MIRA INFORM REPORT

 

 

Report No. :

346006

Report Date :

17.10.2015

 

IDENTIFICATION DETAILS

 

Name :

SATAKE CORPORATION

 

 

Registered Office :

2-30 Saijo Nishi-Honmachi Higashi-Hiroshima 739-0043 

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2015

 

 

Date of Incorporation :

December 1939

 

 

Com. Reg. No.:

0100-01-017304

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures, imports and exports rice processing machines & equipment (--97%), foods (3%) Mfg is consigned to subsidiary mfrs (4)

 

 

No. of Employees :

890

 

 

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 :

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

 

SATAKE CORPORATION

 

REGD NAME:   KK Satake

MAIN OFFICE:  2-30 Saijo Nishi-Honmachi Higashi-Hiroshima 739-0043 JAPAN

                                    Tel: 81-824-20-0001       Fax: 81-824-20-0004

 

*.. Registered at: 4-7-2 Soto-Kanda Chiyodaku Tokyo

 

URL:                 http://www.satake-japan.co.jp/

E-Mail address: kg-hiroshima@satake-japan.co.jp

 

ACTIVITIES:     Mfg of rice milling machines, cereal processing machines, other

BRANCHES:     Tokyo, Sapporo, Sendai, Chiba, Niigata, Nagoya, Osaka, Hiroshima,

                        Matsuyama, Fukuoka, Kumamoto, other (Tot 17)

OVERSEAS:     China, UK, Thailand, India, Australia, USA, Brazil, Myanmar, Canada                                            (--subsidiaries)

FACTORIES:    Hiroshima (3), Iwate (--subsidiary mfrs)

 

OFFICERS:       TOSHIKO SATAKE, PRES         Takeshi Fukumori, v pres          

                        Kazuyoshi Kihara, s/mgn dir       Nobuhiro Matsumoto, dir

                        Hideaki Matsushima, dir             Kosuke Sasaki, dir        

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 37,418 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 280 M

TREND SLOW                           WORTH            Yen 32,493 M   

STARTED         1939                             EMPLOYES      890

 

COMMENT:      MFR SPECIALIZING IN RICE MILLING MACHINES & GRAIN DRYING MACHINES.   FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established originally in 1896 by Riichi Satake for mfg power driven rice milling machines, Japan’s first of its kind, on his account.  Incorporated in 1939, the firm has been succeeded by his descendants.  Toshiko Satake is his granddaughter, who took the pres office in Oct 2000.  This is a manufacture of a comprehensive range of individual machines, integrated systems and totally engineered solutions for the processing of rice, wheat & other grains.  Domestically enjoys dominant share of 70% in rice milling plants, and 50% share in paddy huskers for farmers.  Active in overseas expansion with USA, Thailand, Brazil, China,

Australia operations strengthened (See OPERATION for overseas market shares).  About 30% of the products are shipped to Zen-Noh (domestic farm coops) nationwide.  Operations cover over 140 countries worldwide.

 

 

FINANCIAL INFORMATION

           

The sales volume for Feb/2015 fiscal term amounted to Yen 37,418 million, an 8% down from Yen 40,543 million in the previous term.  Sales declined as a result of rush or orders in the previous term.  The recurring profit was posted at Yen 2,424 million and the net profit at Yen 863 million, respectively, compared with Yen 3,829 million recurring profit and Yen 2,570 million net profit, respectively, a year ago.  Profits deteriorated due to the write-offs of extraordinary losses for the term.

 

For the current term ending Feb 2016 the recurring profit is projected at Yen 3,800 million and the net profit at Yen 2,550 million, respectively, on a 5% rise in turnover, to Yen 39,300 million. 

 

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

 

 

REGISTRATION

 

Date Registered:                                   Dec 1939

Regd No.:                                             0100-01-017304 (Tokyo-Chiyodaku)

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                                          16 million shares

Issued:                                      4.04 million shares

Sum:                                        Yen 280 million

Major shareholders (%):                       SS Enterprise (16), Tohoku Satake Co (9)

No. of shareholders:                 24

 

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

 

 

OPERATION

           

Activities: Manufactures, imports and exports rice processing machines & equipment (--97%), foods (3%)

Mfg is consigned to subsidiary mfrs (4)

 

Exports (15%)

 

(Overseas Markets Shares of Rice Mills – Percentages of rice mills equipment with some sort of Satake Machinery): Mid East & Africa (50%), Asia (70%), North America (90%), Latin America (50%)

 

Products: country elevator, rice milling systems & plants, rice graders, flour milling system, food processing system (of rice products), grain color sorter, debranner, roller mill, maize degermer, coffee polisher, other grain processing machines, kitchen-use rice polishing equipment;

 

Bio gas plants, ice room systems, abrasives, motors, fire extinguishers, other industrial machinery; Emergency foods, instant rice, other.

 

Clients: [Farm coops, mfrs, wholesalers] Zen-Noh* (30%), Kubota Corp** (5%),  Marubeni Corp, Mitsui & Co, Sumitomo Corp, Itochu Corp, Mitsubishi Corp, Mitsubishi Agricultural Machinery, other.

*.. Short for: National Federation of Agricultural Cooperative Associations.

**.. Largest mfr of agricultural machinery & equipment, Osaka

 

No. of accounts: 2,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Tohoku Satake Co, Satake Metals Ind, Satake Electrical Engineering (-- subsidiaries), Mitsui & Co, Marubeni-Itochu Steel Inc, Matsushita Electric Ind, Mitsubishi Corp, Chiyoda Corp, Mitsubishi Agricultural Machinery, Zen-Noh Pearl Rice West Japan, Hokuren, other.

 

Payment record: No Complaints

 

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

 

Bank References:

SMBC (Hiroshima)

Bank of Hiroshima (Saijo)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

Terms Ending:

29/02/2016

28/02/2015

28/02/2014

28/04/2013

Annual Sales

 

39,300

37,418

40,543

39,977

Recur. Profit

 

3,800

2,424

3,829

2,380

Net Profit

 

2,550

863

2,570

1,651

Total Assets

 

 

42,355

43,000

40,328

Current Assets

 

 

30,799

31,534

28,994

Current Liabs

 

 

7,955

9,434

9,256

Net Worth

 

 

32,493

31,660

29,119

Capital, Paid-Up

 

 

280

280

280

Div.Ttl in Million (¥)

 

 

30

30

30

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.03

-7.71

1.42

3.32

    Current Ratio

 

..

387.17

334.26

313.25

    N.Worth Ratio

 

..

76.72

73.63

72.21

    R.Profit/Sales

 

9.67

6.48

9.44

5.95

    N.Profit/Sales

 

6.49

2.31

6.34

4.13

    Return On Equity

 

..

2.66

8.12

5.67

 

Notes: Forecast (or estimated) figures for the 29/02/2016 fiscal term.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.97

UK Pound

1

Rs.100.55

Euro

1

Rs.73.99

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

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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.