MIRA INFORM REPORT

 

 

Report Date :

07.02.2014

 

IDENTIFICATION DETAILS

 

Name :

NIFCO INC

 

 

Registered Office :

184-1 Mioka-cho Totsukaku Yokohama 184-1

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

13.02.1967

 

 

Legal Form :

Limited Company

 

 

Line of Business :

manufacturer of industrial plastic fasteners such as nails & synthetic resin-molded products

 

 

No. of Employees :

8,665

 

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

 

Maximum Credit Limit :

Yen 4,176.7 Million

 

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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

 

NIFCO INC

 

 

REGD NAME

 

Nifco KK

 

 

MAIN OFFICE

 

184-1 Mioka-cho Totsukaku Yokohama 184-1 JAPAN

Tel: 045-825-7900    

 

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

E-Mail address:            (thru the URL)

 

Tokyo Headquarter

Japan Times-Nifco Building, 4-5-4 Shibaura, Minato-ku, Tokyo, 108-8522 Japan
Tel                                +81-3-5476-4850
Fax                               +81-3-5476-4859

 

 

ACTIVITIES  

 

mfr of industrial plastic fasteners such as nails & synthetic resin-molded products

 

 

BRANCHES

 

Tokyo, Nagoya, Yamagata, other (Tot 11)

 

 

OVERSEAS

           

USA (2), Europe (UK other tot 6), India, China, other (--subsidiaries)

 

 


FACTORIES

 

At the caption address, Nagoya, Utsunomiya, Sagamihara

 

 

CHIEF EXEC

 

TOSHIYUKI YAMAMOTO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 139,916 M

PAYMENTSREGULAR   CAPITAL           Yen 7,290 M

TREND UP                    WORTH            Yen 89,538 M

STARTED         1967                 EMPLOYES      8,665

 

 

COMMENT

 

MFR OF INDUSTRIAL PLASTIC FASTENERS 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 4,176.7 MILLION, 30 DAYS NORMAL TERMS

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

107,505

8,118

4,468

(%)

79,067

(Consolidated)

31/03/2011

120,574

12,541

7,531

12.16

81,439

 

31/03/2012

122,880

10,059

6,853

1.91

81,202

 

31/03/2013

139,916

10,946

5,348

13.86

89,538

 

31/03/2014

150,000

11,000

7,000

7.21

..

                        Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is the largest independent mfr of industrial plastic fasteners such as nails, maintaining the overwhelming market share.  Most products bound for automobiles and consumer electronics makers.  Subsidiaries engaged in production of quality beds and publication of English newspaper “Japan Times”.  Goods are exported widely thru its subsidiaries overseas..

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 139,916 million, a 1.1%% down from Yen 12,566 million in the previous term.   The recurring profit was posted at Yen 10,946 million and the net profit at Yen 5,348 million, respectively, compared with Yen 10,059 million recurring profit and Yen 68,53 million net profit, respectively, a year ago. 

           

For the current term ending Mar 2014 the recurring profit is projected at Yen 1,760 million and the net profit at Yen 950 million, on a 7.2% rise in turnover, to Yen 18,500 million.  In vehicle applications of synthetic resin yarns, including fasteners, are expanding with growth exceeding domestic & overseas automobile production volumes.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 4,176.8 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered: 13 Feb 1967

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       233 million shares

Issued:                53,754,477

Sum:                   Yen 7,290 million

 

Major shareholders (%): Toshiaki Ogasawara (11.0), Northern Trust (AVFC) American (7.0), State Street Bank & Trust (5.6), Taiyo Fund LP (4.7), Master Trust Bank of Japan T (4.2), Japan Trustee Services T (4.1), Ogasawara Found (Sci & Engine) (4.0), State Street Bank & Trust (3.6), Japan Trustee Services T9 (3.2), Mellon Bank Melon Omnibus US (2.9); foreign owners 42.9)

 

No. of shareholders: 5,559

 

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

 

Managements: Toshiaki Ogasawara, ch; Toshiyuki Yamamoto, pres; Mitsutaka Ogasawara, dir; Akira Kagiichi, dir

 

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

 

           

OPERATIONS

 

Activities: Manufactures industrial plastic fasteners: synthetic resin-molded products (86%), beds & furniture (12%), others (2%)

 

Overseas Sales Ratio (52%)

           

Clients: [Automakers, wholesalers] Toyota Motor, Nissan Motor, Honda Motor, Panasonic

Corp, Cannon Inc, other

 

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Nifco Yamagata, Nifco Kumamoto, Toyotsu Chemiplus, Marubeni Crop, other

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Tokyo)

MUFG (Shimbashi)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

 

139,916

122,880

 

  Cost of Sales

100,074

85,403

 

      GROSS PROFIT

39,842

37,476

 

  Selling & Adm Costs

29,292

27,236

 

      OPERATING PROFIT

10,549

10,240

 

  Non-Operating P/L

397

-181

 

      RECURRING PROFIT

10,946

10,059

 

      NET PROFIT

5,348

6,853

BALANCE SHEET

 

 

 

 

  Cash

 

48,774

29,306

 

  Receivables

 

31,830

27,793

 

  Inventory

 

17,441

12,682

 

  Securities, Marketable

6,696

5,077

 

  Other Current Assets

4,712

4,906

 

      TOTAL CURRENT ASSETS

109,453

79,764

 

  Property & Equipment

59,035

45,403

 

  Intangibles

 

3,180

1,205

 

  Investments, Other Fixed Assets

7,107

8,514

 

      TOTAL ASSETS

178,775

134,886

 

  Payables

 

14,968

13,848

 

  Short-Term Bank Loans

5,994

4,097

 

 

 

 

 

 

  Other Current Liabs

29,835

10,710

 

      TOTAL CURRENT LIABS

50,797

28,655

 

  Debentures

 

22,533

15,000

 

  Long-Term Bank Loans

10,291

9,967

 

  Reserve for Retirement Allw

2,183

1,900

 

  Other Debts

 

3,433

(1,838)

 

      TOTAL LIABILITIES

89,237

53,684

 

      MINORITY INTERESTS

 

 

 

Common stock

7,290

7,290

 

Additional paid-in capital

11,651

11,651

 

Retained earnings

77,488

74,604

 

Evaluation p/l on investments/securities

444

272

 

Others

 

(5,212)

(10,845)

 

Treasury stock, at cost

(2,123)

(1,770)

 

      TOTAL S/HOLDERS` EQUITY

89,538

81,202

 

      TOTAL EQUITIES

178,775

134,886

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

 

11,118

8,584

 

Cash Flows from Investment Activities

-30,503

-17,371

 

Cash Flows from Financing Activities

22,868

1,407

 

Cash, Bank Deposits at the Term End

 

33,353

28,778

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

89,538

81,202

 

 

Current Ratio (%)

215.47

278.36

 

 

Net Worth Ratio (%)

50.08

60.20

 

 

Recurring Profit Ratio (%)

7.82

8.19

 

 

Net Profit Ratio (%)

3.82

5.58

 

 

Return On Equity (%)

5.97

8.44

 

           

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.50

UK Pound

1

Rs.101.92

Euro

1

Rs.84.50

 

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.