MIRA INFORM REPORT
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Report Date : |
17.10.2014 |
IDENTIFICATION DETAILS
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Name : |
NIPPON SHIKIZAI INC |
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Registered Office : |
5-3-13 Mita Minatoku Tokyo 108-0073 |
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Country : |
Japan |
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Financials (as on) : |
28.02.2014 |
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Date of Incorporation : |
March 1957 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturer of pigments & facial
cosmetics |
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No. of Employees : |
328 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
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Source
: CIA |
Company
name and address
NIPPON SHIKIZAI INC
REGD NAME: Nihon
Shikizai Kogyo Kenkyusho KK
MAIN OFFICE: 5-3-13
Mita Minatoku Tokyo 108-0073 JAPAN
Tel: 03-3456-0561 Fax: 03-3798-2387
E-Mail
address: info@shikizai.com
ACTIVITIES
Contract
mfg (OEM) of cosmetics
BRANCHES
Zama
(Kanagawa)
FACTORY(IES)
Zama (Kanagawa), Osaka, Tsukuba (Tot 4);
France (Thepenier Pharma Industries SA)
CHIEF
EXEC
KOJI
OKUMURA, PRES
Yen
Amount: In million Yen, unless otherwise
stated
SUMMARY
FINANCES FAIR A/SALES Yen
7,302 M
PAYMENTSNo
Complaints CAPITAL Yen
552 M
TREND UP WORTH Yen
1,869 M
STARTED 1957 EMPLOYES 328
COMMENT:
OEM MFR OF COSMETICS.
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast (or estimated) figures for
28/02/2015 fiscal term
HIGHLIGHTS
The subject
company was established originally as mfr of pigments & facial
cosmetics. Since incorporated, switched
the mainstay to OEM mfg of cosmetics.
Strong mainly in makeup products, including lipstick, eye shadow,
foundation, etc. Proposes product development
planning for mfrs. Produces
non-pharmaceutical products, too. In
2000, acquired Thepenier Pharma Industrie SA, Paris, France, as a subsidiary. In Mar 2003, set up a plant for mfg makeup
products at the site. Ranked 4th
as cosmetic contract mfr in Japan. Also
produces non-pharmaceutical products (quasi drug products), other
FINANCIAL
INFORMATION
The sales
volume for Feb/2014 fiscal term amounted to Yen 7,302 million, a 4.3% up from
Yen 7,002 million in the previous term.
Sales of lipsticks, others in Japan increased. Sales of skincare goods and quasi drugs were
robust in France. The weaker Yen also
contributed. The recurring profit was
posted at Yen 116 million and the net profit at Yen 89 million, respectively,
compared with Yen 166 million recurring profit and Yen 74 million net profit,
respectively, a year ago.
(Mar/Aug/2014
results): Sales Yen 3,665 million (up 4.2%), operating loss Yen 112 million
(previously Yen 66 million profit), recurring loss Yen 144 million (previously
Yen 51 million profit), net loss Yen 132 million (previously Yen 24 million
profit). (% & figures as compared
with the corresponding period a year ago).
For the
current term ending Feb 2015 the recurring profit is projected at 20 million
and the net profit at Yen 10 million, respectively, on a 6.8% rise in turnover,
to Yen 7,800 million.
The financial situation is
considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Mar 1957
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized:
13 million shares
Issued:
4,318,444 shares
Sum: Yen 552
million
Major shareholders (%): Cattle Saison Co (28.9), Koji
Okumura (14.5), Brastsheave Co (3.8), Hanayo Okumura (3.6), Tomiko Iijima (2.7),
Akihiro Shimizu (2.3), Yuka Okumura (1.7), Chika Nakano (1.6), Yumiko Okumura
(1.4), Kayoko Okumura (1.4); foreign owners (0.1)
No. of shareholders: 688
Listed on the S/Exchange (s) of:
JASDAQ
Managements: Koji Okumura, pres; Yasuhiko Tsuchiya,
mgn dir; Akira Otaguro, mgn dir; Hanayo Okumura, dir; Hidehiko Hosokawa, dir;
Jun Takigawa, dir; Tatsuya Sotomura, dir; Izumi Sasaki, dir
Nothing detrimental is known as
to the commercial morality of executives.
Related companies:
Thepenier Pharma Industrie SA (France)
OPERATION
Activities: Cosmetic mfr on OEM basis: foundation,
eye shadow, rouge, lipsticks, lip creams, moisturizers & UV crease, other
(85%), pharmaceuticals & others (15%).
Overseas Sales Ratio (17%)
Clients:
[Mfrs, wholesalers] El APSC (10.1%), Fujifilm, other
No. of
accounts: 500
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Yoshino Kogyosho,
Yoshida Pharmaceutical, Miyoshi Kasei, Sanyei Corp, Nishimine Chemical Ind,
other
Payment record: no complaints
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactorily.
Bank References:
SMBC
(Azabu)
Shoko
Chukin Bank (Fukagawa)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
28/02/2014 |
28/02/2013 |
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INCOME STATEMENT |
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Annual Sales |
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7,302 |
7,002 |
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Cost of Sales |
6,074 |
5,788 |
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GROSS PROFIT |
1,227 |
1,213 |
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Selling & Adm Costs |
1,081 |
1,020 |
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OPERATING PROFIT |
146 |
193 |
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Non-Operating P/L |
-30 |
-27 |
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RECURRING PROFIT |
116 |
166 |
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NET PROFIT |
89 |
74 |
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BALANCE SHEET |
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Cash |
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950 |
571 |
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Receivables |
1,547 |
1,708 |
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Inventory |
966 |
995 |
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Securities, Marketable |
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Other Current Assets |
301 |
187 |
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TOTAL CURRENT ASSETS |
3,764 |
3,461 |
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Property & Equipment |
3,976 |
3,296 |
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Intangibles |
257 |
193 |
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Investments, Other Fixed Assets |
362 |
295 |
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TOTAL ASSETS |
8,359 |
7,245 |
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Payables |
929 |
858 |
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Short-Term Bank Loans |
1,511 |
1,715 |
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Other Current Liabs |
1,285 |
1,035 |
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TOTAL CURRENT LIABS |
3,725 |
3,608 |
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Debentures |
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99 |
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Long-Term Bank Loans |
2,294 |
1,501 |
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Reserve for Retirement Allw |
88 |
81 |
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Other Debts |
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383 |
305 |
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TOTAL LIABILITIES |
6,490 |
5,594 |
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MINORITY INTERESTS |
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Common
stock |
552 |
552 |
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Additional
paid-in capital |
781 |
781 |
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Retained
earnings |
418 |
371 |
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Evaluation
p/l on investments/securities |
65 |
34 |
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Others |
55 |
(85) |
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Treasury
stock, at cost |
(2) |
(2) |
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TOTAL S/HOLDERS` EQUITY |
1,869 |
1,651 |
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TOTAL EQUITIES |
8,359 |
7,245 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
28/02/2014 |
28/02/2013 |
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Cash
Flows from Operating Activities |
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693 |
196 |
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Cash
Flows from Investment Activities |
-593 |
-762 |
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Cash
Flows from Financing Activities |
271 |
317 |
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Cash,
Bank Deposits at the Term End |
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814 |
435 |
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ANALYTICAL RATIOS Terms ending: |
28/02/2014 |
28/02/2013 |
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Net
Worth (S/Holders' Equity) |
1,869 |
1,651 |
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Current
Ratio (%) |
101.05 |
95.93 |
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Net
Worth Ratio (%) |
22.36 |
22.79 |
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Recurring
Profit Ratio (%) |
1.59 |
2.37 |
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Net
Profit Ratio (%) |
1.22 |
1.06 |
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Return
On Equity (%) |
4.76 |
4.48 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.48 |
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1 |
Rs.98.24 |
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Euro |
1 |
Rs.78.66 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
PDT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
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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.