|
Report Date : |
30.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
SCSK CORPORATION |
|
|
|
|
Registered Office : |
Toyosu Front, 3-2-20 Toyosu Kotoku |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2014 (Consolidated) |
|
|
|
|
Date of Incorporation : |
25.10.1969 |
|
|
|
|
Legal Form : |
Limited Company (Kabushiki
Kaisha) |
|
|
|
|
Line of Business : |
· Subject is a specialized information service provider belonging to Sumitomo group. Subject is engaged mainly in development of sales control
systems for Sumitomo Corp and financial systems for securities firms, banks
and life insurance firms. |
|
|
|
|
No of Employees : |
1,689 |
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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Japan |
a1 |
a1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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 |
SCSK CORPORATION (Renamed in Oct 2011)
S. C. S. K. KK
Toyosu Front,
3-2-20 Toyosu Kotoku Tokyo 135-0061 JAPAN
Tel:
03-5166-2500 Fax: 03-5166-1009
*.. The given address is its Harumi Branch Office (Tokyo)
E-Mail address: info@scs.co.jp
· Subject is a specialized information service provider belonging to Sumitomo group.
Subject
is engaged mainly in development of sales control systems for Sumitomo Corp and
financial systems for securities firms, banks and life insurance firms.
Osaka,
Nagoya, Kyoto, Fukuoka, Sendai, Hiroshima, Tsukuba, Hamamatsu, Tsukuba (Ibaraki), other (Tot 20)
Shanghai
(rep office); USA, Europe (--subsidiaries)
YOSHIO
OHSAWA, PRES
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 288,236 M
PAYMENTSNo Complaints
CAPITAL Yen 21,152 M
TREND STEADY WORTH Yen 126,159 M
STARTED 1969 EMPLOYES 1,689
SOFTWARE DEVELOPER, AFFILIATED TO SUMITOMO CORP.
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 |
132,840 |
7,343 |
3,803 |
(%) |
94,568 |
|
(Consolidated) |
31/03/2012 |
200,326 |
16,659 |
25,669 |
50.80 |
124,419 |
|
|
31/03/2013 |
278,634 |
22,228 |
16,730 |
39.09 |
108,208 |
|
|
31/03/2014 |
288,236 |
25,690 |
18,387 |
3.45 |
126,159 |
|
|
31/03/2015 |
300,000 |
28,000 |
22,000 |
4.08 |
.. |
Unit: In Million Yen
Forecast
(or estimated) figures for 31/03/2015 fiscal term
The subject company was established on the basis of IT division
separated from Sumitomo Corp, leading general trading house of Japan, as
Sumisho Computer Systems Corporation. In
Aug 2005, merged with a sister company, Sumisho Electronics Corp, to streamline
operations. This is a specialized
information service provider belonging to Sumitomo group. Engaged mainly in development of sales
control systems for Sumitomo Corp and financial systems for securities firms,
banks and life insurance firms. Merged
CSK in Oct 2011 and renamed as captioned. .Has an affiliated company, QUO CARD
Co. The company has introduced
additionally 2,500 of tablet type information terminal devices, with
encouraging employees working at home, scheduling reinstatement and using the device
outside.
The sales volume for Mar/2014 fiscal term amounted to Yen 288,236
million, a 3.4% up from Yen 278,634 million in the previous term. Projects for Sumitomo Corp increased. SI projects for finance firms piled up The recurring profit was posted at Yen 25,690
million and the net profit at Yen 18,387 million, respectively, compared with
Yen 22,228 million recurring profit and Yen 16,730 million net profit,
respectively, a year ago.
For the current term ending Mar 2015 the recurring profit is projected
at Yen 28,000 million and the net profit at Yen 22,000 million, on a 4.1% rise
in turnover, to Yen 300,000 million.
Revenues of projects for distribution and finance firms will be
steady. Net profit will continue to increase.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
Date Registered: 25 Oct 1969
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
200 million shares
Issued:
107,986,403 shares
Sum: Yen 21,152
million
Major shareholders
(%): Sumitomo Corp (48.8), Master Trust Bank of Japan T (4.8), Japan Trustee
Services T (4.2), Company’s Treasury Stock (3.7), Group Employees’ S/Holding
Assn (2.5), State Street Bank & Trust (1.1), Argo Graphics (0,9), Trust
& Custody Services Inv T (0.7), Nomura Trust Inv T (0.7), State Street Bank
& Trust 505225 (0.6); foreign owners (19.1).
No. of shareholders: 14,468
Listed on the
S/Exchange (s) of: Tokyo
Managements: Nobuhide Nakaido,
ch; Yoshio Ohsawa, pres; Hisakazu Suzuki, s/mgn dir; Tatsuyasu Kumazaki, s/mgn
dir; Hiroaki Kamata, s/mgn dir; Shigeo Kurimoto, s/mgn dir; Masahiko Suzuki,
s/mgn dir; Masanori Furunuma, s/mgn dir; Tohru Tanihara, s/mgn dir; Satoshi
Toriyama, mgn dir; Takahiro Ichino, mgn dir
Related companies: Vari Serve Corp,
JIEC Co, Sumisho Computer Systems USA,
Sumisho Computer Systems Europe, other
Nothing detrimental is known as to the commercial morality of
executives.
Activities: Specialized
information service provider: system development (41%), system development
& operation/services (37%), system sales (21%), prepaid card (1%).
Clients: [Business firms, banks] Jupiter Shop Channel, Sumitomo Corp, NEC Capital Solution, NTT group firms, Jupiter Telecom, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, software developers] IBM Japan, NEC, SAS Institute Japan, Oracle Japan, Hewlett Packard, SAP Japan, Fujitsu Ltd, Daiwabo Information System, SoftBank BB, Yamaha Corp, Autodesk Inc, other.
Payment record: No Complaints
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
Sumitomo Trust Bank (H/O)
SMBC (Ningyocho)
Relations: Satisfactory
(In
Million Yen)
|
FINANCES: (Consolidated
in million yen) |
|
|||
|
|
|
Terms Ending: |
31/03/2014 |
31/03/2013 |
|
INCOME STATEMENT |
|
|
||
|
|
Annual Sales |
|
288,236 |
278,634 |
|
|
Cost of Sales |
219,511 |
214,167 |
|
|
|
GROSS PROFIT |
68,724 |
64,466 |
|
|
|
Selling & Adm Costs |
44,749 |
43,663 |
|
|
|
OPERATING PROFIT |
23,974 |
20,803 |
|
|
|
Non-Operating P/L |
1,716 |
1,425 |
|
|
|
RECURRING PROFIT |
25,690 |
22,228 |
|
|
|
NET PROFIT |
18,387 |
16,730 |
|
|
BALANCE SHEET |
|
|
|
|
|
|
Cash |
|
19,156 |
19,669 |
|
|
Receivables |
|
63,372 |
61,661 |
|
|
Inventory |
|
4,244 |
3,460 |
|
|
Securities, Marketable |
1,101 |
1,298 |
|
|
|
Other Current Assets |
123,023 |
122,532 |
|
|
|
TOTAL CURRENT ASSETS |
210,896 |
208,620 |
|
|
|
Property & Equipment |
57,187 |
56,223 |
|
|
|
Intangibles |
|
7,216 |
7,690 |
|
|
Investments, Other Fixed Assets |
42,633 |
50,295 |
|
|
|
TOTAL ASSETS |
317,932 |
322,828 |
|
|
|
Payables |
|
19,644 |
17,568 |
|
|
Short-Term Bank Loans |
17,000 |
|
|
|
|
|
|
|
|
|
|
Other Current Liabs |
108,880 |
142,308 |
|
|
|
TOTAL CURRENT LIABS |
145,524 |
159,876 |
|
|
|
Debentures |
|
20,000 |
20,000 |
|
|
Long-Term Bank Loans |
20,000 |
20,000 |
|
|
|
Reserve for Retirement Allw |
192 |
7,697 |
|
|
|
Other Debts |
|
6,057 |
7,046 |
|
|
TOTAL LIABILITIES |
191,773 |
214,619 |
|
|
|
MINORITY INTERESTS |
|
|
|
|
|
Common
stock |
21,152 |
21,152 |
|
|
|
Additional
paid-in capital |
3,061 |
3,066 |
|
|
|
Retained
earnings |
101,176 |
86,735 |
|
|
|
Evaluation
p/l on investments/securities |
1,129 |
957 |
|
|
|
Others |
|
8,151 |
4,952 |
|
|
Treasury
stock, at cost |
(8,510) |
(8,654) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
126,159 |
108,208 |
|
|
|
TOTAL EQUITIES |
317,932 |
322,828 |
|
|
CONSOLIDATED CASH FLOWS |
|
|
||
|
|
|
Terms ending: |
31/03/2014 |
31/03/2013 |
|
|
Cash
Flows from Operating Activities |
|
35,342 |
25,156 |
|
|
Cash
Flows from Investment Activities |
-26,045 |
-249 |
|
|
|
Cash
Flows from Financing Activities |
-33,739 |
-5,512 |
|
|
|
Cash,
Bank Deposits at the Term End |
|
59,004 |
83,247 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
|
|
Net
Worth (S/Holders' Equity) |
126,159 |
108,208 |
|
|
|
Current
Ratio (%) |
144.92 |
130.49 |
|
|
|
Net Worth
Ratio (%) |
39.68 |
33.52 |
|
|
|
Recurring
Profit Ratio (%) |
8.91 |
7.98 |
|
|
|
Net
Profit Ratio (%) |
6.38 |
6.00 |
|
|
|
Return
On Equity (%) |
14.57 |
15.46 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.10 |
|
UK Pound |
1 |
Rs.102.04 |
|
Euro |
1 |
Rs.80.74 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.