MIRA INFORM REPORT

 

 

Report Date :

13.04.2013

 

IDENTIFICATION DETAILS

 

Name :

SUMISHO AERO-SYSTEMS CORPORATION

 

 

Registered Office :

Triton Square W 6F, 1-8-8 Harumi Chuoku Tokyo 104-0053

 

 

Country :

Japan

 

 

Financials (as on) :

31.01.2013

 

 

Date of Incorporation :

September 1982

 

 

Com. Reg. No.:

0100-01-020185 (Tokyo-Chuoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, wholesale of aircraft structural systems, control systems/equipment

 

 

No. of Employees :

103

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit : 

Yen 296.4 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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

japan - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war 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 are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

 

Source : CIA

 

 

 

 


Company name

 

SUMISHO AERO-SYSTEMS CORPORATION

 

 

REGD NAME

 

Sumisho Aero System KK

 

 

MAIN OFFICE

 

Triton Square W 6F, 1-8-8 Harumi Chuoku Tokyo 104-0053 JAPAN

Tel: 03-5144-0030      Fax: 03-5144-0035

 

URL:                 http://www.sc-aero.co.jp

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Import, export, wholesale of aircraft structural systems, control systems/equipment

 

 

BRANCHES

 

Nagoya

 

OVERSEAS   

 

USA (2), UK

 

 

OFFICERS

 

TATSUYA NGAI, PRES

Tomoaki Watanabe, dir

Eiji Ishida, dir    

           

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 22,578 M

PAYMENTS      REGULAR         CAPITAL           Yen 100 M

TREND             UP                    WORTH            Yen 1,813 M

STARTED                     1982                 EMPLOYES      103

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN AIRPLANE STRUCTURAL SYSTEMS,

 

OWNED BY SUMITOMO CORPORATION.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 296.4 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a division separated from Sumitomo Corporation (See REGISTRATION), in order to expand Defense/Aerospace business of the Sumitomo Corporation.  Tied with SAS, the firm import, export and wholesales airplane structural systems, engines, radars, other (See OPERATION).  50% of the products are supplied to Ministry of Defense and Government agencies.  Clients include major heavy machinery makers, airline companies, other.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 22,578 million, a 6% up from Yen 21,211 million in the previous term.  Supplies to Defense Forces increased.  The recurring profit was posted at Yen 801 million and the net profit at Yen 443 million, respectively, compared with Yen 772 million recurring profit and Yen 418 million net profit, respectively, a year ago.

 

For the term that ended Mar 2013 the recurring profit was projected at Yen 810 million and the net profit at Yen 445 million, respectively, on a 2% rise in turnover, to Yen 23,000 million.  Final results are yet to be released.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 296.4 million, on 30 days normal terms.

 

 

 


REGISTRATION

 

Date Registered:  Sept 1982

Regd No.:         0100-01-020185 (Tokyo-Chuoku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         800,000 shares

Issued:                200,000 shares

Sum:                   Yen 100 million

 

Major shareholders (%): Sumitomo Corporation* (100)

 

*.. One of leading trading houses in Japan, Tokyo, founded 1919, listed Tokyo, Osaka, Nagoya, Fukuoka S/E’s, capital Yen 219,279 million, sales Yen 8,273,043 million, operating profit Yen 219,857 million, recurring profit Yen 341,387 million, net profit Yen 250,669 million, total assets Yen 7,359,620 million, net worth Yen 1,822,058 million, employees 71,087, pres Kuniharu Nakamura

 

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

 

 

OPERATION

           

Activities: Imports, exports and wholesales airplane structural systems, equipment, parts, components, others (--100%)

 

(Handling Items):

 

Avionics: radar, communication, navigation, MEMS sensors, cockpit meters, flight control systems, EO/IR sensor systems;

 

Engine System: engine control, fuel control, fuel hydro pump, heat exchanger, aerofoil, disk, shaft, forging materials:

 

Aircraft System: propeller, landing gear, fuel system, hydro actuating system, ejection system,

 

Others: ASW system, Mine countermeasure system, target tow-reeling machine, missile components, weapon system, ammunition, ground support equipment, armament control system, countermeasure dispenser, docking guidance system, data link systems, others

 

Clients: [Mfrs, wholesalers] Self Defense & government agencies (50%), IHI Corp, All Nippon Airways, Fuji Heavy Ind, Mitsubishi Electric, Fujitsu Ltd, Kawasaki Heavy Ind, Japan Aviation Electronics Ind, Shin Meiwa Ind Ltd, other 

            No. of accounts: 500

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sumitomo Corp USA, Sumitomo Corp UK, Sumitomo Precision Products, Co, Yokogawa Electric Corp, Sumitomo Heavy Ind, Sumitomo Electric Ind, Daicel Corp, other

 

Payment record: Regular

 

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

 

Bank References:

SMBC (Kanda)

MUFG (Jinbocho)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/01/2013

31/01/2012

31/01/2011

31/01/2010

Annual Sales

 

23,000

22,578

21,211

70,409

Recur. Profit

 

810

801

772

389

Net Profit

 

445

442

418

207

Total Assets

 

 

10,491

10,889

70,409

Current Assets

 

 

10,373

10,723

12,802

Current Liabs

 

 

8,617

9,218

11,626

Net Worth

 

 

1,813

1,591

1,262

Capital, Paid-Up

 

 

100

100

100

Div.Ttl in Million (¥)

 

 

210

104

286

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

1.87

6.44

-69.87

17.85

    Current Ratio

 

..

120.38

116.33

110.12

    N.Worth Ratio

..

17.28

14.61

1.79

    R.Profit/Sales

 

3.52

3.55

3.64

0.55

    N.Profit/Sales

1.93

1.96

1.97

0.29

    Return On Equity

..

24.38

26.27

16.40

 

Notes: Forecast (or estimated) figures for the 31/03/2013 fiscal term.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.44

UK Pound

1

Rs.83.78

Euro

1

Rs.71.33

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.