MIRA INFORM REPORT

 

 

Report Date :

08.05.2013

 

IDENTIFICATION DETAILS

 

Name :

NITTO SEIMO CO LTD

 

 

Registered Office :

Shimbashi Ekimae Bldg 7F, 2-20-15-71 Shimbashi Minatoku Tokyo 105-0004

 

 

Country :

Japan

 

 

Financials (as on) :

30.04.2012

 

 

Date of Incorporation :

August 1910

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Knotless Fishing Nets for Coastal Fishing.

 

 

No. of Employees :

584

 

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 :

No Complaints

 

 

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

 

NITTO SEIMO CO LTD

 

REGD NAME:                Nitto Seimo Co Ltd

MAIN OFFICE:              Shimbashi Ekimae Bldg 7F, 2-20-15-71 Shimbashi Minatoku Tokyo 105-0004

                                    JAPAN

Tel: 03-3572-5276     Fax: 03-3572-5370

 

URL:                 http://www.nitto.seimo.co.jpeizo.com/

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Mfr of knotless fishing nets for coastal fishing

 

 

BRANCHES

 

Tokyo, Sendai, Hakodate, Otaru, other (Tot 11)

 

 

FACTORIES

 

At the caption address, Fukuyama; Thailand, Chile

 

 

CHIEF EXEC

 

HIROAKI KOBAYASHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 17,422 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 1,378 M

TREND UP        UP                    WORTH            Yen 2,592 M

STARTED         1910                             EMPLOYES      584

 

 

COMMENT

 

MFR SPECIALIIZING FISHING NETS FOR COASTAL FISHERY. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS. 

 

 

Notes: Unit: In Million Yen

Forecast figures for the 40/04/2013 fiscal term

 

 

HIGHLIGHTS

 

The subject company is a leading mfr of knotless fishing net for coastal fishing. Operates wholly owned subsidiary producing such nets in Chile cope with declining domestic demand. Also deals in sale of purchased products of fishery related lines, such as ropes and floats etc. Putting more emphasis in development of S/E Asia and other areas, with Thailand plant as base. The subsidiary in Thailand began producing knotless nets at the year’s end star, and will push with overseas sales routes expansion.

 

           

FINANCIAL INFORMATION

 

The sales volume for Apr 2012 fiscal term abounded to Yen 17,422 million, a 25.8% up from Yen 13,844 million in the previous term.  Full-capacity, 24-hour plant operations continued to fill the order backlog for fixed fishing nets for Tohoku reconstruction.  Operating profits reached a high level, thanks to increased production.  The recurring profit was posted at Yen 782 million and the net profit at Yen 325 million, respectively, compared with Yen 11 million recurring loss and Yen 278 million net losses, respectively, a year ago.

 

(May/2012/Jan/2013 results): Sales Yen 13,059 million (up 3.6%), operating profit Yen 559 million (up 9.3%), recurring profit Yen 544 million (up 57.6%), net profit Yen 254 million (up 360.4%). (% compared with the corresponding period a year ago)

           

For the term that ended Apr 2013 the recurring profit was projected at Yen 750 million and the net profit at Yen 300 million, respectively, on a 2.4% fall in turnover, to Yen 17,000 million.  Plant operations continued to remain robust in the first half, but slowed in the second half due to peaked-out extraordinary demand.  Final results are yet to be released. 

 

Financial situation is considered FAIR and good for ORDINARY business engagements.

 

 

REGISTRATION

           

Date Registered:          Aug 1910

Legal Status:               Limited Company (Kabushiki Kaisha

Authorized:                  64 million shares

Issued:                         26,050 shares

Sum:                            Yen 1,378 million

 

Major shareholders (%): Tsuchiya Co (8.2), Employees’ S/Holding Assn (3.6), Hiroaki Kobayashi (3.3), Hiroshima Bank (2.1), Japan Securities Finance (2.0), Matsui Securities (1.6), SBI Securities (1.6), Master Trust Bank of Japan T (1.3), Customers’ S/Holding Assn (1.3), Toray Ind (1.2); foreign owners (1.4)

 

No. of shareholders:    3,424

 

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

 

Managements: Hiroaki Kobayashi, pres; Setsuo Yamamoto, mgn dir; Yoshiomi Takahashi, mgn dir; Hiroaki Mishima, dir; Kazuo Sugimori, dir; Shigehisa Kobayashi, dir

 

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

 

Related companies: Taito Co, Nitto Net Co, Taku Seimo Co, Nippon Turning, other

 

           

OPERATION

           

Activities:                                 Manufactures fishing-related products (83%), Land based products (16%), others (3%)

                                                (Mfg Items):

Fishing-related Products:          trap nets, purse seine nets, trawl nets, fish farming nets, laver cultivationnets, other;

Land-based Products:              sporting nets (succor goal nets, other), shopping bags, nets, others

           

Clients:                                    Fisheries, wholesalers, fishing stores, other]

No. of accounts: 300

Domestic areas of activities: Nationwide

 

Suppliers                                 [Mfrs, wholesalers] Itochu Corp, NKM Coatings, Toray Alphart Co, Nippon Formula Feed Mfg, other.

 

Payment record:                      No Complaints

 

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

 

Bank References:

                                                Momiji Bank (Fukuyama)

                                                Hiroshima Bank (Fukuyama)

                                                Relations: Satisfactory

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

30/04/2012

30/04/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

17,422

13,844

 

  Cost of Sales

14,255

11,488

 

      GROSS PROFIT

3,166

2,355

 

  Selling & Adm Costs

2,209

2,184

 

      OPERATING PROFIT

957

171

 

  Non-Operating P/L

-175

160

 

      RECURRING PROFIT

782

-11

　

      NET PROFIT

325

-278

BALANCE SHEET

 

 

 

 

  Cash

　

945

906

 

  Receivables

 

7,320

6,835

 

  Inventory

 

1,637

3,439

 

  Securities, Marketable

　

　

 

  Other Current Assets

2,459

69

 

      TOTAL CURRENT ASSETS

12,361

11,249

 

  Property & Equipment

2,566

2,728

 

  Intangibles

 

148

180

 

  Investments, Other Fixed Assets

1,371

1,404

 

      TOTAL ASSETS

16,446

15,561

 

  Payables

 

3,873

3,401

 

  Short-Term Bank Loans

4,505

5,739

 

　

 

　

　

 

  Other Current Liabs

1,263

1,035

 

      TOTAL CURRENT LIABS

9,641

10,175

 

  Debentures

 

1,000

1,000

 

  Long-Term Bank Loans

2,305

1,201

 

  Reserve for Retirement Allw

510

429

 

  Other Debts

　

398

474

 

      TOTAL LIABILITIES

13,854

13,279

 

      MINORITY INTERESTS

 

 

 

Common stock

1,378

1,378

 

Additional paid-in capital

510

510

 

Retained earnings

938

612

 

Evaluation p/l on investments/securities

(66)

(76)

 

Others

 

(161)

(136)

 

Treasury stock, at cost

(7)

(7)

 

      TOTAL S/HOLDERS` EQUITY

2,592

2,281

　

      TOTAL EQUITIES

16,446

15,561

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

30/04/2012

30/04/2011

 

Cash Flows from Operating Activities

　

650

274

 

Cash Flows from Investment Activities

-241

-286

 

Cash Flows from Financing Activities

-390

12

　

Cash, Bank Deposits at the Term End

　

341

325

ANALYTICAL RATIOS            Terms ending:

30/04/2012

30/04/2011

 

 

Net Worth (S/Holders' Equity)

2,592

2,281

 

 

Current Ratio (%)

128.21

110.56

 

 

Net Worth Ratio (%)

15.76

14.66

 

 

Recurring Profit Ratio (%)

4.49

-0.08

 

 

Net Profit Ratio (%)

1.87

-2.01

 

 

Return On Equity (%)

12.54

-12.19


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.28

UK Pound

1

Rs.84.32

Euro

1

Rs.70.99

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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.