MIRA INFORM REPORT
|
Report Date : |
04.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
SANYO CHEMICAL INDUSTRIES LTD |
|
|
|
|
Registered Office : |
11-1 Ikkyo-Nomotocho Higashiyamaku Kyoto 605-0995 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
November, 1949 |
|
|
|
|
Com. Reg. No.: |
1300-01-009314 |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Mfg of surfactants, urethane, polymers,
other intermediate chemicals |
|
|
|
|
No. of Employees : |
1,890 |
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 : |
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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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
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
products for:
Toiletries
& healthcare (38.8%): superabsorbent polymers, surfactants for hair
care products, surfactants for detergents, base materials for cosmetics, base
materials for pharmaceuticals, antibacterial agents, DIA diagnostic reagents, potting
resins for artificial kidneys, pressure-sensitive adhesives, hot melt
adhesives;
Petroleum
& Automotives (23.0%):
raw materials for polyurethane foam, polyurethane beads for powder slush molding,
lubricating oil additives, fuel oil additives, base materials for synthetic
lubricants, water-soluble cutting fluid, halogen-free cleaning agents, paste
resin for design model;
Plastics
& Textiles (12.3%): Plastics (permanent antistatic agents, pigment dispersants, resin
modifiers, UV/EB curing resins, base materials for polyurethane elastomers,
paint resins, de-foaming agents, theology modifiers, chemical boards for
models, emulsifiers for emulsion polymerization, epoxy resin curing agents, polyurethane
catalysts, epoxy resin curing accelerators; Textiles (agents for synthetic fiber production, agents for
fiberglass, chemicals for carbon fibers, polyurethane for artificial/synthetic
leather, production and precision grinding, modifiers for synthetic fibers;
Information
& Electrics/Electronics (14.1%):
intermediates for polymerization toners/toner resins, electrolytes for
aluminium electrolytic capacitors, electrolytes for elastic double-layer
capacitors, cleaning agent for hard disks, processing agents for
semiconductors, photo-acid generators;
Environmental
Protection, Construction & Others (11.8%): polymer flocculants for industrial
wastewater treatment, polyurethane for heat insulating materials, slurry
agents, coal-type permeable waterproof materials for concrete, reactive
hot-melt adhesives.
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)
|
FINANCES: (Consolidated
in million yen) |
|
|||||
|
|
|
Terms Ending: |
31/03/2013 |
31/03/2012 |
||
|
INCOME STATEMENT |
|
|
||||
|
|
Annual Sales |
|
142,652 |
141,041 |
||
|
|
Cost of Sales |
118,358 |
116,877 |
|||
|
|
GROSS PROFIT |
24,294 |
24,164 |
|||
|
|
Selling & Adm Costs |
18,107 |
18,401 |
|||
|
|
OPERATING PROFIT |
6,186 |
5,762 |
|||
|
|
Non-Operating P/L |
1,080 |
306 |
|||
|
|
RECURRING PROFIT |
7,266 |
6,068 |
|||
|
|
NET PROFIT |
4,179 |
3,704 |
|||
|
BALANCE SHEET |
|
|
|
|||
|
|
Cash |
|
10,164 |
9,360 |
||
|
|
Receivables |
|
43,166 |
42,567 |
||
|
|
Inventory |
|
18,807 |
17,083 |
||
|
|
Securities, Marketable |
|
|
|||
|
|
Other Current Assets |
1,733 |
1,859 |
|||
|
|
TOTAL CURRENT ASSETS |
73,870 |
70,869 |
|||
|
|
Property & Equipment |
56,208 |
54,443 |
|||
|
|
Intangibles |
|
2,595 |
1,039 |
||
|
|
Investments, Other Fixed Assets |
22,765 |
22,845 |
|||
|
|
TOTAL ASSETS |
155,438 |
149,196 |
|||
|
|
Payables |
|
9,573 |
27,515 |
||
|
|
Short-Term Bank Loans |
3,038 |
3,398 |
|||
|
|
|
|
|
|
||
|
|
Other Current Liabs |
37,880 |
15,941 |
|||
|
|
TOTAL CURRENT LIABS |
50,491 |
46,854 |
|||
|
|
Debentures |
|
|
|
||
|
|
Long-Term Bank Loans |
6,037 |
6,927 |
|||
|
|
Reserve for Retirement Allw |
2,392 |
2,953 |
|||
|
|
Other Debts |
|
2,238 |
1,936 |
||
|
|
TOTAL LIABILITIES |
61,158 |
58,670 |
|||
|
|
MINORITY INTERESTS |
|
|
|||
|
|
Common
stock |
13,051 |
13,051 |
|||
|
|
Additional
paid-in capital |
12,194 |
12,194 |
|||
|
|
Retained
earnings |
67,148 |
64,623 |
|||
|
|
Evaluation
p/l on investments/securities |
5,730 |
5,329 |
|||
|
|
Others |
|
1,857 |
1,027 |
||
|
|
Treasury
stock, at cost |
(5,701) |
(5,698) |
|||
|
|
TOTAL S/HOLDERS` EQUITY |
94,279 |
90,526 |
|||
|
|
TOTAL EQUITIES |
155,438 |
149,196 |
|||
|
CONSOLIDATED CASH FLOWS |
|
|
||||
|
|
|
Terms ending: |
31/03/2013 |
31/03/2012 |
||
|
|
Cash
Flows from Operating Activities |
|
13,293 |
8,872 |
||
|
|
Cash
Flows from Investment Activities |
-13,413 |
-11,473 |
|||
|
|
Cash
Flows from Financing Activities |
406 |
42 |
|||
|
|
Cash,
Bank Deposits at the Term End |
|
10,164 |
9,260 |
||
|
ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
||||
|
|
|
Net
Worth (S/Holders' Equity) |
94,279 |
90,526 |
||
|
|
|
Current
Ratio (%) |
146.30 |
151.25 |
||
|
|
|
Net
Worth Ratio (%) |
60.65 |
60.68 |
||
|
|
|
Recurring
Profit Ratio (%) |
5.09 |
4.30 |
||
|
|
|
Net Profit
Ratio (%) |
2.93 |
2.63 |
||
|
|
|
Return
On Equity (%) |
4.43 |
4.09 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.95 |
|
|
1 |
Rs.83.80 |
|
Euro |
1 |
Rs.70.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.