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MIRA INFORM REPORT
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Report No. : |
512429 |
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Report Date : |
30.05.2018 |
IDENTIFICATION DETAILS
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Name : |
SHINSHO CORPORATION |
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Registered Office : |
Yodoyabashi Square Bldg, 2-6-18 Kitahama Chuoku Osaka 541-8557 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
Nov., 1946 |
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Com. Reg. No.: |
1200-01-077442 (Osaka-Chuoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Trader of Steel. |
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No. of Employees : |
460 |
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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Maximum Credit Limit : |
Yen 12,419.3 Million |
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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
SHINSHO CORPORATION
REGD NAME: Shinko
Shoji KK
MAIN OFFICE: Yodoyabashi
Square Bldg, 2-6-18 Kitahama Chuoku Osaka 541-8557 JAPAN
Tel:
06-6206-7010 Fax: 06-6206-7018
URL: http://www.shinsho.co.jjp
E-Mail address: (thru the URL)
ACTIVITIES
Steel trader
BRANCHES
Tokyo, Nagoya,
Kobe, other (Tot16)
OVERSEAS
USA, China, India,
Vietnam, Thailand, other (Tot 38 branches & subsidiaries)
CHIEF
EXEC
TAKAFUMI MORICHI,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 769,481 M
PAYMENTS REGULAR CAPITAL Yen
5,650 M
TREND SLOW WORTH Yen 45,265 M
STARTED 1946 EMPLOYES 460
COMMENT
STEEL TRADER AFFILIATED WITH KOBE STEEL
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 12,419.3 MILLION, 30 DAYS NORMAL
TERMS
HIGHLIGHTS
This is a steel
trader affiliated with Kobe Steel. Mainly
dealing in iron ore and other products turned out by Kobe Steel and group
firms. Fostering diversified product
lines, including IC lead frames, aluminum magnetic disk inspection devices and
powder metallurgy-mfg equipment. Active
in overseas business operations, for example: involved in an HBI
(hot-briquetted iron) project in Venezuela, and a coal mining project in
Australia supplying high-quality iron resources to customers worldwide. Began iron & steel materials transactions
for Kobe Steel in 2008. Operates a coil center for steel and nonferrous metals
in China. Accelerating advances into
Mexico and the Middle East, and reinforcing a global strategy, including
participation in a ferroalloy project in Malaysia.
FINANCIAL
INFORMATION
The sales volume
for Mar/2017 fiscal term amounted to Yen 769,481 million, a 2.76% fall from Yen
791,342 million in the previous term.
The recurring profit was posted at Yen5,248 million and the net profit
at Yen 2,970 million, respectively, compared with Yen 5,908 million recurring
profit and Yen 3,480 million net profit, respectively, a year ago.
For the current
term ending Mar 2018 the recurring profit is projected at Yen 6,500 million and
the net profit at Yen 4,000 million, respectively, on a 14.36% rise in turnover,
to Yen 880,000 million.
The financial
situation is considered FAIR and good for ORDINARY business engagements. Max credit
limit is estimated at Yen 12,419.3 million, on 30 days normal terms
REGISTRATION
Date Registered: Nov 1946
Regd No.: 1200-01-077442 (Osaka-Chuoku)
Legal
Status: Limited Company (Kabushiki Kaisha
Authorized: 270 million shares
Issued:
88,605,625 shares
Sum:
Yen 5,650 million
Major shareholders
(%):
TCSB (Kobe Steel) (21.5), Kobe Steel (13.3), Customers’ S/Holding Assn (7.3),
Masayoshi Yamauchi (2.4), Goldman Sachs International (2.3), Sinfonia
Technology (1.6), Employees’ S/Holding Assn (1.5), Japan Trustee Services T
(1.5), Master Trust Bank of Japan T (1.2), MUFG (1.2); foreign owners (7.4)
No. of
shareholders: 4,149
Listed
on the S/Exchange (s) of: Tokyo
Managements: Takafumi
Morichi, pres; Takura Tsumura, s/mgn dir; Kenji Onishi, s/mgn dir; Riichi
Okamoto, dir; Takashi Goto, dir; Hiroshi Kato, dir; Hiroshi Watanabe, dir;
Kenji Onishi, dir; Tsukasa Komiyama dir; Kiyoshi Sakamoto, dir
Nothing detrimental is known as to
the commercial morality of executives.
Related
companies: Shinsho Nonferrous, Asia Chemical Ind, Shinsho Steel Sales, etc.
OPERATION
Activities: Imports, exports and
wholesales steel (34%), steel materials (28%), nonferrous metals (24%),
machinery & information (8%), welding materials (5%)
Overseas
Sales Ratio (23%)
(Handling
Items)
Iron & Steel
Products: wire rod, cold roll steel wire, steel wire, wire rope, twisted steel
wire, bolts, nuts, washers, screws, other secondary and tertiary wire rods
products, steel plate, steel sheet, zinc coated, electromagnetic, other steel
sheets, bar steel, section steel, lightweight section steel, round reinforcing
bar, cold finished steel bar, polished steel bar, steel tube & pipe,
columns, special steels, stainless steel (wire, bar, sheet & plate, pipe),
lithium & titanium alloys, gratings, tie rod, guard rails, guard cables,
studs dowel, steel powders, pig iron for casting, forget products, steel ingot,
billets, other
Raw Materials: coal, coke,
limestone, iron scraps & ferroalloys in blast furnace, fuels for IPP
(independent power producers) power stations,
Clients: [Mfrs, wholesalers]
Kobe Steel, Shinsho Steel Sales, Mitsui Engineering & Shipbuilding, Yazaki
Corp, O&K Inc, other
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] All Star Funding, Kobe Steel, Kobelco Material Tubes, Osaka
Titanium Technologies, other
Payment
record: Regular
Location: Business area in
Osaka. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
Mizuho Bank (Osaka)
MUFG (Osaka)
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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880,000 |
769,481 |
791,342 |
870,407 |
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Recur.
Profit |
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6,500 |
5,248 |
5,908 |
6,575 |
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Net
Profit |
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4,000 |
2,970 |
3,480 |
3,974 |
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Total
Assets |
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258,210 |
245,842 |
260,098 |
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Current
Assets |
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215,602 |
204,593 |
218,443 |
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Current
Liabs |
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181,884 |
169,877 |
187,846 |
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Net
Worth |
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45,265 |
42,092 |
42,490 |
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Capital,
Paid-Up |
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5,650 |
5,650 |
5,650 |
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Div.Ttl
in Million (¥) |
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708 |
797 |
531 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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14.36 |
-2.76 |
-9.08 |
3.50 |
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Current Ratio |
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.. |
118.54 |
120.44 |
116.29 |
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N.Worth Ratio |
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.. |
17.53 |
17.12 |
16.34 |
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R.Profit/Sales |
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0.74 |
0.68 |
0.75 |
0.76 |
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N.Profit/Sales |
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0.45 |
0.39 |
0.44 |
0.46 |
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Return On Equity |
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.. |
6.56 |
8.27 |
9.35 |
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 67.82 |
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1 |
INR 91.17 |
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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 : |
KET |
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.