MIRA INFORM REPORT

 

 

Report No. :

331620

Report Date :

10.07.2015

 

IDENTIFICATION DETAILS

 

Name :

SAKATA INX CORPORATION

 

 

Registered Office :

1-23-37 Edobori Nishiku Osaka 550-0002

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

Sept., 1920

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Printing Inks.

 

 

No. of Employees :

3,719

 

 

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 :

Good 

 

 

Payment Behaviour :

Regular

 

 

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

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 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 second-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.

 

Source : CIA

 

 

Company Name and address

 

SAKATA INX CORPORATION

 

REGD NAME:               Sakata Inks KK

 

MAIN OFFICE:              1-23-37 Edobori Nishiku Osaka 550-0002 JAPAN

                                                Tel: 06-6447-5811     Fax: 06-6447-5829     -

 

URL:                             http://www.inx.co.jp

E-Mail address:                        inx-prir@inx.co.jp

 

 

ACTIVITIES

 

Mfg of printing inks

 

 

BRANCHES

 

Tokyo, Nagoya, Fukuoka, Sapporo, Shizuoka, other (Tot 22)

 

 

OVERSEAS

 

USA, Canada, Spain, UK, France, Czech, Indonesia, Malaysia, India, Vietnam, China, Philippines, Taiwan,  Thailand (Ttl 14 countries overseas)

 

 

FACTORIES

 

Noda, Hanyu, Itami

 

 

CHIEF EXEC

 

KOTARO MORITA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES                      Yen 146,569 M

PAYMENTSREGULAR   CAPITAL                       Yen 7,472 M

TREND UP                    WORTH                        Yen 64,785 M

STARTED         1920                 EMPLOYES                  3,719

 

 

COMMENT

 

MFR OF PRINTING INKS 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Unit: In Million Yen

Forecast figures for the 31/03/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is the third largest mfr of printing inks. Founded in 1896, the first company to produce newspaper ink in Japan.  Has strength in inks for newspaper and metals. Leads others in advancing to overseas including Asia and North America. Has 11 branch offices in Asia and North America. Also has presence in India. Maintains capital alliance with Toyo Ink SC Holdings, which holds the top position for printing ink in Japan.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 146,569 million, a 4.8% up from Yen 139,911 million in the previous term. Sales of ink fared well in overseas markets, aided partly by the positive impact of the weaker Yen. The recurring profit was posted at Yen 9,372 million and the net profit at Yen 4,338 million, respectively, compared with Yen 9,443 million recurring profit and Yen 5,964 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 8,700 million and the net profit at Yen 5,500 million, on a 6.53% fall in turnover, to Yen 137,000 million. 

 

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

 

 

REGISTRATION

           

Date Registered:　                   Sept 1920

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              144 million shares

Issued:                         62,601,181 shares

Sum:                            Yen 7,472 million

 

Major shareholders (%): Toyo Ink SC Holdings (16.8), Master Trust Bank of Japan T (5.9), Sumitomo Life Ins (5.6), Japan Trustee Services T (5.3), JP Morgan Chase Bank 385093 (4.2), Company’s Treasury Stock (3.3), Sompo Japan Nipponkoa Ins (3.0), Employees’ S/Holding Assn (2.6), Resona Bank (2.4), Kanbe Bussan Ltd (2.2); foreign owners (23.0)

 

No. of shareholders: 2,258

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Kotaro Morita, ch & pres; Masanori Kano, s/mgn dir; Yoshiaki Uesaka, s/mgn dir; Naohisa Yasui, mgn dir; Yasuhiro Hashimoto, mgn dir; Masaki Nakamura, dir; Kouichi Hirao, dir; Hitoshi Nakamura, dir

 

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

 

Related companies: Sakata Trading, IGL Group, Sakata Inx (India), other.

 

 

OPERATION

           

Activities: Manufactures printing inks: newspaper printing inks, commercial printing inks, packaging inks, flexible packaging gravure, metal decorating inks, printing/packaging equipment & supplies; printing inks & equipment in Japan (43%), printing inks and equipment in Asia (18%), North America (23%), Europe (5%), functional materials (5%), others (6%)

Overseas Sales Ratio (50%)

           

Clients: [Mfrs, wholesalers] Rengo Co, Asahi Printec, Inx Gravure, Sankei Newspaper Printing, Yomiuri Tokyo, Kyodo Printing, Sooei Inc, other

No. of accounts: 600

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Nagase Corp, Handa Trading, Konica Minolta Business Solutions, Kodak Japan, Saiden Chemical, Sumitomo Forestry Crest Co, Shoei Chemical, other

 

Payment record: Regular

 

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

 

Bank References:

            Resona Bank (Osaka)

            SMBC Bank (Umeda)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

146,569

139,911

　

  Cost of Sales

112,581

107,430

　

      GROSS PROFIT

33,988

32,480

　

  Selling & Adm Costs

26,034

24,225

　

      OPERATING PROFIT

7,953

8,255

　

  Non-Operating P/L

1,419

1,188

　

      RECURRING PROFIT

9,372

9,443

　

      NET PROFIT

4,338

5,964

BALANCE SHEET

　

　

  Cash

　

5,923

5,514

　

  Receivables

13,092

41,330

　

  Inventory

17,258

14,127

　

  Securities, Marketable

　

　

　

  Other Current Assets

33,073

(8,095)

　

      TOTAL CURRENT ASSETS

69,346

52,876

　

  Property & Equipment

33,828

30,910

　

  Intangibles

1,359

1,362

　

  Investments, Other Fixed Assets

25,379

30,259

　

      TOTAL ASSETS

129,912

115,407

　

  Payables

23,452

23,046

　

  Short-Term Bank Loans

7,456

4,518

　

　

　

　

　

  Other Current Liabs

12,845

15,552

　

      TOTAL CURRENT LIABS

43,753

43,116

　

  Debentures

　

　

　

  Long-Term Bank Loans

11,531

10,738

　

  Reserve for Retirement Allw

4,052

4,196

　

  Other Debts

　

5,790

2,673

　

      TOTAL LIABILITIES

65,126

60,723

　

      MINORITY INTERESTS

　

　

Common stock

7,472

7,472

　

Additional paid-in capital

5,672

5,672

　

Retained earnings

46,253

43,221

　

Evaluation p/l on investments/securities

3,912

1,923

　

Others

2,118

(2,962)

　

Treasury stock, at cost

(642)

(642)

　

      TOTAL S/HOLDERS` EQUITY

64,785

54,684

　

      TOTAL EQUITIES

129,912

115,407

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

6,487

7,203

　

Cash Flows from Investment Activities

-9,156

-3,920

　

Cash Flows from Financing Activities

2,745

-3,943

　

Cash, Bank Deposits at the Term End

　

5,923

5,514

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

64,785

54,684

　

Current Ratio (%)

158.49

122.64

　

Net Worth Ratio (%)

49.87

47.38

　

Recurring Profit Ratio (%)

6.39

6.75

　

Net Profit Ratio (%)

2.96

4.26

　

　

Return On Equity (%)

6.70

10.91

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.51

UK Pound

1

Rs.97.85

Euro

1

Rs.70.50

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.