|
Report Date : |
22.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
SUMITOMO MITSUI
FINANCE & LEADING CO LTD |
|
|
|
|
Registered Office : |
3-9-4 Nishi-Shimbashi Minatoku Tokyo 105-0003 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
May 1968 |
|
|
|
|
Com. Reg. No.: |
0104-01-72079 (Tokyo-Minatoku) |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Financing & leasing company |
|
|
|
|
No. of Employees : |
1,471 |
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 |
|
Maximum Credit Limit : |
Yen 8,435.4 Million |
|
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 |
SUMITOMO MITSUI FINANCE & LEADING CO LTD
REGD NAME: Sumitomo
Mitsui Finance & Lease KK
MAIN OFFICE: 3-9-4
Nishi-Shimbashi Minatoku
Tel:
03-5404-2301 Fax: 03-5404-2551
URL: http://www.smfl.co.jp
E-Mail
address: (thru the URL)
Financing
& leasing company
No. 01447
(Director of Kanto Local Finance Bureau)
Osaka,
other (Tot32)
China
(4), Hong Kong, Thailand, Malaysia, Indonesia, UK, Ireland, USA
YOSHINORI
KAWAMURA, PRES
Takashi Kano, ch Fukuzo Yasuo,
s/mgn dir
Yuichiro
Ueda, s/mgn dir Yasuo
Kuroda, s/mgn dir
Masayuki
Tsubota, s/mgn dir Ryozo
Yoshida, s/mgn dir
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 752,016 M
PAYMENTSno
complaints CAPITAL Yen 15,000 M
TREND STEADY WORTH Yen 102,836 M
STARTED 1968 EMPLOYES 1,471
FINANCE & LEASING COMPANY.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: ESTIMATED AT YEN 8,435.4 MILLION, ON 30 DAYS NORMAL TERMS.
The subject
company was established was originally established as Sumitomo Lease Co Ltd, by
Sumitomo Corp, and in Oct 2007 merged with SMBC Leasing Ltd, and renamed as
captioned. This is a finance &
leasing company, leasing a variety of industrial equipment & machinery,
loans & factoring, other. Clients
include major mfrs, wholesalers, other, nationwide.
The sales
volume for Mar/2014 fiscal term amounted to Yen 752,016 million, a 0.4% down
from Yen 754,633 million in the previous term.
The recurring profit was posted at Yen 57,184 million and the net profit
at Yen 35,288 million, respectively, compared with Yen 54,161 million recurring
profit and Yen 36,004 million net profit, respectively, a year ago.
For the current
term ending Mar 2015 the recurring profit is projected at Yen 59,000 million
and the net profit at Yen 36,000 million, respectively, on a 3% rise in
turnover, to Yen 775,500 million.
The
financial situation is considered FAIR and good for ORDINARY business
engagements. Max credit limit is
estimated at Yen 8,435.4 million, on 30 days normal terms.
Date Registered: May 1968
(Originally founded in Feb 1963,
but business started this year)
Regd No.: 0104-01-72079 (Tokyo-Minatoku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
400 million shares
Issued:
95,314,112 shares
Sum: Yen 15,000 million
Major shareholders (%): Sumitomo Mitsui Financial Group
Inc* (58.23), Sumitomo Corp (38.82), Company’s Treasury Stock (2.95)
No. of shareholders: 3
*.. Financial Holding Company,
Tokyo, founded 2002, listed Tokyo S/E, capital Yen 2,337,895 million, turnover
Yen 4,641,880 million, operating profit Yen 1,432,332 million, recurring profit
Yen 835,357 million, net profit Yen 835,357 million, total assets Yen
161,534,387 million, net worth Yen 7,279,186 million, employees 66,475, pres
Koichi Miyata
(Group Companies): 321 consolidated subsidiaries;
14 related companies
Consolidated Financials are
attached (See SUPPLEMENT)
Nothing detrimental is known as
to the commercial morality of executives.
Activities: Finance & leasing company:
leading & installment sales of a variety of equipment & machinery,
loans & factoring, other (--100%)
(Principal Leased Items): Information/telecommunications/office
equipment, industrial machinery, machine tools, construction machinery,
transportation equipment (aircraft, ship, truck & bus, forklift), medical equipment,
commercial equipment, equipment for environment & energy, other
Clients: [Mfrs, wholesalers] SoftBank Mobile,
Hitachi Metal Ind, DEM Mori Seiki Co, Furukawa Electric Ind, SCSK, Jupiter Shop
Channel, Asahi Brewery, other
No. of
accounts: 1,000
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Komatsu
Construction Equipment Sales & Services, Hitachi Construction Machinery,
NEC Corp, Sumitomo Construction Machinery Sales, UD Trucks, Mitsubishi Fuso
Truck, other.
Payment record: no
complaints
Location:
Business area in Tokyo. Office premises
at the caption address are owned and maintained satisfactory.
Bank References:
SMBC
(H/O)
MUFG
(H/O)
Relations:
Satisfactory
(In Million Yen)
|
Terms Ending: |
31/03/2015 |
31/03/2014 |
31/03/2013 |
31/03/2012 |
|
|
Annual
Sales |
|
775,500 |
752,016 |
754,633 |
816,866 |
|
Recur.
Profit |
|
59,000 |
57,184 |
54,161 |
61,946 |
|
Net
Profit |
|
36,000 |
35,288 |
36,004 |
34,299 |
|
Total
Assets |
|
|
2,753,319 |
2,568,379 |
2,430,447 |
|
Current
Assets |
|
|
2,165,990 |
2,042,072 |
2,071,010 |
|
Current
Liabs |
|
|
1,695,402 |
1,593,091 |
1,464,958 |
|
Net
Worth |
|
|
402,836 |
383,104 |
365,992 |
|
Capital,
Paid-Up |
|
|
15,000 |
15,000 |
15,000 |
|
Div.Ttl
in Million (¥) |
|
|
17,945 |
17,113 |
7,585 |
|
<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
3.12 |
-0.35 |
-7.62 |
0.50 |
|
Current Ratio |
|
.. |
127.76 |
128.18 |
141.37 |
|
N.Worth Ratio |
|
.. |
14.63 |
14.92 |
15.06 |
|
R.Profit/Sales |
|
7.61 |
7.60 |
7.18 |
7.58 |
|
N.Profit/Sales |
|
4.64 |
4.69 |
4.77 |
4.20 |
|
Return On Equity |
|
.. |
8.76 |
9.40 |
9.37 |
Notes:
Forecast (or estimated) figures for the 31/03/2015 fiscal term.
SUPPLEMENT:
Consolidated Financials (In Million
Yen)
|
FINANCES: (Consolidated
in million yen) |
|
|||
|
|
|
Terms Ending: |
31/03/2014 |
31/03/2013 |
|
INCOME STATEMENT |
|
|
||
|
|
Annual Sales |
|
1,037,237 |
992,201 |
|
|
Cost of Sales |
910,456 |
877,038 |
|
|
|
GROSS PROFIT |
126,780 |
115,162 |
|
|
|
Selling & Adm Costs |
51,134 |
57,531 |
|
|
|
OPERATING PROFIT |
75,645 |
57,631 |
|
|
|
Non-Operating P/L |
1,647 |
1,375 |
|
|
|
RECURRING PROFIT |
77,292 |
59,006 |
|
|
|
NET PROFIT |
41,257 |
30,840 |
|
|
BALANCE SHEET |
|
|
|
|
|
|
Cash |
|
74,962 |
52,896 |
|
|
Receivables |
|
1,584,519 |
1,501,352 |
|
|
Inventory |
|
1,899 |
2,235 |
|
|
Securities, Marketable |
14,603 |
19,917 |
|
|
|
Other Current Assets |
874,170 |
779,694 |
|
|
|
TOTAL CURRENT ASSETS |
2,550,153 |
2,356,094 |
|
|
|
Property & Equipment |
1,310,216 |
1,087,450 |
|
|
|
Intangibles |
|
124,581 |
132,952 |
|
|
Investments, Other Fixed Assets |
191,390 |
199,846 |
|
|
|
TOTAL ASSETS |
4,176,340 |
3,776,342 |
|
|
|
Payables |
|
87,180 |
65,312 |
|
|
Short-Term Bank Loans |
572,960 |
549,322 |
|
|
|
|
|
|
|
|
|
Other Current Liabs |
1,277,854 |
1,228,328 |
|
|
|
TOTAL CURRENT LIABS |
1,937,994 |
1,842,962 |
|
|
|
Debentures |
|
142,954 |
105,935 |
|
|
Long-Term Bank Loans |
1,147,445 |
986,456 |
|
|
|
Reserve for Retirement Allw |
1,717 |
1,302 |
|
|
|
Other Debts |
|
294,321 |
237,524 |
|
|
TOTAL LIABILITIES |
3,524,431 |
3,174,179 |
|
|
|
MINORITY INTERESTS |
|
|
|
|
|
Common
stock |
15,000 |
15,000 |
|
|
|
Additional
paid-in capital |
421,009 |
421,009 |
|
|
|
Retained
earnings |
145,096 |
121,793 |
|
|
|
Evaluation
p/l on investments/securities |
9,907 |
5,558 |
|
|
|
Others |
|
80,897 |
58,803 |
|
|
Treasury
stock, at cost |
(20,000) |
(20,000) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
651,909 |
602,163 |
|
|
|
TOTAL EQUITIES |
4,176,340 |
3,776,342 |
|
|
CONSOLIDATED CASH FLOWS |
|
|
||
|
|
|
Terms ending: |
31/03/2014 |
31/03/2013 |
|
|
Cash
Flows from Operating Activities |
|
-178,522 |
-70,032 |
|
|
Cash
Flows from Investment Activities |
-2,916 |
18,931 |
|
|
|
Cash
Flows from Financing Activities |
194,826 |
52,067 |
|
|
|
Cash,
Bank Deposits at the Term End |
|
82,725 |
64,066 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
|
|
Net
Worth (S/Holders' Equity) |
651,909 |
602,163 |
|
|
|
Current
Ratio (%) |
131.59 |
127.84 |
|
|
|
Net
Worth Ratio (%) |
15.61 |
15.95 |
|
|
|
Recurring
Profit Ratio (%) |
7.45 |
5.95 |
|
|
|
Net
Profit Ratio (%) |
3.98 |
3.11 |
|
|
|
Return
On Equity (%) |
6.33 |
5.12 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.80 |
|
|
1 |
Rs.100.06 |
|
Euro |
1 |
Rs.78.46 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
PDT |
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.