MIRA INFORM REPORT

 

 

Report Date :

04.06.2013

 

IDENTIFICATION DETAILS

 

Name :

FLAIR NAGAO INC

 

 

Registered Office :

4010 Nakatsu Aikawamachi Aikogun Kanagawa-Pref 243-0303

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

June, 1949

 

 

Com. Reg. No.:

0210-01-021797

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of heat exchangers, air dryers

 

 

No. of Employees :

140

 

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 :

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

 

FLAIR NAGAO INC

 

 

REGD NAME

 

Flair Nagao KK

 

 

MAIN OFFICE

 

4010 Nakatsu Aikawamachi Aikogun Kanagawa-Pref 243-0303 JAPAN

Tel: 0462-285-0487      Fax: 046-285-5011

                                               

E-Mail address: sales@flair-nagao.co.jp

 

 

ACTIVITIES  

 

Mfg of heat exchangers, air dryers

 

 

BRANCHES

 

Tokyo

 

 

OVERSEAS   

 

Advanced Flow Technology Co (China)

 

 

FACTORIES

 

At the caption address

 

 

OFFICERS

 

GEN’ICHI NAGAO, PRES           Jiro Imaeda, dir

Nagamitsu Taketani, dir              Ichiro Kusayanagi, dir

Hirotake Ohno, dir                                                                                

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 3,756 M

PAYMENTS      REGULAR         CAPITAL           Yen 69 M

TREND             UP                    WORTH            Yen 381 M

STARTED         1949                 EMPLOYES      140

 

 

COMMENT

 

MFR OF HEAT EXCHANGERS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                       

HIGHLIGHTS

           

The subject company was established originally as KK Nagao Seisakusho for making automobile parts.  In Oct 2004, the subject merged with Flair Japan Inc and renamed as captioned.  This is a specialized mfr of heat exchangers, air dryers, other.  Has a subsidiary in China.  Goods are exported.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2012 fiscal term amounted to Yen 3,756 million, a 17% up from Yen 3,227 million in the previous term.  Exports were robust, particularly into China and other S/E Asian countries.  The recurring profit was posted at Yen 4 million and the net profit at Yen 1 million, respectively, compared with Yen 24 million recurring profit and Yen 18 million net profit, respectively, a year ago.  Materials cost-ups ate into profits.

 

For the term that ended Mar 2013 the recurring profit was projected at Yen 25 million and the net profit at Yen 20 million, respectively, on a 3% rise in turnover, to 3,860 million.  Final results are yet to be released. 

 

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

 

 

REGISTRATION

 

Date Registered:                       Jun 1949

Regd No.:                                             0210-01-021797 (Kanagawa-Aikogun)

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              3.9 million shares

Issued:                                     1,380,400 shares

Sum:                                        Yen 69.02 million

Major shareholders (%):           Employees’ S/Holding Assn (37), Gen’ichi Nagao (26), Nagamitsu Taketani (17)

No. of shareholders:                 5

           

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

 

 

OPERATION

           

Activities: Manufactures heat exchangers, air dryers, air-conditioners parts & components, freezers, other (--100%)

 

Clients: [Mfrs, wholesalers] Hitachi Appliance, Toshiba Carrie Engineering, Hitachi Ltd, Hitachi Industrial Systems, Hitachi Medico, Hitachi-Kucho SE Ltd, IHI Compressor & Machinery Co, Mitsui Seiki Kogyo, Toyo Engineering Works, Hokuetsu Kogyo, other 

            No. of accounts: 500

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Hitachi Appliance, Hitachi High Technologies, Hitachi Industrial Systems, Japan Light Metal, Panasonic Industry Sales, Toshiba Carrier Engineering, Saginomiya Sanki Inc, Kunitachi Press Corp, Papas Co, other

 

Payment record: Regular

 

Location: Business area in Aikogun, Kanagawa-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Shoko Chukin Bank (Yokohama-Nishiguchi)

Jonan Shinkin Bank (Atsugi)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

3,860

3,756

3,227

2,468

Recur. Profit

 

25

4

24

10

Net Profit

 

20

1

18

7

Total Assets

 

 

3,112

3,046

3,086

Current Assets

 

 

1,677

1,538

1,506

Current Liabs

 

 

740

632

464

Net Worth

 

 

381

386

371

Capital, Paid-Up

 

 

69

69

69

Div.P.Share(¥)

 

 

9.00

9.00

9.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.77

16.39

30.75

-27.07

    Current Ratio

 

..

226.62

243.35

324.57

    N.Worth Ratio

..

12.24

12.67

12.02

    R.Profit/Sales

 

0.65

0.11

0.74

0.41

    N.Profit/Sales

0.52

0.03

0.56

0.28

    Return On Equity

..

0.26

4.66

1.89

 

Notes: Forecast (or estimated) figures for the 31/03/2013 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.56.57

UK Pound

1

Rs.86.15

Euro

1

Rs.73.64

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.