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MIRA INFORM REPORT
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Report No. : |
507960 |
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Report Date : |
07.05.2018 |
IDENTIFICATION DETAILS
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Name : |
SOJITZ MACHINERY
CORPORATION |
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Registered Office : |
Marunouchi Center Bldg
2F, 1-6-1 Marunouchi Chiyodaku Tokyo 100-0005 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
Apr 2004 |
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Com. Reg. No.: |
0100-01-089058 |
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Legal Form : |
Limited Company |
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Line of Business : |
A trading house for import, export and wholesale of the following items |
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No. of Employees : |
224 |
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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Maximum Credit Limit : |
Yen 1,480.0 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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 2017 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 - averaging 10% 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 resulted in several years of economic stagnation as firms sought 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 since 2013, supported by 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 need to address 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 a sharp contraction, so Prime Minister ABE has twice postponed the next increase, which is 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.
Under the Abe Administration, Japan’s government sought to open the country’s economy to greater foreign competition and create new export opportunities for Japanese businesses, including by joining 11 trading partners in the Trans-Pacific Partnership (TPP). Japan became the first country to ratify the TPP in December 2016, but the United States signaled its withdrawal from the agreement in January 2017. In November 2017 the remaining 11 countries agreed on the core elements of a modified agreement, which they renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Japan also reached agreement with the European Union on an Economic Partnership Agreement in July 2017, and is likely seek to ratify both agreements in the Diet this year.
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Source
: CIA |
Company
name and address
SOJITZ MACHINERY
CORPORATION
REGD NAME: Sojitz Machinery KK
MAIN OFFICE: Marunouchi Center Bldg 2F, 1-6-1 Marunouchi
Chiyodaku Tokyo 100-0005 JAPAN
Tel: 03-6259-5600 Fax: 03-6259-5636
URL: http://www.sojitz-mac.com/
E-Mail
address: (thru the URL)
ACTIVITIES: Trading firm specializing in machinery
BRANCHES: Kimitsu, Osaka, Nagoya, Toyota, Saitama,
Sendai, other (Tot 9)
OVERSEAS: Germany, Sao Paulo, India, China, Singapore,
Indonesia, Thailand, Dubai, other (-subsidiaries) (Group 50 countries in the
world)
OFFICERS: TATSUNOBU SAKO, PRES Hideshi Maruta, s/mgn dir
Hiroaki Koike,
mgn dir Keiichi Takahashi,
dir
Masakazu
Hashimoto, dir
Yen Amount: In million Yen, unless otherwise stated
SUMMARY: FINANCES FAIR A/SALES Yen 66,033 M
PAYMENTS REGULAR CAPITAL Yen 1,500 M
TREND STEADY WORTH Yen
6,703 M
STARTED 2004 EMPLOYES 224
COMMENT
TRADING FIRM
SPECIALIZING IN MACHINERY, WHOLLY OWNED BY SOJITZ CORP.
FINANCIAL SITUATION CONSIDERED FAIR AND
GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT
LIMIT: YEN 1,480.0 MILLION, 30 DAYS NORMAL TERMS.
HIGHLIGHTS
The subject company was established
on the basis of the integration of five machinery-
related
companies: Nichimen Machinery Corporation, Nissho Iwai Mechatronics
Corporation, Nissho Iwai Machinery System Corporation, Nissho Iwai Chubu
Machinery Co Ltd, and the NITEC Corporation (formed in 1989 as a trading house
of steel-making facilities, food machinery, under the then Nissho Iwai
Corporation), with NITEC as surviving company.
Due to the merger of Nissho Iwai Corp and Nichimen Corp to form Sojitz
Holdings Corporation in Apr 2004 (later in Oct 2005 renamed to Sojitz Corp),
the subject became 100% owned subsidiary of Sojitz Corporation (See
REGISTRATION). This is a trading company
specializing in machinery (see OPERATION).
Major clients include carmakers, steel mills, heavy machinery mfrs,
other, nationwide.
FINANCIAL
INFORMATION
The sales volume for Mar/2017 fiscal
term amounted to Yen 66,033 million, a 2% up from Yen 64,540 million in the
previous term. The recurring profit was
posted at Yen 1,452 million and the net profit at Yen 972 million,
respectively, compared with Yen 1,358 million recurring profit and Yen 920
million net profit, respectively, a year ago.
For the term
that ended Mar 2018 the recurring profit was projected at Yen 1,500 million and
the net profit at Yen 1,000 million, respectively, on a 3% rise in turnover, to
Yen 68,100 million. Final results are
yet to be released.
The financial
situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 1,480.0
million, on 30 days normal terms.
REGISTRATION
Date
Registered: Apr 2004
Regd No.: 0100-01-089058 (Tokyo-Chiyodaku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
80,000 shares
Issued:
30,000 shares
Sum: Yen 1,500 million
Major
shareholders (%): Sojitz Corp*(100)
* Originally
Sojitz Holding Corporation, renamed in Oct 2005 by merging subsidiary Sojitz
Corp and shifted into non-financial company; founded 2003, listed Tokyo S/E,
capital Yen 160,339 million, turnover Yen 1,555.344 million, operating profit
Yen 51,618 million, recurring profit Yen 57,955 million, net profit Yen 40,760
million, total assets Yen 2,455,777 million, net worth Yen 601,884 million,
employees 17,423, pres Masayoshi Fujimoto
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION
Activities: A trading house for import, export and
wholesale of the following items (--100%):
Electronics & Telecommunications
Division: semiconductor mfg equipment, disk/liquid crystal unit mfg equip,
measuring apparatus, other related equipment & machinery;
General
Industrial Machinery Division: grinding machines, press machinery, laser
facilities, heat-treatment equipment, recycling unit, other
Specific
Industrial Machinery Division: machinery & facilities of industries of
auto, food processing, steel mills, chemical plants, home electronics,
forestry, other
Commercial,
Servicing Division: security-related equipment, landscaping goods, car parking
facilities, health & sports goods, home electronics appliances, other.
(Sales
breakdown for each division are not made available.)
Clients:
[Mfrs, wholesalers] Nippon Steel & Sumitomo Metal Corp, Toyota Motor,
Teijin Ltd, NEC, Nisshin Steel Co, S Alam Power Generation Ltd, Kobe Steel, JFE
Steel, Sharp Corp, Nissan Motor, Denso Inc, Fuji Film, Mitsubishi Electric,
other.
No. of
accounts: 1,000
Domestic areas
of activities: Nationwide
Suppliers:
[Mfrs, wholesalers] Kawasaki Machine Systems, Wartsila Finland OY, NTN, Ube
Material Ind, Steel Plantech, NTN, Ebara Corp, Sojitz Europe PLC, Murata
Machinery, Shibaura Mechatronics, Toshiba Machinery, Sanyo Electric, Matsushita
Electric Ind, NEC, Nippon Steel Engineering, Sumitomo Precision Products, Howa
Machinery, Steel Plantec Inc, Fuji Electric, other.
Payment
record: Regular
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactorily.
Bank
References:
MUFG (Tokyo)
Mizuho Bank
(Uchisaiwaicho)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
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31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual Sales |
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68,100 |
66,033 |
64,540 |
69,607 |
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Recur. Profit |
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1,500 |
1,452 |
1,358 |
1,117 |
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Net Profit |
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1,000 |
972 |
920 |
871 |
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Total Assets |
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30,381 |
20,286 |
21,577 |
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Net Worth |
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6,703 |
5,744 |
4,875 |
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Capital, Paid-Up |
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1,500 |
1,500 |
1,500 |
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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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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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3.13 |
2.31 |
-7.28 |
13.46 |
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Current Ratio |
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.. |
.. |
.. |
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N.Worth Ratio |
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22.06 |
28.32 |
22.59 |
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N.Profit/Sales |
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1.47 |
1.47 |
1.43 |
1.25 |
Notes:
Forecast (or estimated) figures for the 31/03/2018 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 66.77 |
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1 |
INR 90.58 |
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Euro |
1 |
INR 79.97 |
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YEN |
1 |
INR 0.62 |
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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PRA |
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Report Prepared
by : |
KET |
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
·
Promoters
/ Management background
·
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.