|
Report Date : |
13.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
SANGETSU CO LTD |
|
|
|
|
Registered Office : |
1-4-1 Habashita Nishiku Nagoya 451-8575 |
|
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|
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
April, 1953 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export, wholesale of interior decorating products |
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No. of Employees : |
1,441 |
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 |
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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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately 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 |
SANGETSU CO LTD
REGD NAME: KK Sangetsu
MAIN OFFICE: 1-4-1 Habashita
Nishiku Nagoya 451-8575 JAPAN
Tel:
052-564-3111
Fax: 052-564-3191 -
URL: http://www.sangetsu.co.jp
E-Mail address: info@sangetsu.co.jp
Import, export, wholesale of interior decorating products
Tokyo, Nagoya, Okayama, Fukuoka, Sapporo, Sendai, other (Tot 26)
Sangetsu America Inc (USA) (subsidiary)
Tokyo, Nagoya, Osaka, Okayama, Hiroshima, Fukuoka (--show rooms)
SHOSUKE YASUDA, PRES
In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 131,978 M
PAYMENTS NO COMPLAINTS CAPITAL Yen
13,616 M
TREND UP WORTH Yen 119,887 M
STARTED 1953 EMPLOYES 1,441
TRADING FIRM SPECIALIZING IN INTERIOR DECORATING 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 |
112,118 |
7,530 |
4,242 |
(%) |
118,084 |
|
(Consolidated) |
31/03/2012 |
118,518 |
7,180 |
4,151 |
5.71 |
119,409 |
|
31/03/2013 |
123,150 |
8,393 |
4,806 |
3.91 |
117,672 |
|
|
31/03/2014 |
131,978 |
9,475 |
5,459 |
7.17 |
119,887 |
|
|
31/03/2015 |
128,000 |
7,500 |
4,400 |
-3.01 |
.. |
Unit: In Million
Yen
Forecast figures
for the 31/03/2015 fiscal term.
This is the largest trading house specializing in interiors, mainly wall
materials. Top-ranked trader of
wallpapers and upper-ranked player in fabrics and polychlorinated
biphenyl-based flooring. Featuring
sample book-based marketing. Designs and
places orders with manufacturers and sells thru agencies. It also handles exteriors but the sales areas
are currently limited to 5 prefectures, including Aichi & Gifu. The company aims to expand areas through
negotiations with suppliers operating as areas headquarters in real terms.
The sales volume for Mar/2014 fiscal term amounted to Yen 131,978
million, a 7.2% up from Yen 123,150 million in the previous term. This is partly thanks to upsurge in demand
prior to the consumption tax hike in Apr 2014.
Wallpapers fared well, thanks to increased housing construction
starts. Flooring materials also grew on
the strength extensive openings of commercial stores. The recurring profit was posted at Yen 9,475
million and the net profit at Yen 5,459 million, respectively, compared with
Yen 8,393 million recurring profit and Yen 4,806 million net profit,
respectively, a year ago.
For the current term ending Mar 2015 the recurring profit is projected
at Yen 7,500 million and the net profit at Yen 4,400 million, on a 3% fall in
turnover, to Yen 128,000 million. The
upsurge in demand prior to the consumption tax hike will fade out, and sales of
wallpapers will fall.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
Date Registered: Apr 1953
Legal Status: Limited Company (Kabushiki Kaisha
Authorized: 159 million
shares
Issued: 40,188,240 shares
Sum: Yen 13,616 million
Major shareholders (%): Northern Trust (AVFC) American (13.2), Northern
Trust (AVFC) Re US Tax EP (5.2), Company’s Treasury Stock (5.1), Japan Trustee
Services T (3.9), Master Trust Bank of Japan T (3.2), Kyohei Hibi (3.0), Yuichi
Hibi (2.9), MUFG (2.9), Ogaki Kyoritsu Bank (2.5), Tozo Hibi (2.4); foreign
owners (28.6)
No. of shareholders: 5,292
Listed on the S/Exchange (s) of: Tokyo
Managements: Yusuke Hibi, ch; Shosuke Yasuda, pres; Tozo Hibi, s/mgn
dir; Yoshihiro Hibi, dir; Michiharu Tanaka, dir; Takeshi Uehara, dir; Sachio
Ito, dir; Satoshi Shimizu, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Sungreen Co, Yamada Shomei Lighting Co, Sangetsu
America Inc, other.
Activities: Trading firm for import, export and wholesale of interior
& exterior decorating products, including wallpaper, curtain, flooring
materials, and upholstery, fences, gates, exterior decorating materials:
Interiors (86%), exteriors (11%), lighting equipment (3%).
Clients: [Mfrs, wholesalers] Tsukasa Co Inc, Shinoda Inc, Amaya Co,
Miyagi Co, Sato & Co, other
No. of accounts: 500
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] IMI Corp, Mitsubishi Corp, Teijin
Frontier, Japan Carpet Co, Dainippon Printing, other
Payment record: No complaints
Location: Business area in Nagoya.
Office premises at the caption address are owned and maintained
satisfactorily.
Bank References:
MUFG
(Nagoya)
Mizuho Bank
(Nagoya)
Relations:
Satisfactory
|
FINANCES: (Consolidated in million yen) |
||||
|
|
|
Terms Ending: |
31/03/2014 |
31/03/2013 |
|
INCOME
STATEMENT |
||||
|
Annual Sales |
|
131,978 |
123,150 |
|
|
Cost of Sales |
95,922 |
88,614 |
||
|
GROSS PROFIT |
36,055 |
34,536 |
||
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Selling & Adm Costs |
27,102 |
26,516 |
||
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OPERATING PROFIT |
8,952 |
8,020 |
||
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Non-Operating P/L |
523 |
373 |
||
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RECURRING PROFIT |
9,475 |
8,393 |
||
|
|
NET PROFIT |
5,459 |
4,806 |
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BALANCE
SHEET |
||||
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Cash |
|
18,919 |
22,919 |
|
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Receivables |
45,496 |
42,886 |
||
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Inventory |
10,950 |
11,614 |
||
|
Securities, Marketable |
15,002 |
20,007 |
||
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Other Current Assets |
946 |
852 |
||
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TOTAL CURRENT ASSETS |
91,313 |
98,278 |
||
|
Property & Equipment |
30,304 |
27,865 |
||
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Intangibles |
346 |
328 |
||
|
Investments, Other Fixed Assets |
23,940 |
12,734 |
||
|
TOTAL ASSETS |
145,903 |
139,205 |
||
|
Payables |
14,389 |
12,355 |
||
|
Short-Term Bank Loans |
|
20 |
||
|
|
|
|
||
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Other Current Liabs |
6,525 |
5,438 |
||
|
TOTAL CURRENT LIABS |
20,914 |
17,813 |
||
|
Debentures |
|
|
||
|
Long-Term Bank Loans |
92 |
115 |
||
|
Reserve for Retirement Allw |
3,654 |
2,629 |
||
|
Other Debts |
|
1,356 |
975 |
|
|
TOTAL LIABILITIES |
26,016 |
21,532 |
||
|
MINORITY INTERESTS |
||||
|
Common stock |
13,616 |
13,616 |
||
|
Additional paid-in capital |
20,005 |
20,005 |
||
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Retained earnings |
89,633 |
87,146 |
||
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Evaluation p/l on investments/securities |
1,907 |
1,492 |
||
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Others |
(686) |
0 |
||
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Treasury stock, at cost |
(4,588) |
(4,587) |
||
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TOTAL S/HOLDERS` EQUITY |
119,887 |
117,672 |
||
|
|
TOTAL EQUITIES |
145,903 |
139,205 |
|
|
CONSOLIDATED
CASH FLOWS |
||||
|
Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
Cash Flows from Operating Activities |
|
7,878 |
4,311 |
|
|
Cash Flows from Investment
Activities |
-5,477 |
3,591 |
||
|
Cash Flows from Financing Activities |
-3,025 |
-7,506 |
||
|
|
Cash, Bank Deposits at the Term End |
|
12,333 |
12,957 |
|
ANALYTICAL
RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
Net Worth (S/Holders' Equity) |
119,887 |
117,672 |
||
|
Current Ratio (%) |
436.61 |
551.72 |
||
|
Net Worth Ratio (%) |
82.17 |
84.53 |
||
|
Recurring Profit Ratio (%) |
7.18 |
6.82 |
||
|
Net Profit Ratio (%) |
4.14 |
3.90 |
||
|
Return On Equity (%) |
4.55 |
4.08 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.33 |
|
|
1 |
Rs.99.68 |
|
Euro |
1 |
Rs.80.30 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.