|
Report Date : |
17.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
SEIKO INSTRUMENTS INC |
|
|
|
|
Registered Office : |
1-8 Nakase Mihamaku Chiba 261-8507 |
|
|
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
September, 1937 |
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Com. Reg. No.: |
012089 |
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Legal Form : |
Limited Company |
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line of business
: |
Mfg of watches, electronic dictionaries, electronic instruments |
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No. of Employees : |
2,514 |
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 |
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Payment Behaviour : |
No Complaints |
|
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 |
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Restricted |
C2 |
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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 fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2011. 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 |
SEIKO INSTRUMENTS
INC
Seiko Instruments KK
1-8 Nakase Mihamaku Chiba 261-8507 JAPAN
Tel: 043-211-1111
URL: http://www.sii.co.jp
E-Mail address: (thru the URL)
Mfg of watches, electronic dictionaries, electronic instruments
Osaka, Matsudo, Ichikawa
Thailand, China (7), Hong Kong, Singapore, Taiwan, Malaysia, USA,
Germany
At the caption address, Tochigi, Sendai, Akita
China, Thailand, Malaysia, Singapore
KUNIO KAMATA, PRES Yoshinobu
Hirata, v pres
Yoshinobu Hitrata, mgn dir Masayoshi Kanno, dir
Hiroaki Sahara, s/mgn dir Shinji Nureki, s/mgn dir
Yen Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 104,021 M
PAYMENTS NO COMPLAINTS CAPITAL Yen 9,756 M
TREND SLOW WORTH Yen 21,591 M
STARTED 1937 EMPLOYES 2,514
MFR OF WATCHES, ELECTRONIC DEVICES, OTHER, OWNED BY SEIKO HOLDINGS CO
LTD.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
The subject company was established on the basis of a watch mfg division
separated from Seiko Watch Co Ltd (now Seiko Holdings Co Ltd). This is a specialized mfr of watches, thermal
printers, quartz crystals, electronic dictionaries, other electronic
products. Has mfg bases in China,
Thailand, Singapore and Malaysia.
The sales volume for Mar/2012 fiscal term amounted to Yen 104,021
million, a 10% down from Yen 115,957 million in the previous term, as
substantially affected by the EU economic downturn. The firm sold subsidiary, and voluntary
retirement of employees, etc, to get over the crisis. The operations plunged into the red to
register Yen 4,500 million recurring loss and Yen 14,287 million net losses,
respectively, compared with Yen 2,822 million recurring profit and Yen 1,324
million net profit, respectively, a year ago.
For the current term ending Mar 2013 the operations is projected to come
back to profitability to post Yen 3,000 million recurring profit and Yen 1,300
million net profit, respectively, on a 4% fall in turnover, to Yen 100,000
million.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 1,039.1 million, on 30 days normal terms.
Date
Registered: Sept 1937
Regd No.: (Chiba-Mihamaku)
012089
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 78 million shares
Issued:
19.5 million
shares
Sum: Yen
9,756 million
Major shareholders
(%): Seiko Holdings Co Ltd*
(100)
*.. Holding Company of Seiko group firms, founded 1917, listed Tokyo
S/E, capital Yen 10,000 million, sales Yen 296,937 million, operating profit
Yen 6,733 million recurring profit Yen 1,280 million net loss Yen 11,014
million, total assets Yen 386,128 million, net worth Yen 31,965, employees
15,468, pres Yoshinobu Nakamura
Consolidated Financials
are attached (See SUPPLEMENTS)
Nothing detrimental is known as to the commercial morality of
executives.
Activities: Manufactures
Mechatronics, electronics components, system applications, scientific
instruments, other:
(Sales Breakdown
by Divisions):
Mechatronics Div
(46%): watches, hard disk components, thermal printers, compact precision
components, machine tools, FA, other;
Electronics
Components Div (42%): CMOS IC’s, quartz crystals, micro batteries, LCD
devices, inkjet printer heads, other;
System
Applications Div (12%): order entry systems, electronic dictionaries,
color printers, wireless data communication devices, musical instrument
accessories, network servers, other;
Clients: [Mfr,
wholesalers] Seiko Holdings Co and group firms, SI HK Ltd (28.1%), Ryoden
Shoji, Seiko Watch, SI Taiwan inc, other
No. of accounts: 500
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Morioka Seiko Ind and other group firms, SI Singapore, AE
Technology, SII Mobile Communications, other
Payment record: No Complaints
Location: Business area in
Chiba. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
Mizuho Corporate Bank (Ohtemachi)
MUFG (Kyobashi)
Relations: Satisfactory
(In Million Yen)
|
Terms Ending: |
31/03/2013 |
31/03/2012 |
31/03/2011 |
31/03/2010 |
|
|
Annual Sales |
|
100,000 |
104,021 |
115,957 |
115,778 |
|
Recur. Profit |
|
3,000 |
-4,500 |
2,822 |
2,142 |
|
Net Profit |
|
1,300 |
-14,281 |
1,324 |
-49 |
|
Total Assets |
|
|
153,775 |
169,949 |
167,396 |
|
Current Assets |
|
|
70,357 |
76,503 |
74,139 |
|
Current Liabs |
|
|
87,841 |
101,689 |
79,119 |
|
Net Worth |
|
|
21,591 |
31,384 |
32,368 |
|
Capital, Paid-Up |
|
|
9,756 |
9,756 |
7,256 |
|
Div.Ttl in Million (¥) |
|
|
0.00 |
2,150 |
1,257 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
-3.87 |
-10.29 |
0.15 |
-15.16 |
|
|
Current Ratio |
|
.. |
80.10 |
75.23 |
93.71 |
|
N.Worth Ratio |
.. |
14.04 |
18.47 |
19.34 |
|
|
R.Profit/Sales |
|
3.00 |
-4.33 |
2.43 |
1.85 |
|
N.Profit/Sales |
1.30 |
-13.73 |
1.14 |
-0.04 |
|
|
Return On Equity |
.. |
-66.14 |
4.22 |
-0.15 |
|
Notes: Forecast (or estimated) figures for the 31/03/2013 fiscal term.
SUPPLEMENTS:
CONSOLIDTATED
FINANCIALS OF THE PARENT, SEIKO HOLDINGS CO LTD
|
FINANCES: (Consolidated in million yen) |
|
|||||
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Terms Ending: |
31/03/2012 |
31/03/2011 |
||
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INCOME STATEMENT |
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||||
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Annual Sales |
|
296,937 |
313,881 |
||
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Cost of Sales |
206,742 |
217,242 |
|||
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GROSS PROFIT |
90,195 |
96,638 |
|||
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Selling & Adm Costs |
83,462 |
84,981 |
|||
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OPERATING PROFIT |
6,733 |
11,656 |
|||
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Non-Operating P/L |
-5,453 |
-5,071 |
|||
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RECURRING PROFIT |
1,280 |
6,585 |
|||
|
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NET PROFIT |
-11,014 |
2,181 |
|||
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BALANCE SHEET |
|
|
|
|||
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Cash |
|
51,765 |
51,958 |
||
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Receivables |
|
50,483 |
50,897 |
||
|
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Inventory |
|
59,369 |
60,973 |
||
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Securities, Marketable |
|
|
|||
|
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Other Current Assets |
13,475 |
10,826 |
|||
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TOTAL CURRENT ASSETS |
175,092 |
174,654 |
|||
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Property & Equipment |
152,985 |
162,866 |
|||
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Intangibles |
|
20,263 |
21,545 |
||
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Investments, Other Fixed Assets |
37,788 |
41,392 |
|||
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TOTAL ASSETS |
386,128 |
400,457 |
|||
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Payables |
|
44,005 |
45,175 |
||
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Short-Term Bank Loans |
76,454 |
75,306 |
|||
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||
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Other Current Liabs |
86,028 |
85,682 |
|||
|
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TOTAL CURRENT LIABS |
206,487 |
206,163 |
|||
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Debentures |
|
|
|
||
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Long-Term Bank Loans |
105,807 |
103,952 |
|||
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Reserve for Retirement Allw |
21,843 |
25,241 |
|||
|
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Other Debts |
|
20,025 |
18,831 |
||
|
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TOTAL LIABILITIES |
354,162 |
354,187 |
|||
|
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MINORITY INTERESTS |
|
|
|||
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Common stock |
10,000 |
10,000 |
|||
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Additional paid-in capital |
7,550 |
7,521 |
|||
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Retained earnings |
11,746 |
23,140 |
|||
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Evaluation p/l on
investments/securities |
(338) |
740 |
|||
|
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Others |
|
3,887 |
5,879 |
||
|
|
Treasury stock, at cost |
(880) |
(1,010) |
|||
|
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TOTAL S/HOLDERS` EQUITY |
31,965 |
46,270 |
|||
|
|
TOTAL EQUITIES |
386,128 |
400,457 |
|||
|
CONSOLIDATED CASH FLOWS |
|
|
||||
|
|
|
Terms ending: |
31/03/2012 |
31/03/2011 |
||
|
|
Cash Flows from Operating Activities |
|
11,119 |
20,498 |
||
|
|
Cash Flows from Investment
Activities |
-11,215 |
-8,696 |
|||
|
|
Cash Flows from Financing Activities |
362 |
-14,394 |
|||
|
|
Cash, Bank Deposits at the Term End |
|
51,289 |
51,901 |
||
|
ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
||||
|
|
|
Net Worth (S/Holders' Equity) |
31,965 |
46,270 |
||
|
|
|
Current Ratio (%) |
84.80 |
84.72 |
||
|
|
|
Net Worth Ratio (%) |
8.28 |
11.55 |
||
|
|
|
Recurring Profit Ratio (%) |
0.43 |
2.10 |
||
|
|
|
Net Profit Ratio (%) |
-3.71 |
0.69 |
||
|
|
|
Return On Equity (%) |
-34.46 |
4.71 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.82 |
|
UK Pound |
1 |
Rs.84.96 |
|
Euro |
1 |
Rs.68.61 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.