MIRA INFORM REPORT

 

 

Report Date :

24.12.2012

 

IDENTIFICATION DETAILS

 

Name :

JAPAN VILENE CO LTD

 

 

 

 

Registered Office :

5-6-4 Tsukiji Chuoku Tokyo 104-6423

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

June 1960

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of nonwoven cloths for garment interlinings

 

 

No. of Employees :

1,532

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

JAPAN - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war 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 are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 stood as the third-largest economy in the world after second-place China, which surpassed Japan in 2001, and in a virtual tie with India. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

Source : CIA

Company name and address

 

JAPAN VILENE CO LTD

REGD NAME:   Nihon Vilene KK

MAIN OFFICE:  5-6-4 Tsukiji Chuoku Tokyo 104-6423 JAPAN

Tel: 03-7546-1111     Fax: 03-4546-1105     -

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfr of nonwoven cloths for garment interlinings

 

BRANCHES

 

Osaka, Nagoya

 

OVERSEAS   

 

Asia (12), N America/Central America12)

 

FACTORIES

 

Shiga, Ibaraki

 

 

CHIEF EXEC

 

TOSHIO YOSHIDA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 　A/SALES       Yen 44,004 M

PAYMENTSREGULAR   　CAPITAL        Yen 9,816 M

TREND SLOW               　WORTH         Yen 28,706 M

STARTED         1980                 　EMPLOYES   1,532

 

 

COMMENT

 

LARGEST MFR OF NONWOVEN FABRICS FOR APPAREL INTERLININGS 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                       

                        Unit: In Million Yen

Forecast figures for the 31/03/2013 fiscal term.

 

 

HIGHLIGHTS

 

This is the largest mfr of nonwoven fabrics for apparel interlinings.  JV set up in 1980 by DIC Corp Freudenberg (Germany) and present Toray Industries.  Application of nonwoven cloths spreading from garment interlinings to such areas as airconditioners, medical materials, automobiles and industrial materials.  The company plans to introduce facilities enabling multi-color printing at the Shiga Plant and start mfg high-quality automobile ceiling materials targeted at high-end vehicles.  It will continue to expand sales of plaster base materials in Asia and Europe in addition to domestic sales.  .

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2012 fiscal term amounted to Yen 44,004 million, a 4.3% down from Yen 45,979 million in the previous term.   The environment was tough as affected by the Great East Japan Earthquake and the flooding in Thailand, the appreciation of the Yen, and the sovereign-debt crisis in Europe.  In the Industrial Materials Division, despite the strong sales of battery separators for hybrid vehicles, the overall sales declined from the previous year, because of the falling sales of other products.  The Automotive Materials Division also saw a decrease in overall sales, due to the substantial impact of the earthquake, although sales recovered in the second half.  The ratio of overseas sales to net sales fell to 31.8%, a 3.4% decrease from the previous year.  Bi Divisions, Industrial Materials Division down 3.2% to Yen 25,753 million, Automotive Materials Division down 5.8% to Yen 18,251 million.  The recurring profit was posted at Yen 2,021 million and the net profit at Yen 1,373 million, respectively, compared with Yen 3,347 million recurring profit and Yen 2,232 million net profit, respectively, a year ago. 

 

            ‘(Apr/Sept/2012 results): Sales Yen 24,570 million (up 18.7%), operating profit Yen 803 million (up 168.3%), recurring profit Yen 1,342 million (up 47.2%), net profit Yen 939 million (up 47.3%).  (% compared with the corresponding period a year ago).

           

            For the current term ending Mar 2013 the recurring profit is projected at Yen 2,720 million and the net profit at Yen 1,800 million, on a 12.0% rise in turnover, to Yen 49,300 million.  Automobile floor mats sales will grow, reflecting the increased production by Japanese automakers.  Rising demand in the US will further buoy sales.  Sales of hybrid vehicles battery separators will increase steadily.  Plaster base materials will expand on the strength of full term US-bound exports.  Operating profits will make a strong recovery.

 

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

 

 

REGISTRATION

 

Date Registered:　Jun 1960

Legal Status:       Limited Company (Kabushiki Kaisha

Authorized:       152,713,000 shares

Issued:                60,140,945 shares

Sum:                   Yen 9,816 million

 

Major shareholders (%): Freudenberg Beteiligungs (27.6), Company’s Treasury Stock (17.1), Toray Ind (12.0), Customers’ Stockholdings (2.3), Japan Trustee Services T (2.3), Nissei Real Estate (1.6), Employees’ S/Holding Assn (1.5), Master Trust Bank of Japan T (1.3), Chase London SL Omnibus Acct (1.0), Dai-ichi Life Ins (0.9); foreign owners (32.1)

 

No. of shareholders: 4,697

 

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

 

Managements: Toshio Yoshida, pres; Yoshiaki Mizutani, s/mg dir; Masahiro Kimura, mgn dir; Yasufumi Matsumiya, dir; Masanobu Mizoguchi, dir; Noriyuki Aoki, dir; Yasuji Nakakouji, dir; Satoshi Kawamura, dir; Atsushi Shimada, dir

 

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

 

Related companies: Vilene Create, Pacific Giken Co, other.

 

OPERATION

           

Activities: Manufactures industrial materials (59%), auto-use nonwoven cloths (41%)

Overseas Sales Ratio (31.8%):

 

(Mfg materials):

Industrial Materials: industrial, information & auto equipment supplies, photocopier cleaning rolls, audio equipment packing materials, industrial processing materials, steel-production rollers, polishing rollers, liquid filters, wiping cloths, gaskets, heat- & flame-resistant materials, other;

Automotive Materials: automobile components, headliner materials, interior material, automobile filters (engine intake air filters), insulator materials, automatic transmission fluid strainers, automobile accessories, floor mats, other

           

Clients: [Mfrs, wholesalers] Vilene Create Co, Toyota Tsusho Corp, Sanki Shoji Co, Sanyo Electric, Hisamitsu Pharmaceutical Inc, other

No. of accounts: 800

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Toray Ind, DIC, Oyama Chemical Co, Cumulus Inc, other

 

Payment record: Regular

 

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

 

Bank References:

SMBC (Kyobashi)

Mizuho Corporate Bank (Ohtemachi)

Relations: Satisfactory

 

 

FINANCES

 (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

44,004

45,979

 

  Cost of Sales

35,040

35,643

 

      GROSS PROFIT

8,963

10,335

 

  Selling & Adm Costs

7,981

8,102

 

      OPERATING PROFIT

982

2,232

 

  Non-Operating P/L

1,039

1,115

 

      RECURRING PROFIT

2,021

3,347

　

      NET PROFIT

1,373

2,232

BALANCE SHEET

 

 

 

 

  Cash

　

6,624

8,034

 

  Receivables

 

10,855

9,555

 

  Inventory

 

6,404

6,136

 

  Securities, Marketable

　

　

 

  Other Current Assets

1,357

1,550

 

      TOTAL CURRENT ASSETS

25,240

25,275

 

  Property & Equipment

18,055

16,333

 

  Intangibles

 

477

289

 

  Investments, Other Fixed Assets

7,616

8,519

 

      TOTAL ASSETS

51,388

50,416

 

  Payables

 

4,336

3,290

 

  Short-Term Bank Loans

5,129

4,948

 

　

 

　

　

 

  Other Current Liabs

5,436

7,009

 

      TOTAL CURRENT LIABS

14,901

15,247

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

3,766

2,943

 

  Reserve for Retirement Allw

2,500

2,369

 

  Other Debts

　

1,514

1,529

 

      TOTAL LIABILITIES

22,681

22,088

 

      MINORITY INTERESTS

 

 

 

Common stock

9,816

9,816

 

Additional paid-in capital

7,492

7,492

 

Retained earnings

19,755

19,078

 

Evaluation p/l on investments/securities

248

128

 

Others

 

(4,516)

(4,536)

 

Treasury stock, at cost

(4,089)

(3,651)

 

      TOTAL S/HOLDERS` EQUITY

28,706

28,327

　

      TOTAL EQUITIES

51,788

50,416

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

3,763

4,617

 

Cash Flows from Investment Activities

-4,182

-1,932

 

Cash Flows from Financing Activities

-86

-928

　

Cash, Bank Deposits at the Term End

　

6,624

7,790

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

28,706

28,327

 

 

Current Ratio (%)

169.38

165.77

 

 

Net Worth Ratio (%)

55.43

56.19

 

 

Recurring Profit Ratio (%)

4.59

7.28

 

 

Net Profit Ratio (%)

3.12

4.85

 

 

Return On Equity (%)

4.78

7.88

 

 

           

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.08

UK Pound

1

Rs.89.53

Euro

1

Rs.72.77

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.