MIRA INFORM REPORT

 

 

Report Date :

31.08.2013

 

IDENTIFICATION DETAILS

 

Name :

SHIZUKI ELECTRIC CO INC

 

 

Registered Office :

10-45 Taishacho Nishiku Nishinomiya Hyogo-Pref 662-0867

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

September  1947

 

 

Com. Reg. No.:

1400-01-069021 (Hyogo-Nishinomiya)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacture of capacitors, electric power systems

 

 

No. of Employees :

1,110

 

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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. 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. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan 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 and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 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 2012. The new government will continue a longstanding debate 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

 

SHIZUKI ELECTRIC CO INC

REGD NAME:    Shizuki Denki Seisakusho KK

MAIN OFFICE:  10-45 Taishacho Nishiku Nishinomiya Hyogo-Pref 662-0867 JAPAN

Tel: 0798-74-5821     Fax: 0798-73-3919     -

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of capacitors, electric power systems

 

BRANCHES   

 

Tokyo (3), Nagoya, Sapporo, Sendai, Mito, Hiroshima, Fukuoka, other (Tot 13)

 

OVERSEAS

 

China, Malaysia

 

 

FACTORIES

 

At the caption address

 

 

CHIEF EXEC

 

KAORU ITO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 21,165 M

PAYMENTS      REGULAR         CAPITAL           Yen 5,001 M

TREND UP                    WORTH            Yen 14,903 M

STARTED         1947                 EMPLOYES      1,110

COMMENT

 

MFR OF CAPACITORS 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

                        Unit: In Million Yen

Forecast figures for the 31/03/2014 fiscal term.

 

HIGHLIGHTS

 

This is the medium-standing mfr of capacitors for consumer electronics and electric power industries.  Strong in large capacitors.  Capacitors for electric power firms peaking out, but labor saving and large capacitors growing.  Reduced inventory and improved productivity with adoption of “NPS”.  In Asia, the firm will aggressively develop demand for products for electric power equipment and airconditioners in neighboring countries, led by the subsidiary in Thailand.  In the capacitor division, it will reinforce R&D of products for HV-type construction machinery and transporting equipment and new energy-related products, such as fuel cells. .

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2013 fiscal term amounted to Yen 21,165 million, a 0.7% down from Yen 21,323 million in the previous term.   Sales of capacitors for rollingstock were stagnating.  But sales of products for airconditioners surged.  Sales of electric power systems were rising steadily, even with disaster-related strong demand decreased.  The recurring profit was posted at Yen 1,991 million and the net profit at Yen 1,024 million, respectively, compared with Yen 2,052 million recurring profit and Yen 1,212 million net profit, respectively, a year ago. 

 

            (Apr/Jun/2013 results): Sales Yen 4,656 million (down 2.8%), operating profit Yen 317 million (up 25.1%), recurring profit Yen 468 million (up 81.3%), net profit Yen 394 million (up 474.0%).  (% compared with the corresponding period a year ago).

           

            For the current term ending Mar 2014 the recurring profit is projected at Yen 1,950 million and the net profit at Yen 1,050 million, on a 1.6% rise in turnover, to Yen 21,500 million.  Sales of capacitors mainly for airconditioners and automobiles, including EVs, will increase.  In electric power equipment systems, domestic demand will remain sluggish, while sales in Asia will fare well.

 

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

 

REGISTRATION

 

Date Registered:　Sept 1947

Regd No.:         1400-01-069021 (Hyogo-Nishinomiya)

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       128,503,000 shares

Issued:                33,061,008 shares

Sum:                   Yen 5,001 million

 

Major shareholders (%): Mitsubishi Electric (21.1), Goldman Sachs International (12.8), Company’s Treasury Stock (11.8), Resona Bank (3.9), Shizuki Kyuyu S/Holding Assn (2.8), Minato Bank (2.7), Master Trust Bank of Japan T (1.8), Murata Mfg (1.7), Noritz Corp (1.6), Company’s Stock Investment (1.6); foreign owners (15.8)

 

No. of shareholders: 2,629

 

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

 

Managements: Kaoru Ito, pres; Yasuhiko Kajikawa, ch; Nobuaki Adachi, v pres; Yoshihiro Taniguchi, s/mgn dir; Tetsuya Tomomatsu, s/mgn dir; Hisahiro Yabe, mgn dir; Atsushi Oda, mgn dir; Nobumasa Mitsutani, mgn dir; Kengo Fujiwara, mgn dir

 

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

 

Related companies: Kyushu Shizuki, Akita Shizuki, Shizuki Electric (Shanghai), Shizuki Electric (Thailand), other.

 

 

OPERATION

           

Activities: Manufactures capacitor modules (65%), electric power systems (33%), information equipment (2%)

Overseas Sales Ratio (17%)

 

(Mfg Items): electric power systems, power distribution systems, harmonic restraint devices, capacitor-related products, voltage sag correctors, capacitor modules (for industrial/housing, other used), electric double layer capacitors, others.

           

Clients: [Mfrs, wholesalers] Mitsubishi Electric, Toshiba Corp, Hitachi Ltd, TMEIC,

Mitsubishi Electric Trading, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsui Bussan Plastic Trade, Toray KP Film, Mitsubishi Shindoh Co, Honshu Denzai Co, Denshi-Gihan Co, other

 

Payment record: Regular

 

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

 

 

Bank References:

Resona Bank (Tokyo)

MUFG (Kobe)

Relations: Satisfactory

 

FINANCES

 (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

　

21,165

21,323

 

  Cost of Sales

14,651

14,965

 

      GROSS PROFIT

6,514

6,357

 

  Selling & Adm Costs

4,620

4,400

 

      OPERATING PROFIT

1,894

1,957

 

  Non-Operating P/L

97

95

 

      RECURRING PROFIT

1,991

2,052

　

      NET PROFIT

1,024

1,212

BALANCE SHEET

 

 

 

 

  Cash

　

3,581

2,670

 

  Receivables

 

4,733

4,363

 

  Inventory

 

1,092

1,070

 

  Securities, Marketable

　

　

 

  Other Current Assets

337

325

 

      TOTAL CURRENT ASSETS

9,743

8,428

 

  Property & Equipment

10,022

10,207

 

  Intangibles

 

45

53

 

  Investments, Other Fixed Assets

1,451

1,160

 

      TOTAL ASSETS

21,261

19,848

 

  Payables

 

812

856

 

  Short-Term Bank Loans

900

906

 

　

 

　

　

 

  Other Current Liabs

2,100

2,161

 

      TOTAL CURRENT LIABS

3,812

3,923

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

847

876

 

  Other Debts

　

1,698

1,266

 

      TOTAL LIABILITIES

6,357

6,065

 

      MINORITY INTERESTS

 

 

 

Common stock

5,001

5,001

 

Additional paid-in capital

3,308

3,308

 

Retained earnings

7,196

6,367

 

Evaluation p/l on investments/securities

298

127

 

Others

 

328

205

 

Treasury stock, at cost

(1,228)

(1,226)

 

      TOTAL S/HOLDERS` EQUITY

14,903

13,782

　

      TOTAL EQUITIES

21,261

19,848

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

　

2,109

1,918

 

Cash Flows from Investment Activities

-980

-1,590

 

Cash Flows from Financing Activities

-242

-1,062

　

Cash, Bank Deposits at the Term End

　

3,581

2,670

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

14,903

13,782

 

 

Current Ratio (%)

255.59

214.84

 

 

Net Worth Ratio (%)

70.10

69.44

 

 

Recurring Profit Ratio (%)

9.41

9.62

 

 

Net Profit Ratio (%)

4.84

5.68

 

 

Return On Equity (%)

6.87

8.79

 

           

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.57

UK Pound

1

Rs.103.34

Euro

1

Rs.88.16

 

 

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.