MIRA INFORM REPORT

 

 

Report Date :

30.03.2013

 

IDENTIFICATION DETAILS

 

Name :

NIIGATA POWER SYSTEMS CO LTD

 

 

Registered Office :

2-14-5 Sotokanda Chiyodaku Tokyo 101-0021

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

February  2003

 

 

Com. Reg. No.:

0100-01-081674 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of diesel engines

 

 

No. of Employees :

808

 

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 :

Usually correct

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

(31.03.2011)

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

 

NIIGATA POWER SYSTEMS CO LTD

REGD NAME:   Niigata Gendoki KK

MAIN OFFICE:  2-14-5 Sotokanda Chiyodaku Tokyo 101-0021 JAPAN

Tel: 03-4366-1200      Fax: 03-4366-1300

 

URL:                 http://www.niigata-power.com

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of diesel engines

 

BRANCHES

 

Sapporo, Sendai, Niigata, Nagoya, Osaka, Fukuoka, other (Tot 13)

 

OVERSEAS

 

Indonesia, Europe

 

FACTORIES

 

Ohta, Niigata (3); Indonesia

 

 

OFFICERS

 

JUN’ICHI SAIKAWA, PRES                    Yasuhiro Itoh, v pres

Kazuhiko Motoyama, dir                        Yuji Matsui, dir

Takashi Nakanishi, dir                Shigeru Seki, dir           

           

Yen Amount:     In million Yen, unless otherwise stated

 

 


SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 61,878 M

PAYMENTSUSUALLY CORRECT           CAPITAL           Yen 3,000 M

TREND UP                                WORTH            Yen 15,789 M

STARTED         2003                             EMPLOYES      808

 

comment

 

MFR OF DIESEL ENGINES, OWNED BY IHI CORP.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                                   

 

HIGHLIGHTS

           

            The subject company was established originally in 1895 as an engineering plant by Nippon Oil Co.  Through mergers and amalgamation, the firm was re-established anew in 2003.  This is a specialized mfr of diesel engines (marine, power, generation, railway, vehicles), gas turbines, power generators, other.  The firm is wholly owned by IHI Corp (See REGISTRATION).  Clients include Self Defense Forces, Government agencies, electric powers, gas companies, other

 

 

FINANCIAL INFORMATION

           

            The sales volume for Mar/2012 fiscal term amounted to Yen 61,878 million, a 2% up from Yen 60,930 million in the previous term.  The recurring profit was posted at Yen 4,046 million and the net profit at Yen 2,218 million, respectively, compared with Yen 5,050 million recurring profit and Yen 2,777 million net profit, respectively, a year ago.

 

            For the current term ending Mar 2013 the recurring profit is projected at Yen 4,100 million and the net profit at Yen 2,300 million, respectively, on a 3% rise in turnover, to Yen 64,000 million.  Business is seen steadily expanding. 

 

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

 

 

REGISTRATION

 

Date Registered:              Feb 2003

Regd No.:           0100-01-081674 (Tokyo-Chiyodaku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         240,000 shares

Issued:                60,000 shares

Sum:                   Yen 3,000 million

    Major shareholders (%): IHI Corp* (100)

 

*.. One of major comprehensive heavy electric machinery mfrs, Tokyo, founded 1889, listed Tokyo S/E, capital Yen 95,762 million, sales Yen 1,221,869 million, operating profit Yen 43,333 million, recurring profit Yen 41,715 million, net profit Yen 23,823 million, total assets Yen 1,317,408 million, net worth Yen 255,946 million, employees 28,378, pres Tamotsu Saito

 

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

 

 

OPERATION

 

Activities: Manufactures diesel engines (land powers, pumps, other) (19%), marine engines, Z-pellers, parts, others (81%)

Exports (33%)

 

(Mfg Items): diesel engines, gas engines, dual fuel engines, gas turbines, Z-pellers, power generators, Geislinger couplings dampers, fuel injection equipment, foundry parts, other.

 

Clients: [Government Agencies, mfrs, wholesalers] Japan Coast Guard, Ministry of Defense, Ministry of Land, Infrastructure, Tokyo Electric Power, Tohoku Electric Power, Kansai Electric Power, Kyushu Electric Power, Tokyo Gas, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] NICO Precision Co, Hitachi NICO Transmission, Nunotani Nautical Instruments Mfg, Niigata Mechatronics Co, Solar Turbines Inc, other

 

Payment record: Usually Correct

 

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

 

Bank References:

Mizuho Bank (Kyobashi)

SMBC (H/O)

Relations: Satisfactory

 

 

FINANCES

 (In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

64,000

61,878

60,930

53,713

Recur. Profit

 

4,100

4,046

5,050

 

Net Profit

 

2,300

2,218

2,777

2,300

Total Assets

 

 

52,312

58,422

54,433

Current Assets

 

 

40,922

45,207

 

Current Liabs

 

 

27,350

32,927

 

Net Worth

 

 

15,789

14,968

12,207

Capital, Paid-Up

 

 

3,000

3,000

3,000

Div.Ttl in Million (¥)

 

 

1,527

0.00

622

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.43

1.56

13.44

-14.07

    Current Ratio

 

..

149.62

137.29

..

    N.Worth Ratio

..

30.18

25.62

22.43

    R.Profit/Sales

 

6.41

6.54

8.29

..

    N.Profit/Sales

3.59

3.58

4.56

4.28

    Return On Equity

..

14.05

18.55

18.84

 

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

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.39

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54

 

 

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%)

 

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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.