MIRA INFORM REPORT

 

 

Report Date :

09.03.2013

 

IDENTIFICATION DETAILS

 

Name :

SANTOKU CORPORATION

 

 

Registered Office :

4-14-34 Fukaekitamachi Higashinadaku Kobe 658-0013

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

August 1949

 

 

Com. Reg. No.:

1400-01-001609 (Kobe-Higashinadaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer, processing of metals, ferroalloys, chemicals

 

 

No. of Employees :

220

 

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 :

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

 

SANTOKU CORPORATION

 

 

REGD NAME 

 

KK Santoku

 

 

MAIN OFFICE

 

4-14-34 Fukaekitamachi Higashinadaku Kobe 658-0013 JAPAN

Tel: 078-431-0532     

Fax: 078-431-6522

 

    *.. The is its Tokyo Branch Office

                                               

URL:                             http://www.santoku-corp.co.jp

E-Mail address:                        info@santoku-corp.co.jp

 

 

ACTIVITIES  

 

Mfg, processing of metals, ferroalloys, chemicals, other

 

BRANCHES

 

Tokyo

 

 

OVERSEAS

 

China, USA

 

 

FACTORIES

 

At the caption address, Akashi, Miki (--Hyogo), Tsuruga; China

 

 

OFFICERS

 

CHIKARA OKADA, PRES          Yusuke Inoue, ch

Shusaku Hirata, mgn dir             Jiro Nakanishi, mgn dir

Masanori Nakatsuka, dir                                                

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 37,597 M

PAYMENTS                  REGULAR         CAPITAL           Yen 1,500 M

TREND             STEADY           WORTH            Yen 6,217 M

STARTED                     1949                 EMPLOYES      220

 

 

COMMENT    

 

MFG, PROCESSING OF METALS, FERROALLOYS, CHEMICALS.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established by Akira Inoue originally in 1937 for mfg ferroalloys, on his account.  Incorporated in 1949 the firm has been succeeded by his descendants.  This is a specialized mfg & processing firm specializing in metals, rare metals, ferroalloys, chemicals, other.  It has four operation divisions: metals, magnets, batteries and chemicals.  Rare earth metals are imported from China centrally.  The firm built a new factory in Tsuruga in 2012.  Clients include metal mfg firms, chemical firms, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2012 fiscal term amounted to Yen 37,597 million, a 74% up from Yen 21,634 million in the previous term.  This is attributed the sharp increase of materials prices, including rare metals.  The newly built factory in Tsuruga also partly contributed.  The recurring profit was posted at Yen 3,573 million and the net profit at Yen 2,004 million, respectively, compared with Yen 1,892 million recurring profit and Yen 1,684 million net profit, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 3,700 million and the net profit at Yen 2,100 million, on a 4% rise in turnover, to Yen 39,000 million.  The business is seen expanding steadily.

 

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

 

REGISTRATION

 

Date Registered:  Aug 1949

Regd No.:         1400-01-001609 (Kobe-Higashinadaku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         12 million shares

Issued:                3 million shares

Sum:                   Yen 1,500 million

 

Major shareholders (%): Biko Chemical Co (49), Sojitz Corp (37), Employees’ S/Holding Assn (11), Yusuke Inoue (10), SMBC (9)

 

No. of shareholders: 167

 

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

 

 

OPERATION

 

Activities: Manufactures and processes metals, rare metals, batteries, chemicals, recycling of metals, other (--100%).

 

(Mfg, processing items by divisions):

 

Metals Div: metals, ferroalloy products, lithium, rare earth products, blocks, wires, powders, lithium foils, other;

 

Magnets Div: neodymium magnet alloys, samarium-cobalt magnet alloys, other;

 

Batteries Div: metal hydrate, negative electrode coils, lithium cobalt oxide, other;

 

Chemicals Div: zirconium compounds, cobalt oxide, magnet powder recycling, other.

 

Clients: [Mfrs, wholesalers] Hitachi Metals, TDK, Neomax Kinki (each 20%), Samsung Japan, Hitachi Maxell, Santoku America Inc, Biko Chemical Co, other

            No. of accounts: 300

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sojitz Corp, Santoku America Inc, Biko Chemical Co, Hanwa Corp, Alconix Corp, Osaka Asahi Co, Samwood Co, Iwatani Corp, other

Imports from China, USA, other

 

Payment record: Regular

 

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

           


 

Bank References:

SMBC (Kobe)

Resona Bank (Kobe)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

39,000

37,597

21,634

12,132

Recur. Profit

 

3,700

3,573

1,892

-746

Net Profit

 

2,100

2,004

1,684

-478

Total Assets

 

 

30,348

22,523

16,969

Current Assets

 

 

21,914

14,568

9,826

Current Liabs

 

 

17,996

14,244

8,155

Net Worth

 

 

6,217

4,209

2,530

Capital, Paid-Up

 

 

1,500

1,500

1,500

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.73

73.79

78.32

-22.99

    Current Ratio

 

..

121.77

102.27

120.49

    N.Worth Ratio

..

20.49

18.69

14.91

    R.Profit/Sales

 

9.49

9.50

8.75

-6.15

    N.Profit/Sales

5.38

5.33

7.78

-3.94

    Return On Equity

..

32.23

40.01

-18.89

 

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

 

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.40

UK Pound

1

Rs.81.57

Euro

1

Rs.71.24

 

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.