MIRA INFORM REPORT

 

 

Report Date :

24.03.2014

 

IDENTIFICATION DETAILS

 

Name :

SANKEN ELECTRIC CO LTD

 

 

Registered Office :

3-6-3 Kitano Niiza City Saitama-Pref 352-8666

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

September, 1946

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of semiconductors, power source equipment

 

 

No. of Employees :

10,599

 

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 – 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 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 exceeds 225% 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 and address

 

SANKEN ELECTRIC CO LTD

 

REGD NAME:   Sanken Denki KK

MAIN OFFICE:  3-6-3 Kitano Niiza City Saitama-Pref 352-8666 JAPAN

                        Tel: 048-472-1111    

Fax: 048-471-6249

 

                        *.. The is its Overseas Business Division, Tokyo

 

URL:                 http://www.sanken-ele.co.jp/

E-Mail address: info@sanken-ele.co.jp

 

 

ACTIVITIES  

 

Mfg of semiconductors, power source equipment

 

 

BRANCHES

 

Tokyo (1-11-1 Nishiikebukuro Toshimaku Tokyo 171-0021), Osaka, Nagoya, Sendai, Hiroshima, Fukuoka, Sapporo, Kanazawa

 

 

FACTORIES

 

At the caption address, Kawagoe (Saitama)

 

 

CHIEF EXEC

 

SADATOSI IIJIMA, PRES & CEO

 

 

Yen Amount    

 

In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 126,386 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 20,896 M

TREND             SLOW                           WORTH            Yen 39,436 M

STARTED         1946                             EMPLOYES      10,599

 

 

COMMENT

 

MFR SPECIALIZING IN SEMICONDUCTORS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

134,134

-6,048

-18,950

(%)

37,761

(Consolidated)

31/03/2011

144,882

4,972

-922

8.01

33,520

31/03/2012

131,803

3,018

436

-9.03

33,293

31/03/2013

126,386

4,047

2,272

-4.11

39,436

31/03/2014

146,200

7,200

6,700

15.68

..

Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2014 fiscal term

 

 

HIGHLIGHTS

 

The is a MAJOR producer of power source equipment & semiconductors, founded by Tetsuji Kotani, semiconductor engineer, in order to succeed business operations of Toho Industrial Research Laboratory, founded 1937 but was closed operations in 1945, inheriting its engineers and facilities.  Renamed as captioned in 1962.  This is a specialized producer of semiconductors including IC’s, transistors, diodes, etc.  Also power source equipment for large telecommunications systems and OA-use switching units.   In China &South Korea, the company’s share in the consumer electronics-use semiconductor device market is rising, and the company won new orders for power systems.  It will speed up output boost at the subsidiary in the US with 8-inch wafer capacity increasing by 80% by July 2014.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 126,386 million, a 4.1% down from Yen 131,803 million in the previous term.  The recurring profit was posted at Yen 4,047 million and the net profit at Yen 2,272 million, respectively, compared with Yen 3,018 million recurring profit and Yen 436 million net profit, respectively, a year ago.

For the current term ending Mar 2014 the recurring profit is projected at Yen 7,200 million and net profit at Yen 6,700 million, respectively, on a 15.7% rise in turnover, to Yen 146,200 million.  Sales of semiconductor devices for automobiles are soaring, and those of products consumer electronics are growing in Japan, South Korea & China. 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:  Sept 1946

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         257 million shares

Issued:               125,490,302 shares

Sum:                  Yen 20,896 million

           

Major shareholders (%): Master Trust Bank of Japan, T (10.6), Japan Trustee Services Bank T (7.5), Saitama Resona Bank (4.7), Company’s Treasury Stock (3.3), Chase London SL Omnibus Acct (2.6), Juniper (2.3), International Rectifier (1.9), Northern Trust (AVFC) British (1.8), Japan Trustee Services T9 (1.7), Cedar (1.4); foreign owners (23.7)

 

No. of shareholders: 11,789

 

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

 

Managements: Sadatoshi Iijima, res; Takeshi Wada, v pres; Sasao Hoshino, s/mgn dir; Akira Ota, s/mgn dir; Kinji Kudo, mgn dir; Mitsuo Ueki, mgn dir; Yoshihiro Suzuki, mgn dir; Koichi Shimura, mgn dir; azunori Suzuki, mgn dir; Masahiro Sasaki, dir

 

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

 

 

OPERATION

 

Activities: Manufactures semiconductors, including IC’s, transistors, diodes, etc (--76%); power source equipment (12%); related units, equipment, others (12%). 

Overseas Sales Ratio (52%).

 

Clients: [Telecommunications carriers, electric powers, home electric mfrs, AV equipment mfrs, governments] NTT, other

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

            Suppliers: [Mfrs, wholesalers] Shin-Etsu Chemical, International Rectifier Japan, Fujitsu Device, Hitachi Cable, other.

 

Payment record: No complaints

 

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

 

Bank References:

                        Resona Bank (Tokyo)

                        Saitama Resona Bank (Niiza)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

  Annual Sales

 

126,386

131,803

  Cost of Sales

98,211

104,820

      GROSS PROFIT

28,174

26,982

  Selling & Adm Costs

23,549

22,934

      OPERATING PROFIT

4,625

4,048

  Non-Operating P/L

-608

-1,030

      RECURRING PROFIT

4,047

3,018

 

      NET PROFIT

2,272

436

BALANCE SHEET

  Cash

 

12,079

9,901

  Receivables

31,945

29,989

  Inventory

44,265

40,515

  Securities, Marketable

 

 

  Other Current Assets

3,788

3,875

      TOTAL CURRENT ASSETS

92,077

84,280

  Property & Equipment

50,945

47,301

  Intangibles

1,691

922

  Investments, Other Fixed Assets

3,804

3,627

      TOTAL ASSETS

148,517

136,130

  Payables

16,235

18,530

  Short-Term Bank Loans

14,805

23,746

 

 

 

  Other Current Liabs

45,908

23,654

      TOTAL CURRENT LIABS

76,948

65,930

  Debentures

10,000

20,000

  Long-Term Bank Loans

12,500

7,506

  Reserve for Retirement Allw

5,128

4,073

  Other Debts

 

4,505

5,328

      TOTAL LIABILITIES

109,081

102,837

      MINORITY INTERESTS

Common stock

20,896

20,896

Additional paid-in capital

17,573

18,302

Retained earnings

9,493

7,220

Evaluation p/l on investments/securities

141

15

Others

(4,741)

(9,218)

Treasury stock, at cost

(3,926)

(3,922)

      TOTAL S/HOLDERS` EQUITY

39,436

33,293

 

      TOTAL EQUITIES

148,517

136,130

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2013

31/03/2012

Cash Flows from Operating Activities

 

6,339

5,345

Cash Flows from Investment Activities

-6,390

-8,614

Cash Flows from Financing Activities

1,284

509

 

Cash, Bank Deposits at the Term End

 

12,036

8,822

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

Net Worth (S/Holders' Equity)

39,436

33,293

Current Ratio (%)

119.66

127.83

Net Worth Ratio (%)

26.55

24.46

Recurring Profit Ratio (%)

3.20

2.29

Net Profit Ratio (%)

1.80

0.33

Return On Equity (%)

5.76

1.31

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.05

UK Pound

1

Rs.100.81

Euro

1

Rs.84.18

 

 

INFORMATION DETAILS

 

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%)

 

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.