MIRA INFORM REPORT

 

 

Report No. :

304792

Report Date :

24.01.2015

 

IDENTIFICATION DETAILS

 

Name :

SATAKE CORPORATION

 

 

Registered Office :

2-30 Saijo Nishi-Honmachi Higashi-Hiroshima 739-0043 

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2014

 

 

Date of Incorporation :

December, 1939

 

 

Com. Reg. No.:

0100-01-017304 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Rice Milling Machines, Cereal Processing Machines, Other.

 

 

No. of Employees :

879

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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 Name and address

 

SATAKE CORPORATION

 

REGD NAME:               KK Satake

 

MAIN OFFICE:              2-30 Saijo Nishi-Honmachi Higashi-Hiroshima 739-0043 JAPAN

                                    Tel: 81-824-20-0001       Fax: 81-824-20-0004

*.. Registered at: 4-7-2 Soto-Kanda Chiyodaku Tokyo, as given

 

URL:                 http://www.satake-japan.co.jp/

E-Mail address:            kg-hiroshima@satake-japan.co.jp

 

 

ACTIVITIES

 

Mfg of rice milling machines, cereal processing machines, other

 

 

BRANCHES

 

Tokyo, Sapporo, Sendai, Chiba, Niigata, Nagoya, Osaka, Hiroshima, Matsuyama, Fukuoka, Kumamoto,

other (Tot 17)

 

 

 

OVERSEAS

 

China, UK, Thailand, India, Australia, USA, Brazil, Myanmar, Canada (--subsidiaries)

 

 

FACTORIES

 

Hiroshima (3), Iwate (--subsidiary mfrs)

 

 

OFFICERS

 

TOSHIKO SATAKE, PRES

Takeshi Fukumori, v pres           & CEO  Kazuyoshi Kihara, s/mgn dir

Hideaki Matsushima, dir             Kosuke Sasaki, dir

Toshiharu Maruyama, dir                       

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 40,543 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 280 M

TREND UP                                WORTH            Yen 31,660 M   

STARTED         1939                             EMPLOYES      879

 

 

COMMENT

 

MFR SPECIALIZING IN RICE MILLING MACHINES & GRAIN DRYING MACHINES. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

 

HIGHLIGHTS

           

The subject company was established originally in 1896 by Riichi Satake for mfg power driven rice milling machines, Japan’s first of its kind, on his account.  Incorporated in 1939, the firm has been succeeded by his descendants.  Toshiko Satake is his granddaughter, who took the pres office in Oct 2000.  This is a manufacture of a comprehensive range of individual machines, integrated systems and totally engineered solutions for the processing of rice, wheat & other grains.  Domestically enjoys dominant share of 70% in rice milling plants, and 50% share in paddy huskers for farmers.  Active in overseas expansion with USA, Thailand, Brazil, China, Australia operations strengthened.  USA office was opened in Mar 1980.  About 30% of the products are shipped to Zen-Noh (domestic farm coops) nationwide.  Operations cover over 140 countries worldwide.

 

 

FINANCIAL INFORMATION

           

The sales volume for Feb/2014 fiscal term amounted to Yen 40,543 million, a 1.4 % up from Yen 39,977 million in the previous term.  The recurring profit was posted at Yen 3,829 million and the net profit at Yen 2,570 million, respectively, compared with Yen 2,380 million recurring profit and Yen 1,651million net profit, respectively, a year ago.

 

For the current term ending Feb 2015 the recurring profit is projected at Yen 3,900 million and the net profit at Yen 2,600 million, respectively, on a 3% rise in turnover, to Yen 41,700 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

REGISTRATION

 

Date Registered:                       Dec 1939

Regd No.:                                 0100-01-017304 (Tokyo-Chiyodaku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  16 million shares

Issued:                         4.04 million shares

Sum:                            Yen 280 million

Major shareholders (%):           SS Enterprise (16), Tohoku Satake Co (9)

No. of shareholders:     24

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

           

Activities: Manufactures, imports and exports rice processing machines & equipment (--97%), foods (3%)

Mfg is consigned to subsidiary mfrs (4)

Exports (15%)

 

Products: country elevator, rice milling systems & plants, rice graders, flour milling system, food processing system (of rice products), grain color sorter, debranner, roller mill, maize degermer, coffee polisher, other grain processing machines, kitchen-use rice polishing equipment;

Bio gas plants, ice room systems, abrasives, motors, fire extinguishers, other industrial machinery;

Emergency foods, instant rice, other.

 

Clients: [Farm coops, mfrs, wholesalers] Zen-Noh* (30%), Kubota Corp** (5%),

Marubeni Corp, Mitsui & Co, Sumitomo Corp, Itochu Corp, Mitsubishi Corp, Mitsubishi Agricultural Machinery, other.

*.. Short for: National Federation of Agricultural Cooperative Associations.

**.. Largest mfr of agricultural machinery & equipment, Osaka

No. of accounts: 2,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Tohoku Satake Co, Satake Metals Ind, Satake Electrical Engineering (-- subsidiaries), Mitsui & Co, Marubeni-Itochu Steel Inc, Matsushita Electric Ind, Mitsubishi Corp, Chiyoda Corp, Mitsubishi Agricultural Machinery, Zen-Noh Pearl Rice West Japan, Hokuren, other.

 

Payment record: No Complaints

 

Location: Business area in Hiroshima.  Office premises at the caption address are owned and maintained satisfactory.

 

Bank References:

            SMBC (Hiroshima)

            Bank of Hiroshima (Saijo)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

28/02/2015

28/02/2014

28/02/2013

29/02/2012

Annual Sales

 

41,700

40,543

39,977

38,692

Recur. Profit

 

3,900

3,829

2,380

2,017

Net Profit

 

2,600

2,570

1,651

1,291

Total Assets

 

 

43,000

40,328

40,136

Current Assets

 

 

31,534

28,994

28,257

Current Liabs

 

 

9,434

9,256

9,960

Net Worth

 

 

31,660

29,119

27,498

Capital, Paid-Up

 

 

280

280

280

Div.Ttl in Million (¥)

 

 

30

30

30

<Analytical Data>

 

(%)

(%)

(%)

(%)

       S.Growth Rate

 

2.85

1.42

3.32

7.61

       Current Ratio

 

..

334.26

313.25

283.70

       N.Worth Ratio

 

..

73.63

72.21

68.51

       R.Profit/Sales

 

9.35

9.44

5.95

5.21

       N.Profit/Sales

 

6.24

6.34

4.13

3.34

       Return On Equity

 

..

8.12

5.67

4.69

 

Notes: Forecast (or estimated) figures for the 28/02/2015 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.50

UK Pound

1

Rs.92.16

Euro

1

Rs.69.62

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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%)

 

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.