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Report No. : |
335559 |
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Report Date : |
06.08.2015 |
IDENTIFICATION DETAILS
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Name : |
SUMITOMO PRECISION PRODUCTS CO LTD |
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Registered Office : |
1-10 Fusocho Amagasaki Hyogo-Pref 660-0891 |
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Country : |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
January 1961 |
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Com. Reg. No.: |
1410-01-049416
(Hyogo-Amagasaki) |
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Legal Form : |
Limited Company |
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Line of Business : |
Subject is manufactures aircraft equipment & heat
exchangers (Sales Breakdown by divisions) |
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No. of Employee : |
1,099 |
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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Maximum Credit Limit : |
YEN 1,526.5 MILLION |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.
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Source
: CIA |
SUMITOMO PRECISION PRODUCTS CO LTD
Sumitomo Seimitsu
KK
1-10 Fusocho Amagasaki
Hyogo-Pref 660-0891, JAPAN
Tel:
06-6482-8811 Fax: 06-6489-5801-
http://www.spp.co.jp
E-Mail
address: info@spp.co.jp
Mfg of
aircraft equipment (propellers, wheels)
Tokyo,
Nagoya
New
York, London (otherwise Sumitomo Corp’s overseas subs/agents are used)
Shiga,
Wakayama
SHIN’ICHI
MIKI, PRES
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 47,135 M
PAYMENTS REGULAR CAPITAL Yen 10,311 M
TREND STEADY WORTH Yen 35,410 M
STARTED 1961 EMPLOYES 1,099
MFR SPECIALIZING IN AIRCRAFT EQUIPMENT
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 1,526.5 MILLION, 30 DAYS NORMAL TERMS
|
Business |
Terms Ending |
Annual Sales* |
R.Profit* |
N.Profit* |
S.Growth |
Net Worth* |
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Results: |
31/03/2012 |
52,295 |
3,913 |
6,694 |
(%) |
33,385 |
|
(Consolidated) |
31/03/2013 |
40,170 |
850 |
262 |
-23.19 |
33,617 |
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|
31/03/2014 |
45,031 |
1,380 |
585 |
12.10 |
33,231 |
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31/03/2015 |
47,135 |
2,023 |
1,450 |
4.67 |
35,410 |
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|
31/03/2016 |
55,000 |
1,700 |
1,000 |
16.69 |
.. |
Unit: In Million Yen
Forecast figures for the 31/03/2016 fiscal term.
The subject company was established on the basis of aircraft
equipment division separated from Sumitomo Metal Ind. Specializes in mfg aircraft equipment, including
propellers & wheels. Diversified
into large heat exchangers and industrial machinery, including ozonizers &
plasma systems. This is a specialized
mfr of aircraft equipment, including propellers & wheels. Strengthening MEMS (micro electronic mechanical
systems) products. The firm is planning
commercialization of GTL equipment converting associated gas released from oil
drilling to liquid fuel with Kawasaki Heavy Industries, etc. It will supply reactors filled with
catalysts, core equipment. It will
establish a new plant for those products in Amagasaki City, Hyogo-Pref at a
cost of Yen 5 billion.
The sales volume for Mar/2015 fiscal term amounted to Yen
47,135 million, a 5% up from Yen 45,031 million in the previous term. Sales of aerospace-related products grew
favorably. The recurring profit was
posted at Yen 2,023 million and the net profit at Yen 1,450 million,
respectively, compared with Yen 1,380 recurring profit and Yen 585 million net
profit, respectively, a year ago.
For the current term ending Mar 2016 the recurring profit is
projected at Yen 1,700 million and the net profit at Yen 1,000 million,
respectively, on a 17% rise in turnover, to Yen 55,000 million. Orders for aerospace-related products and
environmental systems will grow.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max credit limit is estimated at Yen 1,526.5 million, on 30
days normal terms.
Date Registered: Jan 1961
Regd No.: 1410-01-049416 (Hyogo-Amagasaki)
Legal Status:
Limited Company (Kabushiki Kaisha
Authorized: 200 million shares
Issued:
53,167,798shares
Sum: Yen 10,311
million
Major shareholders (%): Nippon Steel & Sumitomo
Metal Ind (40.2), Masayoshi Yamauchi (1.9), Company’s Kyosaikai Assn (1.8),
Sumitomo Corp (1.6), Master Trust Bank of Japan T (.6), CBNYDFA Int’l Small Cap
Value P (1.2), Japan Trustee Services T (1.1), SMBC (1.0), BONY Mellon SANV
Client MPCS Japan (0.9), Tatsuo Yamamoto (0.9); foreign owners 8.4)
No. of shareholders:
5,284
Listed on the S/Exchange (s) of:
Tokyo
Managements: Shin’ichi Miki, pres; Yoshihisa
Nakamura, v pres; Yoshio Taoka, s/mgn dir; Kiyotaka Nogi, s/mgn dir; Kazuo
Sada, s/mgn dir; Katsuhiko Hamada, mgn dir; Natsuo Hashimoto, mgn dir; Jun
Shiraishi, mgn dir; Ayumu Takahashi, dir; Akihiko Matsuyuki dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Nissei Engineering, Sumisei Techno,
Sumisei Sangyo, other.
Activities: Manufactures aircraft equipment &
heat exchangers:
(Sales Breakdown by divisions)
Aerospace Hydraulic Machinery (62%), Heat Exchangers & other
Industrial Machinery (38%);
Overseas sales ratio (49%)
(Handling products): Aerospace products (landing gear & landing gear control
systems, heat management systems, propellers, hydraulic & pneumatic
systems, space products); Heat Control
Products (heat exchangers or cryogenic applications, high-temperatures heat
exchangers, industrial heat exchangers, LNG vaporizers); Hydraulic Controls (coolant components for machine tools, hydraulic
components and hydraulic control systems); Environmental
Systems (purification of drinking water & treatment of municipal &
industrial wastewater, semiconductor & flat panel display mfg & other
production processes, pulp & textile systems); Sensors (MEMS Gyro & systems, wireless sensor networks, other)
Clients: [Ministry, mfrs] Defense Ministry,
Mitsubishi Heavy Ind, other
No. of
accounts: 500
Domestic
areas of activities: Nationwide
Suppliers:
[Mfrs, wholesalers] Sumitomo Corp, Sumitomo Metal Ind, other
Payment record:
Regular
Location:
Business area in Amagasaki, Hyogo-Pref.
Office premises at the caption address are owned and maintained
satisfactorily.
Bank References:
SMBC
(Osaka)
Bank
of Yokohama (Osaka)
Relations:
Satisfactory
(In Million Yen)
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Terms Ending: |
31/03/2016 |
31/03/2015 |
31/03/2014 |
31/03/2013 |
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Annual
Sales |
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55,000 |
47,135 |
45,031 |
40,170 |
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Recur.
Profit |
|
1,700 |
2,023 |
1,380 |
850 |
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Net
Profit |
|
1,000 |
1,450 |
585 |
262 |
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Total
Assets |
|
|
81,898 |
79,948 |
75,584 |
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Current
Assets |
|
|
56,978 |
54,858 |
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Current
Liabs |
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|
31,409 |
33,947 |
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Net Worth |
|
|
35,410 |
33,231 |
33,617 |
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Capital,
Paid-Up |
|
|
10,311 |
10,311 |
10,311 |
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Div.P.Share(¥) |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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16.69 |
4.67 |
12.10 |
-23.19 |
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Current Ratio |
|
.. |
181.41 |
161.60 |
.. |
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N.Worth Ratio |
|
.. |
43.24 |
41.57 |
44.48 |
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R.Profit/Sales |
|
3.09 |
4.29 |
3.06 |
2.12 |
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N.Profit/Sales |
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1.82 |
3.08 |
1.30 |
0.65 |
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Return On Equity |
|
.. |
4.09 |
1.76 |
0.78 |
Forecast (or estimated) for the 31/03/2016 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.82 |
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|
1 |
Rs.99.15 |
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Euro |
1 |
Rs.69.31 |
INFORMATION DETAILS
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Analysis Done by
: |
KIN |
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Report Prepared
by : |
ASH |
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 |
-- |
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.