MIRA INFORM REPORT

 

 

Report Date :

24.10.2013

 

IDENTIFICATION DETAILS

 

Name :

NIPPON STEEL & SUMIKIN ENGINEERING CO LTD

 

 

Registered Office :

Osaki Center Bldg, 1-5-1 Osaki Shinagawaku Tokyo 141-8604

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

February 2006

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Engineering works of plants, energy facilities, marine engineering & construction

 

 

No. of Employees :

3,690

 

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 :

Good

 

 

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

 

NIPPON STEEL & SUMIKIN ENGINEERING CO LTD

 

 

REGD NAME

 

Shin Nittetsu Sumikin Engineering KK

 

 

MAIN OFFICE

 

Osaki Center Bldg, 1-5-1 Osaki Shinagawaku Tokyo 141-8604 JAPAN

 

Tel: 03-6665-2000     

 

URL:                 http://www.eng.nssmc.com

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Engineering works of plants, energy facilities, marine engineering & construction

 

 

BRANCHES

 

Kitakyushu, Futtsu, Nagoya, Osaka, Fukuoka, other

 

 

OVERSEAS   

 

Vietnam, Indonesia, Germany

 

 

FACTORIES  

 

(subcontracted)

 

OFFICERS

 

MAKOTO TAKAHASHI, PRES                Masaaki Sawa, v pres

Ryosuke Yamada, v pres                                   Osamu Kohno, dir        

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 213,739 M

PAYMENTSREGULAR   CAPITAL           Yen 15,000 M

TREND UP                    WORTH            Yen 85,420 M

STARTED         2006                 EMPLOYES      3,690

 

 

COMMENT    

 

PLANT ENGINEERING WORKS, OWNED BY NIPPON STEEL & SUMITOMOMETAL CORP.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established by Nippon Steel & Sumitomo Metal Corp as its engineering works company.  This company specializes in engineering works: steel plants, environmental plants, energy facilities, other.  Clients include governments, municipalities, electricity, gas companies, other.  Operations cover such countries as India, China, Brazil, other. 

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2013 fiscal term amounted to Yen 213,739 million, a 20% up from Yen 178,798 million in the previous term.  Steel plants (cokes) and ocean development works were active and robust in overseas markets.  The recurring profit was posted at Yen 11,541 million and the net profit at Yen 54,114 million, respectively, compared with Yen 7,772 million recurring profit and Yen 4,391 million net profit, respectively, a year ago.

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 12,000 million and the net profit at Yen 55,000 million, respectively, on a 10% rise in turnover, to Yen 235,000 million.  Business is seen expanding steadily.

 

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

REGISTRATION

 

Date Registered:       Feb 2006

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         1,200 million shares

Issued:                300 million shares

Sum:                   Yen 15,000 million

     Major shareholders (%): Nippon Steel & Sumitomo Metal Co* (100)

 

*.. Japan’s largest crude steel mfr, founded 1950, listed Tokyo, Nagoya, Fukuoka, Sapporo S/E’s, capital Yen 419,524 million, sales Yen 4,389,922 million, operating profit Yen 20,110 million, recurring profit Yen 76,931 million, net profit Yen 124,567 million, total assets Yen 7,089,498 million, net worth Yen 2,394,069 million, employees 24,131, pres Hiroshi Tomono

 

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

 

 

OPERATION

           

Activities: Engineering works: steel plants (24%), environmental solutions (16%), Energy solutions (16%), marine engineering (17%), building construction & steel structures, others (27%)

 

Clients: [Mfrs, wholesalers] Nippon Steel & Sumitomo Metal, governments, municipalities, gas & electric industries, other 

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Nippon Steel & Sumitomo Metal, Toshiba Mitsubishi Electric Services, Sankyu, other

 

Payment record: Regular

 

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

 

Bank References:

MUFG (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

　

235,000

213,739

178,798

192,303

Recur. Profit

　

12,000

11,541

7,772

6,995

Net Profit

　

35,000

34,114

391

4,165

Total Assets

　

　

191,971

172,488

182,734

Current Assets

　

　

150,729

139,479

143,804

Current Liabs

　

　

89,447

82,304

93,724

Net Worth

　

　

85,420

73,922

75,288

Capital, Paid-Up

　

　

15,000

15,000

15,000

Div.P.Share(¥)

　

　

　

2,020.00

5,435.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

9.95

19.54

-7.02

-29.17

    Current Ratio

 

..

168.51

169.47

153.43

    N.Worth Ratio

..

44.50

42.86

41.20

    R.Profit/Sales

 

5.11

5.40

4.35

3.64

    N.Profit/Sales

14.89

15.96

0.22

2.17

    Return On Equity

..

39.94

0.53

5.53

 

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

 

 

                   

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.53

UK Pound

1

Rs.99.75

Euro

1

Rs.84.75

 

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%)

 

 

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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.