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Report No. : |
309149 |
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Report Date : |
20.02.2015 |
IDENTIFICATION DETAILS
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Name : |
SOJITZ MACHINERY CORPORATION |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
April 2004 |
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Legal Form : |
Limited Company |
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Line of Business : |
A trading house for
import, export and wholesale of the following items (--100%): · Electronics & Telecommunications Division · General Industrial Machinery Division · Specific Industrial Machinery Division · Commercial, Servicing Division |
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No. of Employees : |
206 |
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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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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 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.
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Source
: CIA |
SOJITZ MACHINERY
CORPORATION
Sojitz Machinery KK
Marunouchi Center Bldg 2F, 1-6-1 Marunouchi Chiyodaku Tokyo 100-0005
JAPAN
Tel: 03-6259-5600
Fax: 03-6259-5636
*.. The is its Osaka Office
URL: http://www.sojitz-mac.com/
E-Mail address: (thru the URL)
ACTIVITIES: Trading firm specializing in machinery
BRANCHES: Kimitsu, Osaka, Nagoya, Toyota, Saitama,
Sendai
OVERSEAS: China (3), Singapore
OFFICERS: TATSUNOBU SAKO, PRES Kazuhiko Nakajima, ch
Takashi Miyake, s/mgn dir Keiichi
Takahashi, mgn dir
Kosuke Ito, dir Masayuki
Hanai, dir
Yen Amount: In million Yen,
unless otherwise stated
FINANCES FAIR A/SALES Yen 61,352 M
PAYMENTS NO COMPLAINTS CAPITAL Yen 1,500 M
TREND SLOW WORTH Yen 4,089 M
STARTED 2004 EMPLOYES 206
COMMENT: TRADING FIRM SPECIALIZING IN MACHINERY,
WHOLLY OWNED BY SOJITZ CORP. FINANCIAL SITUATION
CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
The subject company was established on the basis of the integration of
five machinery- related companies: Nichimen Machinery Corporation, Nissho Iwai
Mechatronics Corporation, Nissho Iwai Machinery System Corporation, Nissho Iwai
Chubu Machinery Co Ltd, and the NITEC Corporation (formed in 1989 as a trading
house of steel-making facilities, food machinery, under the then Nissho Iwai
Corporation), with NITEC as surviving company.
Due to the merger of Nissho Iwai Corp and Nichimen Corp to form Sojitz
Holdings Corporation in Apr 2004 (later in Oct 2005 renamed to Sojitz Corp),
the subject became 100% owned subsidiary of Sojitz Corporation (See REGISTRATION). This is a trading company specializing in
machinery (see OPERATION). Major clients include carmakers, steel mills,
heavy machinery mfrs, other, nationwide.
Operates 4 overseas offices: 3 in China and one in Singapore.
The sales volume for Mar/2014 fiscal term amounted to Yen 61,352
million, a 7% down from Yen 65,672 million in the previous term. Exports to China decreased. The recurring profit was posted at Yen 670 million
and the net profit at Yen 413 million, respectively, compared with Yen 1,334
million recurring profit and Yen 817 million net profit, respectively, a year
ago.
For the current term ending Mar 2015 the recurring profit is projected
at Yen 1,300 million and the net profit at Yen 810 million, respectively, on a
5% rise in turnover, to Yen 64,500 million. Weaker Yen will contribute to raise
earnings in Yen terms.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
Date Registered: Apr
2004
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 80,000 shares
Issued:
30,000 shares
Sum: Yen
1,500 million
Major shareholders
(%): Sojitz Corp*(100)
* Originally Sojitz Holding Corporation, renamed in Oct 2005 by merging subsidiary
Sojitz Corp and shifted into non-financial company; founded 2003, listed Tokyo
S/E, capital Yen 160,339 million, turnover Yen 4,016,577 million, operating
profit Yen 23,694 million, recurring profit Yen 44,033 million, net profit Yen
27,250 million, total assets Yen 2,220,236 million, net worth Yen 492,959
million, employees 16,130, pres Yoji Sato
Nothing detrimental is known as to the commercial morality of
executives.
Activities: A trading house for import, export and
wholesale of the following items (--100%):
Electronics &
Telecommunications Division: semiconductor mfg equipment, disk/liquid crystal
unit mfg equip, measuring apparatus, other related equipment & machinery;
General Industrial
Machinery Division: grinding machines, press machinery, laser
facilities, heat-treatment equipment, recycling unit, other
Specific
Industrial Machinery Division: machinery & facilities of industries of auto,
food processing, steel mills, chemical plants, home electronics, forestry,
other
Commercial,
Servicing Division: security-related equipment, landscaping goods, car
parking facilities, health & sports goods, home electronics appliances,
other (Sales breakdown for each division are not made available.)
Clients: [Mfrs,
wholesalers] Nippon Steel & Sumitomo Metal Corp, Toyota Motor, Teijin Ltd,
NEC, Nisshin Steel Co, S Alam Power Generation Ltd, Kobe Steel, JFE Steel,
Sharp Corp, Nissan Motor, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers]
Kawasaki Machine Systems, Wartsila Finland OY, NTN, Ube Material Ind, Steel
Plantech, NTN, Ebara Corp, Sojitz Europe PLC, Murata Machinery, Shibaura
Mechatronics, Toshiba Machinery, Sanyo Electric, Matsushita Electric Ind, NEC,
Nippon Steel Engineering, Sumitomo Precision Products, Howa Machinery, other.
Payment record: No Complaints
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
MUFG (Tokyo)
Mizuho Bank (Uchisaiwaicho)
Relations: Satisfactory
(In Million Yen)
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Terms Ending: |
31/03/2015 |
31/03/2014 |
31/03/2013 |
31/03/2012 |
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Annual Sales |
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64,500 |
61,352 |
65,672 |
62,812 |
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Recur. Profit |
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1,300 |
670 |
1,334 |
1,364 |
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Net Profit |
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810 |
413 |
817 |
806 |
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Total Assets |
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21,018 |
23,340 |
26,996 |
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Current Assets |
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20,437 |
22,802 |
26,514 |
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Current Liabs |
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16,882 |
19,538 |
23,263 |
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Net Worth |
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4,089 |
3,763 |
3,698 |
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Capital, Paid-Up |
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1,500 |
1,500 |
1,500 |
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Div.Ttl in Million(¥) |
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0.00 |
806 |
720 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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5.13 |
-6.58 |
4.55 |
1.85 |
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Current Ratio |
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.. |
121.06 |
116.71 |
113.97 |
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N.Worth Ratio |
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.. |
19.45 |
16.12 |
13.70 |
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R.Profit/Sales |
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2.02 |
1.09 |
2.03 |
2.17 |
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N.Profit/Sales |
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1.26 |
0.67 |
1.24 |
1.28 |
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Return On Equity |
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.. |
10.10 |
21.71 |
21.80 |
Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.25 |
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1 |
Rs.95.57 |
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Euro |
1 |
Rs.71.00 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
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 |
-- |
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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.