MIRA INFORM REPORT

 

 

Report Date :

28.01.2012

 

IDENTIFICATION DETAILS

 

Name :

SANDEN CORPORATION

 

 

Registered Office :

1-31-7 Taito Taitoku Tokyo 110-8555

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

Jul 1943

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of automobile equipment, air-conditioner compressors.

 

 

No. of Employees :

10,064

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

YEN 3,478.1 MILLION

Status :

Good

Payment Behaviour :

Regular

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

SANDEN CORPORATION

 

REGD NAME:    Sanden KK

 

 

MAIN OFFICE:

 

1-31-7 Taito Taitoku Tokyo 110-8555 JAPAN

Tel: 03-3833-1211    

Fax: 03-3835-3170    

 

*..Registered at: 20 Kotobukicho Isesaki City Gunma-Pref

 

URL:                 http://www.sanden.co.jp

E-Mail address:info@sanden.co.jp

 

 

ACTIVITIES  

 

Mfg of automobile equipment, air-conditioner compressors

 

 

BRANCHES

 

18 domestic, 32 overseas (including subsidiaries)

 

 

OVERSEAS

           

USA (3), Mexico, Europe (6), Asia (22), other

 

 

FACTORIES

 

Akagi, Yattajima (Gunma), Toyohashi

 

 

CHIEF EXEC

 

KAZUNORI KIUCHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                 　A/SALES       Yen 216,539 M

PAYMENTS      REGULAR         　CAPITAL        Yen 11,037 M

TREND             UP                    　WORTH         Yen 49,329 M

STARTED                     1943                 　EMPLOYES   10,064

 

 

COMMENT    

 

MFR OF AUTOMOBILE EQUIPMENT 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 3,478.1 MILLION, 30 DAYS NORMAL TERMS

 

Forecast figures for the 31/03/2012 fiscal term.

 

 

HIGHLIGHTS

 

This is a specialized mfr of automobile equipment with air-conditioner compressors as mainline.  Second ranked mfr of such compressors.  Mainstay compressors mainly bound for European carmakers.  Also produces car air-conditioners, vending machines & home electric appliances.  Distribution systems including vending machines & show cases becoming 2nd mainline.  The company transferred automobile equipment production from its flood-hit plant in Thailand to temporal plant in eastern Bangkok.  It is considering transferring production of distribution systems from the plant in China. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2011 fiscal term amounted to Yen 216,539 million, an 11.2% up from Yen 194,696 million in the previous term.  Global economy continued to steadily recover overall, reflecting the strong domestic demand and rapid economic growth of such emerging countries as China and India, other.  The recurring profit was posted at Yen 6,380 million and the net profit at Yen 6,087 million, respectively, compared with Yen 6,630 million recurring profit and Yen 4,410 million net profit, respectively, a year ago.

 

(Apr/Sept/2011 results): Sales Yen 108,967 million (up 0.4%), operating profits Yen 1,070 million (down 74.2%), recurring profit Yen 1,266 million (down 73.4%), net profit Yen 1,225 million (down 73.3%).  (% compared with the corresponding period a year ago).   

           

For the current term ending Mar 2012 the recurring profit is projected at Yen 3,500 million and the net profit at Yen 3,000 million, on a 0.2% rise in turnover, to Yen 217,000 million.  Sales of distribution systems are holding steady.  Those of automobile-use compressors are faring well in Japan and Asia in the second half.  But profit margin on sales bound for Europe, the main market, is falling under the strong Yen.  Operating profits will be halved, weighed down by impact of the floods in Thailand and the Tohoku earthquake in the first half. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 3,478.1 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　      Jul 1943

Legal Status:               Limited Company (Kabushiki Kaisha

Authorized:                  396 million shares

Issued:                         140,331,565 shares

Sum:                             Yen 11,037 million

 

Major shareholders (%): Master Trust Bank of Japan T (7.5), Japan Trustee Services T (6.2), Customers’ S/Holding Assn (4.1), Mizuho Corporate Bank (3.6), Gunma Bank (3.6), Japan Trustee Services T9 (3.3), Employees’ S/Holding Assn (2.9), Company’s Treasury Stock (2.6), Daido Life Ins (2.4), Aioi Nissay Dowa Ins (1.9); foreign owners (8.6)

 

No. of shareholders: 7,929

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Masayoshi Ushikubo, ch; Yoshimasa Hayakawa, v ch; Kazunori Kiuchi, pres; Katsuya Nishi, dir; Isao Tada, dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

Related companies: Sanden International (USA) Inc, Sandenvendo America Inc, Sanden Mfg Europe SAS, Sanden of Europe GmbH, other.

 

 

OPERATION

           

Activities: Manufactures automotive equipment (67%), distribution systems (29%), others (4%); Overseas sales ratio (66%).

 

(Mfg items):

Automotive Systems: compressors, HVAC unit, heat exchanger for air-conditioners & engines;

Vending Systems: vending machines for food, drinks, other;

Electric Device Systems: wireless communication adapter, wireless remote monitors;

Retail Systems: refrigerator, freezer, multi temperature horizontal refrigerated display cabinet, pickup;

Living & Environment Systems: hot water supply systems, heat pump hot water floor heating, IH cooking heater, far inflared radiant heating unit, other.

           

Clients: [Mfrs, wholesalers] Sanden International Singapore, Suntory Foods, Sanden Mfg Poland, Sanden International USA, Sanden International Europe, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] OSCO Ind, NSK Ltd, Toyo Clutch Co, Isuzu Ind, COGAX Corp, other

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

Bank References:

Gunma Bank (Isesaki)

Mizuho Corporate Bank (H/O)

Relations: Satisfactory

 

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

216,539

194,696

 

  Cost of Sales

175,926

157,495

 

      GROSS PROFIT

40,613

372,200

 

  Selling & Adm Costs

35,235

31,997

 

      OPERATING PROFIT

5,377

5,203

 

  Non-Operating P/L

1,003

1,427

 

      RECURRING PROFIT

6,380

6,630

　

      NET PROFIT

6,087

4,410

BALANCE SHEET

 

 

 

 

  Cash

　

18,538

24,115

 

  Receivables

 

56,970

52,620

 

  Inventory

 

33,630

27,716

 

  Securities, Marketable

　

　

 

  Other Current Assets

11,789

8,618

 

      TOTAL CURRENT ASSETS

120,927

113,069

 

  Property & Equipment

65,760

67,689

 

  Intangibles

 

1,301

1,080

 

  Investments, Other Fixed Assets

19,937

23,302

 

      TOTAL ASSETS

207,925

205,140

 

  Payables

 

44,036

36,703

 

  Short-Term Bank Loans

22,785

15,824

 

　

 

　

　

 

  Other Current Liabs

39,981

32,031

 

      TOTAL CURRENT LIABS

106,802

84,558

 

  Debentures

 

　

8,600

 

  Long-Term Bank Loans

40,479

49,912

 

  Reserve for Retirement Allw

6,643

8,748

 

  Other Debts

　

4,672

6,090

 

      TOTAL LIABILITIES

158,596

157,908

 

      MINORITY INTERESTS

 

 

 

Common stock

11,037

11,037

 

Additional paid-in capital

4,453

4,453

 

Retained earnings

39,381

33,933

 

Evaluation p/l on investments/securities

112

501

 

Others

 

(3,463)

(504)

 

Treasury stock, at cost

(2,191)

(2,188)

 

      TOTAL S/HOLDERS` EQUITY

49,329

47,232

　

      TOTAL EQUITIES

207,925

205,140

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

7,820

18,772

 

Cash Flows from Investment Activities

-6,038

-5,327

 

Cash Flows from Financing Activities

-6,551

-11,312

　

Cash, Bank Deposits at the Term End

　

18,526

24,100

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

49,329

47,232

 

 

216539

113.23

133.72

 

 

Net Worth Ratio (%)

23.72

23.02

 

 

Recurring Profit Ratio (%)

2.95

3.41

 

 

Net Profit Ratio (%)

2.81

2.27

 

 

Return On Equity (%)

12.34

9.34

 

           

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.64

UK Pound

1

Rs.77.79

Euro

1

Rs.65.05

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

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 and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.