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Report Date : |
12.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
SHIMA SEIKI MFG LTD |
|
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|
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Registered Office : |
85 Sakata Wakayama 641-8511 |
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Country : |
Japan |
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|
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
July 1961 |
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Com. Reg. No.: |
001508 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of computer controlled knitting machines |
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No. of Employees : |
1,749 |
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 |
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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 – 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 |
SHIMA SEIKI MFG LTD
REGD NAME: KK
Shima Seiki Seisakusho
MAIN OFFICE: 85
Sakata Wakayama 641-8511
Tel:
073-471-0511 Fax: 073-474-8267
URL: http://www.shimaseiki.co.jp/
E-Mail address: info@shimaseiki.co.jp
Mfg of computer
controlled knitting machines
Tokyo, Osaka,
Nagoya, Yamagata, Fukushima, Niigata, Kofu, other (Tot 12)
Taiwan, Hong Kong,
China (2), Cambodia, Thailand, Italy, Korea, UK, France, Spain, Portugal,
Morocco, USA
At the caption
address
MASAHIRO SHIMA,
PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 40,636 M
PAYMENTS NO COMPLAINTS CAPITAL Yen
14,859 M
TREND STEADY WORTH Yen
93,222 M
STARTED 1961 EMPLOYES 1,749
MFR SPECIALIZING IN KNITTING MACHINES.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
|
Business |
Terms Ending |
Annual Sales* |
R.Profit* |
N.Profit* |
S.Growth |
Net Worth* |
|
Results: |
31/03/2011 |
42,781 |
2,838 |
769 |
(%) |
86,590 |
|
(Consolidated) |
31/03/2012 |
37,327 |
-212 |
-642 |
-12.75 |
84,167 |
|
|
31/03/2013 |
34,970 |
4,168 |
1,754 |
-6.31 |
87,382 |
|
|
31/03/2014 |
40,636 |
7,352 |
4,863 |
16.20 |
93,222 |
|
|
31/03/2015 |
45,000 |
5,500 |
3,700 |
10.74 |
.. |
Unit: In Million Yen
Forecast for the 31/03/2015 fiscal term.
The subject
company was established by Masahiro Shima, current pres, for mfg fully
automated glove knitting machines. Since
then developed the world's first fully automated glove knitting machines with
global share standing at 40%. Expanding
business foundation by stressing in-house development of technologies for
computer graphic fashion and industrial design systems. Overseas sales ratio high. The company will apply 3D measuring systems
to the medical industry. It will
actively promote cutting machines to the aircraft, automobile, furniture, and
industrial material industries.
The sales volume for Mar/2014 fiscal term amounted to Yen 40,636
million, a 16.2% up from Yen 34,970 million in the previous term. In the mainline weft knitting machine
business, sales of conventional products held firm, and those of whole garment
weft knitting machines, focused products, rose.
The recurring profit was posted at Yen 7,352 million and the net profit
at Yen 4,863 million, respectively, compared with Yen 4,168 million recurring
profit and Yen 1,754 million net profit, respectively, a year ago.
For the current term ending Mar 2015 the recurring profit is projected
at Yen 5,500 million and the net profit at Yen 3,700 million, respectively, on
a 10.7% rise in turnover, to Yen 45,000 million. Sales of whole garment weft knitting machines
bound for China, etc, will expand.
Demand for conventional weft knitting machines will also be strong. Orders for 3D systems and automatic cutting
machines will also advance. Operating
profits will continue rising.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is considered to be Yen 1,516.2 million, on 30 days normal terms.
Date Registered:
Jul 1961
Regd No.:
(Wakayama-Wakayama) 001508
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized: 142 million shares
Issued:
37,600,000 shares
Sum: Yen 14,859 million
Major
shareholders (%): Wajima Kosan (9.4), Company’s Treasury Stock (6.5), Kiyo Bank (3.5),
Japan Trustee Services T (2.9), Masahiro Shima (2.9), Mitsuhiro Shima (2.8),
MUFG (2.4), Wako LLC (2.0), Employees’ S/Holding Assn (2.0), Senshu Ikeda Bank
(1.9); foreign owners (10.6)
No. of shareholders: 15,763
Listed on the S/Exchange (s) of: Tokyo
Managements: Masahiro Shima,
pres & CEO; Mitsuhiro Shima, v pres; Takashi Wada, mgn dir; Reiji Arikita,
mgn dir; Ikuto Umeda, mgn dir; Osamu Fujita, dir; Toshio Nakashima, dir; Takashi
Nanki, dir; Yasukazu Nishitani, dir; Kiyokata Nishikawa, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related
companies: Shima Fine Press Co, TSM Industrial Co, Kainan Seimitsu Co, Shima Seiki
USA Inc, Shima Seiki Europe Ltd, other
Activities: Manufactures weft knitting
machines (79%), computer graphic design systems (7%), glove & hosiery
knitting machines (2%), others (12%).
Overseas Sales Ratio (85%)
Clients: [Mfrs,
wholesalers] Itochu Corp, Onward Kashiyama, NHK, Sanyo Shokai, Benetton Japan,
Stephanela Corp, World, Naigai Co, Renown Inc, other.
No. of accounts:
2,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Groz-Beckert Japan, Sun-Wa Technos Corp, Terauchi Sei- sakusho, Ishikawa Seisakusho, Techno Hagihara,
other.
Payment record: No complaints
Location: Business area in
Wakayama. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
MUFG (Wakayama)
Ikeda Senshu Bank (Wakayama)
Relations:
Satisfactory
|
FINANCES: (Consolidated
in million yen) |
|
|||
|
|
|
Terms Ending: |
31/03/2014 |
31/03/2013 |
|
INCOME STATEMENT |
|
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||
|
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Annual Sales |
|
40,636 |
34,970 |
|
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Cost of Sales |
23,367 |
22,758 |
|
|
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GROSS PROFIT |
17,269 |
12,212 |
|
|
|
Selling & Adm Costs |
14,537 |
12,720 |
|
|
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OPERATING PROFIT |
2,731 |
-508 |
|
|
|
Non-Operating P/L |
4,621 |
4,676 |
|
|
|
RECURRING PROFIT |
7,352 |
4,168 |
|
|
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NET PROFIT |
4,863 |
1,754 |
|
|
BALANCE SHEET |
|
|
|
|
|
|
Cash |
|
16,002 |
19,737 |
|
|
Receivables |
|
42,964 |
33,700 |
|
|
Inventory |
|
19,589 |
18,343 |
|
|
Securities, Marketable |
70 |
549 |
|
|
|
Other Current Assets |
1,672 |
1,425 |
|
|
|
TOTAL CURRENT ASSETS |
80,297 |
73,754 |
|
|
|
Property & Equipment |
19,876 |
20,138 |
|
|
|
Intangibles |
|
4,852 |
4,816 |
|
|
Investments, Other Fixed Assets |
14,702 |
13,381 |
|
|
|
TOTAL ASSETS |
119,727 |
112,089 |
|
|
|
Payables |
|
4,290 |
4,445 |
|
|
Short-Term Bank Loans |
6,695 |
5,399 |
|
|
|
|
|
|
|
|
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Other Current Liabs |
7,529 |
6,265 |
|
|
|
TOTAL CURRENT LIABS |
18,514 |
16,109 |
|
|
|
Debentures |
|
|
|
|
|
Long-Term Bank Loans |
5,000 |
5,000 |
|
|
|
Reserve for Retirement Allw |
0 |
1,226 |
|
|
|
Other Debts |
|
2,990 |
2,371 |
|
|
TOTAL LIABILITIES |
26,504 |
24,706 |
|
|
|
MINORITY INTERESTS |
|
|
|
|
|
Common
stock |
14,859 |
14,859 |
|
|
|
Additional
paid-in capital |
21,724 |
21,724 |
|
|
|
Retained
earnings |
71,158 |
67,321 |
|
|
|
Evaluation
p/l on investments/securities |
328 |
259 |
|
|
|
Others |
|
(7,943) |
(9,876) |
|
|
Treasury
stock, at cost |
(6,904) |
(6,905) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
93,222 |
87,382 |
|
|
|
TOTAL EQUITIES |
119,727 |
112,089 |
|
|
CONSOLIDATED CASH FLOWS |
|
|
||
|
|
|
Terms ending: |
31/03/2014 |
31/03/2013 |
|
|
Cash
Flows from Operating Activities |
|
-2,401 |
3,614 |
|
|
Cash Flows
from Investment Activities |
-366 |
-3,218 |
|
|
|
Cash
Flows from Financing Activities |
-1,596 |
227 |
|
|
|
Cash,
Bank Deposits at the Term End |
|
13,819 |
16,648 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
|
|
Net
Worth (S/Holders' Equity) |
93,222 |
87,382 |
|
|
|
Current
Ratio (%) |
433.71 |
457.84 |
|
|
|
Net
Worth Ratio (%) |
77.86 |
77.96 |
|
|
|
Recurring
Profit Ratio (%) |
18.09 |
11.92 |
|
|
|
Net
Profit Ratio (%) |
11.97 |
5.02 |
|
|
|
Return
On Equity (%) |
5.22 |
2.01 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.05 |
|
|
1 |
Rs.101.65 |
|
Euro |
1 |
Rs.83.07 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.