MIRA INFORM REPORT

 

 

Report Date :

16.04.2014

 

IDENTIFICATION DETAILS

 

Name :

NISSHA PRINTING CO LTD

 

 

Registered Office :

3 Mibu Hanaicho Nakagyoku Kyoto 604-8551

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

December 1946

 

 

Legal Form :

Limited Company (Kabushiki Kaisha

 

 

Line of Business :

Subject is engaged in Printing firm, mfg of industrial materials, electronics devices

 

 

No. of Employees

3,409

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

Yen 2,693.1 Million

Status :

Moderate

Payment Behaviour :

Slow but 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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy

 

Source : CIA

 

 

 


Company name and address

 

NISSHA PRINTING CO LTD

 

REGD NAME:    Nihon Shashin Insatsu KK (Shashin means Photo, Insatsu Printing)

MAIN OFFICE:  3 Mibu Hanaicho Nakagyoku Kyoto 604-8551 JAPAN

Tel: 075-811-8111     Fax: 075-801-8250-

 

URL:                 http://www.nissha.co.jp

E-Mail address: info@nissha.co.jp

 

 

ACTIVITIES

 

Printing firm, mfg of industrial materials, electronics devices

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya

 

 

OVERSEAS

 

USA (7), Europe (4), Asia (9 of which 5 in China)

 

 

FACTORIES

 

At the caption address, Tokyo, Kameoka, Kaga, Koga, Tsu, Yachiyo, Himeji

 

 

CHIEF EXEC

 

JUNYA SUZUKI, PRES

 

Yen Amount: In million Yen, unless otherwise stated

 


 

SUMMARY

 

FINANCES        FAIR                              A/SALES       Yen 89,427 M

PAYMENTS      SLOW BUT CORRECT    CAPITAL        Yen 5,684 M

TREND SLOW                           WORTH         Yen 44,491 M

STARTED         1946                                       EMPLOYES      3,409

 

 

COMMENT

 

PRINTING HOUSE 

 FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 2,693.1 MILLION, 30 DAYS NORMAL TERMS

 

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

126,965

12,061

6,934

(%)

88,700

(Consolidated)

31/03/2011

114,054

-5,396

-2,464

-10.17

80,396

 

31/03/2012

80,160

-11,320

-28,684

-29.72

48,986

 

31/03/2013

89,427

-4,643

-5,438

11.56

44,491

 

31/03/2014

113,000

2,500

1,800

26.36

..

            Unit: In Million Yen

            Forecast figures for the 31/03/2014 fiscal term.

 

 

HIGHLIGHTS

 

The subject company was established by Naoki Suzuki as a printing house.  Medium-scale comprehensive printing house.  Well-known for art books & other multicolor printing.  Developed high-precision film presser system.  Surface treatment for TVs & OA equipment has grown.  Also engaged in the special printing areas, such as touch panels for smartphones & tablets.  Active in overseas operations with 23 overseas offices: 7 in USA, 4 in Europe and 9 in Asia, of which 5 in China.  Application of decorative films expanding to automobile interiors, becoming a new mainstay area replacing tablet PC applications.  The company will reinforce its sales structure, targeting sales expansion in Europe and the US.

 


 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 89,427 million, an 11.6% up from Yen 80,160 million in the previous term.  The operations continued in the red to post Yen 4,643 million recurring loss and Yen 5,438 million net losses, respectively, compared with Yen 11320 million recurring loss and Yen 28,684 million net losses, respectively, a year ago.

 

(Apr/Dec/2013 results): Sales Yen 87,127 million (up 35.4%, operating profit 2,920 million (previously Yen 5,033 million loss), recurring profit Yen 6,396 million (previously Yen 4,272 million loss), net profit Yen 5,507 million (previously Yen 4,869 million loss).  (% & figures compared with the corresponding period a year ago).

           

For the term that ended Mar 2014 the recurring profit was projected at Yen 2,500 million and the net profit at Yen 1,800 million, on a 26.4% rise in turnover, to Yen 113,000 million.  Sales of touch panel products expanded.  Extraordinary loss on disposal was absent.  Forex gain was booked in the non-operating account.  Final results are yet to be released. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 2,693.1 million, on 30 days normal terms.

 

 

REGISTRATION

           

       Date Registered:    Dec 1946

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:                  180 million shares

Issued:                45,029,493 shares

Sum:                   Yen 5,684 million

 

Major shareholders (%): Taiyo Fund LP (8.1), Suzuki Kosan (5.6), Meiji Yasuda Ins (5.2), Company’s Treasury Stock (4.6), Mizuho Bank (4.6), Northern Trust (AVFC) British (4.0),  Bank of Kyoto (3.2), Customers’ S/Holding Assn (2.2), Japan Trustee Services T (2.0), DIC (2.0); foreign owners (19.0)

 

No. of shareholders: 9,861

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

 

Managements: Junya Suzuki, pres; Takao Hashimoto, s/mgn dir; Takuji Shibata, mgn dir; Hayato Nishihara, mgn dir; Ryoji Tsuji, dir; Kenji Ojima, dir

 

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

 

Related companies: Nissha USA Inc, Nissha Europe GmbH, Eimo Technologies Inc, other (Tot 21 consolidated subsidiaries)

 

 

 

 

 

 

OPERATION

           

Activities: Printing house with mfr divisions:

 

(Sales breakdown by Divisions):

 

Industrial Materials (31%): Nissha IMD, Nissha IML, heat transfer foils;

Electronics Materials (48%): decorative resistive type “Touch Window”, capacitive type “Capacitive”;

Information & Communication (21%): printing & publishing, commercial printing, sales promotion, art solution, other;

Overseas Sales Ratio (58%)

           

Clients: [Mfrs, wholesalers] Nintendo Co, Apple Operations, Shiseido Co, Nissha Korea, Nissha Korea, Scroll Corp,  Sanyo Electric, Sharp Corp, Panasonic Corp, Mitsubishi Pencil Co, Panasonic Electric Ind Creates Co, Panasonic Electric Ind, Seiko Epson, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Nitto Denko Corp, Nitec Industries, Teijin Ltd, Panasonic

Corp, Asahi Kasei E-Materials, Nagase & Co, Fuji Printing Ink Mfg, Mec Co, Yamato

Sangyo Co, other

 

Payment record: Slow but correct

 

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

 

Bank References:

Mizuho Bank (Kyoto-Chuo)

Bank of Kyoto (H/O)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

 

89,427

80,160

 

  Cost of Sales

83,508

79,759

 

      GROSS PROFIT

5,918

401

 

  Selling & Adm Costs

12,702

12,117

 

      OPERATING PROFIT

6,783

-11,716

 

  Non-Operating P/L

-11,426

396

 

      RECURRING PROFIT

-4,643

-11,320

 

      NET PROFIT

-5,438

-28,684

BALANCE SHEET

 

 

 

 

  Cash

 

23,974

19,735

 

  Receivables

 

21,996

17,034

 

  Inventory

 

9,254

7,371

 

  Securities, Marketable

 

 

 

  Other Current Assets

4,056

3,910

 

      TOTAL CURRENT ASSETS

59,280

48,050

 

  Property & Equipment

45,282

43,524

 

  Intangibles

 

3,702

4,593

 

  Investments, Other Fixed Assets

6,700

9,083

 

      TOTAL ASSETS

114,964

105,250

 

  Payables

 

24,663

14,126

 

  Short-Term Bank Loans

21,099

25,094

 

 

 

 

 

 

  Other Current Liabs

15,382

7,184

 

      TOTAL CURRENT LIABS

61,144

46,404

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

 

 

 

  Reserve for Retirement Allw

5,884

5,734

 

  Other Debts

 

3,444

4,126

 

      TOTAL LIABILITIES

70,472

56,264

 

      MINORITY INTERESTS

 

 

 

Common stock

5,684

5,684

 

Additional paid-in capital

7,355

7,355

 

Retained earnings

32,591

38,029

 

Evaluation p/l on investments/securities

2,483

2,807

 

Others

 

(696)

(1,964)

 

Treasury stock, at cost

(2,926)

(2,925)

 

      TOTAL S/HOLDERS` EQUITY

44,491

48,986

 

      TOTAL EQUITIES

114,964

105,250

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

 

13,864

3,541

 

Cash Flows from Investment Activities

-7,206

-4,277

 

Cash Flows from Financing Activities

-4,677

3,076

 

Cash, Bank Deposits at the Term End

 

23,692

19,490

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

44,491

48,986

 

 

Current Ratio (%)

96.95

103.55

 

 

Net Worth Ratio (%)

38.70

46.54

 

 

Recurring Profit Ratio (%)

-5.19

-14.12

 

 

Net Profit Ratio (%)

-6.08

-35.78

 

 

Return On Equity (%)

-12.22

-58.56

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.26

UK Pound

1

Rs.101.71

Euro

1

Rs.83.27

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIS

 

               

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.