MIRA INFORM REPORT

 

 

Report Date :

09.06.2014

 

IDENTIFICATION DETAILS

 

Name :

NIKKO ASSET MANAGEMENT CO LTD

 

 

Registered Office :

Mid-Town Tower, 9-7-1 Akasaka Minatoku Tokyo 107-0052

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014 (Estimated)

 

 

Date of Incorporation :

June 1959

 

 

Com. Reg. No.:

0104-01-072159 (Tokyo-Minatoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Subject is an Asset Management Company, Managing Mutual Funds, Etfs and Institutional Segregated Accounts, Providing Active as well as Passive Investment Solutions for Individual & Institutional Clients

 

 

No. of Employees

423

 

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 2,661.1 Million

 

 

Status :

Satisfactory 

 

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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. 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

 

NIKKO ASSET MANAGEMENT CO LTD

 

 

REGD NAME

 

Nikko Asset Management KK

 

 

MAIN OFFICE

 

Mid-Town Tower, 9-7-1 Akasaka Minatoku Tokyo 107-0052 JAPAN

Tel: 03-6447-6000      Fax: 03-6447-6001

 

URL:                 http://www.nikkoam.com

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Subject is an Asset Management Company, Managing Mutual Funds, Etfs and Institutional Segregated Accounts, Providing Active as well as Passive Investment Solutions for Individual & Institutional Clients

 

 

License

 

Kanto Finance Bureau No.368

 

 

BRANCHES

 

Osaka

 

 

OVERSEAS

 

UK, USA, Singapore, Australia, New Zealand, China, Malaysia, other

 


OFFICERS

 

TAKUMI SHIBATA, PRES                      Hideo Abe, v ch

Masahiko Murakami, v pres                    Frederick Reidenbach, v pres    

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                 A/SALES          Yen 54,771 M

PAYMENTS      Regular         CAPITAL           Yen 17,363 M

TREND             SLOW               WORTH            Yen 46,408 M

STARTED                     1959                 EMPLOYES      423

 

 

COMMENT

 

ASSET MANAGEMENT COMPANY.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 2,661.1 MILLION, 30 DAYS NORMAL TERMS

 

           

HIGHLIGHTS

           

The subject company is Asset Management Company, managing mutual funds, ETFs and institutional segregated accounts, providing active & passive investment solutions for individual & institutional clients, across Asia and around the world.  Clients include banking institutions, security firms, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2013 fiscal term amounted to Yen 54,771 million, a 7% down from Yen 58,724 million in the previous term.  The recurring profit was posted at Yen 4,265 million and the net profit at Yen 2,827 million, respectively, compared with Yen 4,965 million recurring profit and Yen 2,570 million net profit, respectively, a year ago.

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 4,300 million and the net profit at Yen 2,900 million, respectively, on a 3% rise in turnover, to Yen 56,500 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 2,661.1 million, on 30 days normal terms.

REGISTRATION

 

Date Registered:  Jun 1959

Regd No.:         0104-01-072159 (Tokyo-Minatoku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         138 million shares

Issued:             34.726 million shares

Sum:                   Yen 17.363 million

Major shareholders (%): Sumitomo Mitsui Trust Bank (51), DBS Bank Ltd (10)

No. of shareholders: 15

 

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

 

 

OPERATION

           

Activities: Asset Management Company (100%)

 

Clients: [Mfrs, wholesalers] SMBC Nikko Securities, Mitsui Sumitomo Trust Bank, other 

 

            No. of accounts: Unavailable

            Domestic areas of activities: Nationwide

 

Suppliers: Trust Banks, other

 

Payment record: Regular

 

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

 

Bank References:

SMBC (H/O)

MUFG (Nihombashi-Chuo)

Relations: Satisfactory

 

 


FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

56,500

54,771

58,724

55,231

Recur. Profit

 

4,300

4,265

4,965

 

Net Profit

 

2,900

2,827

2,570

3,195

Total Assets

 

 

57,478

55,502

55,361

Current Assets

 

 

25,862

26,345

 

Current Liabs

 

 

10,012

9,809

 

Net Worth

 

 

46,408

44,729

44,287

Capital, Paid-Up

 

 

17,363

17,363

17,363

Div.Ttl in Million (¥)

 

 

1,468

1,502

305

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.16

-6.73

6.32

5.61

    Current Ratio

..

258.31

268.58

..

    N.Worth Ratio

..

80.74

80.59

80.00

    R.Profit/Sales

7.61

7.79

8.45

..

    N.Profit/Sales

5.13

5.16

4.38

5.78

    Return On Equity

..

6.09

5.75

7.21

 

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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.20

UK Pound

1

Rs.99.52

Euro

1

Rs.80.83

 

 

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.