 M
PAYMENTS REGULAR CAPITAL Yen 300 M
TREND STEADY WORTH Yen 4,330 M
STARTED 1951 EMPLOYES 668
COMMENT
TRADING FIRM SPECIALIZING IN INDUSTRIAL INSTRUMENTS, ANALYTICAL INSTRUMENTS, ELECTRIC APPLIANCES, OTHERS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
HIGHLIGHTS
The subject
company was established originally in 1927 by a certain Shinkawa, on his
account, for dealing with
electric appliances. Incorporated in 1951 the firm has been succeeded by his descendants. Fumito Shinkawa took the pres office in Dec/2007. This is a trading
firm for import, export and wholesale of industrial instruments, analytical
instruments, measuring instruments, electric appliances, others. Operates 4
overseas subsidiaries: USA, Singapore,
Malaysia and China. Domestic clients include heavy machinery mfrs, trading firms, others.
FINANCIAL
INFORMATION
The sales volume
for Jan/2018 fiscal term amounted to Yen 29,217 million, a shade fall from Yen
29,275 million in the previous term. The
recurring profit was posted at Yen 918 million and the net profit at Yen 577
million, respectively, compared with Yen 826 million recurring profit and Yen
462 million net profit, respectively, a year ago.
For the current
term ending Jan 2019 the recurring profit is projected at Yen 950 million and
the net profit at Yen 590 million, respectively, on a 3% rise in turnover, to
Yen 30,100 million.
The financial
situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date
Registered: Nov 1951
Regd
No.: 2400-01-004583 (Hiroshima-Nakaku)
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized:
1.8 million shares
Issued:
460,000 shares
Sum:
Yen 300 million
Major shareholders
(%): Employees’ S/Holding Assn (16.3), Takafumi Shinkawa (6.6), Fumito
Shinkawa (5.9), Tomiko Harima (4.4), other
No.
of shareholders: 116
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Imports, exports
and wholesales industrial instruments (81.6%), measuring instruments (17%),
chemical analytical instruments (0.8%), electric appliances, others (0.6%)
Overseas sales
ratio (5%)
(Products
handled): Process control system for oil/LNG refineries, cooling/heating systems,
safety instrumentation systems, self-propelled inspection system, others
Clients: [Mfrs,
wholesalers] Daicel Corp (6.2%), Matsuda Inc (4.3%), Takeda Pharmaceuticals
(3.2%), Mitsui Chemical (3.2%), Nippon Steel & Sumitomo Metal Corp (2.6%),
other
No. of accounts: 350
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Yokogawa Electric Ind (28.2%), Shinkawa Sensa Technology (8.5%),
Agillent Technologies (6.9%), other
Payment
record: Regular
Location: Business area in Hiroshima. Office premises at the caption address are
owned and maintained satisfactorily.
Bank
References:
Yamaguchi
Bank (Hiroshima)
MUFG
(Hiroshima-Chuo)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
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31/01/2019 |
31/01/2018 |
31/01/2017 |
31/01/2016 |
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Annual
Sales |
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30,100 |
29,217 |
29,275 |
29,020 |
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Recur.
Profit |
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950 |
918 |
826 |
.. |
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Net
Profit |
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590 |
577 |
462 |
351 |
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Total
Assets |
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17,773 |
17,758 |
18,664 |
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Net
Worth |
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4,330 |
3,790 |
3,364 |
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Capital,
Paid-Up |
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300 |
300 |
300 |
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Div.Ttl
in Million (¥) |
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36.877 |
36.877 |
36.877 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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3.02 |
-0.20 |
0.88 |
1.36 |
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Current Ratio |
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.. |
.. |
.. |
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N.Worth Ratio |
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24.36 |
21.34 |
18.02 |
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N.Profit/Sales |
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1.96 |
1.97 |
1.58 |
1.21 |
Notes: Forecast (or estimated) figures for the
31/01/2019 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 67.82 |
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1 |
INR 90.17 |
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Euro |
1 |
INR 78.70 |
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Yen |
1 |
INR 0.62 |
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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PRA |
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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
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Promoters
/ Management background
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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.