MIRA INFORM REPORT

 

 

Report Date :

05.04.2014

 

IDENTIFICATION DETAILS

 

Name :

SAKATA INX CORPORATION

 

 

Registered Office :

1-23-37 Edobori Nishiku Osaka 550-0002

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

September, 1920

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of printing inks

 

 

No. of Employees :

3,503

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

 

Source : CIA

 

 

 

 


Company name and address

 

SAKATA INX CORPORATION

 

REGD NAME:   Sakata Inks KK

MAIN OFFICE:  1-23-37 Edobori Nishiku Osaka 550-0002 JAPAN

                        Tel: 06-6447-5811    

Fax: 06-6447-5829     -

 

URL:                 http://www.inx.co.jp

E-Mail address: inx-prir@inx.co.jp

 

 

ACTIVITIES

 

Mfg of printing inks

 

 

BRANCHES

 

Tokyo, Nagoya, Fukuoka, Sapporo, Shizuoka, other (Tot 17)

 

 

OVERSEAS

 

USA (2), Europe (6), Asia (11, including 4 in China)

 

 

FACTORIES

 

Noda, Hanyu, Itami

 

 

CHIEF EXEC

 

KOTARO MORITA, PRES

 

 

Yen Amount

 

In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 123,098 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 7,472 M

TREND             UP                                WORTH            Yen 45,533 M

STARTED         1920                             EMPLOYES      3,503

 

 

COMMENT    

 

MFR OF PRINTING INKS 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

113,669

4,742

3,089

(%)

35,974

(Consolidated)

31/03/2011

117,663

6,276

3,757

3.51

36,866

31/03/2012

119,571

4,952

2,981

1.62

37,404

31/03/2013

123,098

6,809

5,588

2.95

45,533

31/03/2014

139,000

8,700

5,400

12.92

..

Unit: In Million Yen

Forecast figures for the 31/03/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is the third largest mfr of printing inks.  Founded in 1896, the first company to produce newspaper ink in Japan.  Has strength in inks for newspaper and metals.  Leads others in advancing to overseas including Asia and North America.  Has 11 branch offices in Asia and 2 in North America.  Also has presence in India.  Maintains capital alliance with Toyo Ink SC Holdings.  The company will be opening three new facilities in 2014, beginning with offset ink plant in Panoli, India, in Feb, and followed soon after by flexographic ink plant in Hanoi, Vietnam, in Mar and packaging product plant in Ohio, US, in the period of autumn..

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 123,098 million, a 3.0% up from Yen 119,571 million in the previous term.   The recurring profit was posted at Yen 6,89 million and the net profit at Yen 5,588 million, respectively, compared with Yen 4,952 million recurring profit and Yen 2,981 million net profit, respectively, a year ago. 

 

(Apr/Dec/2013 results): Sales Yen 103,062 million (up 11.8%), operating profit Yen 6,508 million (up 44.8%), recurring profit Yen 7,472 million (up 39.2%), net profit Yen 4,764 million (up 53.1%).  (% compared with the corresponding period a year ago).

For the current term ending Mar 2014 the recurring profit is projected at Yen 8,700 million and the net profit at Yen 5,400 million, on a 12.9% rise in turnover, to Yen 139,000 million.  Asian sales are growing on back of weaker Yen.  North American sales are also helping.  Sales volume of functional materials is increasing.  Operating profits will expand. 

 

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

 

 

REGISTRATION

           

Date Registered: Sept 1920

Legal Status:        Limited Company (Kabushiki Kaisha

Authorized:           144 million shares

Issued:                62,601,181 shares

Sum:                   Yen 7,472 million

 

Major shareholders (%): Toyo Ink SC Holdings (16.8), Japan Trustee Services T (5.8), Sumitomo Life Ins (5.6), Master Trust Bank of Japan T (4.2), Kanbe Bussan Ltd (4.0), JP Morgan Chase Bank (3.5), Company’s Treasury Stock (3.3), Kanbe Co (3.1), Employees’ S/Holding Assn (2.7), Resona Bank (2.4); foreign owners (18.1)

 

No. of shareholders: 2,102

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Hirotsugu Takamaru, ch; Kotaro Morita, pres; Masanori Kano, s/mgn dir; Yoshiaki Uesaka, s/mgn dir; Naohisa Yasui, mgn dir; Yasuhiro Hashimoto, dir; Toshiyuki Sawada, dir; Masaki Nakamura, dir; Kouichi Hirao, dir; Hitoshi Nakamura, dir

 

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

 

Related companies: Sakata Trading, IGL Group, Sakata Inx (India), other.

 

 

OPERATION

           

Activities: Manufactures printing inks: newspaper printing inks, commercial printing inks, packaging inks, flexible packaging gravure, metal decorating inks, printing/packaging equipment & supplies; printing inks & equipment in Japan (48%), printing inks and equipment in Asia (15%), North America (21%), Europe (5%), functional materials (5%), others (6%)

Overseas Sales Ratio (45%)

           

Clients: [Mfrs, wholesalers] Rengo Co, Asahi Printec, Inx Gravure, Sankei Newspaper Printing, Yomiuri Tokyo, Kyodo Printing, other

            No. of accounts: 600

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Nagase Corp, Handa Trading, Konica Minolta Business Solutions, Kodak Japan, Saiden Chemical, other

 

Payment record: No complaints

 

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

 

Bank References:

                        Resona Bank (Osaka)

                        SMBC Bank (Umeda)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

  Annual Sales

 

123,098

119,571

  Cost of Sales

95,521

94,141

      GROSS PROFIT

27,576

25,429

  Selling & Adm Costs

21,786

21,168

      OPERATING PROFIT

5,789

4,260

  Non-Operating P/L

1,020

692

      RECURRING PROFIT

6,809

4,952

 

      NET PROFIT

5,588

2,981

BALANCE SHEET

  Cash

 

5,861

5,198

  Receivables

38,197

36,546

  Inventory

12,016

10,927

  Securities, Marketable

 

 

  Other Current Assets

1,148

1,996

      TOTAL CURRENT ASSETS

57,222

54,667

  Property & Equipment

22,894

19,239

  Intangibles

1,158

1,147

  Investments, Other Fixed Assets

18,375

15,941

      TOTAL ASSETS

99,649

90,994

  Payables

22,294

22,295

  Short-Term Bank Loans

5,788

6,488

 

 

 

  Other Current Liabs

12,510

14,226

      TOTAL CURRENT LIABS

40,592

43,009

  Debentures

 

 

  Long-Term Bank Loans

7,835

6,299

  Reserve for Retirement Allw

2,876

2,726

  Other Debts

 

2,812

1,556

      TOTAL LIABILITIES

54,115

53,590

      MINORITY INTERESTS

Common stock

7,472

7,472

Additional paid-in capital

5,672

5,868

Retained earnings

38,084

33,363

Evaluation p/l on investments/securities

1,891

902

Others

(6,946)

(9,563)

Treasury stock, at cost

(640)

(638)

      TOTAL S/HOLDERS` EQUITY

45,533

37,404

 

      TOTAL EQUITIES

99,649

90,994

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2013

31/03/2012

Cash Flows from Operating Activities

 

6,574

5,230

Cash Flows from Investment Activities

-3,132

-1,823

Cash Flows from Financing Activities

-3,162

-2,220

 

Cash, Bank Deposits at the Term End

 

5,861

5,193

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

Net Worth (S/Holders' Equity)

45,533

37,404

Current Ratio (%)

140.97

127.11

Net Worth Ratio (%)

45.69

41.11

Recurring Profit Ratio (%)

5.53

4.14

Net Profit Ratio (%)

4.54

2.49

Return On Equity (%)

12.27

7.97

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.32

UK Pound

1

Rs.100.04

Euro

1

Rs.82.65

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NNA

 

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.