MIRA INFORM REPORT
|
Report No. : |
315789 |
|
Report Date : |
16.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
DAIKYO NISHIKAWA CORPORATION |
|
|
|
|
Registered Office : |
1-4-31 Kitashinchi Sakacho Akigun Hiroshima-Pref 731-4311 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
October 1961 |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Manufactures Automotive Parts in Japan (92%), Overseas (8%) |
|
|
|
|
No. of Employees : |
4,382 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
Yen 2,898.9 Million |
|
Status : |
Good |
|
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 – 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. Since the
complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami
disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused
the economy to contract during the 2nd and 3rd quarters of 2014. The economy
has largely recovered in the three years since the disaster, but reconstruction
in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a
longstanding debate on restructuring the economy and reining in Japan's huge
government debt, which amounts to more than 240% 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 2015, although the government
in 2014 decided to postpone the final phase of the increase until 2017 to give
the economy time to recover from the 2014 increase. 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
DAIKYO NISHIKAWA CORPORATION
REGD
NAME
Daikyo Nishikawa
KK
MAIN
OFFICE
1-4-31 Kitashinchi
Sakacho Akigun Hiroshima-Pref 731-4311 JAPAN
Tel:
082-885-6624
Fax:
082-885-9986 -
URL: http://www.daikyonishikawa.co.jp
E-Mail address: (thru the URL)
ACTIVITIES: Mfr
of automotive plastic parts
BRANCHES: Yamaguchi
OVERSEAS: China,
Korea, Thailand, Indonesia, & Mexico
FACTORIES: Hiroshima,
Yamaguchi (Tot 9)
CHIEF EXEC: TOORU
OKA, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 108,523 M
PAYMENTSREGULAR CAPITAL Yen 4,385 M
TREND UP WORTH Yen 36842 M
STARTED 1961 EMPLOYES 4,382
COMMENT: MFR OF AUTOMOTIVE PARTS FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 2,898.9 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast figures for the 31/03/2015 fiscal term.
HIGHLIGHTS
This is a specialized mfr of automotive plastic parts such as trim &
bumper. Has Mazda, Daihatsu and
Mitsubishi Motors as main customer, and sales to Mazda accounts for about
70%. Formed in 2007 via among 3, GP
Daikyo Corp, Nishikawa Kasei Co and Daikyo Nishikawa Corp.
FINANCIAL
INFORMATION
The sales volume for Mar/2014 fiscal term amounted to Yen 108,523 million, a 23.8% up from Yen 87,655 million in the previous term. The recurring profit was posted at Yen 7895 million and the net profit at Yen 4343 million, respectively, compared with Yen 4248 million recurring profit and Yen 2497 million net profit, respectively, a year ago.
(Apr/Dec/2014 results): Sales Yen 93,110 million (up 20.1%), operating profit Yen 6,822 million (up 35.9%), recurring profit Yen 6,943 million (up 34.6%), net profit Yen 4,359 million (up 50.2%). (% as compared with the corresponding period a year ago)
For the term that ended Mar 2015 the recurring profit was projected at Yen 9,100 million and the net profit at Yen 5,500 million, respectively, on a 16.7% rise in turnover, to Yen 126,700 million. Orders for automotive parts exceeding projection in Japan, thanks to launch of products& models. 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 2,898.9 million, on 30 days normal terms.
REGISTRATION
Date Registered: Oct 1961
Legal Status: Limited
Company (Kabushiki Kaisha
Authorized:
59,176,000 shares
Issued: 18,094,100
shares
Sum: Yen
4,385 million
Major shareholders (%): HTP No.1 Investment Assn (20.0), Nishikawa Rubber (16.3), Inoac Corp (5.4), Mitsubishi Shoji Plastic Co (5.4), Hiroshima Bank (4.9), Sumitomo Corp (4.9), Mitsui & Co (4.5), Mazda Motor (4.0), Employees’ S/Holding Assn (3.9), Japan Trustee Services T (3.7); foreign owners (4.5)
No. of shareholders: 1,850
Listed on the S/Exchange (s) of: Tokyo
Managements: Tooru Oka, pres; Fumitaka Yabuue, v pres; Shigeo Fukushima, v pres; Toshro Shohara, v pres; Masakazu Inno, s/mgn dir; Yoshihiro Yokota, s/mgn dir; Masafumi Nakano, dir; Hiroshi Kubota, dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies: DEC Co, DNC Service, AFT Corp, DMS Tech, other.
OPERATION
Activities: Manufactures automotive parts in Japan (92%), overseas (8%)
Clients: [Mfrs, wholesalers] Mazda Motor (68.4%), Daihatsu Motor (10%), Toyota Motor, Honda Motor, Panasonic Corp, other
No. of accounts: 500
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Mazda Motor, Sumitomo Corp, Mitsubishi Corp, Idemitsu Kosan, Inoac Corp, Mitsubishi Shoji Plastic, Sumitomo Shoji Chemical, other
Payment record: Regular
Location: Business area in Hiroshima. Office premises at the caption address are owned and maintained satisfactorily.
Bank References:
Hiroshima Bank
(H/O)
SMBC (Hiroshima)
Relations:
Satisfactory
FINANCES
(In Million
Yen)
|
FINANCES: (Consolidated
in million yen) |
|
|||
|
|
|
Terms Ending: |
31/03/2014 |
31/03/2013 |
|
INCOME STATEMENT |
|
|||
|
|
Annual Sales |
|
108,523 |
87,655 |
|
|
Cost of Sales |
93,132 |
76,767 |
|
|
|
GROSS PROFIT |
15,390 |
10,888 |
|
|
|
Selling & Adm Costs |
7,457 |
6,454 |
|
|
|
OPERATING PROFIT |
7,932 |
4,433 |
|
|
|
Non-Operating P/L |
-37 |
-185 |
|
|
|
RECURRING PROFIT |
7,895 |
4,248 |
|
|
|
NET PROFIT |
4,343 |
2,497 |
|
|
BALANCE SHEET |
|
|||
|
|
Cash |
|
20,708 |
15,098 |
|
|
Receivables |
20,185 |
10,817 |
|
|
|
Inventory |
3,278 |
2,360 |
|
|
|
Securities, Marketable |
|
|
|
|
|
Other Current Assets |
3,090 |
10,950 |
|
|
|
TOTAL CURRENT ASSETS |
47,261 |
39,225 |
|
|
|
Property & Equipment |
44,365 |
35,931 |
|
|
|
Intangibles |
1,337 |
1,349 |
|
|
|
Investments, Other Fixed Assets |
5,672 |
4,889 |
|
|
|
TOTAL ASSETS |
98,635 |
81,394 |
|
|
|
Payables |
24,556 |
20,102 |
|
|
|
Short-Term Bank Loans |
5,561 |
11,886 |
|
|
|
|
|
|
|
|
|
Other Current Liabs |
16,824 |
10,344 |
|
|
|
TOTAL CURRENT LIABS |
46,941 |
42,332 |
|
|
|
Debentures |
1,000 |
1,000 |
|
|
|
Long-Term Bank Loans |
7,320 |
5,910 |
|
|
|
Reserve for Retirement Allw |
3,603 |
3,900 |
|
|
|
Other Debts |
|
2,928 |
2,413 |
|
|
TOTAL LIABILITIES |
61,792 |
55,555 |
|
|
|
MINORITY INTERESTS |
|
||
|
|
Common
stock |
4,385 |
1,943 |
|
|
|
Additional
paid-in capital |
9,795 |
7,353 |
|
|
|
Retained
earnings |
18,737 |
14,615 |
|
|
|
Evaluation
p/l on investments/securities |
630 |
222 |
|
|
|
Others |
3,295 |
1,705 |
|
|
|
Treasury
stock, at cost |
|
|
|
|
|
TOTAL S/HOLDERS` EQUITY |
36,842 |
25,838 |
|
|
|
TOTAL EQUITIES |
98,635 |
81,394 |
|
|
CONSOLIDATED CASH FLOWS |
|
|||
|
|
Terms ending: |
31/03/2014 |
31/03/2013 |
|
|
|
Cash
Flows from Operating Activities |
|
15,779 |
8,344 |
|
|
Cash
Flows from Investment Activities |
-11,739 |
-10,336 |
|
|
|
Cash
Flows from Financing Activities |
1,104 |
2,290 |
|
|
|
Cash,
Bank Deposits at the Term End |
|
20,503 |
14,912 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
|
Net
Worth (S/Holders' Equity) |
36,842 |
25,838 |
|
|
|
Current
Ratio (%) |
100.68 |
92.66 |
|
|
|
Net
Worth Ratio (%) |
37.35 |
31.74 |
|
|
|
Recurring
Profit Ratio (%) |
7.27 |
4.85 |
|
|
|
Net
Profit Ratio (%) |
4.00 |
2.85 |
|
|
|
|
Return
On Equity (%) |
11.79 |
9.66 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.40 |
|
|
1 |
Rs.92.15 |
|
Euro |
1 |
Rs.66.48 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.