MIRA INFORM REPORT

 

 

Report Date :

30.08.2014

 

IDENTIFICATION DETAILS

 

Name :

SEIKO INSTRUMENTS INC

 

 

Registered Office :

1-8 Nakase Mihamaku Chiba 261-8507                           

 

 

Country :

Japan   

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

September, 1937

 

 

Com. Reg. No.:

(Chiba-Mihamaku) 012089

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufactures Mechatronics, electronics components, system applications, scientific instruments

 

 

No of Employees :

1,823

 

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 & ADDRESS

 

SEIKO INSTRUMENTS INC

 

 

REGD NAME

 

Seiko Instruments KK

 

 

MAIN OFFICE

 

1-8 Nakase Mihamaku Chiba 261-8507 JAPAN

Tel:                   043-211-1111                                        

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

E-Mail address: (thru the URL)

 

ACTIVITIES:     Mfg of watches, electronic dictionaries, electronic instruments

BRANCHES:     Tokyo, Chiba (Matsudo, Ichikawa), Sendai, Osaka, Akita

OVERSEAS:     Thailand, China (7), Hong Kong, Singapore, Taiwan, Malaysia, USA, Germany

FACTORIES:     At the caption address, Tochigi, Sendai, Akita

OVERSEAS:     China, Thailand, Malaysia, Singapore

OFFICERS:       HITOSHI MURAKAMI, PRES      Yoshihide Fujii, ch

Shuntaro Ishii, mgn dir                Masayoshi Kanno, dir

Hiroaki Sahara, dir                     Shinji Nureki, dir                       

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES                      Yen 93,657 M

PAYMENTS      NO COMPLAINTS          CAPITAL                       Yen 9,756 M

TREND             SLOW                          WORTH                        Yen 23,013 M

STARTED         1937                             EMPLOYES                  1,823

 

 

COMMENT

 

MFR OF WATCHES, ELECTRONIC DEVICES, OTHER, OWNED BY SEIKO

HOLDINGS CO LTD.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

 

HIGHLIGHTS

 

The subject company was established on the basis of a watch mfg division separated from Seiko Watch Co Ltd (now Seiko Holdings Corp) (See REGISTRATION)..  This is a specialized mfr of watches, thermal printers, quartz crystals, electronic dictionaries, other electronic products.  Has mfg bases in China, Thailand, Singapore and Malaysia.  In Sept/2013 transferred mfg of licensed watches to a group firm. 

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 93,657 million, a 3% down from Yen 96,842 million in the previous term.  Sales of mainline wristwatches fell after the consumption tax hike in the first half.  The recurring profit was posted at Yen 4,145 million and the net profit at Yen 3,932 million, respectively, compared with Yen 1,569 million recurring profit and Yen 1,487 million net profit, respectively, a year ago.  Undergone restructuring and financial adjustment under the guidance of the parent, Seiko Holdings Corp.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 4,200 million and the net profit at Yen 4,000 million, respectively, on a 3% rise in turnover, to Yen 96,500 million.  Overseas wristwatch sales will continue growing, despite slowing domestic sales after the consumption tax hike.

 

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

 

 

REGISTRATION

 

Date Registered:                      Sept 1,937

Regd No.:                                 (Chiba-Mihamaku) 012089

Legal Status:                           Limited Company (Kabushiki Kaisha)

Authorized:                              78 million shares

Issued:                                     19.5 million shares

Sum:                                        Yen 9,756 million

Major shareholders (%):           Seiko Holdings Corp* (100)

           

*.. Holding Company of Seiko group firms, founded 1917, listed Tokyo S/E, capital Yen 10,000 million, sales Yen 308,286 million, operating profit Yen 14,014 million recurring profit Yen 10,165 million net profit Yen 7,422 million, total assets Yen 366,753 million, net worth Yen 62,870, employees 13,439, pres Yoshinobu Nakamura

                       

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

 

 

OPERATION

           

Activities: Manufactures Mechatronics, electronics components, system applications, scientific instruments, other:

 

(Sales Breakdown by Divisions):

Mechatronics Div (28%): watches, hard disk components, thermal printers, compact precision components, machine tools, FA, other;

Electronics Components Div (59%): CMOS IC’s, quartz crystals, micro batteries, LCD devices, inkjet printer heads, other;

System Applications Div (13%): order entry systems, electronic dictionaries, color printers, wireless data communication devices, musical instrument accessories, network servers, other;

 

Clients: [Mfr, wholesalers] Seiko Holdings Corp and group firms, SI HK Ltd, Ryoden Shoji, Seiko Watch, SI Taiwan Inc, Sony Erikson, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Morioka Seiko Ind and other group firms, SI Singapore, AE Technology, SII Mobile Communications, Asian Electronic Technology, Seiko Instruments (HK) Ltd, other

 

Payment record: No Complaints

 

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

 

Bank References:

Mizuho Bank (Ohtemachi)

SMBC (Ningyocho)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

　

96,500

93,657

96,842

104,021

Recur. Profit

　

4,200

4,145

1,569

-4,500

Net Profit

　

4,000

3,932

1,487

-14,281

Total Assets

　

　

138,790

140,859

153,775

Current Assets

　

　

61,447

63,690

70,357

Current Liabs

　

　

68,061

67,753

87,841

Net Worth

　

　

23,013

20,520

21,591

Capital, Paid-Up

　

　

9,756

9,756

9,756

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

3.04

-3.29

-6.90

-10.29

    Current Ratio

　

..

90.28

94.00

80.10

    N.Worth Ratio

　

..

16.58

14.57

14.04

    R.Profit/Sales

　

4.35

4.43

1.62

-4.33

    N.Profit/Sales

　

4.15

4.20

1.54

-13.73

    Return On Equity

　

..

17.09

7.25

-66.14

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.47

UK Pound

1

Rs.100.35

Euro

1

Rs.79.86

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

SMN

 

 

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.