MIRA INFORM REPORT

 

 

Report Date :

18.11.2014

 

IDENTIFICATION DETAILS

 

Name :

SANDEN CORPORATION

 

 

Registered Office :

1-31-7 Taito Taitoku Tokyo 110-8555

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

July, 1943

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Automobile Equipment, Air-Conditioner Compressors.

 

 

No. of Employees :

11,000

 

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. 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 and address

 

SANDEN CORPORATION

 

REGD NAME:   Sanden KK

 

MAIN OFFICE:  1-31-7 Taito Taitoku Tokyo 110-8555 JAPAN

                                    Tel: 03-3833-1211     Fax: 03-3835-3170    

 

                        *..Registered at: 20 Kotobukicho Isesaki City Gunma-Pref

 

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

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

 

 

ACTIVITIES  

 

Mfg of automobile equipment, air-conditioner compressors

 

 

BRANCHES

 

18 domestic, 32 overseas (including subsidiaries)

 

 

OVERSEAS

 

USA (3), Mexico, Europe (6), Asia (22), other

 

 

FACTORIES

 

Akagi, Yattajima (Gunma), Toyohashi

 

 

CHIEF EXEC

 

MITSUYA YAMAMOTO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 　     A/SALES          Yen 274,786 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 11,037 M

TREND UP                    　     WORTH            Yen 65,651 M

STARTED         1943                 　     EMPLOYES      11,000

 

 

COMMENT

 

MFR OF AUTOMOBILE EQUIPMENT 

 

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 specialized mfr of automobile equipment with air-conditioner compressors as mainline.  Second ranked mfr of such compressors.  Mainstay compressors mainly bound for European carmakers.  Also produces car air-conditioners, vending machines & home electric appliances.  Distribution systems including vending machines & show cases becoming 2nd mainline.  The company transferred automobile equipment production from its flood-hit plant in Thailand to temporal plant in eastern Bangkok. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 274,786 million, a 13.7% up from Yen 241,780 million in the previous term.  The recurring profit was posted at Yen 4,976 million and the net profit at Yen 5,843 million, respectively, compared with Yen 253 million recurring profit and Yen 1,084 million net profit, respectively, a year ago.

 

(Apr/Sept/2014 results): Sales Yen 154,866 million (up 16.9%), operating profits Yen 4,965 million (up 588.4%), recurring profit Yen 5,957 million (up 690.0%), net profit Yen 3,985 million (up 525.8%). (% as compared with the corresponding period a year ago).   

           

For the current term ending Mar 2015 the recurring profit is projected at Yen 9,000 million and the net profit at Yen 5,500 million, on a 9.2% rise in turnover, to Yen 300,000 million.  Sales of compressors for automobiles will advance, mainly in China.  Orders for show cases for stores rose in the first half, led by large-lot orders, and ceased to grow in the middle of the term, but will advance again in the second half.  Demand for vending machines will increase, boosted by the expanded lineup of eco-friendly products.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 4,462.3 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　          Jul 1943

Legal Status:                 Limited Company (Kabushiki Kaisha

Authorized:                              396 million shares

Issued:                         140,331,565 shares

Sum:                             Yen 11,037 million

Major shareholders (%): Master Trust Bank of Japan T (6.9), Customers’ S/Holding Assn (4.8), Mizuho Bank (3.6), Gunma Bank (3.6), Japan Trustee Services T (3.4), Trust & Custody Services (3.2), Employees’ S/Holding Assn (2.9), Bank of New York 133522 (2.8), Daido Life Ins (2.4), Tomoaki Ushikubo (1.9); foreign owners (12.5)

 

No. of shareholders:     6,882

 

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

 

Managements: Masayoshi Ushikubo, ch; Yoshimasa Hayakawa, v ch; Mitsuya Yamamoto, pres; Mitsugi Takahashi, s/mgn dir; Mark Ulfig, s/mgn dir; Katsuya Nishi, mgn dir; Isao Tada, dir; Hideto Ozaki, dir

 

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

 

Related companies: Sanden International (USA) Inc, Sanden of Europe GmbH, other.

 

 

OPERATION

           

Activities: Manufactures automotive equipment (66%), distribution systems (30%), others (4%);

Overseas Sales Ratio (66%).

 

(Mfg items):

Automotive Systems: compressors, HVAC unit, heat exchanger for air-conditioners & engines;

Vending Systems: vending machines for food, drinks, other;

Electric Device Systems: wireless communication adapter, wireless remote monitors;

Retail Systems: refrigerator, freezer, multi temperature horizontal refrigerated display cabinet,

Living & Environment Systems: hot water supply systems, heat pump hot water floor heating, IH cooking heater, far inflared radiant heating unit, other.

           

Clients: [Mfrs, wholesalers] Sanden International Singapore, Suntory Foods, Sanden Mfg Poland, Sanden International USA, Sanden International Europe, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] OSCO Ind, NSK Ltd, Toyo Clutch Co, Isuzu Ind, COGAX Corp, other

 

Payment record: No Complaints

 

Location: Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

Bank References:

            Gunma Bank (Isesaki)

            Mizuho Bank (H/O)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

　

　

  Annual Sales

　

274,786

241,780

　

  Cost of Sales

226,685

205,048

　

      GROSS PROFIT

48,101

36,731

　

  Selling & Adm Costs

43,242

37,627

　

      OPERATING PROFIT

4,858

-896

　

  Non-Operating P/L

118

643

　

      RECURRING PROFIT

4,976

253

　

      NET PROFIT

5,843

1,081

BALANCE SHEET

　

　

  Cash

　

19,087

19,970

　

  Receivables

76,530

66,918

　

  Inventory

46,637

44,627

　

  Securities, Marketable

　

　

　

  Other Current Assets

17,868

13,435

　

      TOTAL CURRENT ASSETS

160,122

144,950

　

  Property & Equipment

88,681

79,262

　

  Intangibles

4,250

3,233

　

  Investments, Other Fixed Assets

24,867

19,942

　

      TOTAL ASSETS

277,920

247,387

　

  Payables

54,714

44,594

　

  Short-Term Bank Loans

42,953

52,747

　

　

　

　

　

  Other Current Liabs

38,896

35,032

　

      TOTAL CURRENT LIABS

136,563

132,373

　

  Debentures

　

　

　

  Long-Term Bank Loans

62,567

53,149

　

  Reserve for Retirement Allw

2,545

3,063

　

  Other Debts

　

10,594

5,841

　

      TOTAL LIABILITIES

212,269

194,426

　

      MINORITY INTERESTS

　

　

Common stock

11,037

11,037

　

Additional paid-in capital

4,453

4,453

　

Retained earnings

44,239

39,855

　

Evaluation p/l on investments/securities

2,532

1,821

　

Others

4,568

(2,008)

　

Treasury stock, at cost

(1,178)

(2,197)

　

      TOTAL S/HOLDERS` EQUITY

65,651

52,961

　

      TOTAL EQUITIES

277,920

247,387

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

18,803

3,148

　

Cash Flows from Investment Activities

-12,105

-16,794

　

Cash Flows from Financing Activities

-8,675

17,740

　

Cash, Bank Deposits at the Term End

　

19,078

19,961

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

65,651

52,961

　

Current Ratio (%)

117.25

109.50

　

Net Worth Ratio (%)

23.62

21.41

　

Recurring Profit Ratio (%)

1.81

0.10

　

Net Profit Ratio (%)

2.13

0.45

　

　

Return On Equity (%)

8.90

2.04

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.68

UK Pound

1

Rs.96.94

Euro

1

Rs.77.36

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

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.