MIRA INFORM REPORT

Report Date :

19.11.2014

IDENTIFICATION DETAILS

Name :	NIIGATA NDK CO LTD

Registered Office :	251-1 Kawasaki Nishiuraku Niigata 959-0432

Country :	Japan

Financials (as on) :	31.03.2014

Date of Incorporation :	March, 1970

Legal Form :	Limited Company

Line of Business :	Manufactures electronic devices: crystal resonators, crystal equipment

No. of Employees :	76

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	Yen 109.8 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

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

NIIGATA NDK CO LTD

REGD NAME

Niigata NDK KK

MAIN OFFICE

251-1 Kawasaki Nishiuraku Niigata 959-0432 JAPAN

Tel: 0256-88-3355

Fax: 0256-88-3359

URL: http://www.ndk.com (Of the parent)

E-Mail address: (thru the URL)

ACTIVITIES

Mfg of electronic devices

BRANCHES

Nil

FACTORIES

At the caption address

OFFICERS

AKIHIKO HASEGAWA, PRES

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 1,165 M

PAYMENTS NO COMPLAINTS CAPITAL Yen 50 M

TREND UP WORTH Yen 318 M

STARTED 1970 EMPLOYES 76

COMMENT

MFR OF ELECTRONIC DEVICES, OWNED BY NIHON DEMPA KOGYO.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

MAX CREDIT LIMIT: ESTIMATED AT YEN 109.8 MILLION, ON 30 DAYS NORMAL TERMS.

HIGHLIGHTS

The subject company was established by Nihon Dempa Kogyo Co Ltd as its mfr plant in Niigata. The firm produces electronic devices, as consigned by the parent, and others. Executives are from the parent. Goods are all supplied to the parent.

FINANCIAL INFORMATION

The sales volume for Mar/2014 fiscal term amounted to Yen 1,165 million, a 3% up from Yen 1,129 million in the previous term. The net profit was posted at Yen 57 million, compared with Yen 25 million a year ago.

For the current term ending Mar 2015 the net profit is projected at Yen 65 million, on a 5% rise in turnover, to Yen 1,220 million.

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 109.8 million, on 30 days normal terms.

REGISTRATION

Date Registered: Mar 1970

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 400,000 shares

Issued: 100,000 shares

Sum: Yen 50 million

Major shareholders (%): Nihon Dempa Kogyo Co Ltd* (100)

*.. Mfr of quartz electronics devices, Tokyo, founded 1948, listed Tokyo S/E, capital Yen 10,649 million, sales Yen 50,774 million, operating profit Yen 240 million, recurring profit Yen 191 million, net profit Yen 181 million, total assets Yen 71,297 million, net worth Yen 25,863 million, employees 3,689, pres Hiroshi Takeuchi

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

OPERATION

Activities: Activities: Manufactures electronic devices: crystal resonators, crystal equipment, others (--100%)

Clients: [Mfrs, wholesalers] Nihon Dempa Kogyo, Hakodate NDK, Furukawa NDK

No. of accounts: 3

Domestic areas of activities: Centered in Niigata

Suppliers: [Mfrs, wholesalers] Furukawa NDK, other

Payment record: No Complaints

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

Bank References:

Resona Bank (Shin-Toshin)

Shoko Chukin Bank (Niigata)

Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:	31/03/2015	31/03/2014	31/03/2013	31/03/2012
Annual Sales	1,220	1,165	1,129	1,164
Recur. Profit	..	..	..	..
Net Profit	65	57	25	67
Total Assets		695	663	649
Net Worth		318	260	235
Capital, Paid-Up		50	50	50
Div.P.Share(¥)		0.00	0.00	0.00
<Analytical Data>	(%)	(%)	(%)	(%)
S.Growth Rate	4.72	3.19	-3.01	-11.21
Current Ratio		..	..	..
N.Worth Ratio		45.76	39.22	36.21
N.Profit/Sales	5.33	4.89	2.21	5.76

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.83
UK Pound	1	Rs.96.56
Euro	1	Rs.77.42

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	SHG

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%)

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