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Report No. : |
309393 |
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Report Date : |
23.02.2015 |
IDENTIFICATION DETAILS
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Name : |
SUMITOMO (SHI) CONSTRUCTION MACHINERY CO LTD |
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Registered Office : |
Think Park Tower, 2-1-1 Osaka Shinagawaku Tokyo 141-6025 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
April 2001 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufactures construction machinery: excavator asphalt paver, other (--100%) |
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No. of Employees : |
610 |
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
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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.
|
Source
: CIA |
SUMITOMO (SHI)
CONSTRUCTION MACHINERY CO LTD
Sumitomo Kenki KK
Think Park Tower, 2-1-1 Osaka Shinagawaku Tokyo 141-6025 JAPAN
Tel: 03-6737-2600 Fax:
03-6866-5112
URL: http://www.sumitomokenki.co.jp
E-Mail address: (thru the URL)
ACTIVITIES: Manufactures construction machinery &
equipment
BRANCHES: Chiba
FACTORIES: At the caption address, Chiba, Indonesia,
China
OFFICERS: MIKIO IDE, PRES Akio Yoshikawa, s/mgn dir
Shinji Shimomura,
mgn dir Ichiro Shimada, dir
Yasunobu
Katsumi, dir Shoji Uchida,
dir
Yen Amount: In million Yen,
unless otherwise stated
FINANCES FAIR A/SALES Yen 99,014 M
PAYMENTS NO COMPLAINTS CAPITAL Yen 16,000 M
TREND UP WORTH Yen 34,351 M
STARTED 2001 EMPLOYES 610
COMMENT: MFR OF CONSTRUCTION MACHINERY, OWNED BY
SUMITOMO HEAVY INDUSTRIES LTD. FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
The subject company was established on the basis of construction
machinery mfg division separated from Sumitomo Heavy Industries Ltd (See REGISTRATION). This is a specialized mfr of construction
machinery: excavator, asphalt aver, other construction equipment. Products are leased thru leasing companies. Products are also exported. Nation’s top-ranked in asphalt finishers
construction. Products are also
manufactured at China and Indonesian factories.
The sales volume for Mar/2014 fiscal term amounted to Yen 99,014 million,
a 15% up from Yen 85,967 million in the previous term. Exports rose.
The recurring profit was posted at Yen 3,955 million and the net profit
at Yen 2,517 million, respectively, compared with Yen 1,213 million recurring
profit and yen 1,038 million net profit, respectively, a year ago.
For the current term ending Mar 2015 the recurring profit is projected
at Yen 4,100 million and the net profit at Yen 2,600 million, respectively, on
a 5% rise in turnover to yen 104,000 million.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
Date Registered: Apr 2001
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
1,280 shares
Issued:
320 shares
Sum: Yen 16,000 million
Major shareholders
(%): Sumitomo Heavy Industries Ltd* (100)
*.. Comprehensive mfr
of heavy machineries, Tokyo, founded 1934, listed Tokyo S/E, Capital Yen 30,872
million, sales Yen 615,271 million, operating profit Yen 34,329 million,
recurring profit Yen 33,000 million, net worth Yen 17,891, total assets Yen
715,426 million, net worth Yen 325,126 million, employees 18,043, pres Shunsuke
Betsukawa
Nothing detrimental is known as to the commercial morality of
executives.
Activities: Manufactures construction
machinery: excavator asphalt paver, other (--100%)
Clients: [Mfrs,
wholesalers] Sumitomo Construction Machinery Sales, CNH, LBX, other
No. of accounts: 500
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers]
Sumitomo Heavy Ind, Isuzu Motor, KYB, Topy Industries, Kawasaki Heavy
Industries, other
Payment record: No Complaints
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
SMBC (Tokyo)
Mitsui Sumitomo Trust Bank (H/O)
Relations: Satisfactory
(In Million Yen)
|
Terms Ending: |
31/03/2015 |
31/03/2014 |
31/03/2013 |
31/03/2012 |
|
|
Annual Sales |
|
104,000 |
99,014 |
85,967 |
100,792 |
|
Recur. Profit |
|
4,100 |
3,955 |
1,213 |
2,071 |
|
Net Profit |
|
2,600 |
2,517 |
1,038 |
1,077 |
|
Total Assets |
|
|
80,440 |
74,633 |
88,790 |
|
Current Assets |
|
|
50,290 |
43,568 |
58,457 |
|
Current Liabs |
|
|
43,042 |
39,036 |
53,739 |
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Net Worth |
|
|
34,351 |
32,632 |
32,392 |
|
Capital, Paid-Up |
|
|
16,000 |
16,000 |
16,000 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
5.04 |
15.18 |
-14.71 |
20.00 |
|
Current Ratio |
|
.. |
116.84 |
111.61 |
108.78 |
|
N.Worth Ratio |
|
.. |
42.70 |
43.72 |
36.48 |
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R.Profit/Sales |
|
3.94 |
3.99 |
1.41 |
2.05 |
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N.Profit/Sales |
|
2.50 |
2.54 |
1.21 |
1.07 |
|
Return On Equity |
|
.. |
7.33 |
3.18 |
3.32 |
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 |
|
|
1 |
Rs.96.00 |
|
Euro |
1 |
Rs.70.72 |
INFORMATION DETAILS
|
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.