MIRA INFORM REPORT
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Report Date : |
19.10.2012 |
IDENTIFICATION DETAILS
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Name : |
SHINKAWA LTD |
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Registered Office : |
2-51-1 Inadaira Musashimurayama City Tokyo-Metrop 208-8585 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
Aug 1959 |
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Com. Reg. No.: |
0128-01-002889
(Tokyo-Musashimurayama) |
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Legal Form : |
Limited Company |
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Line of Business : |
Mfg of
semiconductor wire bonders |
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No. of Employees : |
666 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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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
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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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 |
Company
name and address
SHINKAWA LTD
REGD NAME: KK
Shinkawa
MAIN OFFICE: 2-51-1
Inadaira Musashimurayama City Tokyo-Metrop 208-8585 JAPAN
Tel:
042-560-1231 Fax: 042-560-8485 -
URL: http://www.shinkawa.com
E-Mail
address: Shinkawa@shinkawa.com
ACTIVITIES
Mfg of
semiconductor wire bonders
BRANCHES
Fukuoka
OVERSEAS
Vietnam,
Taiwan (2), Korea, China (4), Philippines, Singapore, Malaysia, Thailand, USA
FACTORIES
At the
caption address
CHIEF EXEC
HIROSHI
NISHIMURA, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen
13,396 M
PAYMENTSSlow
but correct CAPITAL Yen
8,360 M
TREND UP WORTH Yen
30,366 M
STARTED 1959 EMPLOYES 666
COMMENT
MFR OF SEMICONDUCTOR MFG EQUIPMENT
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 high-ranking mfr of
semiconductor wire bonders in the world.
Independent firm and delivers to most of IC makers. Emphasis put more on tapes for automated
bonding (TAB) for multipin ICs.
Expanding applications of bonders for LED equipment makers, etc. Borrowings-free management. The company will spend R&D costs mainly
on flip-chip bonders in view of active inquiries from mobile semiconductor
makers. It intends to transfer wire
bonder production lines to its plant in Thailand whose start-up is scheduled
for spring 2013. It will transfer extra
staff in domestic plants to production of new products. .
FINANCIAL INFORMATION
The sales volume for Mar/2012 fiscal
term amounted to Yen 13,396 million, a 35.5% down from Yen 20,773 million in
the previous term. In the semiconductor
industry, although smartphone- & tablet PC-related demand was relatively
firm, market conditions worsened rapidly due to the weakened supply-demand
balance from July 2011. This resulted
from sluggish demand for consume-oriented products such as PCs and LCD TVs
affected by the economic slowdown throughout the world. The operations continued in the red to
register Yen 2,487 million recurring loss and Yen 4,647 million net losses,
respectively, compared with Yen 1,158 million recurring loss and Yen 1,222
million net losses, respectively, a year ago.
A loss on disaster of Yen 320 million was posted as extraordinary loss
resulting from the flooding in Thailand and income taxes-deferred of Yen 1,789
million was posted through the reversal of deferred tax assets and other means.
(Apr/Jun/2012 results): Sales Yen
5,049 million (up 23.1%), operating loss Yen 56 million (previously Yen 585
million loss), recurring loss Yen 98 million (previously Yen 709 million loss),
net losses Yen 155 million (previously Yen 706 million loss). (% & figures compared with the
corresponding period a year ago).
For the current term ending Mar 2013
the operations are projected to continue in the deficit to post Yen 1,400
million recurring loss and Yen 1,500 million net losses, respectively, on a
4.5% rise in turnover, to Yen 14,000 million.
Curtailed capital spending by domestic semiconductor makers due to the
slump in digital consumer electronics will continue. Sales of semiconductor-mfg wire bonders will
remain at a low level, despite new orders from smartphone makers in South
Korea. Operating account deficit will
remain at a low level, dragged down by high R&D costs, despite reductions
in costs through production outsourcing.
The financial situation is
considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Aug 1959
Regd No.: 0128-01-002889
(Tokyo-Musashimurayama)
Legal Status: Limited Company (Kabushiki Kaisha
Authorized: 80 million shares
Issued:
20,047,500 shares
Sum: Yen 8,360 million
Major shareholders (%): Company’s Treasury Stock
(9.3), TCSB (Tokyo Tomin Bank) (4.4), Japan Trustee Services T (2.7), I. &
E. (2.4), Customers’ S/Holding Assn (2.4), Mizuho Bank (2.0),Tomin Leasing
(2.0), MUFG (1.4), Master Trust Bank of Japan T (1.4), TYO Sm. & Med. Bus.
Inv & Cons (1.3); foreign owners (5.8)
No. of shareholders: 11,476
Listed on the S/Exchange (s) of:
Tokyo
Managements: Hiroshi Nishimura, pres; Tetsuya Tanabe,
s/mgn dir; Takashi Nagano, mgn dir; Kuniyuki Takahashi, dir; Kenji Sugimoto,
dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies:
Shinkawa Technologies, Shinkawa Shanghai, Shinkawa Singapore, other.
OPERATION
Activities: Manufactures semiconductor mfg
equipment: wire bonders (52%), die bonders (36%), other systems (4%),
repairing, others (8%)
Overseas Sales Ratio (72%)
Clients: IC makers, semiconductor makers,
other
No. of
accounts: 500
Domestic
areas of activities: Nationwide
Suppliers:
Makers, wholesalers, other
Payment record:
Regular
Location:
Business area in Musashimurayama City, Tokyo-Metrop. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References:
Tokyo
Tomin Bank (Mitaka)
MUFG
(Tachikawa)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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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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Annual Sales |
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13,396 |
20,773 |
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Cost of Sales |
10,339 |
16,031 |
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GROSS PROFIT |
3,057 |
4,742 |
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Selling & Adm Costs |
5,445 |
5,534 |
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OPERATING PROFIT |
-2,388 |
-792 |
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Non-Operating P/L |
-99 |
-366 |
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RECURRING PROFIT |
-2,487 |
-1,158 |
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NET PROFIT |
-4,647 |
-1,222 |
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BALANCE SHEET |
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Cash |
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9,393 |
11,988 |
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Receivables |
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5,713 |
7,152 |
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Inventory |
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5,911 |
5,331 |
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Securities, Marketable |
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Other Current Assets |
10,536 |
867 |
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TOTAL CURRENT ASSETS |
31,553 |
25,338 |
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Property & Equipment |
6,716 |
7,076 |
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Intangibles |
|
155 |
243 |
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Investments, Other Fixed Assets |
(5,760) |
4,961 |
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TOTAL ASSETS |
32,664 |
37,618 |
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Payables |
|
770 |
1,200 |
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Short-Term Bank Loans |
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Other Current Liabs |
488 |
744 |
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TOTAL CURRENT LIABS |
1,258 |
1,944 |
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Debentures |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
566 |
408 |
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Other Debts |
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474 |
130 |
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TOTAL LIABILITIES |
2,298 |
2,482 |
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MINORITY INTERESTS |
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Common
stock |
8,360 |
8,360 |
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Additional
paid-in capital |
8,907 |
8,907 |
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Retained
earnings |
15,979 |
20,717 |
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Evaluation
p/l on investments/securities |
730 |
666 |
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Others |
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(461) |
(365) |
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Treasury
stock, at cost |
(3,149) |
(3,149) |
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TOTAL S/HOLDERS` EQUITY |
30,366 |
35,136 |
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TOTAL EQUITIES |
32,664 |
37,618 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2012 |
31/03/2011 |
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Cash
Flows from Operating Activities |
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-1,482 |
-5,293 |
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Cash
Flows from Investment Activities |
-1,017 |
3,355 |
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Cash
Flows from Financing Activities |
-93 |
-95 |
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Cash,
Bank Deposits at the Term End |
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8,821 |
11,477 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
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Net
Worth (S/Holders' Equity) |
30,366 |
35,136 |
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Current
Ratio (%) |
2508.19 |
1303.40 |
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Net Worth
Ratio (%) |
92.96 |
93.40 |
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Recurring
Profit Ratio (%) |
-18.57 |
-5.57 |
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Net
Profit Ratio (%) |
-34.69 |
-5.88 |
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Return
On Equity (%) |
-15.30 |
-3.48 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.52.97 |
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|
1 |
Rs.85.45 |
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Euro |
1 |
Rs.69.45 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.