MIRA INFORM REPORT
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Report No. : |
329196 |
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Report Date : |
25.06.2015 |
IDENTIFICATION DETAILS
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Name : |
SUMITOMO RIKO CO LTD |
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Registered Office : |
3-1 Higashi Komaki City Aichi-Pref 485-0831 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
Dec., 1929 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of shock absorbent rubber for motor vehicles, IT-related
products |
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No. of Employees : |
23,568 |
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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Maximum Credit Limites: |
Yen 13,814.8 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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.
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Source
: CIA |
Company
Name and address
SUMITOMO RIKO CO LTD
REGD NAME: Sumitomo
Riko KK
MAIN OFFICE: 3-1
Higashi Komaki City Aichi-Pref 485-0831 JAPAN
Tel: 0568-77-2121 Fax: 0568-77-5341 -
URL: http://www.sumitomoriko.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Mfg of shock
absorbent rubber for motor vehicles, IT-related products
BRANCHES
Tokyo, Osaka,
Hiroshima, Sendai, Fukuoka (Tot 5)
OVERSEAS
China, Thailand, India, Indonesia, Vietnam, Korea, Poland,, Germany,
Italy, USA, Mexico, Brazil (--all with
factories)
FACTORIES
At the caption
address, Mie, Shizuoka (Ttl 3) and overseas factories as above
CHIEF
EXEC
YOSHIAKI
NISHIMURA, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 400,930 M
PAYMENTSSLOW BUT
CORRECT CAPITAL Yen 12,145 M
TREND UP WORTH Yen
199,225 M
STARTED 1929 EMPLOYES 23,568
COMMENT
MFR OF SHOCK ABSORBENT RUBBER FOR MOTOR
VEHICLES
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR
ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 13,814.8 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast
figures for the 31/10/2016 fiscal term.
HIGHLIGHTS
This is a major
producer of shock absorbent rubber for motor vehicles. Advanced into rubber for
cushioning vibration. Supplying most
rubber parts, including hoses to carmakers. Emphasizing non-auto lines such as
construction machinery and OA equipment parts. Belongs to Sumitomo Electronics
Industries. Operates production bases in overseas subsidiaries.
FINANCIAL
INFORMATION
The sales volume
for Mar/2015 fiscal term amounted to Yen 400,930 million, an 8.6% up from Yen
369,093 million in the previous term. The recurring profit was posted at Yen
8,408 million and the net losses at Yen 4,429 million, respectively, compared
with Yen 11,041 million recurring profit and Yen 4,076 million net profit,
respectively, a year ago.
For the current
term ending Mar 2016 the recurring profit is projected at Yen 14,000 million
and the net profit at Yen 8,000 million, respectively, on a 5% rise in
turnover, to Yen 420,000 million. Sales
in N American markets will continue expansion. Operations in Europe and S
America will improve, supported by corporate downsizing measures.
The financial
situation is considered FAIR and good for ORDINARY business engagements. Max
credit limit is estimated at Yen 13,814.8 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Dec 1929
Legal Status: Limited
Company (Kabushiki Kaisha_
Authorized:
400 million shares
Issued: 104,042,806
shares
Sum: Yen
12,145 million
Major shareholders
(%):
Sumitomo Electric Industries (49.5), Maruyasu Industries (10.4), Fukoku Bussan
(2.6), Northern Trust (AVFC) Re NV101 (1.8), Japan Trustee Services T (1.7),
Company’s Kyoeikai Mochikabukai (1.6), Employees’ S/Holding Assn (1.5), Master
Trust Bank of Japan T (1.2), Sumitomo Life Ins (0.6), Mitsuboshi Belting (0.4);
foreign owners (10.8)
No. of
shareholders: 6,545
Listed
on the S/Exchange (s) of: Tokyo, Nagoya
Managements: Yoshiaki
Nishimura, pres; Toshihiko Ozaki, v pres; Mitsuru Watanabe, v pres; Tetsu Matsui,
s/mgn dir; Katsunori Kanaoka, mgn dir; Rikizo Tatsuta, mgn dir; Takahisa Kato,
dir
Nothing detrimental is known as to the
commercial morality of executives.
Related
companies: TRI Techno, TRI Engineering, other.
OPERATION
Activities: Manufactures
shock absorbent rubber for motor vehicles, automotive parts (85%), construction
machinery, OA equipment, others (15%)
Overseas Sales
Ratio (57%)
Clients: [Mfrs,
wholesalers] Maruyasu Ind, Fukoku Bussan, TRI Hose Sales, DTR Tennessee,
Cannon, Nagoya Electric Works, Tsuchida Sangyo Corp, other
No. of accounts: 800
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Maruyasu Ind, TRI Oita AE, Sahashi Ind, TRI Kyushu, Sumitomo Corp,
Tokai Chemical Ind, Tokyo Zairyo Co, TRI Metex, other
Payment record: Slow but correct
Location: Business area in
Komaki City, Aichi-Pref. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References:
SMBC (Nagoya)
MUFG (Nagoya)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2015 |
31/03/2014 |
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INCOME STATEMENT |
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Annual Sales |
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400,930 |
369,093 |
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Cost of Sales |
338,484 |
310,621 |
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GROSS PROFIT |
62,446 |
58,472 |
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Selling & Adm Costs |
51,954 |
44,895 |
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OPERATING PROFIT |
10,492 |
13,577 |
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Non-Operating P/L |
-2,084 |
-2,566 |
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RECURRING PROFIT |
8,408 |
11,041 |
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NET PROFIT |
-4,429 |
4,076 |
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BALANCE SHEET |
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Cash |
|
42,518 |
41,083 |
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Receivables |
88,376 |
80,866 |
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Inventory |
42,403 |
37,947 |
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Securities, Marketable |
5,000 |
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Other Current Assets |
19,653 |
19,266 |
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TOTAL CURRENT ASSETS |
197,950 |
179,162 |
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Property & Equipment |
159,475 |
144,541 |
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Intangibles |
26,390 |
34,326 |
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Investments, Other Fixed Assets |
22,962 |
24,976 |
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TOTAL ASSETS |
406,777 |
383,005 |
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Payables |
57,814 |
53,245 |
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Short-Term Bank Loans |
11,993 |
24,559 |
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Other Current Liabs |
34,004 |
30,667 |
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TOTAL CURRENT LIABS |
103,811 |
108,471 |
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Debentures |
35,000 |
35,000 |
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Long-Term Bank Loans |
49,723 |
30,444 |
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Reserve for Retirement Allw |
6,957 |
6,943 |
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Other Debts |
|
12,061 |
13,140 |
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TOTAL LIABILITIES |
207,552 |
193,998 |
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MINORITY INTERESTS |
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Common
stock |
12,145 |
12,145 |
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Additional
paid-in capital |
10,867 |
10,867 |
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Retained
earnings |
133,333 |
139,852 |
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Evaluation
p/l on investments/securities |
664 |
2,369 |
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Others |
42,515 |
24,071 |
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Treasury
stock, at cost |
(299) |
(297) |
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TOTAL S/HOLDERS` EQUITY |
199,225 |
189,007 |
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TOTAL EQUITIES |
406,777 |
383,005 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2015 |
31/03/2014 |
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Cash
Flows from Operating Activities |
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19,547 |
17,758 |
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Cash
Flows from Investment Activities |
-17,184 |
-51,722 |
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Cash
Flows from Financing Activities |
2,692 |
13,558 |
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Cash,
Bank Deposits at the Term End |
|
47,518 |
39,479 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
199,225 |
189,007 |
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Current
Ratio (%) |
190.68 |
165.17 |
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Net Worth
Ratio (%) |
48.98 |
49.35 |
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Recurring
Profit Ratio (%) |
2.10 |
2.99 |
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Net
Profit Ratio (%) |
-1.10 |
1.10 |
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Return
On Equity (%) |
-2.22 |
2.16 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.63.66 |
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|
1 |
Rs.100.50 |
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Euro |
1 |
Rs.71.31 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
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.