MIRA INFORM REPORT

 

 

Report Date :

17.10.2013

 

IDENTIFICATION DETAILS

 

Name :

SHIN NIPPON KOKI CO LTD 

 

 

Registered Office :

2-4-1 Kita-Kyuhojimachi Chuoku Osaka 541-0057

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

September 1949

 

 

Com. Reg. No.:

1200-01-077437 (Osaka-Chuoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of industrial machinery & machine tools

 

 

No. of Employees :

725

 

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

 

SHIN NIPPON KOKI CO LTD

 

REGD NAME

 

Shin Nippon Koki KK

 

MAIN OFFICE

 

2-4-1 Kita-Kyuhojimachi Chuoku Osaka 541-0057 JAPAN

    Tel: 066261-3131     Fax: 06-6264-1609

 

URL:                 www.snkc.co.jp  

E-mail:             export@snkc.co.jp          

 

Tokyo Branch Office:

JP Tower 8F 2-7-2 Marunouchi Chiyoda Ku Tokyo 100-7008, Japan

 

 

ACTIVITIES  

 

Mfg of machine tools, industrial machinery, other

 

 

BRANCHES   

 

Tokyo, Nagoya, Hiroshima

 

 

OVERSEAS   

 

USA (3), Germany (2), Thailand, China, Indonesia, Taiwan, Korea (--subsidiaries)

 

 

FACTORIES

 

Shinodera, Misaki (--Osaka)

 


OVERSEAS   

 

Germany, Thailand

 

 

OFFICER(S)

 

HISAKAZU YAMAGUCHI, PRES Genzo Yamaguchi, s/mgn dir

Nobutoshi Narimatsu, mgn dir                 Isamu Yamaguchi, dir

Hirohisa Yamaguchi, dir                          Toshiyuki Okuno, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 31,194 M

PAYMENTS      no complaints          CAPITAL           Yen 1,000 M

TREND SLOW                          WORTH            Yen 30,554 M

STARTED         1949                             EMPLOYES      725

 

 

COMMENT    

 

MFR OF MACHINE TOOLS & INDUSTRIAL MACHINERY 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

 

HIGHLIGHTS

           

The subject company was established originally in 1898 by Takisaburo Wakayama for making iron tools, on his account.  Incorporated in 1949 and expanded operations into mfg machine tools, industrial machinery, other for supply centrally to auto & aircraft makers.  Diversified into canning machines, steel mill equipment, other.  Operates mfg/sales offices in USA, Germany, Thailand, China, other.  Also operates mfg plants in Germany and Thailand.  Clients are centrally auto makers, heavy machinery mfrs, aircraft mfrs, other, nationwide.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 31,194 million, a 4% down from Yen 32,427 million in the previous term.  Demand remained rather low.  The operations came back to profitability to post Yen 2,395 million recurring profit and Yen 1,842 million net profit, respectively, compared with Yen 1,139 million recurring loss and Yen 1,210 million net losses, respectively, a year ago.

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 2,400 million and the net profit at Yen 1,900 million, respectively, on a 5% rise in turnover, to Yen 32,700 million. 

           

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

 

 

REGISTRATION

 

Date Registered:             Sept 1949

Regd No.:                  1200-01-077437 (Osaka-Chuoku)

Legal Status:     Limited Company (Kabushiki Kaisha)

Authorized:                    80 million shares

Issued:             20 million shares

Sum:                  Yen 1,000 million

Major shareholders (%): Yamaguchi Kosan* (50), Daiwa Can Co** (45), MUFG (5)

 

* Holding Company

** Mfr of cans for food, beverages, beer, soft drinks, other, Tokyo, founded 1950, capital Yen 2,400 million, turnover Yen 190,786 million, net profit Yen 259 million, employees 1,489, pres Hisakazu Yamaguchi, concurrently

 

No. of shareholders: 3

           

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

 

 

OPERATION

 

Activities: Manufactures industrial machinery (21%), machine tools (76%), others (3%).

 

Exports (42%).

 

(Mfg items):

 

Machine Tools: FMS/FMC systems, bridge type multi-centers, Plano-borers, precision vertical boring & milling machines, high speed milling machines, machine tools for aircraft parts, roll lathes, 3-D measuring machines, laser cutting machines, various types of machining centers, automation equipment, special-purpose machines;

 

Industrial Machinery: can mfg machines, canning machines & accessories, metal printing machines, cleaning system for various purposes, garbage disposal systems, plastic bottle mfg systems, aseptic filling systems;

 

Steel Mill Machinery & Centrifugal Cast Steel Pipes: steel mill equipment, automatic ladle lining equipment, centrifugally cast steel pipes of various steel grades (such as table rollers, cylinders, spools, piles, columns & oil loading pipes), various steel fabricated parts, various types of industrial machinery & equipment.

 

Clients: [Automakers, aircraft mfrs, heavy machinery mfrs] Toyota Motor, Nissan Motors, GM, Kobe Steel, Caterpillar, Komatsu Ltd, Mitsubishi Heavy Ind, Boeing, Daiwa Can, China Shipbuilding Trading, Shin Nippon Koki Service, SNK America Inc, Formosa Sumco, Nittetsu Shoji Trading, other

            No. of accounts: 800

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Fanuc Ltd, Tsubaki Nakashima Co, Nippon Thompson, Tokyo Keiki Inc, Shin Nippon Koki Engineering, Kiyo Iron Works, other

 

Payment record: No Complaints

 

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

 

Bank References:

MUFG (Osaka)

Mizuho Corporate Bank (Osaka)

Relations: Satisfactory

 


FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

32,700

31,194

32,427

30,065

Recur. Profit

 

2,400

2,395

-1,139

-1,988

Net Profit

 

1,900

1,842

-1,210

-2,553

Total Assets

 

 

89,145

83,813

81,880

Current Assets

 

 

45,610

41,295

43,566

Current Liabs

 

 

37,135

32,405

31,776

Net Worth

 

 

30,554

28,745

30,078

Capital, Paid-Up

 

 

1,000

1,000

1,000

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.83

-3.80

7.86

-1.12

    Current Ratio

 

..

122.82

127.43

137.10

    N.Worth Ratio

..

34.27

34.30

36.73

    R.Profit/Sales

 

7.34

7.68

-3.51

-6.61

    N.Profit/Sales

5.81

5.90

-3.73

-8.49

    Return On Equity

..

6.03

-4.21

-8.49

 

Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term. 


 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.69

UK Pound

1

Rs.98.59

Euro

1

Rs.83.67

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.