MIRA INFORM REPORT

 

 

Report Date :

05.11.2014

 

IDENTIFICATION DETAILS

 

Name :

SHIMADZU CORPORATION

 

 

Registered Office :

1 Nishinokyo-Kuharacho Nakagyoku Kyoto 604-8442

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

September, 1917

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures precision instruments & equipment: measuring equipment, medical equipment, aircraft equipment, industrial equipment.

 

 

No. of Employees :

10,847

 

 

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 :

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 and address

 

SHIMADZU CORPORATION

 

REGD NAME:               Shimadzu Seisakusho KK

MAIN OFFICE:              1 Nishinokyo-Kuharacho Nakagyoku Kyoto 604-8442 JAPAN

Tel: 075-823-1111     Fax: 075-822-0709     -

 

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

E-Mail address:            (thru the URL)

 

ACTIVITIES

    

Mfg of precision equipment

 

 

BRANCHES   

 

Kyoto, Kanagawa, Shiga, Tokyo, other (Tot 20)

 

 

OVERSEAS   

 

USA (8), China (11), Europe, other

 

 

FACTORIES  

 

At the caption address (Tot 5)

 

 

CHIEF EXEC 

 

AKIRA NAKAMOTO, PRES

 

Yen Amount:                 In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 307,532 M

PAYMENTSREGULAR               CAPITAL           Yen 26,648 M

TREND UP                                WORTH             Yen 181,994 M

STARTED         1917                             EMPLOYES      10,847

 

 

COMMENT    

 

MFR OF PRECISION EQUIPMENT 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

                       

Unit: In Million Yen

 

Forecast figures for the 31/03/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is the major comprehensive precision equipment mfr.  Well-known for technological prowess.  Highly competitive in medical and aircraft equipment.  First in commercialization of medical X-ray system and gas chromatography in Japan.  Forerunner in development of superconductivity MRI.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 307,532 million, a 16.5% up from Yen 264,048 million in the previous term.  The recurring profit was posted at Yen 24,804 million and the net profit at Yen 9,724 million, respectively, compared with Yen 13,427 million recurring profit and Yen 7,578 million net profit, respectively, a year ago.

 

(Apr/Jun/2014 results): Sales Yen 60,886 million (down 2.7%), operating profit Yen 1,551 million (up 30.7%), recurring profit Yen 1,399 million (down 11.1%), net profit Yen 1,070 million (down 59.3%).  (% as compared with the corresponding period a year ago)>

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 25,000 million and the net profit at Yen 15,500 million, respectively, on a 1.5% rise in turnover, to Yen 312,000 million.  Sales of mass spectrometers will rise.

 

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

 

 

REGISTRATION

           

Date Registered:　    Sept 1917

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                  800 million shares

Issued:                        296,070,227 shares

Sum:                            Yen 26,648 million

 

 

Major shareholders (%)

 

Meiji Yasuda Life Ins (7.0), Master Trust Bank of Japan T (5.5), Japan Trustee Services T (5.3), Taiyo Life Ins (2.8), MUFG (2.5), Zenkyoren (2.5), Sajap (2.4), Japan Trustee Services T9 (2.4), Tokio Marine & Nichido Fire Ins (2.1), Bank of Kyoto (1.6); foreign owners (28.2)

 

 

No. of shareholders

 

18,943

 

 

Listed on the S/Exchange (s) of

 

Tokyo

 

 

Managements

 

Shigehito Hattori, ch; Akira Nakamoto, pres; Ichiro Kowaki, s/mgn dir; Osamu Ando, s/mgn dir; Teruhisa Ueda, s/mgn dir; Hiroshi Fujino, mgn dir; Yasuo Miura, mgn dir; Minoru Sawaguchi, dir; Taketsugu Fujiwara, dir

 

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

 

Related companies

 

Shimadzu Techno Service, Shimadzu Rika Corp, other.

 

 

OPERATION

           

Activities: Manufactures precision instruments & equipment: measuring equipment (59%), medical equipment (20%), aircraft equipment (9%), industrial equipment (10%), others (2%)

Overseas Sales Ratio (47%)

           

 

Clients       

 

[Mfrs, wholesalers] Defense Ministry, Mitsubishi Heavy Ind, Takeda Rika Kogyo, other

No. of accounts:           1,000

 

Domestic areas of activities: Nationwide

 

 

Suppliers

 

[Mfrs, wholesalers] Shimadzu Precision Technology, J-Com, Seamens Japan, other

 

 

Payment record

 

Regular

 

 

Location

 

Business area in Kyoto.  Office premises at the caption address are owned and maintained satisfactorily.

 

 

Bank References

 

MUFG (Kyoto-Chuo)

Bank of Kyoto (H/O)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

　

　

  Annual Sales

　

307,532

264,048

　

  Cost of Sales

189,572

168,018

　

      GROSS PROFIT

117,959

96,030

　

  Selling & Adm Costs

93,940

83,913

　

      OPERATING PROFIT

24,018

12,116

　

  Non-Operating P/L

786

1,356

　

      RECURRING PROFIT

24,804

13,472

　

      NET PROFIT

9,724

7,578

BALANCE SHEET

　

　

  Cash

　

46,028

35,140

　

  Receivables

112,193

88,781

　

  Inventory

70,716

69,607

　

  Securities, Marketable

30

　

　

  Other Current Assets

12,371

10,548

　

      TOTAL CURRENT ASSETS

241,338

204,076

　

  Property & Equipment

69,405

66,166

　

  Intangibles

6,958

6,629

　

  Investments, Other Fixed Assets

23,014

23,388

　

      TOTAL ASSETS

340,715

300,259

　

  Payables

51,662

48,651

　

  Short-Term Bank Loans

37,055

18,876

　

　

　

　

　

  Other Current Liabs

49,942

26,597

　

      TOTAL CURRENT LIABS

138,659

94,124

　

  Debentures

　

　

　

  Long-Term Bank Loans

805

11,632

　

  Reserve for Retirement Allw

16,699

13,916

　

  Other Debts

　

2,557

7,158

　

      TOTAL LIABILITIES

158,720

126,830

　

      MINORITY INTERESTS

　

　

Common stock

26,648

26,648

　

Additional paid-in capital

35,188

35,188

　

Retained earnings

119,367

117,053

　

Evaluation p/l on investments/securities

2,994

3,544

　

Others

(1,448)

(8,289)

　

Treasury stock, at cost

(755)

(715)

　

      TOTAL S/HOLDERS` EQUITY

181,994

173,429

　

      TOTAL EQUITIES

340,715

300,259

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

-5,870

12,078

　

Cash Flows from Investment Activities

390

-7,899

　

Cash Flows from Financing Activities

15,363

-2,401

　

Cash, Bank Deposits at the Term End

　

43,929

33,842

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

181,994

173,429

　

Current Ratio (%)

174.05

216.82

　

Net Worth Ratio (%)

53.42

57.76

　

Recurring Profit Ratio (%)

8.07

5.10

　

Net Profit Ratio (%)

3.16

2.87

　

　

Return On Equity (%)

5.34

4.37

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.41

UK Pound

1

Rs.98.06

Euro

1

Rs.76.67

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

SNT

 

               

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.