MIRA INFORM REPORT

 

 

Report No. :

309149

Report Date :

20.02.2015

 

IDENTIFICATION DETAILS

 

Name :

SOJITZ MACHINERY CORPORATION

 

 

Registered Office :

Marunouchi Center Bldg 2F, 1-6-1 Marunouchi Chiyodaku Tokyo 100-0005

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

April 2004

 

 

Legal Form :

Limited Company

 

 

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

 

 

No. of Employees :

206

 

 

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 – 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. 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 summary

 

SOJITZ MACHINERY CORPORATION

 

 

REGD NAME

 

Sojitz Machinery KK

 

 

MAIN OFFICE

 

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

 

 

SUMMARY

 

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.

 

 


HIGHLIGHTS

           

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.

 

 

FINANCIAL INFORMATION

           

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. 

 

 

REGISTRATION

           

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.

 

 


OPERATION

           

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

 

 

FINANCES

 

(In Million Yen)

Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

64,500

61,352

65,672

62,812

Recur. Profit

 

1,300

670

1,334

1,364

Net Profit

 

810

413

817

806

Total Assets

 

 

21,018

23,340

26,996

Current Assets

 

 

20,437

22,802

26,514

Current Liabs

 

 

16,882

19,538

23,263

Net Worth

 

 

4,089

3,763

3,698

Capital, Paid-Up

 

 

1,500

1,500

1,500

Div.Ttl in Million(¥)

 

 

0.00

806

720

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.13

-6.58

4.55

1.85

    Current Ratio

 

..

121.06

116.71

113.97

    N.Worth Ratio

 

..

19.45

16.12

13.70

    R.Profit/Sales

 

2.02

1.09

2.03

2.17

    N.Profit/Sales

 

1.26

0.67

1.24

1.28

    Return On Equity

 

..

10.10

21.71

21.80

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.25

UK Pound

1

Rs.95.57

Euro

1

Rs.71.00

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 

               


 

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.