MIRA INFORM REPORT

 

 

Report Date :

29.08.2007

 

IDENTIFICATION DETAILS

 

Name :

NIPPON GIKEN INDUSTRIAL CO LTD

 

 

Registered Office :

Hokuetsu Seishi Bldg 3F, 3-2-2 Nihombashi-Hongokucho Chuoku Tokyo 103-0021

 

 

Country :

Japan

 

 

Financials (as on) :

31.01.2007

 

 

Date of Incorporation :

Apr 1966

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of biodegradable plastic bags & films

 

 

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

 

Maximum Credit Limit :

Yen 138.1 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

name

 

NIPPON GIKEN INDUSTRIAL CO LTD

 

 

REGD NAME

 

Nihon Giken Kogyo KK

 

 

MAIN OFFICE

 

Hokuetsu Seishi Bldg 3F, 3-2-2 Nihombashi-Hongokucho Chuoku Tokyo 103-0021 JAPAN

Tel        : 03-3274-2291

Fax       : 03-3274-2017

URL      : http://www.jpm.or.jp/kigyo02/nippongiken.html/ (Partial information)

 

 

ACTIVITIES

 

Mfg of biodegradable plastic bags & films

 

 

BRANCHES

 

Osaka, Sapporo

 

 

FACTORY(IES)

 

Bando (Tochigi)

 

 

OFFICERS

 

TAKASHI KAMATA, PRES

Yasunori Akita, mgn dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 4,667 M

PAYMENTS      REGULAR         CAPITAL           Yen 37 M

TREND             STEADY           WORTH            Yen 1,285 M

STARTED         1966                 EMPLOYES      35

 

 

COMMENT

 

MFR SPECIALIZING IN PLASTIC BAGS & FILMS, OWNED BY SUMITOMO SHOJI CHEMICALS.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: US$250,000 / O/A TERMS

 

MAX CREDIT LIMIT: YEN 138.1 MILLION, 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a division separated from Sumitomo Shoji Chemicals Co Ltd (see REGISTRATION).  The subject specializes in mfg plastic garbage bags, dish draining nets, food preservation & storage bags & films, other film bags primarily for kitchen & food storage use.  Goods are made of recycled materials and biodegradable.  Goods and materials are imported from China, Malaysia, Thailand, other.  Goods are shipped to chain stores, specialty stores, etc, nationwide. 

           

 

FINANCIAL INFORMATION

 

The sales volume for Jan/2007 fiscal term amounted to Yen 4,667 million, an 8.5% up from Yen 4,303 million in the previous term.  The recurring profit was posted at Yen 88 million and the net profit at Yen 39 million, respectively, compared with Yen 170 million recurring profit and Yen 55 million net profit, respectively, a year ago.  Profits deteriorated due to the rising costs of materials and fuel oil prices. 

 

For the current term ending Jan 2008 the recurring profit is projected at Yen 90 million and the net profit at Yen 40 million, respectively, on a 5% rise in turnover, to Yen 4,900 million.  Demand continues rising for biodegradable goods from eco-friendly viewpoints, while the profitability may worsen due to the hike in materials and fuel prices.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 138.1 million, on 30 days normal terms.  The proposed amount is considered well within the firm’s financial capacities.

 

 

REGISTRATION

 

Date Registered:            Apr 1966

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    297,600 shares

Issued:                          74,400 shares

Sum:                            Yen 37.2 million

Major shareholders (%): Sumitomo Shoji Chemicals Co Ltd*(95), Japan Vilene (5)

No. of shareholders:       2

*.. Trading house specializing in synthetic resin materials & intermediates, Tokyo, wholly owned by Sumitomo Corp; founded 1998, capital Yen 900 million, turnover Yen 188,029 million, recurring profit Yen 2,509 million, net profit Yen 1,546 million, total assets Yen 91,430 million, (Figures as of Mar/2006) employees 330, pres Kazuhiko Yamazaki.

 

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

 

 

OPERATION

 

Activities: Manufactures biodegradable plastic bags & films (mainly of recycled materials): refuse bags, food preservation & storage films, kitchen dish drainers, water sterilizing bags, resealable bags, nylon brushes, brooms, abrasive cloth rolls, other household & kitchen-use supplies (--100%).

 

Imports approx 40%: from China, Thailand, Malaysia, other.

 

Clients: [Chain stores, specialty wholesalers] Arata Corp, Pip Tokyo, Paltac, Yuwa Co, Chuo Bussan Corp, Co Pro, All Japan Wholesalers’ Assoc, Daiei, Tobu Stores, Ito-Yokado, other.

 

No. of accounts: 1,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sumitomo Shoji Chemical, Aicello Chemical, Planet, CBC, etc.  Also imports from China, Thailand, Malaysia, other.

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

 

Bank References

 

MUFG (Yaesudori)

Shoko Chukin Bank (H/O)

 

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/01/2008

31/01/2007

31/01/2006

31/01/2005

Annual Sales

　

4,900

4,667

4,303

4,254

Recur. Profit

　

90

88

170

97

Net Profit

　

40

39

55

51

Total Assets

　

　

3,124

2,810

2,869

Current Assets

　

　

2,605

2,291

2,287

Current Liabs

　

　

1,733

1,452

1,525

Net Worth

　

　

1,285

1,249

1,197

Capital, Paid-Up

　

　

37

37

37

Div.P.Share(¥)

　

　

　

　

　

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

4.99

8.46

1.15

-1.16

       Current Ratio

 

..

150.32

157.78

149.97

       N.Worth Ratio

..

41.13

44.45

41.72

       R.Profit/Sales

 

1.84

1.89

3.95

2.28

       N.Profit/Sales

0.82

0.84

1.28

1.20

       Return On Equity

..

3.04

4.40

4.26

 

Notes: Forecast (or estimated) figures for 31/01/2008 fiscal term.

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. 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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions