MIRA INFORM REPORT

 

 

Report Date :

26.03.2013

 

IDENTIFICATION DETAILS

 

Name :

NIDEC TOSOK CORP

 

 

Registered Office :

2-215 Sobudai Zama City Kanagawa-Pref 228-8570

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

April 1949

 

 

Com. Reg. No.:

0210-01-026492 (Kanagawa-Zama)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha

 

 

Line of Business :

Mfg of automobile parts, systems equipment

 

 

No. of Employees :

5,791

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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 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

 

NIDEC TOSOK CORP

REGD NAME:   Nihon Densan Tosok KK

MAIN OFFICE:  2-215 Sobudai Zama City Kanagawa-Pref 228-8570 JAPAN

Tel: 046-252-3110     Fax: 046-252-3115     -

 

URL:                 http://www.nidec-tosok.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of automobile parts, systems equipment

 

 

BRANCHES

 

Yamanashi, Osaka, Nagoya

 

 

OVERSEAS   

 

Vietnam (2), China (4), Thailand

 

 

FACTORIES

 

At the caption address; Vietnam, China

 

 

CHIEF EXEC 

 

SHIGERU MURATA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 33,508 M

PAYMENTS      REGULAR         CAPITAL           Yen 5,087 M

TREND             UP                    WORTH            Yen 27,536 M

STARTED         1949                 EMPLOYES      5,791

 

 

COMMENT    

 

MFR OF AUTOMOBILE PARTS 

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 a precision machinery mfr.  Originally maker of gauges and measuring instruments, expanded into automotive precision apparatus.  Has strength in control valves for automatic transmissions (AT) and continuously variable transmissions (CVT).  Parts output overseas accounts for 90%.  Operates flagship factory in Vietnam.  The second die-cast plant in Vietnam will start up in early 2013.  The company may not only switch to in-house production in that plant, but also start direct sales of parts for motorcycles. 

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2012 fiscal term amounted to Yen 33,508 million, a 12% up from Yen 29,946 million in the previous term.   The recurring profit was posted at Yen 3,087 million and the net profit at Yen 1,844 million, respectively, compared with Yen 4,033 million recurring profit and Yen 2,366 million net profit, respectively, a year ago. 

 

            (Apr/Dec/2012 results): Sales 23,934 million (down 3.2%), operating profit Yen 1,546 million (down 37.6%), recurring profit Yen 1,705 million (down 28.7%), net profit Yen 1,024 million (down 29.5%).  (% compared with the corresponding period a year ago)

           

            For the current term ending Mar 2013 the recurring profit is projected at Yen 2,300 million and the net profit at Yen 1,050 million, on a 10.5% fall in turnover, to Yen 30,000 million.  Main profit earner transmission parts sales are hard hit by the second half market slump in China.  But benefits will emerge in the second half from a switch to in-house die cast production. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,620.2 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　Apr 1949

Regd No.:         0210-01-026492 (Kanagawa-Zama)

Legal Status:       Limited Company (Kabushiki Kaisha

Authorized:       81 million shares

Issued:                38,500,466

Sum:                   Yen 5,087 million

 

Major shareholders (%): Nidec Corp (71.8), Shigenobu Nagamori (3.3), Japan Trustee Services T (1.9), Shinichi Kimura (1.2), Bank of Kyoto (1.0), Nippon Life Ins (0.7), Company’s Treasury Stock (0.7), Sompo Japan Ins (0.6), Employees’ S/Holding Assn (0.5); foreign owners (2.5)

 

No. of shareholders: 2,313

 

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

 

Managements: Shigenobu Nagamori, ch; Shigeru Murata, pres; Tohru Yokoyama, dir; Yoshitake Iijima, dir; Akira Sato, dir

 

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

 

Related companies: Nidec Tosok Vietnam, Nidec Tosok China, other.

 

 

OPERATION

           

Activities: Manufactures automobile parts (91%): control valves assy, stepping motor, solenoid valves, spool valves/harness module, electric oil pump, other: measuring & inspection systems (9%), air/electric micrometers, precise machinery parts, other;

Overseas sales ratio (11%).

 

Clients: [Mfrs, wholesalers] Jatco, Denso, Fuji Heavy Machinery, Delphi Diesel System, Chipbond Technology, Daihatsu Ind, Panasonic Home Appliances, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: Mfrs, wholesalers] Nidec Tosok Vietnam, Jatco, Denso, Nidec Logistics, Sumitomo Wiring System, other

 

Payment record: Regular

 

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

 

Bank References:

Bank of Yokohama (Zama)

Kyoto Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

33,508

29,946

 

  Cost of Sales

26,856

22,786

 

      GROSS PROFIT

6,651

7,160

 

  Selling & Adm Costs

3,511

3,151

 

      OPERATING PROFIT

3,140

4,009

 

  Non-Operating P/L

-53

24

 

      RECURRING PROFIT

3,087

4,033

　

      NET PROFIT

1,844

2,366

BALANCE SHEET

 

 

 

 

  Cash

　

299

392

 

  Receivables

 

7,247

6,149

 

  Inventory

 

6,424

662

 

  Securities, Marketable

　

　

 

  Other Current Assets

1,199

7,419

 

      TOTAL CURRENT ASSETS

15,169

14,622

 

  Property & Equipment

20,715

19,797

 

  Intangibles

 

487

568

 

  Investments, Other Fixed Assets

1,664

1,695

 

      TOTAL ASSETS

38,035

36,682

 

  Payables

 

4,526

4,218

 

  Short-Term Bank Loans

2,283

618

 

　

 

　

　

 

  Other Current Liabs

3,523

5,859

 

      TOTAL CURRENT LIABS

10,332

10,695

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

60

 

  Reserve for Retirement Allw

47

29

 

  Other Debts

　

120

186

 

      TOTAL LIABILITIES

10,499

10,970

 

      MINORITY INTERESTS

 

 

 

Common stock

5,087

5,087

 

Additional paid-in capital

4,604

4,604

 

Retained earnings

12,385

11,156

 

Evaluation p/l on investments/securities

148

165

 

Others

 

5,323

4,709

 

Treasury stock, at cost

(11)

(10)

 

      TOTAL S/HOLDERS` EQUITY

27,536

25,711

　

      TOTAL EQUITIES

38,035

36,682

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

4,349

3,857

 

Cash Flows from Investment Activities

-5,384

-4,282

 

Cash Flows from Financing Activities

965

161

　

Cash, Bank Deposits at the Term End

　

299

392

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

27,536

25,711

 

 

Current Ratio (%)

146.82

136.72

 

 

Net Worth Ratio (%)

72.40

70.09

 

 

Recurring Profit Ratio (%)

9.21

13.47

 

 

Net Profit Ratio (%)

5.50

7.90

 

 

Return On Equity (%)

6.70

9.20

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.09

UK Pound

1

Rs.82.46

Euro

1

Rs.70.49

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.