MIRA INFORM REPORT

 

 

Report Date :

02.01.2013

 

IDENTIFICATION DETAILS

 

Name :

SOJITZ MACHINERY CORPORATION

 

 

Registered Office :

Nihombashi Muromachi Center Bldg 9/10F, 3-2-15 Nihombashi-Muromachi Chuoku Tokyo 103-0022

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

April 2004

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Trading house specializing in machinery

 

 

No. of Employees :

220 employees

 

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

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

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

(31.03.2011)

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 third-largest economy in the world after second-place China, which surpassed Japan in 2001, and in a virtual tie with India. 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

 

SOJITZ MACHINERY CORPORATION

 

 

REGD NAME

 

Sojitz Machinery KK

 

 

MAIN OFFICE

 

Nihombashi Muromachi Center Bldg 9/10F, 3-2-15 Nihombashi-Muromachi Chuoku Tokyo 103-0022

JAPAN

Tel: 03-5204-5600     Fax: 03-5204-5636

 

*.. The is its Osaka Office

 

URL:                 http://www.sojitz-mac.com/

E-Mail address:            (thru the URL)

 

ACTIVITIES

 

Trading house specializing in machinery

 

 

BRANCHES

 

Kimitsu, Osaka, Nagoya, Toyota, Kobe, Yoshikawa

 

 

OVERSEAS

 

Shanghai, Singapore (--subsidiaries), Tianjin, Changchun, Guangzhou (China) (-- representative offices)

 

OFFICERS

 

KAZUHIKO NAKAJIMA, PRES                Takashi Miyake, s/mgn dir

Kosuke Ito, s/mgn dir                             Shu Yoshida, mgn dir

Shigeo Oshima, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                             A/SALES          Yen 62,812 M

PAYMENTS                  No Complaints          CAPITAL           Yen 1,500 M

TREND             SLOW                          WORTH            Yen 3,698 M

STARTED                     2004                             EMPLOYES      220

 

 

COMMENT 

 

TRADING HOUSE SPECIALIZING IN MACHINERY, WHOLLY OWNED BY SOJITZ CORP. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established on the basis of the integration of five machinery- related companies: Nichimen Machinery Corporation, Nissho Iwai Mechatronics Corporation, Nissho Iwai Machinery System Corporation, Nissho Iwai Chubu Machinery Co Ltd, and the NITEC Corporation (formed in 1989 as a trading house of steel-making facilities, food machinery, under the then Nissho Iwai Corporation), with NITEC as surviving company.  Due to the merger of Nissho Iwai Corp and Nichimen Corp to form Sojitz Holdings Corporation in Apr 2004 (later in Oct 2005 renamed to Sojitz Corp), the subject became 100% owned subsidiary of Sojitz Corporation.  This is a trading company specializing in machinery (see OPERATION).  Major clients include carmakers, steel mills, heavy machinery mfrs, other, nationwide.  Operates 5 overseas offices: 4 in China and one in Singapore.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 62,812 million, a2% up from Yen 61,674 million in the previous term.  Sales to automobile industry fared well.  The recurring profit was posted at Yen 1,384 million and the net profit at Yen 808 million, respectively, compared with Yen 1,115 million recurring profit and Yen 720 million net profit, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 1,400 million and the net profit at Yen 830 million, respectively, on a 2% rise in turnover, to Yen 64,000 million. Business is seen expanding steadily.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

REGISTRATION

 

Date Registered:  Apr 2004

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         80,000 shares

Issued:              30,000 shares

Sum:                   Yen 1,500 million

Major shareholders (%): Sojitz Corp*(100)

 

* Originally Sojitz Holding Corporation, renamed in Oct 2005 by merging subsidiary Sojitz Corp and shifted into non-financial company; founded 2003, listed Tokyo S/E, capital Yen 160,339 million, turnover Yen 4,494,237 million, operating profit Yen 64,522 million, recurring profit Yen 62,228 million, net loss Yen 3,644 million, total assets Yen 2,120,596 million, net worth Yen 330,471 million, employees 17,039, pres Yoji Sato

 

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

 

 

OPERATION

           

Activities:  A trading house for import, export and wholesale of the following items (--100%):

 

Electronics & Telecommunications Division: semiconductor mfg equipment, disk/liquid crystal unit mfg equip, measuring apparatus, other related equipment & machinery;

 

General Industrial Machinery Division: grinding machines, press machinery, laser facilities, heat-treatment equipment, recycling unit, other

 

Specific Industrial Machinery Division: machinery & facilities of industries of auto, food processing, steel mills, chemical plants, home electronics, forestry, other

 

Commercial, Servicing Division: security-related equipment, landscaping goods, car parking facilities, health & sports goods, home electronics appliances, other.

(Sales breakdown for each division are not made available.)

 

Clients: [Mfrs, wholesalers] Nippon Steel, Toyota Motor, Teijin Ltd, NEC, Nisshin Steel Co, S Alam Power Generation Ltd, Kobe Steel, JFE Steel, Sharp Corp, Nissan Motor, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Kawasaki Machine Systems, Wartsila Finland OY, NTN, Ube Material Ind, Steel Plantech, NTN, Ebara Corp, Sojitz Europe PLC, Murata Machinery, Shibaura Mechatronics, Toshiba Machinery, Sanyo Electric, Matsushita Electric Ind, NEC, Nippon Steel Engineering, Sumitomo Precision Products, other.

 

Payment record: No Complaints

 

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

Bank References:

MUFG (Tokyo)

Mizuho Corporate Bank (Uchisaiwaicho)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

　

64,000

62,812

61,674

65,272

Recur. Profit

　

1,400

1,384

1,115

　

Net Profit

　

830

808

720

642

Total Assets

　

　

26,996

21,478

24,136

Current Assets

　

　

26,514

20,923

　

Current Liabs

　

　

23,263

17,722

　

Net Worth

　

　

3,698

3,697

3,467

Capital, Paid-Up

　

　

1,500

1,500

1,500

Div.Ttl in Million (¥)

　

　

720

642

1,065

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

1.89

1.85

-5.51

-20.12

    Current Ratio

 

..

113.97

118.06

..

    N.Worth Ratio

..

13.70

17.21

14.36

    R.Profit/Sales

 

2.19

2.20

1.81

..

    N.Profit/Sales

1.30

1.29

1.17

0.98

    Return On Equity

..

21.85

19.48

18.52

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTS:

 

CONSOLIDATED FINANCIALS OF THE PARENT, SOJITZ CORP

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

4,494,237

4,014,639

 

  Cost of Sales

4,262,671

3,821,914

 

      GROSS PROFIT

231,566

192,725

 

  Selling & Adm Costs

167,044

155,205

 

      OPERATING PROFIT

64,522

37,519

 

  Non-Operating P/L

-2,294

7,797

 

      RECURRING PROFIT

62,228

45,316

　

      NET PROFIT

-3,649

15,981

BALANCE SHEET

 

 

 

 

  Cash

　

442,706

415,694

 

  Receivables

 

490,708

478,880

 

  Inventory

 

270,645

243,210

 

  Securities, Marketable

1,297

5,437

 

  Other Current Assets

92,795

123,408

 

      TOTAL CURRENT ASSETS

1,298,151

1,266,629

 

  Property & Equipment

233,260

215,774

 

  Intangibles

 

124,497

132,695

 

  Investments, Other Fixed Assets

464,688

501,862

 

      TOTAL ASSETS

2,120,596

2,116,960

 

  Payables

 

481,799

414,984

 

  Short-Term Bank Loans

282,524

247,656

 

　

 

　

　

 

  Other Current Liabs

183,099

227,904

 

      TOTAL CURRENT LIABS

947,422

890,544

 

  Debentures

 

80,000

82,719

 

  Long-Term Bank Loans

691,018

723,926

 

  Reserve for Retirement Allw

14,232

13,136

 

  Other Debts

　

57,453

51,124

 

      TOTAL LIABILITIES

1,790,125

1,761,449

 

      MINORITY INTERESTS

 

 

 

  Capital, Paid-Up

160,339

160,339

 

  Surplus

 

170,132

195,171

 

      SHAREHOLDERS' EQUITY

330,471

355,510

　

      TOTAL EQUITIES

2,120,596

2,116,960

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

91,600

87,883

 

Cash Flows from Investment Activities

-42,387

-10,903

 

Cash Flows from Financing Activities

-35,376

-72,054

　

Cash, Bank Deposits at the Term End

　

427,274

415,261

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

330,471

355,510

 

 

Current Ratio (%)

137.02

142.23

 

 

Net Worth Ratio (%)

15.58

16.79

 

 

Recurring Profit Ratio (%)

1.38

1.13

 

 

Net Profit Ratio (%)

-0.08

0.40

 

 

Return On Equity (%)

-1.10

4.50

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.83

UK Pound

1

Rs.89.22

Euro

1

Rs.72.48

 

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.