MIRA INFORM REPORT

 

 

Report Date :

10.12.2014

 

IDENTIFICATION DETAILS

 

Name :

NISSIN KOGYO CO., LTD.

 

 

Registered Office :

840, Kokubu, Ueda city, Nagano pref. 386-0016

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

27.10.1953

 

 

Com. Reg. No.:

1000-01-010135

 

 

Legal Form :

Listed

 

 

Line of Business :

Manufacturer of Motor Vehicles, Parts & Accessories.

 

 

No of Employees :

10,230

 

 

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 :

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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. 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

 

NISSIN KOGYO CO., LTD.

 

 

OUTLINE

========

Country:                                    Japan

Company name:                        NISSIN KOGYO CO., LTD.

Name in local language:             NISSIN KOGYO K.K.  

Office address:                         840, Kokubu, Ueda city, Nagano pref. 386-0016

Office tel:                                             0268-24-3111

Office fax:                                0268-24-7520

Website:                                   www.nissinkogyo.co.jp

Business type:                          Manufacturer

Industry:                                               Motor Vehicles, Parts & Accessories

Established:                              October 27, 1953

Capital:                                                 Jp. 3,693,977,968 yen

Employees:                              10,230

Corporate formation:                 Listed

Corporation No.:                       1000-01-010135 (Nagano Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

=====================

As of March 31, 2014:

Paid up capital :                                    Jp. 3,693,977,968 yen

Number of authorized shares :   150,000,000 shares

Number of outstanding shares : 65,452,143 shares

Number of shareholder :                        15,803

 

Major shareholders                                            No. of shares (%)

---------------------------------------------------------------------------------------------------------

Honda Motor Co., Ltd.                                       22,682,000 (34.65)

Japan Trustee Services Bank, Ltd.                       3,412,000 ( 5.21)

Daishin Sangyo Co., Ltd.                                   3,398,000 ( 5.19)

Master Trust Bank of Japan, Ltd.                         2,502,000 ( 3.82)

The Bank of New York Mellon SANV(Belgium)         2,106,000 (3.21)

Mr. Naoya Miyashita                                           1,963,000 ( 2.99)

Northern Trust Co.(UK)                                                        841,000 (1.28)

Employees shareholders fund                               749,000 ( 1.14)

The Chase Manhatta Bank NA London(UK)             564,000 ( 0.86)

Sumitomo Mitsui Banking Corp.                          550,000 ( 0.84)

----------------------------------------------------------------------------------------------------------

Total                                                                 38,770,000 (59.23)

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

===========================================

Activity                         Product/Service Description

-------------------------------------------------------------------------------

Manufacturing               Brakes for automobile

Manufacturing               Brakes for motorcycles

 

 

COMPANY MANAGEMENT

=======================

President                                  Mr. Eiji Okawara (*)

Nationality:                                Japan

 

Vice President                           Mr. Hideaki Yanagisawa (*)

Nationality:                                Japan

 

Senior Managing Director          Mr. Keiji Himori

Nationality:                                Japan

 

 

Senior Managing Director          Mr. Hisatoshi Tamai

Nationality:                                Japan

 

Managing Director                     Mr. Junichi Beppu

Nationality:                                Japan

 

Director                                    Mr. Kenji Terada

Nationality:                                Japan

 

Director                                    Mr. Junya Takei

Nationality:                                Japan

 

Director                                                Mr. Kenji Shimizu

Nationality:                                Japan

 

Director                                                Mr. Kazuya Sato

Nationality:                                Japan

 

Director                                                Mr. Yuichi Ichikawa

Nationality:                                Japan

 

Auditor                                                 Mr. Kiyoshi Sakashita

Nationality:                                Japan

 

Auditor                                                 Mr. Yukio Takeuchi

Nationality:                                Japan

 

Auditor                                                 Mr. Norimasa Oguchi

Nationality:                                Japan

 

Auditor                                                 Mr. Hiroyuki Negishi

Nationality:                                Japan

 

 

Note: The names of directors and auditors are phonetically spelt.

      (*): Representative directors

 

*Key Personnel*

=============

Mr. Eiji Okawara

Representative director and president since June 2011

Born on June 17, 1958

Business career:

Apr. 1981: Employed by Honda Motor Co., Ltd.

Apr. President of Honda Engineering Co., Ltd.

 

 

FINANCIALS

==========

Currency: (local currency – Jp. yen)

---------------------------------------------------------------------------------

 Year |         Sales          |       Net Income      

---------------------------------------------------------------------------------

2009

186,346,000,000

4,222,000,000

2010

145,353,000,000

2,597,000,000

2011

164,733,000,000

6,638,000,000

2012

159,098,000,000

4,278,000,000

2013

174,252,000,000

4,924,000,000

2014

220,868,000,000

12,200,000,000

 

 

FINANCIAL DESCRIPTION

=====================

*Book Closing*

============

March 31st

 

 

*Financials*

===========

Consolidated Balance Sheet

 

 

 

Unit: millions of JP yen

 

 

 

                          

3/31/2012

3/31/2013

3/31/2014

Current assets  

80,684

85,058

100,151

 Cash & deposits      

27,991

26,943

31,129

 Account receivables   

25,552

26,072

32,322

 Inventories          

19,818

21,520

24,117

 Others

7,323

10,523

12,583

 

 

 

Fixed assets           

56,230

67,322

77,389

 Tangible assets      

41,802

48,721

56,620

 Intangible assets    

1,086

1,520

1,703

 Investments & others  

13,342

17,081

19,066

Total Assets       

136,915

152,381

177,540

　

　

　

　

Current liabilities     

30,953

34,219

39,997

 Account payables  

18,913

20,177

23,883

 Short term loans    

2,476

2,310

4,826

 Outstanding accounts  

4,663

4,218

4,866

 Outstanding taxes    

-　

1,323

1,354

 Others

4,901

6,191

5,068

Fixed liabilities      

5,747

7,170

7,951

 Retirement benefits    

1,492

1,405

942

 Others

4,255

5,765

7,009

Shareholders' equity    

91,758

94,878

104,740

 Paid up capital      

3,694

3,694

3,694

 Capital reserves      

3,419

3,419

3,451

 Retained earnings    

85,693

88,645

98,381

 Treasury stock        

-1,048

-880

-786

Other comprehensive accum. profit(loss)

-6,886

-1,679

4,417

Minority Interest    

15,343

17,792

20,434

Total Net Assets       

100,215

110,991

129,591

Total Liabilities & Net Assets     

136,915

152,381

177,540

 

 

 

 

 

 

 

 

Consolidated Income Statement

 

 

 

Unit : millions of JP yen

 

 

 

                          

3/31/2012

3/31/2013

3/31/2014

Sales          

159,098

174,252

220,868

Cost of goods sold      

139,176

153,022

187,998

Gross profit(loss)    

19,923

21,230

32,871

Sales/administrative expenses  

10,448

12,468

13,454

Operating profit(loss)    

9,474

8,762

19,417

Non operating income        

1,438

2,423

2,615

Non operating expenses       

2,195

616

328

Ordinary profit(loss)      

8,717

10,568

21,703

Special profits                

1,567

324

682

Special losses             

365

687

541

Pretax profit                

9,918

10,205

21,845

Taxes & adjustment           

2,851

2,505

5,485

Minority interest   

2,790

2,777

4,160

Net profit      

4,278

4,924

12,200

 

 

*Latest Financials *

================

On October 30, 2014, the subject released the following business results and forecast:

As of September 30, 2014(2Q 2015 term)

Unit: millions of JPY

Year term 

Sales  

Operating profit

Ordinary profit 

Net profit

2Q 2014       

105,802

8,091

9,111

5,174

2Q 2015       

110,537

8,348

9,188

4,515

FY 2015(F)    

218,000

16,000

17,300

8,800

 

 

Current assets;

104,597

Fixed assets;

77,474

Total assets;

182,071

Current liabilities;

40,254

Fixed liabilities;

9,648

Shareholders’ equity;

106,002

  Retained earnings;

99,583

Total net assets;

132,169

Total liabilities and net assets;

182,071

 

*Transacting Banks*

=================

Sumitomo Mitsui Banking Corporation, Marunouchi branch

Hachijuni Bank, Ltd. Ueda branch

Bank of Tokyo-Mitsubishi UFJ, Ltd., Head office

Mizuho Bank, Ltd., Nihonbashi business banking department

 

 

*Credit opinion*

=================

The subject is the world's No.1 manufacturer of brake for motor vehicles and motorcycles with over 60-year business experience.

Shipments to Honda Motor account for more than 70%. 

Strong at the technology in lighter weight aluminum and fostering ABS.

Recent sales is growing thanks to the increasing demands for HV models.

Business in North America and China are easily covering the slowdown in Thailand.

The subject is now positively developing new customers other than Honda group companies.

New stronghold was founded in Zhongqing, China

Financial condition is sound.

Advisable to establish a high credit line.

Our standard suggestion would be up to US$ 55 million on terms of 90 days.

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

========================================

*Main Business*

==============

Development & manufacture of the following parts of motor vehicles and motorcycles:

1)for four wheels automobile

- Anti-lock brake system

- Traction control system

- Vehicle stability assists

- Disc brake

- Drum brake

- Master cylinder

- Engine mount bracket

- Clutch Master cylinder

- Hill stop valve

- Proportioning valve

 

2) for motor cycles

- Anti-lock brake systems

- Master cylinder

- Disc brake

- Drum brake

- Clutch master cylinder

 

For Mar. 2014 term:

Brakes for motor vehicles (42%

Brakes for motorcycles (29%)

Mechatronic products (22%)

Others (7%)

 

Overseas business (77%)

 

*Qualifications*

=============

ISO9001..........certified in October 1996

QS9000...........certified in May 1998

ISO14001........certified in August 1998

 

 

FACTORY FACILITIES & MANUFACTURING CAPABILITIES

===============================================

*Manufacturing Sites*

==================

- Ueda Factory

Same address as head office

 

- Tobu Factory/Nagano R&D Center

801, Kazawa, Tomi city, Nagano Pref. 389-0514

Phone 0268-62-1191   Fax 0268-62-1194

 

- Naoetsu Factory

4370, Kamichihara, Joetsu city, Niigata Pref. 942-0035

Phone 0255-43-1431   Fax 0255-43-1365

 

- Tochigi R&D Center

722-1, Fukuoka, Nasukarasuyama city, Tochigi Pref. 321-0525

Phone 0287-88-1215    Fax 0287-88-1217

 

Overseas Operations

-----------------------------

- Thailand

- The United States

- Indonesia

- Philippines

- China

- Vietnam

- Brazil

- The United Kingdom

- India

- Spain

 

 

ORGANIZATION STRUCTURE

======================

*Address*

=========

The registered address is the same as the operational address.

 

*Company History*

================

Date                 Development

------------------------------------------------------------------------------------------------------

Oct. 1953          Incorporated in Tokyo.

Mar. 1961          Moved the head office to the current address in Nagano Prefecture.

Oct. 1968          Technology tie up with Lucas Industries(now TRW) in U.K.

Dec. 1974         Started manufacturing disk brake for motorcycles.

May 1978          Started manufacturing disk brake for motor vehicles.

Oct. 1997          Listed on the 2nd Sec. of TSE(#7230)

Mar. 2002          Listed on the 1st Sec. of TSE.

May 2004          Capital association with Ishii Corp.

Sep. 2005         Undertook the capital increase of Yoshida Kogyo Co., Ltd.

Feb. 2012         Assigned the shares of Nippon Brake Industries, Ltd.

Mar. 2013          Assigned the shares of Nissin Showa UK Ltd.

 

 

TRADE REFERENCES

================

*Suppliers*

=========

Nippon Brake Industries, Ltd.

Ikeda Seisakusho Co., Ltd.

Aishin Takaoka Co., Ltd.

Honda Lock Mfg. Co., Ltd.

Mitsubishi Corporation Unimetals Ltd.

Honda Elesys Co., Ltd.

Suncall Corp.

Toyoda Gosei Co., Ltd.

 

*Customers*

=============

Honda Motor Co., Ltd.

Toyota Motor Corp.

Suzuki Motor Corp.

Daihatsu Motor Co., Ltd.

Yamaha Motor Co., Ltd.

Kawasaki Heavy Industries, Ltd.

Isuzu Motor, Ltd.

Mitsubishi Motor Corp.

Fuji Heavy Industries Ltd.

Mazda Motor Corp.

 

 

MAJOR SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

===============================================

Company name:            NISSIN APS CO LTD

Country:                        Japan

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            AKEHAI KOGYO CO LTD

Country:                        Japan

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            ISHII CORPORATION

Country:                        Japan

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            NISSIN BRAKE OHIO, INC.

Country:                        USA

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            NISSIN BRAKE GEORGIA, INC.

Country:                        USA

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            NISSIN BRAKE (THAILAND) CO LTD

Country:                        Thailand

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            PT CHEMCO HARAPAN NUSANTARA

Country:                        Indonesia

Status:                          Affiliate   

----------------------------------------------------------------------------------------------------

Company name:            SHANDONG NISSIN INDUSTRIES CO LTD

Country:                        China

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            ZHONGSHAN NISSIN INDUSTRIES CO LTD

Country:                        China

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            NISSIN BRAKE VIETNAM CO LTD

Country:                        Vietnam

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

 

 

Company name:            NISSIN BRAKE PHILIPPINES CORP.

Country:                        Philippines

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            NISSIN BRAKE INDIA PROVATE LTD

Country:                        India

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            NISSIN BRAKE DO BRASIL LTDA

Country:                        Brazil

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            NISSIN R&D EUROPE S.L.

Country:                        Spain

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            NISSIN SHOWA UK LTD

Country:                        United Kingdom

Status:                          Affiliate   

----------------------------------------------------------------------------------------------------

 

 

RELATED PARTIES DESCRIPTION

===========================

*Subsidiaries, Joint-ventures & Affiliates*

==============================

As of March 31, 2014 the subject owns and controls a total of 16 subsidiaries and four affiliate companies at home and abroad.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.88

UK Pound

1

Rs.96.90

Euro

1

Rs.76.29

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

 

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.