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Report Date : |
25.02.2014 |
IDENTIFICATION DETAILS
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Name : |
SUMITOMO (SHI) CONSTRUCTION MACHINERY CO LTD |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
April, 2001 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of construction machinery including excavator, asphalt
aver & other construction equipment. |
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No. of Employees : |
1,050 |
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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Maximum Credit Limit : |
Yen
2,866.5 million |
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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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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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.
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Source
: CIA |
SUMITOMO (SHI)
CONSTRUCTION MACHINERY CO LTD
REGD NAME: Sumitomo Kenki KK
MAIN OFFICE: Think Park Tower, 2-1-1 Osaka Shinagawaku
Tokyo 141-6025 JAPAN
Tel:
03-6737-2600
Fax: 03-6866-5112
URL: http://www.sumitomokenki.co.jp
E-Mail address: (thru the URL)
Manufactures construction machinery & equipment
Chiba
At the caption address, Chiba, Indonesia, China
MIKIO IDE, PRES Akio
Yoshikawa, s/mgn dir
Shinji Shimomura, mgn dir Takeshi
Teramoto dir
Ichiro Shimada, dir Yasunobu
Katsumi, dir
In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 85967 M
PAYMENTS NO COMPLAINTS CAPITAL Yen
16,000 M
TREND SLOW WORTH Yen 32,692 M
STARTED 2001 EMPLOYES 1,050
MFR OF CONSTRUCTION MACHINERY, OWNED BY SUMITOMO HEAVY INDUSTRIES LTD.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMEN
MAX
CREDIT LIMIT: YEN 2,866.5 MILLION, 30 DAYS NORMAL TERMS
The subject company was established on the basis of construction
machinery mfg division separated from Sumitomo Heavy Industries Ltd (See REGISTRATION). This is a specialized mfr of construction
machinery: excavator, asphalt aver & other construction equipment. Products are leased thru leasing
companies. Products are also exported. Nation’s top-ranked in asphalt finishers
construction. Products are also
manufactured at China and Indonesian factories.
The sales volume for Mar/2013 fiscal term amounted to Yen 85,967
million, a 15% down from Yen 100792 million in the previous term. Exports were hindered by the high Yen. The recurring profit was posted at Yen 1,213
million and the net profit at Yen 1,038 million, respectively, compared with
Yen 2,071 million recurring profit and yen 1,077 million net profit,
respectively, a year ago.
For the current term ending Mar 2014 the recurring profit is projected
at Yen 1,250 million and the net profit at Yen 1,100 million, respectively, on
a 3% rise in turnover to yen 88,500 million.
The
financial situation is considered FAIR and good for ORDINARY business
engagements. Max credit limit is
estimated at Yen 2,866.5 million, on 30 days normal terms.
Date Registered: Apr 2001
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
1,280 shares
Issued:
320 shares
Sum: Yen 16,000 million
Major shareholders
(%): Sumitomo Heavy Industries Ltd* (100)
*.. Comprehensive mfr
of heavy machineries, Tokyo, founded 1934, listed Tokyo S/E, Capital Yen 30,872
million, sales Yen 585,871 million, operating profit Yen 31,288 million,
recurring profit Yen 30,997 million, net worth Yen 5,865, total assets Yen
642,649 million, net worth Yen 295,668 million, employees 18,186, pres Shunsuke
Betsukawa
Nothing detrimental is known as to the commercial morality of
executives.
Activities: Manufactures
construction machinery: excavator asphalt paver, other (--100%)
Clients: [Mfrs,
wholesalers] Sumitomo Construction Machinery Sales, CNH, LBX, other
No. of accounts: 500
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Isuzu Motor, KYB, Topy Industries, Kawasaki Heavy Industries,
other
Payment record: No complaints
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
SMBC
(Tokyo)
Mitsui
Sumitomo Trust Bank (Tokyo)
Relations:
Satisfactory
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Terms Ending: |
31/03/2014 |
31/03/2013 |
31/03/2012 |
31/03/2011 |
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Annual Sales |
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88,500 |
85,967 |
100,792 |
83,994 |
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Recur. Profit |
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1,250 |
1,213 |
2,071 |
3,489 |
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Net Profit |
|
1,100 |
1,038 |
1,077 |
2,308 |
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Total Assets |
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|
74,633 |
88,790 |
76,500 |
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Current Assets |
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43,568 |
58,457 |
50,955 |
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Current Liabs |
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39,036 |
53,739 |
41,675 |
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Net Worth |
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32,632 |
32,392 |
32,222 |
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Capital, Paid-Up |
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16,000 |
16,000 |
16,000 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
2.95 |
-14.71 |
20.00 |
1,813.30 |
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Current Ratio |
|
.. |
111.61 |
108.78 |
122.27 |
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N.Worth Ratio |
.. |
43.72 |
36.48 |
42.12 |
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R.Profit/Sales |
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1.41 |
1.41 |
2.05 |
4.15 |
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N.Profit/Sales |
1.24 |
1.21 |
1.07 |
2.75 |
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Return On Equity |
.. |
3.18 |
3.32 |
7.16 |
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Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.12 |
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|
1 |
Rs.103.38 |
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Euro |
1 |
Rs.85.32 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
-- |
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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.