MIRA INFORM REPORT

 

 

Report Date :

09.01.2014

 

IDENTIFICATION DETAILS

 

Name :

SAN-A TRADING CO LTD

 

 

Registered Office :

Yachiyo East Bldg 8F, Kita-1-21 Tenjimbashi-2 Kitaku Osaka 530-0041

 

 

Country :

Japan

 

 

Financials (as on) :

30.11.2013

 

 

Date of Incorporation :

February 1975

 

 

Com. Reg. No.:

1200-01-064492

 

 

Legal Form :

Limited Company

 

 

Line of Business :

exporter of textile machines, new & second-hand, their spare parts & components.

 

 

No. of Employees :

06

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but Correct  

 

 

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. 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

 

SAN-A TRADING CO LTD

 

 

REGD NAME 

 

KK San-A Trading

 

 

MAIN OFFICE

 

Yachiyo East Bldg 8F, Kita-1-21 Tenjimbashi-2 Kitaku Osaka 530-0041 JAPAN

           

Tel: 06-6351-7041     Fax: 06-6351-4037

                       

URL:                             http://www.san-a-tr.co.jp

E-Mail address:                        info@san-a-tr.co.jp

 

 

ACTIVITIES  

 

Export of textile machines and parts

 

 

BRANCHES   

 

Korea Sam-A Trading Co Ltd (Seoul); Shanghai J&S Metallic Yarn Co Ltd; San-A Trading Shanghai Office (--\

Shanghai); San-A Trading Vietnam Office (Ho Chi Ming);

 

 

OFFICERS

 

SEIJI TAKEUCHI, PRES Tohru Yasui, dir

Jun’ichiro Takeuchi, dir               Hiroyuki Yamada, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 


SUMMARY

 

FINANCES        R/WEAK                                   A/SALES          Yen 896 M

PAYMENTSSlow but Correct         CAPITAL           Yen 30 M

TREND SLOW                                      WORTH            Yen 18 M

STARTED         1975                                         EMPLOYES      6

 

 

COMMENT

 

EXPORTER OF TEXTILE MACHINES AND PARTS.

 

FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

 

HIGHLIGHTS

           

The subject company was established by Seiji Takeuchi in order to make most of his experience in the subject line of business.  A small-sized trading firm specializing in exporting textile machines, new & second-hand, their spare parts & components.  Machines are supplied from major textile machinery mfrs and shipped to worldwide destinations: China, India, Indonesia, Vietnam, Korea, Philippines, USA, Mexico, other.  Stressing on business operations in China, where operating 2 offices.  At Chinese factories the firm manufactures metallic yarn for supply to Japanese apparel industries. 

 

 

FINANCIAL INFORMATION

           

The sales volume for Nov/2012 fiscal term amounted to Yen 896 million, a 5% down from Yen 945 million in the previous term.  Exports were hurt by the high Yen, decreasing earnings & profits in Yen terms.  The recurring profit was posted at Yen 8 million and the net profit at Yen 10 million, respectively, compared with Yen 1 million recurring profit and Yen 1 million net profit, respectively, a year ago.

 

For the term that ended Nov 2013 the recurring profit was projected at Yen 10 and the net profit at Yen 2 million, respectively, on a 5% rise in turnover, to Yen 940 million.  Final results are yet to be released.

 

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements.

 

 

REGISTRATION

 

Date Registered:       Feb 1975

Regd No.:                 1200-01-064492 (Osaka-Kitaku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         240,000 shares

Issued:                60,000 shares

Sum:                   Yen 30 million

Major shareholders (%): Seiji Takeuchi (22), Junichiro Takeuchi (22), Nobuyoshi Hirata (2)

 

No. of shareholders: 12 (about)

 

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

 

 

OPERATION

 

Activities: Exports textile machines, new & old, their parts & components (90%):

 

Weaving machines (rubber reducer, high speed gill, mixing gill); Textile machines (loom for name labels, design system, rings, cylinder wires, rolling strippers); Warp knitting machines, circular knitting machines, terry knitting machines, knitting glove machines, other;

 

Imports metallic yarn (from China), tuna (from China and Asia), T-shirts (from USA), bi cycles & bicycle racks (from China), other consumable goods (--10%).

 

Clients: [Mfrs, wholesalers] Exports to India, China, Vietnam, Taiwan, Hong Kong,

Korea, Thailand, Philippines, Pakistan, Mexico, Bangladesh, Indonesia, USA, Canada,

other.

 

Domestic clients: Daizo Co, Fujiki Shoten, DAC Co, E-NA Co, GAMO Kansai, etc.

No. of accounts: Unavailable

Domestic areas of activities: Centered in greater-Osaka

 

Suppliers: [Mfrs, wholesalers] Murata Machinery, Tamurakoma & Co, VPIC, Kuroiwa Knit Machine, Mitsuwa Ind, TMT Machinery, Kanai Juyo Kogyo, Yoshida Kikai Kogyo, other.  Imports from USA, Pakistan, China, Italy, Turkey, other.

 

Payment record: Slow but Correct  

 

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

 

Bank References:

SMBC (Minami-Morimachi)

Bank of Nagoya (Osaka)

Relations: Satisfactory.

 

 


FINANCES

 (In Million Yen)

 

       Terms Ending:

30/11/2013

30/11/2012

30/11/2011

30/11/2010

Annual Sales

 

940

896

945

1,295

Recur. Profit

 

10

8

1

12

Net Profit

 

2

1

1

1

Total Assets

 

 

255

393

392

Current Assets

 

 

124

233

233

Current Liabs

 

 

175

270

255

Net Worth

 

 

18

38

38

Capital, Paid-Up

 

 

30

30

30

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.91

-5.19

-27.03

178.49

    Current Ratio

 

..

70.86

86.30

91.37

    N.Worth Ratio

..

7.06

9.67

9.69

    R.Profit/Sales

 

1.06

0.89

0.11

0.93

    N.Profit/Sales

0.21

0.11

0.11

0.08

    Return On Equity

..

..

2.63

2.63

 

Note: Forecast (or estimated) for the 30/11/2013 fiscal term.


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.24

UK Pound

1

Rs.102.17

Euro

1

Rs.84.82

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.