MIRA INFORM REPORT

 

 

Report Date :

18.11.2014

 

IDENTIFICATION DETAILS

 

Name :

SODICK CO LTD

 

 

Registered Office :

3-12-1 Nakamachidai Tsuzukiku Yokohama 224-8522

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

August 1976

 

 

Com. Reg. No.:

0200-01-020736

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures NC Machine Tools (72%), Industrial Machinery (15%), Food Machinery (6%), Others (7%)

 

 

No of Employees :

2,999

 

 

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 & address

 

SODICK CO LTD

 

 

REGD NAME

 

Sodick KK

 

 

MAIN OFFICE

 

3-12-1 Nakamachidai Tsuzukiku Yokohama 224-8522 Japan

Tel: 045-942-3111    

Fax: 045-943-5835

 

*.. The given corporate name is its subsidiary in India

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Mfg of NC electro dischargers   

 

 

BRANCHES

 

Sendai, Saitama, Nagoya, Osaka, Kyoto, Osaka, other (Tot 14)

 

 

OVERSEAS

 

China (3), Singapore, Korea, India (as given), Vietnam, UK, Germany, USA, Hong Kong (--subsidiaries)

 

 

FACTORIES

 

Fukui, Ishikawa, Kaga; China (4), Thailand

 

 

CHIEF EXEC

 

YUJI KANEKO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES                      Yen 56,899 M

PAYMENTSNO COMPLAINTS    CAPITAL                       Yen 20,775 M

TREND UP                                WORTH                        Yen 42,451 M

STARTED         1976                             EMPLOYES                  2,999

 

 

COMMENT

 

MFR OF NC MACHINE TOOLS.  FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR   ORDINARY BUSINESS ENGAGEMENTS.

 

 

Unit: In Million Yen

Forecast (or estimated) figures for 30/03/2015 fiscal term

 

 

HIGHLIGHTS

 

The subject company is pioneer & top-ranked mfr of NC electro dischargers.  Ranked second in the world.  Maintains strong market share in linear motor-driven type lector dischargers.  Has mfg bases in China (4) and Thailand.  Transferred the function at Yokohama office to the headquarter plant office in Fukui-Pref, except for the financial section.  The firm intends to shift to its production to overseas, to reduce exchange risks.  It will market linear motors manufactured in-house for internal use to outside firms.  It made Sodick Plustech its wholly owned subsidiary through TOB.  Advanced into LED lighting and food machinery.  Fostering noodle-making machines. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 56,899 million, a 3.4% up from Yen 55,031 million in the previous term.  Orders for mainstay electro dischargers increased in China.  The recurring profit was posted at Yen 3,886 million and the net profit at Yen 4,194 million, respectively, compared with Yen 5,356 million recurring profit and Yen 4,191 million net profit, respectively, a year ago. 

 

(Apr/Jun/2014 results): Sales Yen 12,093 million (down 9.5%), operating profit Yen 530 million (down 19.7%, recurring profit Yen 223 million (down 82.2%), net profit Yen 168 million (down 85.2%).  (% compared with the corresponding period a year ago). 

           

For the current term ending Mar 2015 the recurring profit is projected at Yen 3,500 million and the net profit at Yen 2,600 million, respectively, on an 8.1% rise in turnover, to Yen 61,500 million.  Sales of electro dischargers will grow in Asia.

 

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

 

 

REGISTRATION

           

Date Registered:　                   Aug 1976

Regd No.:                                 0200-01-020736 (Yokohama-Tsuzukiku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  150 million shares

Issued:                         53,432,150 shares

Sum:                            Yen 20,775 million

 

Major shareholders (%): Company’s Treasury Stock (5.8), Chase London SL Omnibus Acct (2.7), Toshihiko Furukawa (2.2), T F Ltd (2.1), Japan Trustee Services T (2.0), Customers’ Kyoeikai Assn (1.9), SMBC (1.5), Masaaki Suzuki (1.3), Hokuriku Bank (1.3), Employees’ S/Holding Assn (1.1); foreign owners (12.4)

 

No. of shareholders: 13,915

 

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

 

Managements: Toshihiko Furukawa, ch; Yuji Kaneko, pres; Kenichi Furukawa, v pres; Keisuke Takagi, s/mgn dir; Takashi Matsui, s/mgn dir; Misao Fujikawa, s/mgn dir; Kenichi Osaka, mgn dir; Sadao Sano, mgn dir; Hirofumi Maejima, mgn dir; Hideki Tsukamoto, dir; Kenichi Tsugami, dir

 

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

 

Related companies: Sodick Plastic, Sodick FT, other

 

OPERATION

           

Activities: Manufactures NC machine tools (72%), industrial machinery (15%),  food machinery (6%), others (7%)

 

Overseas Sales Ratio (60%)

 

(Mfg items): CNC die-sinker EDM, CNC wire EDM, CNC high-speed small hole drilling EDM, customized EDM & optional equipment (pallet changers & robots), CNC & power supply devices, precision EDM tooling, high speed precision milling center, nano-level precision machines, computer integrated mfg, high-precision injection molding machines, engineering ceramics, linear motors for machine tool & industrial production machines, electrochemical machines, EDM wires, precision tool and precise molding goods, electronic components, software, food machines, other.

           

Clients: [Mfrs, wholesalers] Yuasa Trading, Sodick Europe, Kanematsu KGK, Sodick Singapore, Sodick Inc, Yamazen Corp, Sodick Taiwan, Sodick Thailand, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Sodick Thailand, Sodick Engineering, THK, Sodick EMG, Sodick FT, Yasukawa Mechatrec, other.

 

Payment record: No Complaints

 

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

 

Bank References:

SMBC (Yokohama-Ekimae)

Mizuho Bank (Yokohama)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

　

　

  Annual Sales

　

56,899

55,031

　

  Cost of Sales

40,232

38,296

　

      GROSS PROFIT

16,667

16,734

　

  Selling & Adm Costs

14,016

12,713

　

      OPERATING PROFIT

2,651

4,021

　

  Non-Operating P/L

1,235

1,335

　

      RECURRING PROFIT

3,886

5,356

　

      NET PROFIT

4,194

4,191

BALANCE SHEET

　

　

  Cash

　

24,049

25,533

　

  Receivables

14,968

12,927

　

  Inventory

21,962

21,375

　

  Securities, Marketable

　

　

　

  Other Current Assets

3,578

2,853

　

      TOTAL CURRENT ASSETS

64,557

62,688

　

  Property & Equipment

24,450

23,458

　

  Intangibles

4,346

3,583

　

  Investments, Other Fixed Assets

5,423

5,312

　

      TOTAL ASSETS

98,776

95,041

　

  Payables

8,530

8,508

　

  Short-Term Bank Loans

5,181

5,604

　

　

　

　

　

  Other Current Liabs

16,068

16,807

　

      TOTAL CURRENT LIABS

29,779

30,919

　

  Debentures

16

30

　

  Long-Term Bank Loans

24,656

25,840

　

  Reserve for Retirement Allw

1,003

892

　

  Other Debts

　

870

1,326

　

      TOTAL LIABILITIES

56,324

59,007

　

      MINORITY INTERESTS

　

　

Common stock

20,775

20,775

　

Additional paid-in capital

5,879

5,879

　

Retained earnings

13,714

10,435

　

Evaluation p/l on investments/securities

658

400

　

Others

3,120

239

　

Treasury stock, at cost

(1,695)

(1,695)

　

      TOTAL S/HOLDERS` EQUITY

42,451

36,033

　

      TOTAL EQUITIES

98,776

95,041

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

5,577

2,766

　

Cash Flows from Investment Activities

-4,181

-4,776

　

Cash Flows from Financing Activities

-3,696

-1,163

　

Cash, Bank Deposits at the Term End

　

23,647

25,514

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

42,451

36,033

　

Current Ratio (%)

216.79

202.75

　

Net Worth Ratio (%)

42.98

37.91

　

Recurring Profit Ratio (%)

6.83

9.73

　

Net Profit Ratio (%)

7.37

7.62

　

　

Return On Equity (%)

9.88

11.63

 

 

 

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.