MIRA
INFORM REPORT
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Report Date : |
11.02.2013 |
IDENTIFICATION DETAILS
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Name : |
Nissan Chemical Industries Ltd. |
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Registered Office : |
Kowa Hitotsubashi Bldg, 3-7-1
Kanda-Nishikicho Chiyodaku Tokyo 101-0054 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
April 1921 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Industrial Chemicals, Agrochemicals, Pharmaceuticals and
Others |
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No. of Employees : |
2,276 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
YEN 5,139.5 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 (31.03.2011) |
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.
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Source : CIA |
Company Name
NISSAN CHEMICAL INDUSTRIES LTD
REGD NAME
Nissan Kagaku
Kogyo KK
MAIN OFFICE
Kowa Hitotsubashi Bldg,
3-7-1 Kanda-Nishikicho Chiyodaku Tokyo 101-0054
JAPAN
Tel:
03-3296-8111 Fax: 03-3296-8210
URL: http://www.nissanchem.co.jp/
E-Mail address: enq.bse@nissanchem.co.jp (Chemicals
Division)
ACTIVITIES
Mfg of Industrial
chemicals, agrochemicals, pharmaceuticals
BRANCHES
Sapporo, Sendai,
Nagoya, Osaka, Fukuoka
FACTORIES
Chiba, Saitama,
Toyama, Nagoya, Yamaguchi; Chiba (2) (--Laboratories)
OVERSEAS
USA (2), Korea
(--subsidiaries)
CHIEF EXEC
KOJIRO KINOSHITA,
PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 148,578 M
PAYMENTS REGULAR CAPITAL Yen 18,942 M
TREND SLOW WORTH Yen 119,645 M
STARTED 1921 EMPLOYES 2,276
COMMENT: MFR
SPECIALIZING IN INDUSTRIAL CHEMICALS.
FINANCIAL SITUATION
CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 5,139.5 MILLION 30 DAYS NORMAL TERMS.
Notes: Unit: In Million Yen
Forecast (or estimated) figures for 31/03/2013
fiscal term
HIGHLIGHTS
This is a medium-sized mfr of chemicals, including basic chemicals, inorganic & organic chemicals.
Highly competitive in functional chemicals such as electronics-related materials.
Agrochemicals are
the major profit earner. Also enhancing
pharmaceutical products such as anti-hyperlipidemia agents. In high-purity sulfuric acid for
semiconductor cleaning, additional facilities in Nagoya started up in Oct
2008. Aiming to boost new orders from
truck makers for high-end aqueous solution for diesel trucks. The company plans to increase production of
LCD and semiconductor materials in South Korea as early as in 2013. It is examining loss-making melamine business to reform by overhauling materials
and reducing capacity.
FINANCIAL INFORMATION
The sales volume
for Mar/2012 fiscal term amounted to Yen 148,578 million, a 3.7% down from Yen
154,209 million in the previous term. In
basis chemicals, sales of ammonia, urea, nitric acid and sulfuric acid were
healthy, but the sales of melamine were sluggish as major clients became the
victims of the earthquake in Japan and overseas markets slowed down. By Divisions, Chemicals Div was down by Yen
1,214 million to Yen 36,862 million; Agrochemicals Div down by Yen 640 million
to Yen 33,767 million; Pharmaceuticals Div was up by Yen 432 million to Yen
10,039 million. The recurring profit was
posted at Yen 15,873 million and the net profit at Yen 10,975 million,
respectively, compared with Yen 19,369 million recurring profit and Yen 12,953
million net profit, respectively, a year ago.
(Apr/Dec/2012
results): Sales Yen 105,663 million (up 4.3%), operating profit Yen 11,162
million (up 46.0%), recurring profits Yen 11,519 million (up 42.4%), net profit
Yen 7,612 million (up 36.6%). (%
compared with the corresponding period a year ago)
For the current
term ending Mar 2013 the recurring profit is projected at Yen 18,600 million
and the net profit at Yen 12,600 million, respectively, on a 4.3% rise in
turnover, to Yen 155,000 million. Sales
of LCD materials for mobile phone terminals are growing more than
expectations. Sales of mainline
lucrative agrochemicals for household use are on the upswing. Semiconductor-use electronic materials are
selling steadily.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max Credit Limit is estimated at Yen 5,139.5 million, on
30 days normal terms.
REGISTRATION
Date Registered:
Apr 1921
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 360
million shares
Issued:
171 million
shares
Sum: Yen
18,942 million
Major shareholders
(%): Japan Trustee Services Bank T (8.0), Master Trust Bank of Japan T
(7.9), TCSB (Mizuho Corporate Bank) (4.3), Company’s Treasury Stock (4.2),
Norin Chukin Bank (2.8), Sompo Japan Ins (2.5), Customers’ S/Holding Assn
(2.3), Employees’ S/Holding Assn (1.7), Trust & Custody Services Investment
T (1.5), JX Holdings (1.5); foreign owners (17.8)
No. of shareholders: 13,448
Listed on the S/Exchange (s) of: Tokyo
Managements: Kojiro Kinoshita, pres; Yutaka Niitsu, v
pres; Suketoshi Tsukamoto, s/mgn dir; Jun’ichi Miyazaki, s/mgn dir; Shin’ichi Yuki,
mgn dir; Kiminori Hirata, mgn dir;
Hiroyoshi Fukuro, mgn dir; Tsuneo Higuchi, mgn dir; Takami Ohno, mgn dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Nissei Corp, Nissei Green
& Landscape Co, Nissan Butsuryu Co, Nissan Engineering Ltd, Nissan Chemical
America, Nissan Chemical Korea, others .
OPERATION
Activities: Manufactures industrial chemicals,
agrochemicals, pharmaceuticals, others:
(Sales
Breakdown by Divisions):
Chemicals Div
(39%): industrial chemicals (ultra-melamine derivatives, methanol derivatives,
sulfuric acids); inorganic chemicals (colloidal silica alumina, organo
silicasol); electronic materials (polyimide for LCD alignment coatings,
anti-reflective coating for semiconductors, colloidal silica sol, LR, NHC,
photosensitive polyimide, remover);
Agrochemicals Div (21%): fertilizer,
insecticide, bactericide, soil conditioners, herbicides;
Pharmaceuticals
Div (7%): anti-hypertensive agents, anti-inflammatory agents, anti hyperlipidemic agents, anti-platelet,
others.
Wholesales Div (25%)
Others (8%): swimming pool, waste water treatment
systems, detergent, others.
Overseas Sales Ratio (27%)
Clients: [Farm coops, mfr, wholesalers] Itochu
Plastics, Zen-Noh, Inabata & Co, other.
No. of accounts: 1,000
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs,
wholesalers] JX Nippon Oil & Minerals Corp, BASF Agro, Mitsubishi Corp,
other.
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
Mizuho Corporate
Bank (H/O)
Norin Chukin Bank
(H/O)
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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148,578 |
154,209 |
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Cost of Sales |
97,998 |
99,859 |
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GROSS PROFIT |
50,580 |
54,349 |
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Selling & Adm Costs |
35,102 |
34,531 |
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OPERATING PROFIT |
15,477 |
19,817 |
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Non-Operating P/L |
396 |
-348 |
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RECURRING PROFIT |
15,873 |
19,369 |
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NET PROFIT |
10,975 |
12,953 |
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BALANCE SHEET |
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Cash |
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27,906 |
21,126 |
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Receivables |
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55,526 |
55,220 |
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Inventory |
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29,408 |
28,433 |
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Securities, Marketable |
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Other Current Assets |
5,543 |
5,733 |
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TOTAL CURRENT ASSETS |
118,383 |
110,512 |
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Property & Equipment |
44,726 |
46,403 |
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Intangibles |
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2,751 |
3,383 |
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Investments, Other Fixed Assets |
24,253 |
23,101 |
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TOTAL ASSETS |
190,113 |
183,399 |
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Payables |
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17,281 |
15,443 |
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Short-Term Bank Loans |
21,396 |
17,343 |
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Other Current Liabs |
18,039 |
21,098 |
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TOTAL CURRENT LIABS |
56,716 |
53,884 |
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Debentures |
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Long-Term Bank Loans |
11,049 |
14,500 |
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Reserve for Retirement Allw |
505 |
521 |
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Other Debts |
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2,198 |
2,132 |
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TOTAL LIABILITIES |
70,468 |
71,037 |
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MINORITY INTERESTS |
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Common
stock |
18,942 |
18,942 |
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Additional
paid-in capital |
13,611 |
13,611 |
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Retained
earnings |
86,507 |
79,615 |
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Evaluation
p/l on investments/securities |
2,021 |
1,438 |
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Others |
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(364) |
(173) |
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Treasury
stock, at cost |
(1,072) |
(1,072) |
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TOTAL S/HOLDERS` EQUITY |
119,645 |
112,361 |
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TOTAL EQUITIES |
190,113 |
183,399 |
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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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21,903 |
24,914 |
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Cash
Flows from Investment Activities |
-9,879 |
-8,496 |
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Cash
Flows from Financing Activities |
-5,180 |
-9,565 |
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Cash,
Bank Deposits at the Term End |
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27,906 |
21,126 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
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Net
Worth (S/Holders' Equity) |
119,645 |
112,361 |
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Current
Ratio (%) |
208.73 |
205.09 |
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Net
Worth Ratio (%) |
62.93 |
61.27 |
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Recurring
Profit Ratio (%) |
10.68 |
12.56 |
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Net
Profit Ratio (%) |
7.39 |
8.40 |
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Return
On Equity (%) |
9.17 |
11.53 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.53.57 |
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|
1 |
Rs.84.25 |
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Euro |
1 |
Rs.71.79 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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 |
|
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.