MIRA INFORM REPORT
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Report Date : |
06.11.2014 |
IDENTIFICATION DETAILS
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Name : |
SAKAI HEAVY INDUSTRIES LTD |
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Registered Office : |
Hamamatsucho Seiwa Bldg, 1-4-8 Shiba-Daimon Minatoku Tokyo 105-0012 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
May 1949 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufactures Construction Machinery, Industrial Machinery |
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No. of Employees : |
527 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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. 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.
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Source
: CIA |
Company
name and address
SAKAI HEAVY INDUSTRIES LTD
REGD NAME: Sakai Seisakusho KK
MAIN OFFICE: Hamamatsucho Seiwa Bldg, 1-4-8 Shiba-Daimon
Minatoku Tokyo 105-0012 JAPAN
Tel: 03-3434-3401
Fax: 03-3436-6513 -
URL: http://www.sakai-net.co.jp
E-Mail address: (thru
the URL)
ACTIVITIES
Mfg of road construction machinery, road rollers
BRANCHES
Kuki, Kawahara, other (Tot 10)
FACTORIES
Kawagoe; USA, Indonesia, China
CHIEF
EXEC
ICHIRO SAKAI, PRES
Yen
Amount: In million Yen,
unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 24,701 M
PAYMENTS NO
COMPLAINTS CAPITAL Yen 3,115 M
TREND UP WORTH Yen
16,566 M
STARTED 1949 EMPLOYES 527
COMMENT
MFR OF ROAD CONSTRUCTION MACHINERY
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
Unit:
In Million Yen
Forecast figures for the 31/03/2015 fiscal term.
HIGHLIGHTS
This is a leading mfr of road construction machinery and
highly competitive in large-type road rollers.
Also engaged in maintenance service and engineering work. Purchases and distributes industrial
machinery, including flushers, backhoe loaders
Have mfg subs in the US, Indonesia and China.
FINANCIAL
INFORMATION
The sales volume for Mar/2014 fiscal term amounted to Yen
24,701 million, a 24.1% up from Yen 19,910 million in the previous term. The recurring profit was posted at Yen 2,186
million and the net profit at Yen 1,730 million, respectively, compared with
Yen 792 million recurring profit and Yen 736 million net profit, respectively,
a year ago.
(Apr/Jun/2014 results): Sales Yen 5,466 million (down 1.0%),
operating profit Yen 382 million (down 8.9%), recurring profit Yen 351 million
(down 21.3%), net profit Yen 119 million (down 68.6%). (% as compared with the corresponding period
a year ago).
For the current term ending Mar 2015 the recurring profit is
projected at Yen 1,650 million and the net profit at Yen 950 million,
respectively, on a 0.8% fall in turnover, to Yen 24,500 million.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 782.1 million, on 30 days normal terms.
REGISTRATION
Date Registered: May
1949
Legal Status: Limited
Company (Kabushiki Kaisha
Authorized: 149,900,000 shares
Issued: 42,620,172
shares
Sum: Yen
3,115 million
Major shareholders (%): Mizuho Bank (4.9), MUFG (4.9), Japan
Trustee Services T (4.0), Dai-ichi Life Ins (3.4), Nippon Life Ins (3.3), Ichiro
Sakai (2.5), Japan Securities Finance (2.2), Nichireki Co (1.9), Master Trust
Bank of Japan T (1.6), Yuken Kogyo (1.5); foreign owners (5.3)
No. of shareholders: 4,976
Listed on the S/Exchange (s) of: Tokyo
Managements: Ichiro Sakai, pres; Kiyonori Sakai, s/mgn dir;
Hideki Iwakuma, mgn dir; Yukihiko Tomotori, mgn dir; Ryosue Watanabe, mgn dir;
Kazushi Kiyomiya, dir; Masami Fukuda, dir; Yukinori Tsukimoto, dir; Yoshinobu
Kurosawa, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies: Sakai China, Sakai America, other.
OPERATION
Activities: Manufactures
construction machinery (97%), industrial machinery (1%), others (2%)
Overseas
Sales Ratio (23%)
Clients: [Mfrs,
wholesalers] Sakai America, Komatsu Rental, Seiwa Renewal Works, other
No. of accounts: 500
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Isuzu Motor, PT Sakai Indonesia, Danfoss Power
Solutions,
Yuasa Trading, other
Payment record: No
Complaints
Location:
Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank
References
MUFG (Tamachi)
Mizuho Bank (Toyo)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME
STATEMENT |
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Annual Sales |
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24,701 |
19,910 |
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Cost of Sales |
18,065 |
15,179 |
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GROSS PROFIT |
6,635 |
4,731 |
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Selling & Adm Costs |
4,437 |
3,843 |
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OPERATING PROFIT |
2,198 |
888 |
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Non-Operating P/L |
-12 |
-96 |
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RECURRING PROFIT |
2,186 |
792 |
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NET PROFIT |
1,730 |
736 |
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BALANCE
SHEET |
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Cash |
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5,730 |
5,068 |
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Receivables |
9,162 |
7,424 |
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Inventory |
7,782 |
9,138 |
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Securities, Marketable |
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Other Current Assets |
456 |
(506) |
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TOTAL CURRENT ASSETS |
23,130 |
21,124 |
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Property & Equipment |
4,539 |
4,066 |
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Intangibles |
204 |
175 |
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Investments, Other Fixed Assets |
4,012 |
3,335 |
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TOTAL ASSETS |
31,885 |
28,700 |
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Payables |
5,578 |
4,918 |
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Short-Term Bank Loans |
4,075 |
4,169 |
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Other Current Liabs |
1,655 |
1,580 |
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TOTAL CURRENT LIABS |
11,308 |
10,667 |
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Debentures |
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Long-Term Bank Loans |
2,920 |
2,769 |
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Reserve for Retirement Allw |
62 |
60 |
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Other Debts |
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1,029 |
929 |
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TOTAL LIABILITIES |
15,319 |
14,425 |
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MINORITY INTERESTS |
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Common stock |
3,115 |
3,115 |
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Additional paid-in capital |
6,361 |
6,361 |
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Retained earnings |
5,897 |
4,378 |
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Evaluation p/l on
investments/securities |
1,111 |
776 |
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Others |
132 |
(310) |
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Treasury stock, at cost |
(50) |
(46) |
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TOTAL S/HOLDERS` EQUITY |
16,566 |
14,274 |
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TOTAL EQUITIES |
31,885 |
28,700 |
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CONSOLIDATED
CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash Flows from Operating Activities |
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2,170 |
1,345 |
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Cash Flows from Investment
Activities |
-538 |
-69 |
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Cash Flows from Financing Activities |
-843 |
997 |
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Cash, Bank Deposits at the Term End |
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5,659 |
4,888 |
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ANALYTICAL
RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net Worth (S/Holders' Equity) |
16,566 |
14,274 |
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Current Ratio (%) |
204.55 |
198.03 |
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Net Worth Ratio (%) |
51.96 |
49.74 |
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Recurring Profit Ratio (%) |
8.85 |
3.98 |
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Net Profit Ratio (%) |
7.00 |
3.70 |
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Return On Equity (%) |
10.44 |
5.16 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.39 |
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UK Pound |
1 |
Rs.98.00 |
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Euro |
1 |
Rs.76.99 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
SHG |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.