MIRA INFORM REPORT

 

 

Report Date :

18.11.2014

 

IDENTIFICATION DETAILS

 

Name :

NIHON DEMPA KOGYO CO LTD (NDK)

 

 

Registered Office :

1-50-1 Sasazuka Shibuyaku Tokyo 151-0073

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

April 1948

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of crystal devices, crystal units, filters, synthetic quartz, crystal blank

 

 

No of Employees :

3,689

 

 

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 1,195.1 million

Status :

Satisfactory

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 – 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 & ADDRESS

 

NIHON DEMPA KOGYO CO LTD (NDK)

 

REGD NAME:   Nihon Dempa Kogyo KK

MAIN OFFICE:  1-50-1 Sasazuka Shibuyaku Tokyo 151-0073 JAPAN

Tel: 03-3453-6711     Fax: 03-3453-6733     -

 

URL:                 http://www.ndk.com

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg crystal devices, crystal units, filters, synthetic quartz, crystal blank

 

 

BRANCHES   

 

Sayama, Osaka, Okazaki, Chiba

 

 

OVERSEAS

 

USG, UK, France, Italy, Germany, China, Malaysia, Singapore

 

 

FACTORIES  

 

Sayama, Chitose, Furukawa (Miyagi), Hakodate, Niigata;

(Overseas): USA, Malaysia, China

 

 

CHIEF EXEC 

 

HIROSHI TAKEUCHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 50,774 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 10,649 M

TREND UP                                WORTH            Yen 26,581 M

STARTED         1948                             EMPLOYES      3,689

 

 

COMMENT    

 

MFR OF QUARTZ ELECTRONIC DEVICES 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 1,195.1 MILLION, 30 DAYS NORMAL TERMS

 

 

 

Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is the to-ranked mfr of quartz electronic devices in Japan.  Second-ranked in world.  Features integrated operations ranging from development of artificial quartz to production of quartz resonators, oscillators.  Strong in products for mobile phones and vehicles.  Has production bases overseas: China, USA and Malaysia. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 50,774 million, a 0.3% up from Yen 50,623 million in the previous term.  The recurring profit was posted at Yen 191 million and the net profit at Yen 181 million, respectively, compared with Yen 37 million recurring loss and Yen 289 million net losses, respectively, a year ago.

 

(Apr/Sept/2014 results): Sales Yen 24,426 million (down 4.5%), operating profit Yen 366 million (up 17.3%), recurring profit Yen 263 million (up 32.6%), net profit Yen 36 million (down 79.1%).  (% as compared with the corresponding period a year ago).

For the current term ending Mar 2015 the recurring profit is projected at Yen 1,300 million and the net profit at Yen 1,200 million, respectively, on a 0.4% rise in turnover, to Yen 51,000 million.  Sales volume of products for mobile ground base stations will increase.  Orders for car-mounted products will also grow, buoyed by increase in production by customers and the higher mounting ratio of those products.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,195.1 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　    Apr 1948

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                  40 million shares

Issued:                         20,757,905 shares

Sum:                            Yen 10,649 million

 

Major shareholders (%): Company’s Treasury Stock (5.4), Japan Trustee Services T (3.8), Resona Bank (3.2), Marusan Securities (3.1), Toshiaki Takeuchi (2.9), Saitama Resona Bank (2.9), Hiroshi Takeuchi (2.5), Tokio Marine & Nichido Fire Ins (2.0), Master Trust Bank of Japan T (2.0), Miyaji Shoji (1.6); foreign owners (69)

 

No. of shareholders:     11,138

 

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

 

Managements: Toshiaki Takeuchi, ch; Hiroshi Takeuchi, pres; Masahiro Tsuchiya, mgn dir; Hiromi Kato, mgn dir; Kiyoto Niina, mgn dir; Akio Nobechi, dir; Yasushi Yamamoto, dir; Masashi Ishii, dir

 

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

 

Related companies:      Hakodate NDK, other.

 

 

OPERATION

           

Activities: Manufactures quartz electronic devices: crystal resonators (57%), crystal equipment (31%), others (12%)

Overseas Sales Ratio (76%)

           

Clients: [Mfrs, wholesalers] Canon Inc, Panasonic Corp, NEC, Mitsubishi Electric, Sony Corp, Denso Corp, Fujitsu Ten Ltd, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Tanaka Kikinzoku Group, Asahi Glass, Chiyoda Kiko, other

 

Payment record: No Complaints

 

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

 

Bank References:

Resona Bank (Shintoshin)

MUFG (Shinjuku-Nishi)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

　

　

  Annual Sales

　

50,774

50,623

　

  Cost of Sales

40,978

40,752

　

      GROSS PROFIT

9,795

9,871

　

  Selling & Adm Costs

9,555

9,636

　

      OPERATING PROFIT

240

235

　

  Non-Operating P/L

-49

-198

　

      RECURRING PROFIT

191

-37

　

      NET PROFIT

181

-289

BALANCE SHEET

　

　

  Cash

　

17,727

11,812

　

  Receivables

12,221

12,593

　

  Inventory

11,045

11,256

　

  Securities, Marketable

　

　

　

  Other Current Assets

1,998

1,704

　

      TOTAL CURRENT ASSETS

42,991

37,365

　

  Property & Equipment

28,211

29,229

　

  Intangibles

1,068

1,005

　

  Investments, Other Fixed Assets

3,680

3,768

　

      TOTAL ASSETS

75,950

71,367

　

  Payables

8,339

8,746

　

  Short-Term Bank Loans

13,085

6,768

　

　

　

　

　

  Other Current Liabs

860

1,553

　

      TOTAL CURRENT LIABS

22,284

17,067

　

  Debentures

　

　

　

  Long-Term Bank Loans

21,557

22,510

　

  Reserve for Retirement Allw

4,013

3,857

　

  Other Debts

　

1,514

1,785

　

      TOTAL LIABILITIES

49,368

45,219

　

      MINORITY INTERESTS

　

　

Common stock

10,649

10,649

　

Additional paid-in capital

8,565

8,566

　

Retained earnings

7,696

8,194

　

Evaluation p/l on investments/securities

　

　

　

Others

(329)

(1,262)

　

Treasury stock, at cost

　

　

　

      TOTAL S/HOLDERS` EQUITY

26,581

26,147

　

      TOTAL EQUITIES

75,950

71,367

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

3,220

3,666

　

Cash Flows from Investment Activities

-2,596

-5,062

　

Cash Flows from Financing Activities

4,877

3,800

　

Cash, Bank Deposits at the Term End

　

17,727

11,812

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

26,581

26,147

　

Current Ratio (%)

192.92

218.93

　

Net Worth Ratio (%)

35.00

36.64

　

Recurring Profit Ratio (%)

0.38

-0.07

　

Net Profit Ratio (%)

0.36

-0.57

　

　

Return On Equity (%)

0.68

-1.11

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.68

UK Pound

1

Rs.96.94

Euro

1

Rs.77.36                     

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

SMN

 

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.