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Report No. : |
347186 |
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Report Date : |
24.10.2015 |
IDENTIFICATION DETAILS
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Name : |
SAKAE TIRE CO LTD |
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Registered Office : |
5-801 Hojin Minatoku Nagoya 455-0832 |
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Country : |
Japan |
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Financials (as on) : |
31.08.2014 |
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Date of Incorporation : |
April 1967 |
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Legal Form : |
Limited Company |
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Line of Business : |
Wholesales and retails
automotive tires, wheels, and associated goods |
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No. of Employees : |
25 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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) |
|
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 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.
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Source
: CIA |
SAKAE TIRE CO LTD
REGD NAME: Sakae
Tire KK
MAIN OFFICE: 5-801
Hojin Minatoku Nagoya 455-0832 JAPAN
Tel: 052-383-0214 Fax: 052-383-3900
URL: Http:www.sakaetire.co.jp
E-Mail address (Thru the URL)
ACTIVITIES: Wholesale, retail of automotive tires
BRANCHES: At the caption address, other (--shops)
OVERSEAS: Singapore (Partner)
OFFICERS:KOJI
YAMADA, PRES
Shinji Yamada, dir
Kazuko Yamada, dir
Yen Amount: In million Yen, unless otherwise stated
SUMMARY: FINANCES R/WEAK A/SALES Yen 980 M
PAYMENTS SLOW
BUT CORRECT CAPITAL Yen 10 M
TREND STEADY WORTH Yen 668 M
STARTED 1967 EMPLOYES 25
WHOLESALER AND RETAILER SPECIALIZING IN AUTOMOTIVE
TIRES. FINANCIAL SITUATION CONSIDERED RATHER
WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.
The subject company was established originally in 1951 by
father of Koji Yamada in order to make most of his experience in the subject
line of business. Incorporated in 1967, the
firm has been succeeded by his descendants.
Koji Yamada took the pres office in Oct 1995. Specializes in wholesaling
and retailing tires, wheels and other associated goods for motorcycles and
motorcars. Also acts as agent dealer for
Topy Enterprises Ltd, wholesaler of automotive parts, others, Tokyo, and offers
wheel & tire fitting, maintenance and associated services. Major client includes Mitsubishi Motors, for
supply of tires, wheels, including maintenance services.
Financials
are only partially disclosed.
The sales volume for Aug/2014 fiscal term amounted to Yen
980 million, a 9% up from Yen 900 million in the previous term. The net profit was posted at Yen 30 million,
compared with Yen 25 million a year ago.
For the term that ended Aug 2015 the net profit was
projected at Yen 35 million, on a 5% rise in turnover, to Yen 1,030
million. Final results are yet to be
released.
The financial situation is considered RATHER WEAK but should
be good for MODERATE business engagements.
Max credit limit is estimated at Yen 18.0 million, on 30 days normal
terms.
Date Registered: Apr 1967
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 80,000 shares
Issued:
20,000 shares
Sum: Yen 10 million
Major shareholders (%): Koji
Yamada (80) and families (--20)
No. of
shareholders: 5
Nothing
detrimental is known as to the commercial morality of executives.
Activities:
Wholesales and retails automotive tires, wheels, and associated goods
(100%).
Agent
dealer for Topy Enterprises Ltd and offers tire/wheel fixing, maintenance,
repairing services, too.
Clients:
[Automakers, car owners] Mitsubishi Motors, Aichi Nissan Motor, Mitsubishi
Truck & Bus, other.
No. of accounts: 200
Domestic areas of activities:
Centered in Nagoya and vicinities.
Suppliers:
[Mfrs, wholesalers] Toyo Tire Chubu Hambai, Bridgestone Tire Chubu Hambai,
Bridgestone Nagoya Hambai, Tokai
Dunlop Hambai, Topy Enterprises Ltd, Dunlop Tire Chubu, other.
Payment record: Slow
but correct
Location:
Business area in Nagoya. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References:
MUFG (Atsuta)
Bank of Nagoya (Tochi)
Relations: Satisfactory
(In Million Yen)
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Terms Ending: |
|
31/08/2015 |
31/08/2014 |
31/08/2013 |
31/08/2012 |
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Annual
Sales |
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1,030 |
980 |
900 |
700 |
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Recur.
Profit |
|
.. |
.. |
.. |
.. |
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Net
Profit |
|
35 |
30 |
25 |
20 |
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Total
Assets |
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N/A |
N/A |
N/A |
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Net
Worth |
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|
668 |
638 |
613 |
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Capital,
Paid-Up |
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|
10 |
10 |
10 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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5.10 |
8.89 |
28.57 |
11.11 |
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Current Ratio |
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|
.. |
.. |
.. |
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N.Worth Ratio |
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|
.. |
.. |
.. |
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N.Profit/Sales |
|
3.40 |
3.06 |
2.78 |
2.86 |
Notes:
Financials are only partially disclosed.
Forecast
(or estimated) figures for 31/08/2015 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.88 |
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UK Pound |
1 |
Rs.99.89 |
|
Euro |
1 |
Rs.72.06 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
TRU |
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.