MIRA INFORM REPORT

 

 

Report Date :

18.08.2012

 

IDENTIFICATION DETAILS

 

Name :

SHIN NIPPON MACHINERY CO LTD

 

 

Registered Office :

Think Park Tower, 2-1-1 Osaki Shinagawaku Tokyo 141-6025

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

December 1951

 

 

Com. Reg. No.:

(Tokyo-Shinagawaku) 015023

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of steam turbines, pumps, industrial fasteners

 

 

No. of Employees :

361 employees

 

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

 

 

Status :

Good

Payment Behaviour :

Regular

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 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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

 

SHIN NIPPON MACHINERY CO LTD

 

 

REGD NAME

 

Shin Nihon Zoki KK

 

 

MAIN OFFICE

 

Think Park Tower, 2-1-1 Osaki Shinagawaku Tokyo 141-6025 JAPAN

Tel: 03-6737-2630     Fax: 03-6866-5120

    

URL:                             http://www.snm.co.jp/

E-Mail address:                        admins@snm.co.jp

 

 

ACTIVITIES  

 

Mfg of steam turbines, pumps, industrial fasteners

 

 

BRANCHES

 

Osaka, Nagoya, Hiroshima, Niihama, Fukuoka, Naha, other

 

 

FACTORIES

 

Kure (Hiroshima), Amagasaki, Tsuyama

 

 

OFFICER(S)

 

MASAMI DEGUCHI, PRES         Kiyoshi Boda, mgn dir

Koji Maruyama, dir                     Futoshi Okada, dir

Osamu Sekiya, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 20,026 M

PAYMENTS      REGULAR                     CAPITAL           Yen 2,408 M

TREND             SLOW                          WORTH            Yen 19,966 M

STARTED                     1951                             EMPLOYES      361

 

 

COMMENT

 

MFR SPECIALIZING IN TURBINES, PUMPS AND FASTENERS, WHOLLY OWNED BY SUMITOMO HEAVY INDUSTRIES LTD. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

                       

HIGHLIGHTS

 

The subject company was established originally in 1929 for mfg industrial pumps & turbines and was incorporated in 1961.  Specializes in mfg steam turbines and pumps for overseas chemical makers and industrial fasteners mainly for automobile and light electric makers.  Features high export ratio of power-generation turbines.  The firm was listed on the Tokyo S/E (Second Section) in Dec 1982 but was de-listed in Apr 2004 when the firm was wholly taken over by Sumitomo Heavy Industries Ltd (see REGISTRATION).  Exports account for 90% of total sales.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 20,026 million, a 10% up from Yen 18,252 million in the previous term.  Exports of turbines & pumps to Thailand, Indonesia and other S/E Asian countries leaped.  The recurring profit was posted at Yen 2,075 million and the net profit at Yen 1,187 million, respectively, compared with Yen 2,854 million recurring profit and Yen 1,563 million net profit, respectively, a year ago.

.

For the current term ending Mar 2013 the recurring profit is projected at Yen 2,100 million and the net profit at Yen 1,200 million, respectively, on a 5% rise in turnover, to Yen 21,000 million.    Exports continue rising.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:  Dec 1951

Regd No.:         (Tokyo-Shinagawaku) 015023

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         60 million shares

Issued:                17.39 million shares

Sum:                   Yen 2,408 million

Major shareholders (%): Sumitomo Heavy Industries Co Ltd* (100)

 

*..Mfr of heavy electric machinery, one of Sumitomo Group core firms, founded 1934, listed Tokyo, Osaka S/E’s, capital Yen 30,872 million, turnover Yen 624,100 million, operating profit Yen 47,135 million, recurring profit Yen 44,619 million, net profit yen 19,492 million, total assets Yen 691,841 million, net worth Yen 282,145 million, employees 18,139, pres Yoshinobu Nakamura

Consolidated Financials are attached (See SUPPLEMENTS)

           

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

 

 

OPERATION

 

Activities: Manufactures steam turbines (37%), pumps (48%): for use in irrigation, rain water, sewage treatment, industrial fasteners (13%), others (2%).  (% is all about) (Export ratio 90%).

 

Clients: [Mfrs, wholesalers] Nikki Shoji, Takuma Co, Shinsho Corp, Sumitomo Heavy Ind, Nissei Co, Mitsubishi Heavy Ind, Samsung Engineering TD Power Systems Ltd, other

            No. of accounts: 800

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Seisa Gear, Pacific Sowa, Shinko Electric, Moriya Corp, Otofuji Corp, Sinfonia Technologies, other.

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned by the parent, Sumitomo Heavy Industries, and maintained satisfactorily.

 

Bank References:

SMBC (Tokyo)

MUFG (Shimbashi)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

　

21,000

20,026

18,252

27,051

Recur. Profit

　

2,100

2,075

2,854

5,055

Net Profit

　

1,200

1,187

1,563

3,031

Total Assets

　

　

30,728

27,653

29,447

Current Assets

　

　

22,291

23,679

25,049

Current Liabs

　

　

9,136

6,597

8,920

Net Worth

　

　

19,966

19,536

19,157

Capital, Paid-Up

　

　

2,408

2,408

2,408

Div.Ttl in Million(¥)

　

　

6270

1212

1443

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.86

9.72

-32.53

-6.79

    Current Ratio

 

..

243.99

358.94

280.82

    N.Worth Ratio

..

64.98

70.65

65.06

    R.Profit/Sales

 

10.00

10.36

15.64

18.69

    N.Profit/Sales

5.71

5.93

8.56

11.20

    Return On Equity

..

5.95

8.00

15.82

 

Notes: Forecast for the 31/03/2013 fiscal term.

 

SUPPLEMENTS:

 

CONSOLIDATED FINANCIALS OF THE PARENT, SUMITOMO HEAVY INDUSTRIES

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

624,100

548,015

 

  Cost of Sales

490,878

426,479

 

      GROSS PROFIT

133,222

121,537

 

  Selling & Adm Costs

86,087

75,733

 

      OPERATING PROFIT

47,135

45,803

 

  Non-Operating P/L

-2,516

-1,550

 

      RECURRING PROFIT

44,619

44,253

　

      NET PROFIT

19,492

27,926

BALANCE SHEET

 

 

 

 

  Cash

　

73,373

52,486

 

  Receivables

 

181,248

155,267

 

  Inventory

 

143,922

131,035

 

  Securities, Marketable

　

　

 

  Other Current Assets

30,503

26,554

 

      TOTAL CURRENT ASSETS

429,046

365,342

 

  Property & Equipment

219,812

214,156

 

  Intangibles

 

6,374

6,936

 

  Investments, Other Fixed Assets

36,609

40,395

 

      TOTAL ASSETS

691,841

626,829

 

  Payables

 

153,843

131,951

 

  Short-Term Bank Loans

27,383

21,504

 

　

 

　

　

 

  Other Current Liabs

107,235

88,052

 

      TOTAL CURRENT LIABS

288,461

241,507

 

  Debentures

 

10,000

10,000

 

  Long-Term Bank Loans

39,343

31,918

 

  Reserve for Retirement Allw

35,884

31,380

 

  Other Debts

　

36,008

42,645

 

      TOTAL LIABILITIES

409,696

357,450

 

      MINORITY INTERESTS

 

 

 

Common stock

30,872

30,872

 

Additional paid-in capital

23,789

23,789

 

Retained earnings

201,433

188,047

 

Evaluation p/l on investments/securities

2,267

981

 

Others

 

24,229

25,758

 

Treasury stock, at cost

(445)

(67)

 

      TOTAL S/HOLDERS` EQUITY

282,145

269,380

　

      TOTAL EQUITIES

691,841

626,829

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

23,309

26,521

 

Cash Flows from Investment Activities

-22,671

-23,513

 

Cash Flows from Financing Activities

19,879

-22,020

　

Cash, Bank Deposits at the Term End

　

72,376

51,700

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

282,145

269,380

 

 

Current Ratio (%)

148.74

151.28

 

 

Net Worth Ratio (%)

40.78

42.98

 

 

Recurring Profit Ratio (%)

7.15

8.08

 

 

Net Profit Ratio (%)

3.12

5.10

 

 

Return On Equity (%)

6.91

10.37

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.70

UK Pound

1

Rs.87.55

Euro

1

Rs.68.85

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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

----

NB

New Business

----

 

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.