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Report No. : |
347025 |
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Report Date : |
27.10.2015 |
IDENTIFICATION DETAILS
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Name : |
SUMISHO AERO-SYSTEMS CORPORATION |
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Registered Office : |
Triton Square W 6F, 1-8-8 Harumi Chuoku Tokyo 104-0053 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
September 1982 |
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Com. Reg. No.: |
0100-01-020185 |
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Legal Form : |
Limited Company |
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Line of Business : |
Imports, exports and wholesales airplane structural systems, equipment, parts, components, others (--100%) |
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No. of Employees : |
107 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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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 384.4 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 |
|
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.
|
Source
: CIA |
SUMISHO AERO-SYSTEMS CORPORATION
REGD NAME: Sumisho
Aero System KK
MAIN OFFICE: Triton
Square W 6F, 1-8-8 Harumi Chuoku Tokyo 104-0053 JAPAN
Tel: 03-5144-0030
Fax: 03-5144-0035
E-Mail address: (thru the URL)
ACTIVITIES: Import, export, wholesale of aircraft
structural systems, control systems/equipment
BRANCHES: Nagoya
OVERSEAS: USA
(2), UK
OFFICERS: TAKAO
KUSAKA, PRES Tomoaki Watanabe,
dir
Koji Sawai, dir Eiji Ishida, dir
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 36,054 M
PAYMENTSREGULAR CAPITAL Yen 100 M
TREND STEADY WORTH Yen 2,488 M
STARTED 1982 EMPLOYES 107
COMMENT: TRADING FIRM SPECIALIZING IN AIRPLANE STRUCTURAL SYSTEMS, OWNED BY SUMITOMO CORPORATION. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 384.4 MILLION, 30 DAYS NORMAL TERMS
The subject company was established on the basis of a division separated from Sumitomo Corporation (See REGISTRATION), in order to expand Defense/Aerospace business of the Sumitomo Corporation. Tied with SAS, the firm import, export and wholesales airplane structural systems, engines, radars, other (See OPERATION). 50% of the products are supplied to Ministry of Defense and Government agencies. Clients include major heavy machinery makers, airline companies, other.
The sales volume for Mar/2015 fiscal term amounted to Yen 36,054 million, a shade down from Yen 36,083 million in the previous term. The recurring profit was posted at Yen 1,814 million and the net profit at Yen 1,128 million, respectively, compared with Yen 1,493 million recurring profit and Yen 882 million net profit, respectively, a year ago.
For the current term ending Mar 2016 the recurring profit is projected at Yen 1,900 million and the net profit at Yen 1,200 million, respectively, on a 3% rise in turnover, to Yen 37,150 million.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 384.4 million, on 30 days normal terms.
Date Registered: Sept 1982
Regd No.:
0100-01-020185
(Tokyo-Chuoku)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 800,000 shares
Issued: 200,000
shares
Sum: Yen
100 million
Major
shareholders (%): Sumitomo Corporation* (100)
*.. One of leading trading houses in Japan, Tokyo, founded 1919, listed Tokyo, Nagoya, Fukuoka S/E’s, capital Yen 219,279 million, sales Yen 3,762,236 million, operating loss Yen 84,374 million, recurring loss Yen 18,561 million, net loss Yen 73,170 million, total assets Yen 8,983,706 million, net worth Yen 2,592,224 million, employees 75,448, pres Kuniharu Nakamura
Nothing detrimental is known as to the commercial morality of executives.
Activities: Imports, exports
and wholesales airplane structural systems, equipment, parts, components,
others (--100%)
(Handling
Items):
Avionics:
radar,
communication, navigation, MEMS sensors, cockpit meters, flight control
systems, EO/IR sensor systems;
Engine
System: engine control, fuel control, fuel hydro pump, heat exchanger, aero
foil, disk, shaft, forging materials:
Aircraft
System: propeller, landing gear, fuel system, hydro actuating system, ejection
system,
Others: ASW system, Mine
countermeasure system, target tow-reeling machine, missile components, weapon
system, ammunition, ground support equipment, armament control system,
countermeasure dispenser, docking guidance system, data link systems, others
Clients: [Mfrs,
wholesalers] Self Defense & government agencies (50%), IHI Corp, All Nippon
Airways, Fuji Heavy Ind, Mitsubishi Electric, Fujitsu Ltd, Kawasaki Heavy Ind,
Mitsubishi Heavy Ind, Japan Steel Works, Japan Aviation Electronics Ind, Shin
Meiwa Ind Ltd, Sumitomo Precision Products, other
No. of accounts:
500
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs,
wholesalers] Sumitomo Corp USA, Sumitomo Corp UK, Sumitomo Precision Products,
Co, Yokogawa Electric Corp, Sumitomo Heavy Ind, Sumitomo Electric Ind, Daicel
Corp, Sumiju Precision Forging, Hamilton Sandstrand, other
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
SMBC (Kanda)
MUFG (Jinbocho)
Relations:
Satisfactory
(In Million
Yen)
|
Terms Ending: |
31/03/2016 |
31/03/2015 |
31/03/2014 |
31/03/2013 |
|
|
Annual
Sales |
|
37,150 |
36,054 |
36,083 |
23,848 |
|
Recur.
Profit |
|
1,900 |
1,814 |
1,493 |
|
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Net
Profit |
|
1,200 |
1,128 |
882 |
553 |
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Total
Assets |
|
|
17,989 |
14,472 |
13,521 |
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Current
Assets |
|
|
17,888 |
14,378 |
|
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Current
Liabs |
|
|
15,481 |
12,204 |
|
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Net
Worth |
|
|
2,488 |
2,248 |
2,051 |
|
Capital,
Paid-Up |
|
|
100 |
100 |
100 |
|
Div.Ttl
in Million (¥) |
|
|
883 |
554 |
443 |
|
<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
3.04 |
-0.08 |
51.30 |
5.62 |
|
Current Ratio |
|
.. |
115.55 |
117.81 |
.. |
|
N.Worth Ratio |
|
.. |
13.83 |
15.53 |
15.17 |
|
R.Profit/Sales |
|
5.11 |
5.03 |
4.14 |
.. |
|
N.Profit/Sales |
|
3.23 |
3.13 |
2.44 |
2.32 |
|
Return On Equity |
|
.. |
45.34 |
39.23 |
26.96 |
Notes: Forecast (or estimated) figures for the
31/03/2016 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.96 |
|
|
1 |
Rs.99.55 |
|
Euro |
1 |
Rs.71.64 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
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.