MIRA INFORM REPORT
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Report Date : |
02.05.2013 |
IDENTIFICATION DETAILS
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Name : |
SANYO CHEMICAL INDUSTRIES LTD |
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Registered Office : |
11-1 Ikkyo-Nomotocho Higashiyamaku Kyoto 605-0995 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
November, 1949 |
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Com. Reg. No.: |
1300-01-009314 (Kyoto-Higashiyamaku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer
of surfactants, urethane, polymers, other intermediate chemicals |
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No. of Employees : |
1,890 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 – March 31st, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 small agricultural sector is highly subsidized and protected, with
crop yields among the highest in the world. While self-sufficient in rice
production, Japan imports about 60% of its food on a caloric basis. 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. Modest economic growth continued after 2000, but the
economy has fallen into recession three times since 2008. A sharp downturn in
business investment and global demand for Japan's exports in late 2008 pushed
Japan 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 and the ensuing tsunami in March disrupted
manufacturing. The economy has largely recovered in the two years since the
disaster, but reconstruction in the Tohoku region has been uneven.
Newly-elected Prime Minister Shinzo ABE has declared the economy his
government's top priority; he has pledged to reconsider his predecessor's plan
to permanently close nuclear power plants and is pursuing an economic
revitalization agenda of fiscal stimulus and regulatory reform and has said he
will press the Bank of Japan to loosen monetary policy. Measured on a
purchasing power parity (PPP) basis that adjusts for price differences, Japan
in 2012 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 2012. The new government will continue a longstanding debate 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 and address
SANYO
CHEMICAL INDUSTRIES LTD
REGD NAME: Sanyo
Kasei Kogyo KK
MAIN OFFICE: 11-1 Ikkyo-Nomotocho Higashiyamaku
Kyoto 605-0995 JAPAN
Tel:
075-541-4311 Fax:
075-551-2557
URL: http://www.sanyo-chemical.co.jp/
E-Mail address: info@sanyo-chemical.co.jp
ACTIVITIES
Mfg of
surfactants, urethane, polymers, other intermediate chemicals
BRANCHES
Tokyo,
Osaka, Nagoya, Toyama, Hiroshima, Fukuoka
OVERSEAS
Chine
(6), Thailand, USA (4), Taiwan (2), Korea (2) (--subsidiaries)
FACTORIES
At the
caption address, Tokai, Kashima, Nagoya
CHIEF EXEC
TAKAO
ANDO, PRES
Yen
Amount: In million Yen, unless otherwise
stated
SUMMARY
FINANCES FAIR A/SALES Yen
142,652 M
PAYMENTSREGULAR
CAPITAL Yen 13,051 M
TREND UP WORTH Yen
94,279 M
STARTED 1949 EMPLOYES 1,890
COMMENT
MFR OF SURFACTANTS, POLYMERS, URETHANE, OTHER INTERMEDIATE
CHEMICALS.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
Unit Price: In Million Yen
Forecast (or estimated) figures for
31/03/2014 fiscal term
HIGHLIGHTS
The
subject company was established originally in 1943 as JV by Mitsui & Co and
present Toray Ind for mfg surfactants.
This is a major performance chemicals mfr of diverse intermediate
chemicals with surfactants as core product.
World’s first producer to commercialize super-absorbent resin. Operates under intra-company venture
organizations. Amid the global economic
downturn, the firm decided In Apr 2009 emergency measures which include:
further cuts in executive remuneration, continued salary cuts for managerial
staff and carry-over of non-pressing investments. A lubricant additive plant in the US went
operation, and a functional PPG plant will start up gradually. Capacity expansion of super-absorbent resins
from 270,000 tons to 340,000 tons, scheduled for the March 2015 term, will be
delayed somewhat. Feasibility study on
synthetic rubber business in Thailand is now being conducted.
FINANCIAL INFORMATION
The
sales volume for Mar/2013 fiscal term amounted to Yen 142,652 million, a 1.1%
up from Yen 141,041 million in the previous term. Sales of lubricant additives were
strong. In super-absorbent resin
business, the operating rate of newly added facilities in China went up in the
second half. By divisions, Toiletries
& Healthcare up 8.3% to Yen 55,283 million; Machinery & Automobiles up
0.6% to Yen 32,790 million; Plastic & others down 5.7% to Yen 17,569
million. The recurring profit was posted
at Yen 7,266 million and the net profit at Yen 4,179 million, respectively,
compared with Yen 6,958 million recurring profit and Yen 3,704 million net
profit, respectively, a year ago.,
For the current term ending Mar 2014 the recurring profit is
projected at Yen 8,100 million and the net profit at Yen 4,900 million,
respectively, on a 9% rise in turnover, to Yen 155,000 million. Super-absorbent resin business in China will
enjoy full operation. Sales of lubricant
additives will continue strong, while PPG exports will rally thanks to the
lower Yen. Business in Thailand will get
on track and contribute.
The financial situation is considered FAIR and good for
ORDINARY business engagements.
REGISTRATION
Date Registered: Nov 1949
Regd
No.:
1300-01-009314
(Kyoto-Higashiyamaku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 257,956,000 shares
Issued:
117,673,760 shares
Sum: Yen 13,051 million
Major shareholders (%): Toyota Tsusho Corp (18.2),
Toray Industries (16.3), Company’s Treasury Stock (6.2), Nippon Shokubai (4.6),
JX Holdings (4.5), Northern Trust (AVFC) American (3.3), Japan Trustee Services
T4G (3.1), Employees’ S/Holding Assn (2.1), Northern Trust AVFC (1.3), Master
Trust Bank of Japan T (1.2); foreign owners (12.0)
No. of shareholders: 6,639
Listed on the S/Exchange (s) of:
Tokyo
Managements: Masaaki Tominaga, ch; Takao Ando,
pres; Tatsushi Yano, s/mgn dir; Takashi Yoshino, s/mgn dir; Keiyu Horii, mgn
dir; Toru Onishi, mgn dir; Hideya Narutaki, dir; Kan Ueno, dir
Nothing detrimental is known as
to the commercial morality of executives.
Related companies: Dan-Dia Polymers, San Nopco Ltd, San
Chemical, San-Apro, other
OPERATION
Activities: Manufactures: Toiletries &
healthcare (36%), machinery & automobiles (23%), plastics, textiles, others
(41%)
Overseas Sales Ratio (34%)
Clients: [Mfrs, wholesalers] Toyotsu Chemiplus
Corp, Ricoh Co, Kozakura Shokai Co, Nagase Corp, Bridgestone Corp, other
No. of
accounts: 1,000
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Toyota Tsusho Corp,
JX Nippon Oil & Mining Corp, Musashi Chemical, Sun Chemical, Toyotsu
Chemiplus Corp, Tokuyama Corp, other
Payment record:
Regular
Location: Business area in Kyoto. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References:
Mitsui Sumitomo Trust
Bank (Kyoto)-Shijo
SMBC (Kyoto)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
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142,652 |
141,041 |
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Cost of Sales |
118,358 |
116,877 |
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GROSS PROFIT |
24,294 |
24,164 |
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Selling & Adm Costs |
18,107 |
18,401 |
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OPERATING PROFIT |
6,186 |
5,762 |
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Non-Operating P/L |
1,080 |
306 |
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RECURRING PROFIT |
7,266 |
6,068 |
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NET PROFIT |
4,179 |
3,704 |
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BALANCE SHEET |
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Cash |
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10,164 |
9,360 |
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Receivables |
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43,166 |
42,567 |
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Inventory |
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18,807 |
17,083 |
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Securities, Marketable |
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Other Current Assets |
1,733 |
1,859 |
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TOTAL CURRENT ASSETS |
73,870 |
70,869 |
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Property & Equipment |
56,208 |
54,443 |
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Intangibles |
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2,595 |
1,039 |
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Investments, Other Fixed Assets |
22,765 |
22,845 |
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TOTAL ASSETS |
155,438 |
149,196 |
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Payables |
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9,573 |
27,515 |
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Short-Term Bank Loans |
3,038 |
3,398 |
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Other Current Liabs |
37,880 |
15,941 |
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TOTAL CURRENT LIABS |
50,491 |
46,854 |
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Debentures |
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Long-Term Bank Loans |
6,037 |
6,927 |
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Reserve for Retirement Allw |
2,392 |
2,953 |
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Other Debts |
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2,238 |
1,936 |
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TOTAL LIABILITIES |
61,158 |
58,670 |
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MINORITY INTERESTS |
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Common
stock |
13,051 |
13,051 |
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Additional
paid-in capital |
12,194 |
12,194 |
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Retained
earnings |
67,148 |
64,623 |
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Evaluation
p/l on investments/securities |
5,730 |
5,329 |
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Others |
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1,857 |
1,027 |
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Treasury
stock, at cost |
(5,701) |
(5,698) |
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TOTAL S/HOLDERS` EQUITY |
94,279 |
90,526 |
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TOTAL EQUITIES |
155,438 |
149,196 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2013 |
31/03/2012 |
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Cash
Flows from Operating Activities |
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13,293 |
8,872 |
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Cash
Flows from Investment Activities |
-13,413 |
-11,473 |
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Cash
Flows from Financing Activities |
406 |
42 |
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Cash,
Bank Deposits at the Term End |
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10,164 |
9,260 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
94,279 |
90,526 |
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Current
Ratio (%) |
146.30 |
151.25 |
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Net
Worth Ratio (%) |
60.65 |
60.68 |
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Recurring
Profit Ratio (%) |
5.09 |
4.30 |
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Net
Profit Ratio (%) |
2.93 |
2.63 |
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Return
On Equity (%) |
4.43 |
4.09 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.28 |
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1 |
Rs.84.23 |
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Euro |
1 |
Rs.70.90 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.