|
Report Date : |
31.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
SANKYO SEIKO CO LTD |
|
|
|
|
Registered Office : |
101 Edomachi Chuoku Kobe |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
December, 1938 |
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|
|
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Com. Reg. No.: |
007-01-007875 (Kobe-Chuoku) |
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|
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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|
|
|
Line of Business : |
Import, export, wholesale of apparel |
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|
|
|
No. of Employees : |
467 |
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 – 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 |
SANKYO SEIKO CO
LTD
REGD NAME: Sankyo Seiko KK
MAIN OFFICE: 2-5-6 Azuchimachi
Chuoku Osaka 51-0052 JAPAN
Tel: 06-6268-5000
Fax:
06-6268-5390
*.. Registered at: 101 Edomachi Chuoku Kobe-
URL: http://www.sankyoseiko.co.jp
E-Mail address: (thru the URL)
Import, export, wholesale of apparel
Tokyo
Taipei, Hong Kong, Paris, and London
KENZO KAWASAKI, PRES
In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 40,459 M
PAYMENTS NO COMPLAINTS CAPITAL Yen
3,000 M
TREND UP WORTH Yen 29,258 M
STARTED 1938 EMPLOYES 467
TRADING FIRM SPECIALIZING IN HIGH-QUALITY APPAREL
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 |
37,869
|
2,650
|
1,565
|
(%) |
20,953
|
|
(Consolidated) |
31/03/2012 |
38,546
|
3,128
|
1,808
|
1.79 |
22,577
|
|
|
31/03/2013 |
36,845
|
1,951
|
837 |
-4.41
|
25,377
|
|
|
31/03/2014 |
40,459
|
3,616
|
2,442
|
9.81 |
29,258
|
|
|
31/03/2015 |
39,000
|
3,700
|
3,000
|
-3.61
|
.. |
Unit: In Million
Yen
Forecast figures
for the 31/03/2015 fiscal term.
This is a major trader of high-quality casual apparel, and pioneer in
the industry. Has special strength in
quality clothing of major US and European brands (See OPERATION). Acquired DAKS (UK) in May 1991. Deals in fashion goods, textiles, suit
materials and silk. Active in expanding
business abroad, particularly in Southeast Asia. The company transferred direct-run store
operations, expanded at high-end hotels and other locations, to a fashion
subsidiary in Oct 2013.
The sales volume for Mar/2014 fiscal term amounted to Yen 40,459
million, a 9.8% up from Yen 36,845 million in the previous term. Fashion lines expanded in the Asian
market. Domestic sales benefitted from
reduced excess inventory and reviews of sales methods, and profit ratio
strongly improved. The recurring profit
was posted at Yen 3,616 million and the net profit at Yen 2,442 million,
respectively, compared with Yen 1,951 million recurring profit and Yen 837
million net profit, respectively, a year ago.
For the current term ending Mar 2015 the recurring profit is projected
at Yen 3,700 million and the net profit at Yen 3,000 million, on a 3.6% fall in
turnover, to Yen 39,000 million.
The financial situation is considered FAIR and good for ORDINARY business
engagements.
Date Registered: Dec 1938
Regd No.: 007-01-007875 (Kobe-Chuoku)
Legal Status: Limited
Company (Kabushiki Kaisha
Authorized: 240 million shares
Issued: 60
million shares
Sum: Yen 3,000 million
Major shareholders (%): Company’s Treasury Stock (24.5), Takizo Miki
Foundation (12.7), MUFG (3.7), SMBC (3.7), Toray Ind (2.6), Credit Suisse Euro
PB Omnibus (2.6), Master Trust Bank of Japan T (2.1), Japan Trustee Services T
(2.0), Resona Bank (1.7); foreign owners (8.9)
No. of shareholders: 7,342
Listed on the S/Exchange (s) of: Tokyo
Managements: Kenzo Kawasaki, pres; Kazuyuki Nagasawa, mgn dir; Koji
Yamada, mgn dir; Akira Sawai, mgn dir; Akira Inoue, mgn dir; Hajima Nishimura, dir;
Yutaka Iwasa, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Sankyo Seiko Fashion Service, Sankyo Seiko Apparel
Fashion, other.
Activities: Trading firm for import, export and wholesale of various
textile products: Fashion lines-related segment (44%): fashion products,
overseas branded products as well as license business;
Textile-related segment (29%): original equipment manufacturer (OEM)
business of textile clothing products;
Lifestyle-related products segment (21%): home wear, night wear, bedroom
items, bathroom items, such as towels, other;
Real Estate leasing segment (4%): leases offices, halls, &
buildings;
Others (1%): provides logistics & storage services, building
maintenance services, other;
Overseas Sales Ratio (20%)
Clients: [Mfrs, wholesalers] Sankyo Seiko Fashion Service, Onward
Kashiyama, other
Exports to China, Taiwan, other
No. of accounts: 1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Sankyo Seiko Fashion Service, DAKS Simpson Group
Plc, Leonard Fashion
SA, Fremaux-Delorme SA, other
Payment record: No complaints
Location: Business area in Osaka.
Office premises at the caption address are leased and maintained
satisfactorily.
Bank References:
MUFG
(Osaka-Chuo)
SMBC
(Osaka-Chuo)
Relations:
Satisfactory
|
FINANCES:
(Consolidated
in million yen) |
|
|||
|
|
|
Terms Ending: |
31/03/2014 |
31/03/2013 |
|
INCOME STATEMENT |
|
|
||
|
|
Annual Sales |
|
40,459
|
36,845
|
|
|
Cost of Sales |
24,177
|
22,204
|
|
|
|
GROSS PROFIT |
16,281
|
14,641
|
|
|
|
Selling & Adm Costs |
13,068
|
12,860
|
|
|
|
OPERATING PROFIT |
3,212
|
1,780
|
|
|
|
Non-Operating P/L |
404 |
171 |
|
|
|
RECURRING PROFIT |
3,616
|
1,951
|
|
|
|
NET PROFIT |
2,442
|
837 |
|
|
BALANCE SHEET |
|
|
|
|
|
|
Cash |
|
6,823
|
4,654
|
|
|
Receivables |
|
7,245
|
7,018
|
|
|
Inventory |
|
4,433
|
4,925
|
|
|
Securities, Marketable |
|
|
|
|
|
Other Current Assets |
581 |
992 |
|
|
|
TOTAL CURRENT ASSETS |
19,082
|
17,589
|
|
|
|
Property & Equipment |
13,419
|
13,834
|
|
|
|
Intangibles |
|
5,231
|
4,412
|
|
|
Investments, Other Fixed Assets |
15,415
|
14,637
|
|
|
|
TOTAL ASSETS |
53,147
|
50,472
|
|
|
|
Payables |
|
4,088
|
4,986
|
|
|
Short-Term Bank Loans |
8,987
|
11,208
|
|
|
|
|
|
|
|
|
|
Other Current Liabs |
3,201
|
2,495
|
|
|
|
TOTAL CURRENT LIABS |
16,276
|
18,689
|
|
|
|
Debentures |
|
|
|
|
|
Long-Term Bank Loans |
1,580
|
613 |
|
|
|
Reserve for Retirement Allw |
675 |
631 |
|
|
|
Other Debts |
|
5,357
|
5,161
|
|
|
TOTAL LIABILITIES |
23,888
|
25,094
|
|
|
|
MINORITY INTERESTS |
|
|
|
|
|
Common
stock |
3,000
|
3,000
|
|
|
|
Additional
paid-in capital |
6,165
|
6,165
|
|
|
|
Retained
earnings |
20,525
|
18,648
|
|
|
|
Evaluation
p/l on investments/securities |
6,065
|
5,340
|
|
|
|
Others |
|
(1,262) |
(2,541) |
|
|
Treasury
stock, at cost |
(5,235) |
(5,235) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
29,258
|
25,377
|
|
|
|
TOTAL EQUITIES |
53,147
|
50,472
|
|
|
CONSOLIDATED CASH FLOWS |
|
|
||
|
|
|
Terms
ending: |
31/03/2014 |
31/03/2013 |
|
|
Cash
Flows from Operating Activities |
|
3,130
|
654 |
|
|
Cash
Flows from Investment Activities |
149 |
-612 |
|
|
|
Cash
Flows from Financing Activities |
-1,719
|
-495 |
|
|
|
Cash,
Bank Deposits at the Term End |
|
6,663
|
4,992
|
|
ANALYTICAL RATIOS Terms
ending: |
31/03/2014 |
31/03/2013 |
||
|
|
|
Net
Worth (S/Holders' Equity) |
29,258
|
25,377
|
|
|
|
Current
Ratio (%) |
117.24
|
94.11
|
|
|
|
Net
Worth Ratio (%) |
55.05
|
50.28
|
|
|
|
Recurring
Profit Ratio (%) |
8.94 |
5.30 |
|
|
|
Net
Profit Ratio (%) |
6.04 |
2.27 |
|
|
|
Return
On Equity (%) |
8.35 |
3.30 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.03 |
|
|
1 |
Rs.98.91 |
|
Euro |
1 |
Rs.80.34 |
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.