MIRA INFORM REPORT

 

 

Report No. :

316847

Report Date :

22.04.2015

 

IDENTIFICATION DETAILS

 

Name :

SUGATSUNE KOGYO CO LTD

 

 

Registered Office :

1-8-11 Higashi Kanda Chiyoda-Ku Tokyo 101-0031

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2014

 

 

Year of Establishment :

1930

 

 

Com. Reg. No.:

0100-01-020287

 

 

Legal Form :

Not Available

 

 

Line of Business :

·         Import/ Export/ Selling of oceriesfurniture fittings, architectural hardware, decorative hardware, various import hardware, industrial components hardware, IT industrial components, custom-made items, lighting part metal, furniture metal, fixtures furniture, others. 

·         Design/R&D/Production/Quality Control/ Distribution/ Marketing of those products.

 

 

No. of Employees :

472

 

 

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 85.4 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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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

 

ENGLISH COMPANY NAME

SUGATSUNE KOGYO CO LTD

Japanese company name

Sugatsune Kogyo KK(Kabushiki Kaisha)

Registered Office

1. Street Number and District

1-8-11 Higashi Kanda Chiyoda-ku

2. City and Perefecture

Tokyo

3. ZIP Code

101-0031

4. Country

JAPAN

EL

03-3866-2268

FAX

03-3863-6887

URL

www. sugatsune.co.jp/

Email Address

thru the URL

Activities (Services & Products)

Import/Export/Selling of oceriesfurniture fittings, architectural hardware, decorative hardware, various import hardware, industrial components hardware, IT industrial components, custom-made items, lighting part metal, furniture metal, fixtures furniture, others.  Design/R&D/Production/Quality Control/Distribution/Marketing of those products.

 

 

SUMMARY OF REPORT

 

Annual Sales (MM YEN)

*14,642

*This is a result of 2013 fiscal year.

Capital Amount (MM YEN)

400

Net Worth (MM YEN)

Unavailable

FINANCES

FAIR

TREND

UP

EMPLOYEES

472

CREDIT LIMIT PROPOSED(MM YEN)

85.4

 

 

 

OTHER INFORMATION FOLLOWS:

Year Started

1930

Month and Year Registered

Nov, 1943

Regd No.

0100-01-020287

Major Shareholders

1

Joho(18.9)

2

Joho Enterprise(6.8)

3

Seiji Sugasawara(6.2)

Number of Shareholders

Unavailable

Authorized Shares (MM)

16

Issued Shares (MM)

8

Executives

PRESIDENT

JUN SUGASAWARA

Chairman

Vice President

Senior Mgn Director

Mgn Director

Director

Kazuhisa Matsumoto

Director

Minoru Sakuma

Director

Shigeru Sugasawara

Main Banks

1

MUFG (Daidenmacho)

2

MUFG(Horidome)

Relations

Satisfactory

Clients

1

Panasonic

2

Toshiba

3

Takara-standard

4

Okamura Seisakujo

5

Others

Suppliers

1

Yuasa Co

2

Itochu Co

3

Isohata-kokan

4

TDK

5

Others

Branches

1

Tokyo

2

Osaka

3

Sendai

4

Yokohama

5

Others(Tot 8)

Factories

1

Chiba

Overseas

1

China

2

U.S.A

3

Others(Tot 5)

HIGHLIGHT and COMMENT

 This subject company was established by Tsunesaburo Sugasawara in 1930.  It is one of leading manufacturers of metal hardware. Their wide variety of high quality products cover such fields as residential or office furniture, architectural and industrial parts as well as disaster prevention.  It owns 7 Japan sales offices, its own production facility, a fully automated warehouse and 5 overseas branches.  They not only export to 60 countries throughout the world but also import represent world famous brands on the japanese market.

FINANCIAL information

Financials partially disclosed

Financials are disclosed only partially.

Any figures below in 2014 and 2015 are estimates based on the results in 2013 and prior years.

The sales volume for Dec/2014 fiscal term amounted to Yen 14,642 million, flat from Yen 14,642 million in the previous term.  The net profit amounted at Yen 1,501 million, flat from Yen 1,501 million in 2013.

 For the term that ended Dec 2015, similar level of turnover and the net profit are estimated.  Final results are yet to be released.

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 85.4 million, on 30 days normal terms.

PLEASE ATTACH THE FINANCIALS BELOW.

Terms Ending:

31/12/2015

31/12/2014

31/12/2013

31/12/2012

Annual Sales

14,642

14,642

14,642

14,350

Recur. Profit

..

..

..

..

Net Profit

1,501

1,501

1,501

1,120

Total Assets

 

 

 

 

Net Worth

 

 

 

 

Capital, Paid-Up

 

 

 

 

Div.P.Share(¥)

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

0.00

0.00

2.03

 

       Current Ratio

 

..

..

..

       N.Worth Ratio

 

..

..

..

       N.Profit/Sales

10.25

10.25

10.25

7.80

Note: Forecast (or estimated) figures for the 31/12/2015 fiscal term

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.92

UK Pound

1

Rs.93.57

Euro

1

Rs.67.34

 

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%)

 

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