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Report Date : |
11.08.2014 |
IDENTIFICATION DETAILS
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Name : |
SANYO SPECIAL STEEL CO LTD |
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Registered Office : |
3007 |
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Country : |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
January 1935 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufactures Specialty Steel & Steel Products. |
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No. of Employees : |
2,775 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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. 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 & address
SANYO SPECIAL
STEEL CO LTD
REGD NAME
Sanyo Tokushu Seiko KK
MAIN OFFICE
3007 Nakajima Shikamaku Himeji City Hyogo-Pref 672-8677 JAPAN
Tel: 079-235-6003
Fax: 079-235-8571 -
URL: http://www.sanyo-steel
co.jp
E-Mail address: (thru the URL)
ACTIVITIES: Mfg of steel,
steel products
BRANCHES: Tokyo, Osaka,
Nagoya, Hiroshima, Fukuoka
OVERSEAS: USA, China, India (2),
Thailand, Indonesia
FACTORIES: At the caption address
CHIEF EXEC: YASUO TAKEDA, PRES
Yen Amount: In million Yen, unless otherwise
stated
SUMMARY
FINANCES FAIR A/SALES Yen 161,587 M
PAYMENTS NO COMPLAINTS CAPITAL Yen 20,182 M
TREND UP WORTH Yen
102,905 M
STARTED 1935 EMPLOYES 2,775
COMMENT: MFR OF STEEL & STEEL PRODUCTS
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
|
Business |
Terms Ending |
Annual Sales* |
R.Profit* |
N.Profit* |
S.Growth |
Net Worth* |
|
Results: |
31/03/2011 |
159,512 |
13,395 |
7,822 |
(%) |
92,591 |
|
(Consolidated) |
31/03/2012 |
171,800 |
10,995 |
6,407 |
7.70 |
96,993 |
|
|
31/03/2013 |
138,306 |
1,670 |
509 |
-19.50 |
97,151 |
|
|
31/03/2014 |
161,587 |
6,749 |
4,066 |
16.83 |
102,905 |
|
|
31/03/2015 |
170,000 |
8,000 |
5,500 |
5.21 |
.. |
Unit: In Million Yen
Forecast figures for the 31/03/2015 fiscal term.
HIGHLIGHTS
This is a specialist mfr of special steel. Boasts about 40% market share in bearing steel
and strong in bearing pipes. Rebounded
after 1965 bankruptcy. Fostering new
fields including high-quality alloy steel for wind power generations, etc. Member of Nippon Steel & Sumitomo Metal
group. .
FINANCIAL INFORMATION
The sales volume for Mar/2014 fiscal term amounted to Yen 161,587
million, a 16.8% up from Yen 138,306 million in the previous term. Sales of special steel for automobiles
rebounded rapidly, and sale of special steel for construction machinery also
recovered. The recurring profit was
posted at Yen 6,749 million and the net profit at Yen 4,066 million,
respectively, compared with Yen 1,670 million recurring profit and Yen 509
million net profit, respectively, a year ago.
For the current term ending Mar 2015 the recurring profit is projected
at Yen 8,000 million and the net profit at Yen 5,500 million, respectively, on
a 5.2% rise in turnover, to Yen 170,000 million. Sales volume of mainstay bearing steel is
anticipated to expand firmly, supported by increased overseas automobile
production activities. Selling prices
will also take an upward trend.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date Registered: Jan
1935
Legal Status: Limited Company (Kabushiki Kaisha
Authorized: 474,392,000
shares
Issued: 167,124,036
shares
Sum: Yen
20,182 million
Major shareholders (%): Nippon Steel & Sumitomo Metal
(14.5), Northern Trust (AVFC) (6.6), Company’s Kyoeikai Assn (5.8), NSK Ltd
(4.4), Company’s Treasury Stock (3.4), SMBC (3.4), aster Trust Bank of Japan T
(3.2), Japan Trustee Services T (2.4), Juniper (2.3), Mizuho Bank (2.1);
foreign owners (19.6)
No. of
shareholders: 7,906
Listed on the
S/Exchange (s) of: Tokyo
Managements: Yasuo Takeda, pres; Nobuyuki Tanaka, v pres; Shin’ichi
Tominaga, mgn dir; Akihiko Yanagitani, mgn dir; Wataru Nishihama, mgn dir;
Hiroyuki Eiyama, mgn dir; Masaharu Kobayashi, dir; Shigehiro Oi, dir; Katsu
Yanagimoto, dir; Kazuya Shin-no, dir
Nothing detrimental is known as to the commercial morality of
executives.
OPERATION
Activities: Manufactures
specialty steel & steel products:
(Sales breakdown
by divisions):
Specialty Steel (83%): bearing steel, engineering steel, stainless
steel, heat resistant steel, tool steel;
Special Materials (5%): heat/corrosion-resistant alloys, metal powder
products;
Formed & Fabricated Materials (12%): formed and fabricated materials
made from special steel bars & tubes, other
Clients: [Mfrs, wholesalers]
Marubeni Itochu Steel, Mitsui & Co, Metal One, Hitachi
High-Technologies, Toyota Tsusho Corp, other
No. of accounts: 800
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Mitsui Bussan Metals, Metal One, Marubeni Tetsugen,
Santoku Tech, other
Payment record: No Complaints
Location: Business area in Himeji, Hyogo-Pref. Office premises at the caption address are
leased and maintained satisfactorily.
Bank References:
SMBC (Himeji)
Mizuho Bank (Kobe)
Relations: Satisfactory
FINANCES
(In Million Yen)
|
FINANCES: (Consolidated in million yen) |
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|||
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME
STATEMENT |
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Annual Sales |
|
161,587 |
138,306 |
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Cost of Sales |
141,606 |
125,048 |
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GROSS PROFIT |
19,980 |
13,258 |
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Selling & Adm Costs |
13,096 |
11,741 |
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OPERATING PROFIT |
6,883 |
1,516 |
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Non-Operating P/L |
-134 |
154 |
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RECURRING PROFIT |
6,749 |
1,670 |
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NET PROFIT |
4,066 |
509 |
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BALANCE SHEET |
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Cash |
|
21,966 |
22,684 |
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Receivables |
|
51,273 |
41,433 |
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Inventory |
|
48,390 |
45,779 |
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Securities, Marketable |
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Other Current Assets |
2,930 |
4,748 |
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TOTAL CURRENT ASSETS |
124,559 |
114,644 |
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Property & Equipment |
62,954 |
68,939 |
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Intangibles |
|
794 |
757 |
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Investments, Other Fixed Assets |
15,215 |
14,431 |
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TOTAL ASSETS |
203,522 |
198,771 |
|
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Payables |
|
14,883 |
13,341 |
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Short-Term Bank Loans |
44,688 |
40,391 |
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Other Current Liabs |
13,712 |
11,325 |
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TOTAL CURRENT LIABS |
73,283 |
65,057 |
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Debentures |
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Long-Term Bank Loans |
25,063 |
33,936 |
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Reserve for Retirement Allw |
689 |
935 |
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Other Debts |
|
1,581 |
1,692 |
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TOTAL LIABILITIES |
100,616 |
101,620 |
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MINORITY INTERESTS |
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Common stock |
20,182 |
20,182 |
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Additional paid-in capital |
22,596 |
22,596 |
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Retained earnings |
58,056 |
54,474 |
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Evaluation p/l on
investments/securities |
2,823 |
1,421 |
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Others |
|
1,029 |
250 |
|
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Treasury stock, at cost |
(1,781) |
(1,772) |
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TOTAL S/HOLDERS` EQUITY |
102,905 |
97,151 |
|
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TOTAL EQUITIES |
203,522 |
198,771 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
|
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Cash Flows from Operating Activities |
|
9,152 |
23,793 |
|
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Cash Flows from Investment
Activities |
-4,951 |
-20,534 |
|
|
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Cash Flows from Financing Activities |
-5,352 |
2,503 |
|
|
|
Cash, Bank Deposits at the Term End |
|
21,579 |
22,421 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
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Net Worth (S/Holders' Equity) |
102,905 |
97,151 |
|
|
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Current Ratio (%) |
169.97 |
176.22 |
|
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Net Worth Ratio (%) |
50.56 |
48.88 |
|
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Recurring Profit Ratio (%) |
4.18 |
1.21 |
|
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Net Profit Ratio (%) |
2.52 |
0.37 |
|
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Return On Equity (%) |
3.95 |
0.52 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.55 |
|
|
1 |
Rs.103.50 |
|
Euro |
1 |
Rs.82.41 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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 |
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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 |
|
<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.