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MIRA INFORM REPORT
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Report No. : |
487226 |
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Report Date : |
19.01.2018 |
IDENTIFICATION DETAILS
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Name : |
SATAKE CORPORATION |
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Registered Office : |
4-7-2 Soto-Kanda Chiyodaku Tokyo |
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Country : |
Japan |
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Financials (as on) : |
28.02.2017 |
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Date of Incorporation : |
Dec., 1939 |
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Com. Reg. No.: |
0100-01-017304 (Tokyo-Chiyodaku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Rice Milling Machines,
Cereal Processing Machines, Other. |
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No. of Employees : |
917 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II 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 have significantly eroded under the dual pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2016 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. For three postwar decades, overall real economic growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which entailed considerable 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.
Japan enjoyed an 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. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the necessity of addressing its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to another recession, so Prime Minister ABE has twice postponed the next increase, now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Japan was the second country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP on January 23, 2017, and as of April 2017 the agreement has not gone into effect.
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Source
: CIA |
COMPANY NAME AND ADDRESS
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, Korea, Indonesia
(--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 33,247 M
PAYMENTS REGULAR CAPITAL Yen 280 M
TREND SLOW WORTH Yen
35,096 M
STARTED 1939 EMPLOYES 917
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/2017 fiscal term amounted to Yen 33,247 million, a 19% fall from Yen
41.148 million in the previous term. The
recurring profit was posted at Yen 1,757 million and the net profit at Yen
1,519 million, respectively, compared with Yen 1,724 million recurring profit
and Yen 1,124 million net profit, respectively, a year ago.
For the current
term ending Feb 2018 the recurring profit is projected at Yen 1,800 million and
the net profit at Yen 1,600 million, respectively, on a 3% rise in turnover, to
Yen 34.250 million. Business is seen expanding
steadily.
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), other
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%)
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%)
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.
No. of accounts: 500
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: Regular
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)
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Terms Ending: |
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28/02/2018 |
28/02/2017 |
29/02/2016 |
28/02/2015 |
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Annual
Sales |
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34,250 |
33,247 |
41,148 |
37,418 |
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Recur.
Profit |
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1,800 |
1,757 |
1,724 |
2,424 |
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Net
Profit |
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1,600 |
1,519 |
1,124 |
863 |
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Total
Assets |
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44,658 |
45,692 |
42,355 |
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Net
Worth |
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35,076 |
33,587 |
32,493 |
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Capital,
Paid-Up |
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280 |
280 |
280 |
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Div.Ttl
in Million (¥) |
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30.3 |
30.3 |
30.3 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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3.02 |
-19.20 |
9.97 |
-7.71 |
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Current Ratio |
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.. |
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.. |
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N.Worth Ratio |
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78.54 |
73.51 |
76.72 |
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N.Profit/Sales |
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4.67 |
4.57 |
2.73 |
2.31 |
Notes: Forecast (or estimated) figures for the
28/02/2018 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.84 |
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1 |
INR 88.28 |
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Euro |
1 |
INR 77.88 |
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Yen |
1 |
INR 0.57 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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VIV |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
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Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.