MIRA INFORM REPORT

 

 

Report Date :           

29.03.2011

 

IDENTIFICATION DETAILS

 

Correct Name :

NACHI-FUJIKOSHI CORPORATION 

 

 

Registered Office :

Shiodome Sumitomo Bldg 17F, 1-9-2 Higashi-Shimbashi Minatoku Tokyo 105-0021

 

 

Country :

Japan

 

 

Financials (as on) :

30.11.2010

 

 

Date of Incorporation :

December 1928

 

 

Com. Reg. No.:

(Tokyo-Minatoku) 026852

 

 

Legal Form :

 Limited Company

 

 

Line of Business :

Manufacturing of bearings, precision tools

 

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 2,826.0 Million

Status :

Satisfactory

Payment Behaviour :

Regular

Litigation :

--

 

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 – December 31, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

Japan

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

NACHI-FUJIKOSHI CORPORATION

 

 

REGD NAME 

 

KK Fujikoshi

 

 

MAIN OFFICE

 

Shiodome Sumitomo Bldg 17F, 1-9-2 Higashi-Shimbashi Minatoku Tokyo 105-0021 JAPAN

Tel: 03-5565-5111     Fax: 03-5568-5236

 

*.. Headquarters at: 1-1-1 Fujikoshi-Honmachi Toyama

 

URL:                             http://www.nachi-fujikoshi.co.jp/

E-Mail address:            webmaster@nachi-fujikoshi.co.jp

 

 

ACTIVITIES

 

Mfg of bearings, precision tools

 

 

BRANCHES   

 

Toyama, Higashi-Fuji, Namegawa, Mizubashi

 

 

OVERSEAS  

 

USA (5), Canada (2), Mexico (2), Europe (6), China, Malaysia, Indonesia, other

 

 

FACTORIES  

 

Toyama, other

 

CHIEF EXEC

 

HIROO HONMA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 134,807 M

PAYMENTS                  REGULAR                     CAPITAL           Yen 16,074 M

TREND             SLOW                          WORTH            Yen 54,493 M

STARTED                     1928                             EMPLOYES      5,494

 

 

COMMENT    

 

MFR SPECIALIZING IN SPECIALTY STEEL AND PRECISION TOOLS. 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 2,826.0 MILLION, 30 DAYS NORMAL TERMS.

 

                                    Forecast (or estimated) figures for 30/11/2011 fiscal term

 

 

HIGHLIGHTS

 

The subject company is a leading mfr of high-grade specialty steel and precision tools.  Originally started in cutting tools, and has since diversified into large product line including machine tools, bearings, hydraulic equipment, industrial robots, electronic equipment and FA systems.  Known world widely by “Nachi” brand.  Clients include major car assemblers, other precision tools makers, etc, nationwide.  Part orders, mainly for auto bearings, are strong.  Sales of hydraulic equipment are also expanding.  Regarding effects of earthquake and Tsunami in the Northeast Japan, the firm announced that:  There were no damage on plants and offices in the area.  In addition all Nachi associates in Japan are reported safe.

 

FINANCIAL INFORMATION

 

The sales volume for Nov/2010 fiscal term amounted to Yen 134,807 million, a 25.3% up from Yen 107,586 million in the previous term.  While domestic sales inched down, sales of automobile bearing continued to rise, driven by steady growth in sales in the US.  Sales of industrial parts grew, led by China.  Sales of tools and robots for electric and electronic parts makers remained firm.  By Divisions, Machinery & Tools up 11.8% to Yen 40,497 million; Parts up 34.0% to Yen 83,257 million.  The recurring profit was posted at Yen 6,499 million and the net profit at Yen 5,562 million, respectively, compared with Yen 5,051 million recurring loss and Yen 7,449 million net losses, respectively, a year ago.

 

For the current term ending Nov 2011 the recurring profit is projected at Yen 9,500 million and net profit at Yen 7,000 million, respectively, on an 18.7% rise in turnover, to Yen 160,000 million.  The firm started up production of hydraulic equipment in China, following bearings & tools, to take in non-Japanese foreign-capitalized and local firms as customers.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 2,826.0 million, on normal terms. 

 

 

REGISTRATION

 

Date Registered:  Dec 1928

Regd No.:           (Tokyo-Minatoku) 026852

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         600 million shares

Issued:              249,198,436 shares

Sum:                   Yen 16,074 million

 

Major shareholders (%): Nachi Wanei S/Holding (6.2), Toyota Motor (5.2), Employees’ S/Holding Assn (4.9), MUFG (4.7), Hokuriku Bank (3.4), Chuo Mitsui Trust & Banking (2.5), Japan Trustee Services T (2.3), Nachi Customers S/Holding Assn (2.1), Sumitomo Life Ins (2.0), Okaya Co (1.9); foreign owners (3.7)

 

No. of shareholders: 21,907

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Hiroo Honma, pres; Yukihiko Tanaka, mgn dir; Hiroyasu Shiba, mgn dir; Kiyoshi Nakagawa, mgn dir; Makoto Sasaki, mgn dir; Tadashi Katayama, mgn dir; Atsushi Seki, dir; Hideo Terakoshi, dir; Zenshiro Kaneko, dir

 

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

 

Related companies: Nachi Kanto, Nachi America Inc, other

 

 

OPERATION

 

Activities: Manufactures machinery & tools bearings (34%), parts (58%), others (8%)

 

Overseas Sales Ratio (37.6%): North America 18.7%, Europe 4.3%, Asia 22.6%

 

(Mfg items):

 

Machining: cutting tools, forming tools, cutting saws, machine tools, precision machinery, machining systems;

 

Robots: robot systems, electronic equipments;

 

Components: bearings, hydraulic equipment, automotive parts, seismic isolation system, filtration system

 

Clients: [Car makers, precision tools makers] Toyota Motor, Honda Motor, Koyo Seiko, Denso Corp, Aisin AW, other.

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Matsushita Electric Ind, Asahi Steel, Tsubaki Nakashima Co, Mitsubishi Steel Mfg, other.

 

Payment record: Regular

 

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

 

Bank References:

UFJ Bank (Tokyo)

Hokuriku Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

30/11/2010

30/11/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

134,807

107,586

 

  Cost of Sales

106,114

91,569

 

      GROSS PROFIT

28,693

16,017

 

  Selling & Adm Costs

20,447

19,234

 

      OPERATING PROFIT

8,245

-3,217

 

  Non-Operating P/L

-1,746

-1,834

 

      RECURRING PROFIT

6,499

-5,051

　

      NET PROFIT

5,562

-7,449

BALANCE SHEET

 

 

 

 

  Cash

　

18,868

28,373

 

  Receivables

 

30,861

23,655

 

  Inventory

 

25,472

23,629

 

  Securities, Marketable

　

　

 

  Other Current Assets

3,267

5,145

 

      TOTAL CURRENT ASSETS

78,468

80,802

 

  Property & Equipment

77,057

81,072

 

  Intangibles

 

308

391

 

  Investments, Other Fixed Assets

14,683

13,983

 

      TOTAL ASSETS

170,516

176,248

 

  Payables

 

28,952

18,147

 

  Short-Term Bank Loans

15,330

30,042

 

　

 

　

　

 

  Other Current Liabs

29,587

21,312

 

      TOTAL CURRENT LIABS

73,869

69,501

 

  Debentures

 

8,690

14,570

 

  Long-Term Bank Loans

20,551

29,694

 

  Reserve for Retirement Allw

7,107

6,339

 

  Other Debts

　

5,805

6,616

 

      TOTAL LIABILITIES

116,022

126,720

 

      MINORITY INTERESTS

 

 

 

Common stock

16,074

16,074

 

Additional paid-in capital

11,560

11,561

 

Retained earnings

30,001

24,967

 

Evaluation p/l on investments/securities

2,840

2,377

 

Others

 

(5,801)

(5,276)

 

Treasury stock, at cost

(181)

(176)

 

      TOTAL S/HOLDERS` EQUITY

54,493

49,527

　

      TOTAL EQUITIES

170,516

176,248

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

30/11/2010

30/11/2009

 

Cash Flows from Operating Activities

　

20,803

-2,161

 

Cash Flows from Investment Activities

-6,008

-8,376

 

Cash Flows from Financing Activities

-24,040

26,493

　

Cash, Bank Deposits at the Term End

　

18,756

28,262

ANALYTICAL RATIOS            Terms ending:

30/11/2010

30/11/2009

 

 

Net Worth (S/Holders' Equity)

54,493

49,527

 

 

Current Ratio (%)

106.23

116.26

 

 

Net Worth Ratio (%)

31.96

28.10

 

 

Recurring Profit Ratio (%)

4.82

-4.69

 

 

Net Profit Ratio (%)

4.13

-6.92

 

 

Return On Equity (%)

10.21

-15.04

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.78

UK Pound

1

Rs.71.64

Euro

1

Rs.62.96

 

 

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

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

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.