MIRA INFORM REPORT

 

 

Report No. :

327925

Report Date :

18.06.2015

 

IDENTIFICATION DETAILS

 

Name :

SALA CORPORATION

 

 

Registered Office :

1-55 Ekimae-Ohdori Toyohashi City Aichi-Pref 440-8533

 

 

Country :

Japan

 

 

Financials (as on) :

30.11.2014

 

 

Date of Incorporation :

May 2002

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Holding Company controlling 3 Chubu Gas-affiliated firms: Energy supply solutions (47%), engineering works & maintenance (23%), automobile sales (11%), others (19%)

 

 

No. of Employees :

2,742

 

 

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

 

Maximum Credit Limit :

Yen 2,869.4 Million

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 – 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 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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 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. The government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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

 

SALA CORPORATION

 

REGD NAME:   KK Sala Corporation

MAIN OFFICE:  1-55 Ekimae-Ohdori Toyohashi City Aichi-Pref 440-8533 JAPAN

                                    Tel: 0532-51-1155     Fax: 0532-51-1154     -

 

URL:                 http://www.sala.jp

E-Mail address: (thru the URL)

 

ACTIVITIES:     Holding Company: sale of LPG, construction & facility works, other

BRANCHES:     Nil

 

CHIEF EXEC:   GORO KAMINO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 140,853 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 8,025 M

TREND UP                                WORTH        Yen 30,124 M

STARTED         2002                             EMPLOYES      2,742

 

COMMENT:      HOLDING COMPANY  FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 2,869.4 MILLION, 30 DAYS NORMAL TERMS

 

Unit: In Million Yen

Forecast figures for the 30/11/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is a holding company controlling 3Chubu Gas-affiliated firms, with Aichi & Shizuoka Prefs as main business territory.  Main lines include LPG sales, construction & facility works, distribution of imported cars.  Strengthening pet-related areas including veterinary drug sales.

 

FINANCIAL INFORMATION

 

The sales volume for Nov/2014 fiscal term amounted to Yen 140,853 million, a 2.6% up from Yen 137,252 million in the previous term.  The recurring profit was posted at Yen 2,909 million and the net profit at Yen 1,421 million, respectively, compared with Yen 2,056 million recurring profit and Yen 1,307 million net profit, respectively, a year ago.

 

(Dec/2014-Feb/2015 results): Sales Yen 33,722 million (down 7.3%), operating profit Yen 1,725 million (up 43.5%), recurring profit Yen 1,746 million (up 40.2%), net profit Yen 990 million (up 32.5%).  (% as compared with the corresponding period a year ago).

 

For the current term ending Nov 2015 the recurring profit is projected at Yen 3,000 million and the net profit at Yen 1,500 million, respectively, on a 2.9% rise in turnover, to Yen 145,000 million.              

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 2,869.4 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　                   May 2002

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              120 million shares

Issued:                         40,338,708 shares

Sum:                            Yen 8,025 million

 

Major shareholders (%): Chubu Gas (14.6), Employees’ S/Holding Assn (5.5), Gastec Service Kyoeikai Assn (4.8), Chubu Gas Real Estate (4.5), Sumitomo Mitsui Trust Bank (4.5), Company’s Treasury Stock (4.3), MUFG (3.8), Japan Trustee Services T4 (3.7), Shizuoka Bank (3.7), SMBC (2.9); foreign owners (1.3)

 

No. of shareholders: 3,202

 

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

 

Managements: Shoji Nakamura, ch; Goro Kamino, pres; Kazuhiko Matsui, s/mgn dir; Susumu Kakutani, dir; Yoshio Ichiryu, dir; Kazuyoshi Ishiguro, dir

 

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

 

           

OPERATION

           

Activities: Holding Company controlling 3 Chubu Gas-affiliated firms: Energy supply solutions (47%), engineering works & maintenance (23%), automobile sales (11%), others (19%)

           

Clients: [Mfrs, wholesalers] Gastec Service, Sala Cars Japan, Sala Financial Service,      Sala Distribution, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Payment record: No Complaints

 

Location: Business area in Toyohashi City, Aichi-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

 

Shizuoka Bank (Toyohashi)

Mizuho Bank (Toyohashi

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

30/11/2014

30/11/2013

INCOME STATEMENT

　

　

  Annual Sales

　

140,853

137,252

　

  Cost of Sales

110,965

107,775

　

      GROSS PROFIT

29,888

29,477

　

  Selling & Adm Costs

27,374

27,872

　

      OPERATING PROFIT

2,513

1,605

　

  Non-Operating P/L

396

451

　

      RECURRING PROFIT

2,909

2,056

　

      NET PROFIT

1,421

1,307

BALANCE SHEET

　

　

  Cash

　

9,601

7,713

　

  Receivables

18,714

20,991

　

  Inventory

8,058

8,032

　

  Securities, Marketable

　

　

　

  Other Current Assets

4,641

4,470

　

      TOTAL CURRENT ASSETS

41,014

41,206

　

  Property & Equipment

45,818

45,850

　

  Intangibles

1,219

1,761

　

  Investments, Other Fixed Assets

9,028

8,953

　

      TOTAL ASSETS

97,079

97,770

　

  Payables

16,764

17,239

　

  Short-Term Bank Loans

11,720

13,020

　

　

　

　

　

  Other Current Liabs

15,582

15,216

　

      TOTAL CURRENT LIABS

44,066

45,475

　

  Debentures

　

　

　

  Long-Term Bank Loans

13,266

13,134

　

  Reserve for Retirement Allw

5,728

6,505

　

  Other Debts

　

3,895

3,939

　

      TOTAL LIABILITIES

66,955

69,053

　

      MINORITY INTERESTS

　

　

Common stock

8,025

8,025

　

Additional paid-in capital

9,019

9,019

　

Retained earnings

11,746

10,710

　

Evaluation p/l on investments/securities

643

775

　

Others

1,645

1,141

　

Treasury stock, at cost

(954)

(954)

　

      TOTAL S/HOLDERS` EQUITY

30,124

28,716

　

      TOTAL EQUITIES

97,079

97,770

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

30/11/2014

30/11/2013

　

Cash Flows from Operating Activities

　

6,821

4,269

　

Cash Flows from Investment Activities

2,996

-1,665

　

Cash Flows from Financing Activities

-1,937

-2,823

　

Cash, Bank Deposits at the Term End

　

9,601

7,713

ANALYTICAL RATIOS            Terms ending:

30/11/2014

30/11/2013

　

Net Worth (S/Holders' Equity)

30,124

28,716

　

Current Ratio (%)

93.07

90.61

　

Net Worth Ratio (%)

31.03

29.37

　

Recurring Profit Ratio (%)

2.07

1.50

　

Net Profit Ratio (%)

1.01

0.95

　

　

Return On Equity (%)

4.72

4.55

 

 

           

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.11

UK Pound

1

Rs.100.31

Euro

1

Rs.72.17

 

 

INFORMATION DETAILS

 

Analysis Done by :

SAN

 

 

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.