MIRA INFORM REPORT

 

 

Report Date :

25.05.2012

 

IDENTIFICATION DETAILS

 

Name :

NIPPON SEIRO CO Ltd

 

 

Registered Office :

Kayabacho Nakano Bldg 6F, 1-22-15 Shinkawa Chuoku Tokyo 104-0033

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

February 1951

 

 

Com. Reg. No.:

0100-01-034983 (Tokyo-Chuoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of petroleum waxes, wax products, fuel oil

 

 

No. of Employees :

236

 

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 :

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 – 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

 

NIPPON SEIRO CO Ltd

 

 

REGD NAME

 

Nippon Seiro KK

 

 

MAIN OFFICE

 

Kayabacho Nakano Bldg 6F, 1-22-15 Shinkawa Chuoku Tokyo 104-0033 JAPAN

Tel: 03-3623-3530     Fax: 03-3523-3302-

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Mfg of petroleum waxes, wax products, fuel oil

 

 

BRANCHES

 

Osaka

 

 

FACTORIES

 

Tokuyama; Yamaguchi, Ibaragi (--Development Centers)

 

 

CHIEF EXEC

 

YASUKUNI YOSHIDA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 　A/SALES       Yen 37,003 M

PAYMENTS      REGULAR         　CAPITAL        Yen 1,120 M

TREND STEADY           　WORTH         Yen 11,027 M

STARTED         1951                 　EMPLOYES   236

 

COMMENT

 

MFR OF PETROLEUM WAXES, WAX PRODUCTS 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                        Unit: In Million Yen

Forecast figures for the 31/12/2012 fiscal term.

 

 

HIGHLIGHTS

 

This is the oldest and largest mfr of petroleum waxes in Japan.  Procuring main materials, waxy topped crude oil, from Indonesia.  Also selling residue of crude oil (fuel oil) for electric utilities, and other industries.  Expanding imports of intermediate materials from Malaysia.  A variety of products are used in production of paper, rubber, toner, candle, etc, such as anti-ozonant waxes.  Yoshihiko Fukuma, originally from JX Nippon Oil & Energy and having extensive familiarity with production site, became director.  He will lead efficiency improvement of the main plant in Tokuyama.  The company increased the number of directors from 10 to 12.

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2011 fiscal term amounted to Yen 37,003 million, a 13.3% up from Yen 32,648 million in the previous term.  In the petroleum wax business, domestic sales of products for tires and toners were steady.  Surging heavy oil market prices contributed.  The recurring profit was posted at Yen 2,948 million and the net profit at Yen 1,738 million, respectively, compared with Yen 2,532 million recurring profit and Yen 1,516 million net profit, respectively, a year ago.

 

(Jan/Mar/2012 results): Sales Yen 8,778 million (down 15.6%), operating loss Yen 28 million (previously Yen 1,271 million profit), recurring loss Yen 142 million (previously Yen 1,196 million profit), net profit Yen 210 million (down 70.2%).  (% & figures compared with the corresponding period a year ago).

 

For the current term ending Dec 2012 the recurring profit is projected at Yen 1,200 million and the net profit at Yen 700 million, on an 8.4% fall in turnover, to Yen 33,900 million.  Domestic sales of waxes for tires and toners are steady.  But sales are affected by continued slowdown in export of products for candles to US from the second half.  Contribution from surging heavy oil market prices after the Earthquake is decreasing slightly.  Benefit from low-priced inventory is unlikely.

 

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

 

 

REGISTRATION

 

Date Registered:　     Feb 1951

Regd No.:                        0100-01-034983 (Tokyo-Chuoku)

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:                   89,600,000 million shares

Issued:                22,400,000 shares

Sum:                   Yen 1,120 million

 

Major shareholders (%): ATS (18.7), Company’s Treasury Stock (9.4), Mitsubishi Corp (5.0), Seiji Kanda (2.9), Mitsubishi UFJ Trust Bank (2.4), Saikyo Bank (2.2), Sankyu Inc (2.0), Japan Securities Finance (1.6), K Enterprise (1.5), Ando Parachemic (1.3); foreign owners (1.9)

 

No. of shareholders: 1,939

           

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

 

Managements: Katsuhiko Watariguchi, ch; Yasukuni Yoshida, pres; Hiroshi Inoue, s/mgn dir; Toshio Saito, s/mgn dir; Shigenobu Nishida, s/mgn dir; Shoji Higashi, mgn dir; Hachiro Hosoda, dir; Tadashi Sekiya, dir; Tsukasa Ando, dir; Yoshihiko Fukuma, dir; Manabu Hanasaki, dir

 

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

 

 

OPERATION

           

Activities: Manufactures petroleum waxes, wax products (paraffin wax, microcrystalline wax, anti-ozonant wax for rubber & tire), other (46%), fuel oil (residue of crude oil) (54%),

Overseas Sales Ratio (16%): North America (7%), Asia (6%), others (3%)

           

Clients: [Oil refineries, wholesalers] Mitsubishi Corp, Meiwa Trading Co, Andoh Parachemie Co, Sumitomo Corp, PPT, JX Nippon Oil & Energy Corp, Showa Shell Sekiyu, other

 

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] PPT, JX Nippon Oil & Energy Corp, Leef Energy KK, Kanematsu Petroleum Corp, other

 

 

Payment record: Regular

 

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

 

Bank References:

Mitsubishi UFJ Trust Bank (H/O)

Hiroshima Bank (Tokyo)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/12/2011

31/12/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

37,003

32,648

 

  Cost of Sales

31,522

27,653

 

      GROSS PROFIT

5,481

4,994

 

  Selling & Adm Costs

2,386

2,378

 

      OPERATING PROFIT

3,094

2,616

 

  Non-Operating P/L

-146

-93

 

      RECURRING PROFIT

2,948

2,523

　

      NET PROFIT

1,738

1,516

BALANCE SHEET

 

 

 

 

  Cash

　

1,512

1,082

 

  Receivables

 

4,788

4,705

 

  Inventory

 

9,448

6,157

 

  Securities, Marketable

　

　

 

  Other Current Assets

595

422

 

      TOTAL CURRENT ASSETS

16,343

12,366

 

  Property & Equipment

14,316

14,507

 

  Intangibles

 

329

35

 

  Investments, Other Fixed Assets

455

435

 

      TOTAL ASSETS

31,443

27,343

 

  Payables

 

3,924

999

 

  Short-Term Bank Loans

5,148

6,453

 

　

 

　

　

 

  Other Current Liabs

4,726

3,881

 

      TOTAL CURRENT LIABS

13,798

11,333

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

3,049

3,149

 

  Reserve for Retirement Allw

281

226

 

  Other Debts

　

3,287

3,517

 

      TOTAL LIABILITIES

20,415

18,225

 

      MINORITY INTERESTS

 

 

 

Common stock

1,120

1,120

 

Additional paid-in capital

14

14

 

Retained earnings

4,883

3,288

 

Evaluation p/l on investments/securities

(24)

(2)

 

Others

 

5,566

5,229

 

Treasury stock, at cost

(532)

(532)

 

      TOTAL S/HOLDERS` EQUITY

11,027

9,117

　

      TOTAL EQUITIES

31,443

27,343

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/12/2011

31/12/2010

 

Cash Flows from Operating Activities

　

2,677

3,227

 

Cash Flows from Investment Activities

-463

-961

 

Cash Flows from Financing Activities

-1,750

-2,102

　

Cash, Bank Deposits at the Term End

　

1,512

1,082

ANALYTICAL RATIOS            Terms ending:

31/12/2011

31/12/2010

 

 

Net Worth (S/Holders' Equity)

11,027

9,117

 

 

Current Ratio (%)

118.44

109.11

 

 

Net Worth Ratio (%)

35.07

33.34

 

 

Recurring Profit Ratio (%)

7.97

7.73

 

 

Net Profit Ratio (%)

4.70

4.64

 

 

Return On Equity (%)

15.76

16.63

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.56.29

UK Pound

1

Rs.88.26

Euro

1

Rs.70.82

 

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.