MIRA INFORM REPORT

 

 

Report Date :

27.06.2014

 

IDENTIFICATION DETAILS

 

Name :

SUZUKI MOTOR CORPORATION

 

 

Registered Office :

300 Takatsukacho Hamamatsu City Shizuoka-Pref 432-8611

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014 (Consolidated)

 

 

Date of Incorporation :

March 1920

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

·         Engaged in manufacturing Motorcycles, Four-Wheeled Cars, Mini-Cars, Outboard Motors, Boats, Electro-Scooters, Industrial Equipment & Specialty Machines

 

Subject had launched production of the New Model “Wagon R” in Indonesia in September 2013

 

 

No of Employees :

40,798

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

Yen 92,842.6 Million

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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

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

 

 

COMPANY NAME

 

SUZUKI MOTOR CORPORATION

 

 

REGD NAME

 

Suzuki KK

 

 

MAIN OFFICE

 

300 Takatsukacho Hamamatsu City Shizuoka-Pref 432-8611 JAPAN

 

Tel: 053-440-2061     Fax: 053-440-2061

 

URL:                 http://www.suzuki.co.jp/

E-Mail address:            info@suzuki.co.jp

 

 

ACTIVITIES  

 

·         Engaged in manufacturing Motorcycles, Four-Wheeled Cars, Mini-Cars, Outboard Motors, Boats, Electro-Scooters, Industrial Equipment & Specialty Machines

 

Subject had launched Production of the New Model “Wagon R” in Indonesia in September 2013. 

 

 

BRANCHES

 

Tokyo

 

 

OVERSEAS

 

Europe (9), USA (2), Canada, Asia & Oceania (10), S America (--subsidiaries)

 

 

fACTORIES

 

Takatsuka, Kosai, Iwata, Toyokawa, Osuga, Sagara (--Shizuoka); Asia (12), Americas (6), Europe/Africa (3)

 

CHIEF EXEC

 

OSAMU SUZUKI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 2,938,314 M

PAYMENTS      REGULAR         CAPITAL           Yen 138,014 M

TREND             STEADY           WORTH            Yen 1,494,357 M

STARTED         1920                 EMPLOYES      40,798

 

 

COMMENT

 

MFR SPECIALIZING IN MINICARS & MOTORCYCLES.

 

      FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 92,842.6 MILLION, 30 DAYS NORMAL TERMS.

 

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

2,608,217

122,502

45,174

(%)

1,106,999

(Consolidated)

31/03/2012

2,512,186

130,553

53,887

-3.68

1,111,757

 

31/03/2013

2,578,317

155,593

80,389

2.63

1,298,553

 

31/03/2014

2,938,314

197,842

107,484

13.96

1,494,357

 

31/03/2015

3,000,000

198,000

115,000

2.10

..

                        Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2015 fiscal term

 

 

HIGHLIGHTS

           

This is the second-ranked minicar mfr and 3rd largest maker of motorcycles.  Active in overseas, producing 4-wheelers in Asia including India, and Eastern Europe.  GM’s capital participation started in 1981, but canceled in 2006.  Dissolved with comprehensive tie-up with Volkswagen AG, Germany.  The company launched production of the new model “Wagon R” in Indonesia in Sept 2013.  It acquired local tax reduction certification, and will target sales to middle-income earners.  On the domestic market, it will improve fuel efficiency of the “Solio” compact passenger car in a bid to shore up sales.  Has business alliance with Kawasaki Heavy Ind in field of motorcycles.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 2,938,314 million, a 14.0% up from Yen 2,578,317 million in the previous term.  Automobile sales were up, backed by sales in Japan and Southeast Asia, despite showing signs of slowing in mainstay India.  The weaker Yen contributed strongly to earnings.  Net profit hit a consecutive new high, even with swelling R&D costs.  The recurring profit was posted at Yen 197,842 million and the net profit at Yen 107,484 million, respectively, compared with Yen 155,593 million recurring profit and Yen 80,389 million net profit, respectively, a year ago.

           

For the current term ending Mar 2015 the recurring profit is projected at Yen 198,000 million and net profit at Yen 115,000 million, respectively, on a 2.1% rise in turnover, to Yen 3,000,000 million.  Sales in Southeast Asia will expand.  The weaker Yen will continue to contribute to earnings.

           

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 92,842.6 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Mar 1920

Legal Status:     Limited Company (Kabushiki Kaisha)

Authorized:        1,500 million shares

Issued:               561,047,304 shares

Sum:                  Yen 138,014 million

 

Major shareholders (%): Volkswagen (19.8), Master Trust Bank of Japan T (4.0), Japan Trustee Services T (3.4), Tokio Marine & Nichido Fire Ins (3.2), MUFG (2.8), Shizuoka Bank (2.5), Resona Bank (2.3), Bank of New York Jasdec Non Treaty (1.9), Sompo Japan Ins (1.6), Nippon Steel & Sumitomo metal (1.3); foreign owners (47.9)

 

No. of shareholders: 40,485

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Osamu Suzuki, ch & pres; Minoru Tamura, v pres; Osamu Honda, v pres; Toshihiro Suzuki, v pres; Yasuhito Harayama, v pres; Naoki Aizawa, s/mgn dir; Eiji Mochizuki, s/mgn dir; Ken’ichi Ayukawa, s/mgn dir; Ichizo Aoyama, s/mgn dir

 

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

 

Related companies: Suzuki Jihan Kinki, American Suzuki Motors, Multi Suzuki India, other

           

 

OPERATION

           

Activities: Manufactures motorcycles (9%), four-wheeled cars, mini-cars (89%), outboard motors, boats, electro-scooters, industrial equipment, specialty machines, others (--2%). 

 

Overseas trading ratio (60 %)

 

Clients: [Dealerships, wholesalers] Suzuki Jihan Kinki, Hamamatsu, other (subsidiary dealerships), American Suzuki Motor Corp, Multi Suzuki India, Magyar Suzuki Corp      (Hungary), Suzuki International Europe, other.

 

No. of accounts: 2,000

 

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Denso Corp, Jatco, Aisin AW, Metal One, Ryowa Corp, other.

 

Payment record: Regular

 

Location: Business area in Hamamatsu City, Shizuoka-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

MUFG (Hamamatsu)

Shizuoka Bank (Hamamatsu)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

 

  Annual Sales

　

2,938,314

2,578,317

 

  Cost of Sales

2,142,754

1,919,218

 

      GROSS PROFIT

795,559

659,098

 

  Selling & Adm Costs

607,812

514,534

 

      OPERATING PROFIT

187,747

144,564

 

  Non-Operating P/L

10,095

11,029

 

      RECURRING PROFIT

197,842

155,593

　

      NET PROFIT

107,484

80,389

BALANCE SHEET

 

 

 

 

  Cash

　

358,851

279,009

 

  Receivables

 

310,694

253,237

 

  Inventory

 

276,284

261,379

 

  Securities, Marketable

612,489

559,609

 

  Other Current Assets

232,514

206,984

 

      TOTAL CURRENT ASSETS

1,790,832

1,560,218

 

  Property & Equipment

694,420

608,460

 

  Intangibles

 

7,243

10,618

 

  Investments, Other Fixed Assets

381,579

308,339

 

      TOTAL ASSETS

2,874,074

2,487,635

 

  Payables

 

433,819

350,472

 

  Short-Term Bank Loans

197,413

171,790

 

　

 

　

　

 

  Other Current Liabs

425,701

362,354

 

      TOTAL CURRENT LIABS

1,056,933

884,616

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

209,166

220,392

 

  Reserve for Retirement Allw

36,918

37,903

 

  Other Debts

　

76,700

46,170

 

      TOTAL LIABILITIES

1,379,717

1,189,081

 

      MINORITY INTERESTS

 

 

 

Common stock

138,014

138,014

 

Additional paid-in capital

144,364

144,364

 

Retained earnings

1,008,555

912,304

 

Evaluation p/l on investments/securities

104,745

58,888

 

Others

 

98,736

45,069

 

Treasury stock, at cost

(57)

(86)

 

      TOTAL S/HOLDERS` EQUITY

1,494,357

1,298,553

　

      TOTAL EQUITIES

2,874,074

2,487,635

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

　

322,915

190,057

 

Cash Flows from Investment Activities

-286,559

-210,559

 

Cash Flows from Financing Activities

2,809

-33,632

　

Cash, Bank Deposits at the Term End

　

710,611

661,102

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

 

Net Worth (S/Holders' Equity)

1,494,357

1,298,553

 

 

Current Ratio (%)

169.44

176.37

 

 

Net Worth Ratio (%)

51.99

52.20

 

 

Recurring Profit Ratio (%)

6.73

6.03

 

 

Net Profit Ratio (%)

3.66

3.12

 

 

Return On Equity (%)

7.19

6.19

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.16

UK Pound

1

Rs.102.23

Euro

1

Rs.82.04

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.