MIRA INFORM REPORT

 

 

Report No. :

343588

Report Date :

01.10.2015

 

IDENTIFICATION DETAILS

 

Name :

SAKAE ELECTRONICS CORPORATION

 

 

Registered Office :

2-9-10 Soto-Kanda Chiyodaku Tokyo 101-0021

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

April, 1971

 

 

Com. Reg. No.:

0100-01-017343 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, Export and Wholesale of Electronic Parts & Devices.

 

 

No. of Employees :

61

 

 

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 Limits :

Yen 166.5 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 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 first-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

 

SAKAE ELECTRONICS CORPORATION

 

REGD NAME:               KK Sakae Denshi

 

MAIN OFFICE:              2-9-10 Soto-Kanda Chiyodaku Tokyo 101-0021 JAPAN

                                                Tel: 03-6385-7240     Fax: 03-6385-7801     -

 

URL:                             http://www.sakae-denshi.com

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES

 

Import, export, wholesale of electronic parts & devices

 

 

BRANCHES

 

Sendai, Nagoya, Osaka, Yokohama, Ueda, Akishima, other (Tot 12)

 

 

OVERSEAS

 

Europe (5), USA, India, Korea, Taiwan, China, New Zealand, Australia, Israel (--Sales agents)

 

 

FACTORIES

 

China (subcontracted)

 

 

CHIEF EXEC

 

YOSUKE MIYAMOTO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 4,878 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 500 M

TREND UP                                WORTH            Yen 2,458 M

STARTED         1971                             EMPLOYES      61

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN ELECTRONIC DEVICES 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 166.5 MILLION, 30 DAYS NORMAL TERMS

 

Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is an independent trading house dealing in electronic parts & devices for industrial equipment makers, such as condensers, relays, resisters, hybrid IC’s, other (See OPERATION).  Major maker of power sources for semiconductor making equipment.  Aims to go into the growing smart-phone markets.  Started importing electronic components from the Singapore base of a UK company in 2014.  Aiming to increase the added value of electronic components thru the creation of modularized electronic parts.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 4,878 million, an 11.1% up from Yen 4,392 million in the previous term. The recurring profit was posted at Yen 148 million and the net profit at Yen 134 million, respectively, compared with Yen 176 million recurring profit and Yen 88 million net losses, respectively, a year ago.

 

(Apr/Jun/2015 results): Sales Yen 1,273 million (up 7.0%), operating profit Yen 27 million (down 35.8%), recurring profit Yen 31 million (down 30.5%), net profit Yen 25 million (down 32.0%).  (% as compared with the corresponding period a year ago) 

           

For the current term ending Mar 2016 the recurring profit is projected at Yen 214 million and the net profit at Yen 159 million, on a 19.1% rise in turnover, to Yen 5,812 million.  The weaker Yen will contribute to the growth in Yen terms.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 166.5 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:  Apr 1971

Regd No.:         0100-01-017343 (Tokyo-Chiyodaku)

            Legal Status:          Limited Company (Kabushiki Kaisha)

            Authorized:            20 million shares

            Issued:                   5,090,000 shares

            Sum:                       Yen 500 million

 

Major shareholders (%): Hideo Someya (24.2), Mihoko Someya (7.5), Sakato Shoji Co (7.2), Masakazu Someya (5.8), Takashi Someya (5.8), Katsu Ogiya (1.3), Motoi Takasu (1.3), Japan Securities Finance (1.2), Sadao Matsuo (1.1), Ryuzo Sato (1.1); foreign owners (0.3)

 

No. of shareholders: 591

 

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

 

Managements: Hideo Someya, ch; Yosuke Miyamoto, pres; Morio Ohashi, dir; Momoko Tsuda, dir

 

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

 

Related companies: Toei Electronics Corp.

 

 

OPERATION

           

Activities: Imports, exports and wholesales electronic parts (58%), power source units (27%), electronic devices (7%), others (8%).

           

Clients: [Mfrs, wholesalers] canon Anelva Corp, Aval Nagasaki Corp, Yokogawa Denshi Kiki, TDK-Lamda Corp, Tokyo Keiki Inc, Miyakoshi Digital Systems, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] TDK-Lamda Corp, JST Mfg Co, ETA Electric Ind, NT Sales Co, Harting Technology, Yamaichi Electronics Co, Mycom Inc, Mac-Eight Co, Suzuden Corp, Toei Electronics Corp, other

 

 

Payment record: No Complaints

 

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

 

Bank References:

            Resona Bank (Kanda)

            SMBC (Kanda-Ekimae)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

4,878

4,392

　

  Cost of Sales

4,023

3,616

　

      GROSS PROFIT

855

775

　

  Selling & Adm Costs

714

662

　

      OPERATING PROFIT

141

113

　

  Non-Operating P/L

7

63

　

      RECURRING PROFIT

148

176

　

      NET PROFIT

134

-88

BALANCE SHEET

　

　

  Cash

　

724

728

　

  Receivables

1,471

1,317

　

  Inventory

350

303

　

  Securities, Marketable

　

　

　

  Other Current Assets

25

16

　

      TOTAL CURRENT ASSETS

2,570

2,364

　

  Property & Equipment

1,771

1,800

　

  Intangibles

43

60

　

  Investments, Other Fixed Assets

565

500

　

      TOTAL ASSETS

4,949

4,724

　

  Payables

1,134

1,079

　

  Short-Term Bank Loans

800

800

　

　

　

　

　

  Other Current Liabs

197

135

　

      TOTAL CURRENT LIABS

2,131

2,014

　

  Debentures

　

　

　

  Long-Term Bank Loans

205

265

　

  Reserve for Retirement Allw

21

21

　

  Other Debts

　

134

153

　

      TOTAL LIABILITIES

2,491

2,453

　

      MINORITY INTERESTS

　

　

Common stock

500

500

　

Additional paid-in capital

372

372

　

Retained earnings

1,458

1,324

　

Evaluation p/l on investments/securities

126

75

　

Others

5

3

　

Treasury stock, at cost

(3)

(3)

　

      TOTAL S/HOLDERS` EQUITY

2,458

2,271

　

      TOTAL EQUITIES

4,949

4,724

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

56

-915

　

Cash Flows from Investment Activities

0

701

　

Cash Flows from Financing Activities

-66

-285

　

Cash, Bank Deposits at the Term End

　

724

728

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

2,458

2,271

　

Current Ratio (%)

120.60

117.38

　

Net Worth Ratio (%)

49.67

48.07

　

Recurring Profit Ratio (%)

3.03

4.01

　

Net Profit Ratio (%)

2.75

-2.00

　

　

Return On Equity (%)

5.45

-3.87

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.74

UK Pound

1

Rs.99.53

Euro

1

Rs.73.80

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.