MIRA INFORM REPORT

Report No. :	313693
Report Date :	09.04.2015

IDENTIFICATION DETAILS

Name :	NIHON DENKEI CO LTD
Registered Office :	Seikokai Kanda Bldg. 5F, 3-5-12 Sotokanda Chiyodaku Tokyo 101-0021
Country :	Japan
Financials (as on) :	31.03.2014
Date of Incorporation :	September 1950
Com. Reg. No.:	0105-01-010505
Legal Form :	Limited Company (Kabushikikaisha)
Line of Business :	Mfg/Selling/Leasing of Test and Measuing Instruments, and computer peripheral devices
No. of Employee :	429

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 :	USD 1,464.8 (MM YEN)
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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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

ENGLISH COMPANY NAME	NIHON DENKEI CO LTD
Japanese company name	NIHON DENKEI KK
Registered Office
1. Street Number and District	Seikokai Kanda Bldg. 5F, 3-5-12 Sotokanda Chiyodaku
2. City and Perefecture	Tokyo
3. ZIP Code	101-0021
4. Country	JAPAN
TEL	03-3251-5731
FAX	03-3251-5730
URL	www.n-denkei.co.jp
Email Address	thru the URL
Activities (Services & Products)	Mfg/Selling/Leasing of Test and Measuing Instruments, and computer peripheral devices.
SUMMARY OF REPORT
Annual Sales (MM YEN)	72,750
Capital Amount (MM YEN)	1,159
Net Worth (MM YEN)	10,693
FINANCES	FAIR
TREND	STABLE
EMPLOYEES	429
CREDIT LIMIT PROPOSED(MM YEN)	1,464.8
OTHER INFORMATION FOLLOWS:
Year Started	1950
Year Registered	Sep. 1950
Regd No.	0105-01-010505
Legal Status	Limited Company (Kabushikikaisha)
Major Shareholders
1	Ai Holdings Corporation (18%)
2	Takada Kosan Co.,Ltd. (11%)
3	Other
Number of Shareholders	3,166
Authorized Shares	150,00,000
Issued Shares	78,79,005
Sum(MM)	1,159
Executives
PRESIDENT	JUNICHIRO HARA
Chairman	Nobuyoshi Musashi
Senior Mgn Director	Shinsuke Sato
Senior Mgn Director	Masami Abe
Senior Mgn Director	Tanhou Yamagi
Director	Akira Sato
Director	Masahiro Utsumi
Main Banks
1	Resona Bank (Kanda)
2	Mizuho Bank (Kanda)
Relations	Satisfactory
Clients
1	Canon Inc.
2	Hitachi Automotive Systems, Ltd.
3	Toshiba Corporation
4	Sony Corporation
5	Other
Suppliers
1	Agilent Technologies Corporation
2	TFF Corporation
3	Kikusui Electronics Corporation
4	HIOKI K.K. Corporation
5	Other
Branches
1	Kawasaki
2	Saitama
3	Sendai
4	Nagoya
5	Other (total 36)
Factories
1	None
Overseas
1	Singapore
2	China
3	Other (total 34)
HIGHLIGHT and COMMENT	The subject company was established in 1950. Over 60 years, it has been distributing Test and Measuring Instruments, such as electronic measuing instruments, electronic parts, enviromenal permanence testing equipments, expericencing device for education and computer peripherals devices, etc. It has over 30 branches in China and Asia.
FINANCIAL information	The sales volume for Mar/2014 fiscal term amounted to Yen 72,750 million, a 1.6% up from Yen 71,587 million in the previous term. The recurring profit was posted at Yen 2,165 million and the net profit at Yen 1,238 million, respectively, compared with Yen 2,351 million recurring profit and Yen 1,429 million net profit, respectively, a year ago. For the term that ended Mar 2015 the recurring profit was projected at Yen 1,800 million and the net profit at Yen 1,100 million, respectively, on a 2.4% rise in turnover, to Yen 74,500 million. Final results are yet to be released. The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 1,464.8 million, on 30 days normal terms.
PLEASE ATTACH THE FINANCIALS BELOW.
Terms Ending	Annual Sales*	R.Profit*	N.Profit*	S.Growth	Net Worth*
31/03/2011	64,805	1,129	795	(%)	6,540
31/03/2012	67,973	1,684	1,393	4.89	7,757
31/03/2013	71,587	2,351	1,429	5.32	9,161
31/03/2014	72,750	2,165	1,238	1.62	10,693
31/03/2015	74,500	1,800	1,100	2.41	11,793
Forecast (or estimated) figures for 2015 term.				*..Unit: Million Yen
FINANCES (Consolidated in million yen)
		Terms Ending:	31/03/2014	31/03/2013
INCOME STATEMENT
	Annual Sales		72,750	71,587
	Cost of Sales		64,626	63,503
	GROSS PROFIT		8,124	8,085
	Selling & Adm Costs		6,203	6,103
	OPERATING PROFIT		1,921	1,982
	Non-Operating P/L		244	369
	RECURRING PROFIT		2,165	2,351
	NET PROFIT		1,238	1,429
BALANCE SHEET
	Cash		4,872	3,829
	Receivables		28,172	25,970
	Inventory		1,574	1,521
	Securities, Marketable
	Other Current Assets		1,172	933
	TOTAL CURRENT ASSETS		35,790	32,253
	Property & Equipment		2,029	1,680
	Intangibles		152	16
	Investments, Other Fixed Assets		1,340	1,410
	TOTAL ASSETS		39,311	35,359
	Payables		14,472	12,168
	Short-Term Bank Loans		11,177	9,857
	Other Current Liabs		1,427	1,394
	TOTAL CURRENT LIABS		27,076	23,418
	Debentures
	Long-Term Bank Loans		1,454	2,747
	Reserve for Retirement Allw
	Other Debts		88	32
	TOTAL LIABILITIES		28,619	26,198
	MINORITY INTERESTS
	Common stock		1,159	1,159
	Additional paid-in capital		1,333	1,333
	Retained earnings		7,633	6,671
	Evaluation p/l on investments/securities
	Others		594	25
	Treasury stock, at cost		(27)	(27)
	TOTAL S/HOLDERS` EQUITY		10,693	9,161
	TOTAL EQUITIES		39,311	35,359
CONSOLIDATED CASH FLOWS
		Terms ending:	31/03/2014	31/03/2013
	Cash Flows from Operating Activities		1,430	2,183
	Cash Flows from Investment Activities		-403	-263
	Cash Flows from Financing Activities		-266	-2,107
	Cash, Bank Deposits at the Term End		4,861	3,819
ANALYTICAL RATIOS Terms ending:			31/03/2014	31/03/2013
		Net Worth (S/Holders' Equity)	10,693	9,161
		Current Ratio (%)	132.18	137.73
		Net Worth Ratio (%)	27.20	25.91
		Recurring Profit Ratio (%)	2.98	3.28
		Net Profit Ratio (%)	1.70	2.00
		Return On Equity (%)	11.57	15.60

FINANCES (Consolidated in million yen)
			Terms Ending:		31/03/2014	31/03/2013	IND/03/2014
INCOME STATEMENT
	Annual Sales				72,750	71,587
	Cost of Sales				64,626	63,503
	GROSS PROFIT				8,124	8,085	0
	Selling & Adm Costs				6,203	6,103
	OPERATING PROFIT				1,921	1,982	0
	Non-Operating P/L				244	369
	RECURRING PROFIT				2,165	2,351	0
	NET PROFIT				1,238	1,429
BALANCE SHEET
	Cash				4,872	3,829
	Receivables				28,172	25,970
	Inventory				1,574	1,521
	Securities, Marketable
	Other Current Assets				1,172	933	0
	TOTAL CURRENT ASSETS				35,790	32,253
	Property & Equipment				2,029	1,680
	Intangibles				152	16
	Investments, Other Fixed Assets				1,340	1,410	0
	TOTAL ASSETS				39,311	35,359
	Payables				14,472	12,168
	Short-Term Bank Loans				11,177	9,857
	Other Current Liabs				1,427	1,394	0
	TOTAL CURRENT LIABS				27,076	23,418
	Debentures
	Long-Term Bank Loans				1,454	2,747
	Reserve for Retirement Allw
	Other Debts				88	32	0
	TOTAL LIABILITIES				28,619	26,198
	MINORITY INTERESTS						..
	Common stock				1,159	1,159
	Additional paid-in capital				1,333	1,333
	Retained earnings				7,633	6,671
	Evaluation p/l on investments/securities
	Others				594	25	0
	Treasury stock, at cost				(27)	(27)
	TOTAL S/HOLDERS` EQUITY				10,693	9,161
	TOTAL EQUITIES				39,311	35,359	0
CONSOLIDATED CASH FLOWS
			Terms ending:		31/03/2014	31/03/2013	31/03/2012
	Cash Flows from Operating Activities				1,430	2,183
	Cash Flows from Investment Activities				-403	-263
	Cash Flows from Financing Activities				-266	-2,107
	Cash, Bank Deposits at the Term End				4,861	3,819
ANALYTICAL RATIOS Terms ending:					31/03/2014	31/03/2013	IND/03/2014
			Net Worth (S/Holders' Equity)		10,693	9,161	0
			Current Ratio (%)		132.18	137.73	#DIV/0!
			Net Worth Ratio (%)		27.20	25.91	#DIV/0!
			Recurring Profit Ratio (%)		2.98	3.28	#DIV/0!
			Net Profit Ratio (%)		1.70	2.00	#DIV/0!
			Return On Equity (%)		11.57	15.60	#DIV/0!
Notes: Audited by CPA. IND/xx/yyyy.. Non-consolidated figures for (xx month)/(yyyy year) term.
		Current Sales		72,750
		Credit Limit		1,464.8

Business	Terms Ending	Annual Sales*	R.Profit*	N.Profit*	S.Growth	Net Worth*
Results:	31/03/2011	64,805	1,129	795	(%)	6,540
(Consolidated)	31/03/2012	67,973	1,684	1,393	4.89	7,757
	31/03/2013	71,587	2,351	1,429	5.32	9,161
	31/03/2014	72,750	2,165	1,238	1.62	10,693
	31/03/2015	74,500	1,800	1,100	2.41	11,793

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.33
UK Pound	1	Rs.92.53
Euro	1	Rs.67.60

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	ANK

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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