MIRA INFORM REPORT

 

 

Report Date :

05.05.2012

 

IDENTIFICATION DETAILS

 

Name :

SANKO SHIP MANAGEMENT CO LTD

 

 

Registered Office :

Hibiya Kokusai Bldg 2F, 2-2-3 Uchisaiwaicho Chiyodaku Tokyo 100-0011

 

 

Country :

Japan　

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

November 1967

 

 

Com. Reg. No.:

0100-01-010928 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Ship management, ship crew management

 

 

No. of Employees :

38

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

Payment Behaviour :

Slow and Delayed

Litigation :

--

 

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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 and address

 

SANKO SHIP MANAGEMENT CO LTD

REGD NAME:    Sanko Ship Management KK

MAIN OFFICE:  Hibiya Kokusai Bldg 2F, 2-2-3 Uchisaiwaicho Chiyodaku Tokyo 100-0011 JAPAN　

Tel: 03-3507-8465    

Fax: 03-3507-8469

 

URL:                 http://www.sankoline.co.jp (Of the parent, Sanko Steamship Co Ltd)

E-mail:                         (thru the URL)   

 

 

ACTIVITIES

 

Ship management, ship crew management

 

BRANCHES   

 

Nil

 

 

OFFICER(S)

 

YUKIO ASO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    R/WEAK                       A/SALES          Yen 10,988 M

PAYMENTS      SLOW AND DELAYED  CAPITAL           Yen 100 M

TREND             SLOW                          WORTH            Yen 945 M

STARTED                     1967                             EMPLOYES      38

 

 

COMMENT

 

SHIP MANAGEMENT, WHOLLY OWNED BY SANKO STEAMSHIP CO LTD,

WHICH WENT BANKRUPT ON 15TH MARCH AND SOUGHT FOR OUT-OF COURT SETTLEMENT (See REGISTRATION). 

FINANCIAL SITUATION CONSIDERED RATHER WEAK AND DOUBTFUL FOR CREDIT ENGAGEMENTS: EURO 25,000

 

 

HIGHLIGHTS

           

            The subject company was established on the basis of a ship broking & management division separated from Sanko Steamship Co Ltd (See REGISTRATION) as Eastern Shipping Co Ltd.  Originally started as marine transporter of logs/timber and ship management/broking of foreign flag ships chartered by the parent, Sanko Steamship Co.  On 13/Aug/1985, the firm bankrupted with liabilities Yen 26,000 million and sought for protection from creditors under the Corporate Rehabilitation Law.  Reactivated in 1986, and in 1989 merged a sister company, Sanko Marine Co Ltd, and in Oct 2002 renamed as captioned.  The firm manages 42 foreign flag vessels operated and chartered by the parent,   Operating vessels of the parent is: 195 vessels of 12.857,157 million DWT.  The parent, Sanko Steamship Co Ltd, declared bankruptcy on 15/03/2012 and initiated out-of-court settlement with creditors as high payments to ship owners bleed away cash flow at a time when freight revenues are languishing, liabilities at Yen 520,000 million.

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2011 fiscal term amounted to Yen 10,988 million, a 6% down from Yen 11,740 million in the previous term.  Shipping market was down.  Freight rates dropped.  Handling vessels decreased to 42 from 47 vessels.  The net profit was posted at Yen 139 million, compared with Yen 430 million a year ago.  .

 

For the current term ending Mar 2012 the net profit is projected at Yen 110 million, on a 9% fall in turnover, to Yen 10,000 million.  This is only forecasted and due to the bankruptcy of the parent, Sanko Steamship Co Ltd, this may not be materialized.

           

            The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements.  The proposed amount, however, is considered TOO HIGH from the recent financial status and the bankruptcy of the parent. 

 

 

REGISTRATION

 

Date Registered:  Nov 1967

Regd No.:            0100-01-010928 (Tokyo-Chiyodaku)

Legal Status:   　Limited Company (Kabushiki Kaisha)

Authorized:      　800,000 shares

Issued:             　200,000 shares

Sum:                　Yen 100 million

Major shareholders (%): Sanko Steamship Co Ltd* (100)

 

* Ship owner/operator, at the caption address, founded 1934, capital Yen 11,882 million, turnover Yen 125,586 million, operating loss Yen 11,991 million, recurring loss Yen 13,796 million, net loss Yen 15,783 million, total assets Yen 172,687, net worth Yen 117,687 million, employees 217, pres Takeshi Matsui

**.. Sanko Steamship Co Ltd declared bankruptcy on 15/03/2012 and initiated an out-of-court settlement with creditors, liabilities at Yen 520,000 million.  It booked Yen 15.8 billion net loss last fiscal year on Yen 125.6 billion in sales, as above stated.  It sank deeper into the red in the nine months ended in Dec/2011, logging Yen 25.7 billion net losses on Yen 75.8 billion in sales

Consolidated Financials are attached (See SUPPLEMENTS)

 

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

 

 

OPERATION

 

Activities: Ship management of 42 foreign flag ships chartered/operated by the parent, Sanko Steamship Co Ltd, including ship crew recruiting & hiring business (--100%).

 

Clients: [Ship owners/operators] Sanko Steamship Co, Grandslam Enterprise Corp, other

No. of accounts: Limited

Domestic areas of activities: Nationwide

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Shimbashi)

City Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2012

31/03/2011

31/03/2010

31/03/2009

Annual Sales

　

10,000

10,988

11,740

12,306

Recur. Profit

　

　

　

　

　

Net Profit

　

110

139

430

788

Total Assets

　

　

2,400

2,906

3,304

Current Assets

　

　

2,278

2,843

3,254

Current Liabs

　

　

1,437

1,788

2,321

Net Worth

　

　

945

1,105

974

Capital, Paid-Up

　

　

100

100

100

Div.P.Share(₯)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

-8.99

-6.41

-4.60

31.57

    Current Ratio

 

..

158.52

159.00

140.20

    N.Worth Ratio

..

39.38

38.02

29.48

    R.Profit/Sales

 

..

..

..

..

    N.Profit/Sales

1.10

1.27

3.66

6.40

    Return On Equity

..

14.71

38.91

80.90

 

Notes: Forecast (or estimated) figures for the 31/03/2012 fiscal term. 

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, SANKO STEAMSHIP CO LTD

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

124,788

157,103

 

  Cost of Sales

128,240

147,696

 

      GROSS PROFIT

-3,452

9,407

 

  Selling & Adm Costs

4,674

4,436

 

      OPERATING PROFIT

-8,126

4,970

 

  Non-Operating P/L

-6,576

-3,288

 

      RECURRING PROFIT

-14,702

1,682

　

      NET PROFIT

-14,188

3,418

BALANCE SHEET

 

 

 

 

  Cash

　

49,173

44,820

 

  Receivables

 

8,202

9,887

 

  Inventory

 

2,181

2,690

 

  Securities, Marketable

6

　

 

  Other Current Assets

14,956

12,468

 

      TOTAL CURRENT ASSETS

74,518

69,865

 

  Property & Equipment

137,834

144,501

 

  Intangibles

 

102

47

 

  Investments, Other Fixed Assets

13,063

18,683

 

      TOTAL ASSETS

225,517

233,096

 

  Payables

 

6,286

6,043

 

  Short-Term Bank Loans

8,000

12,300

 

　

 

　

　

 

  Other Current Liabs

20,669

20,275

 

      TOTAL CURRENT LIABS

34,955

38,618

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

40,196

40,128

 

  Reserve for Retirement Allw

1,305

1,297

 

  Other Debts

　

21,377

19,343

 

      TOTAL LIABILITIES

97,833

99,386

 

      MINORITY INTERESTS

 

 

 

Common stock

11,882

11,882

 

Additional paid-in capital

　

　

 

Retained earnings

119,311

124,050

 

Evaluation p/l on investments/securities

168

246

 

Others

 

(3,677)

(2,468)

 

Treasury stock, at cost

　

　

 

      TOTAL S/HOLDERS` EQUITY

127,684

133,710

　

      TOTAL EQUITIES

225,517

233,096

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

127,684

133,710

 

 

Current Ratio (%)

213.18

180.91

 

 

Net Worth Ratio (%)

56.62

57.36

 

 

Recurring Profit Ratio (%)

-11.78

1.07

 

 

Net Profit Ratio (%)

-11.37

2.18

 

 

Return On Equity (%)

-11.11

2.56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.72

UK Pound

1

Rs.86.98

Euro

1

Rs.70.64

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

 

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.