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Report No. : |
326902 |
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Report Date : |
22.06.2015 |
IDENTIFICATION DETAILS
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Name : |
SINKO AIR CONDITIONING INDUSTRIES LTD |
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Registered Office : |
1458-4 Kusakabe Tsuyama City Okayama-Pref 708-1117 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
March 1981 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufactures air-conditioners, heating equipment, their parts & supplies (--100%) |
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No. of Employees : |
270 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 211.8 Million |
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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 – 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 |
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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 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 |
SINKO AIR CONDITIONING INDUSTRIES LTD
REGD NAME: Sinko
Kucho Kogyo KK
MAIN OFFICE: 1458-4
Kusakabe Tsuyama City Okayama-Pref 708-1117 JAPAN
Tel: 868-29-3141
Fax: 0868-29-3799
*.. The is its Kanagawa Factory
URL: http://www.sinko.co.jp
E-Mail address: (thru the URL)
ACTIVITIES: Mfg
of air-conditioner, heating equipment
BRANCHES: Kanagawa
OVERSEAS: Thailand,
Hong Kong, Taiwan, China (--engaged in production)
FACTORIES: At
the caption address, Kanagawa (as given)
OFFICERS: KNJI ITAKURA, PRES Hiroyuki Miyao, s/mgn dir
Takenori Taniguchi, mgn dir Michio Osawa, mgn dir
Hidenori Sudo, mgn dir Akira
Fujii, dir
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 11,345 M
PAYMENTSNO
COMPLAINTS CAPITAL Yen 195 M
TREND STEADY WORTH Yen 2,359 M
STARTED 1981 EMPLOYES 270
COMMENT: MFR OF AIR-CONDITIONERS. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: ESTIMATED AT YEN 211.8 MILLION, ON 30 DAYS NORMAL TERMS.
The subject company was established on the basis of a division separated from Sinko Industries Ltd (See REGISTRATION). This is a specialized mfr of air-conditioners, heating equipment, their parts & supplies. Has production bases in China, Hong Kong, Taiwan and Thailand. Goods are most shipped to Group firms for distribution.
Financials are disclosed only partially.
The sales volume for Mar/2015 fiscal term amounted to Yen 11,345 million, a 14% up from
Yen 9,971 million in the previous term. Production at overseas factories rose. Further lower Yen increased revenues in Yen terms. The net profit was posted at Yen 220 million, compared with Yen 168 million a year ago.
For the current term ending Mar 2016 the net profit is projected at Yen 230 million, on a 5% rise in turnover, to Yen 11,950 million. Business is seen expanding steadily.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 211.8 million, on 30 days normal terms.
Date Registered: Mar 1981
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 1.56 shares
Issued: 390,000
shares
Sum: Yen
195 million
Major
shareholders (%): Sinko Industries Ltd* (100)
.. Mfr of office air-conditioning equipment, Osaka, founded 1950, listed Tokyo S/E, capital Yen 5,822 million, sales Yen 39,189 million, net profit Yen 2,610 million, total assets Yen 51,424 million, net worth Yen 31,731 million, employees 1,446, pres Shozo Takeda
Nothing detrimental is known as to the commercial morality of executives.
Activities: Manufactures
air-conditioners, heating equipment, their parts & supplies (--100%)
Clients: [Mfrs,
wholesalers] Sinko Ind Ltd, Sinko Atmos Ltd, Sinko Kucho Service, BAC Japan Co,
other
No. of accounts:
300
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Sinko Ind Ltd, Dainikka (Japan), Japan Vilene Co, Mitsui Tekko (iron
works), Wetmaster Co, Muroga Fastener, Tsukiboshi Shoji, Rintatsu Co, other
Payment record: No Complaints
Location: Business area in
Tsuyama City, Okayama-Pref. Office
premises at the caption address are owned and maintained satisfactorily.
Bank References:
Chugoku Bank
(Tsuyama)
MUFG (Umeda-Chuo)
Relations:
Satisfactory
(In
Million Yen)
|
Terms Ending: |
|
31/03/2016 |
31/03/2015 |
31/03/2014 |
31/03/2013 |
|
Annual
Sales |
|
11,950 |
11,345 |
9,971 |
12,107 |
|
Recur.
Profit |
|
.. |
.. |
.. |
.. |
|
Net
Profit |
|
230 |
220 |
168 |
535 |
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Total
Assets |
|
|
7,765 |
N/A |
N/A |
|
Net
Worth |
|
|
2,359 |
2,139 |
1,971 |
|
Capital,
Paid-Up |
|
|
195 |
195 |
195 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
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<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
5.33 |
13.78 |
-17.64 |
5.58 |
|
Current Ratio |
|
|
.. |
.. |
.. |
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N.Worth Ratio |
|
|
30.38 |
.. |
.. |
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N.Profit/Sales |
|
1.92 |
1.94 |
1.68 |
4.42 |
Notes: Financials
are only partially disclosed.
Forecast (or estimated) figures for the
31/03/2016 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.82 |
|
|
1 |
Rs.101.26 |
|
Euro |
1 |
Rs.72.36 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
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.