MIRA INFORM REPORT

 

 

Report No. :

316671

Report Date :

20.04.2015

 

IDENTIFICATION DETAILS

 

Name :

NIPPON FILCON CO LTD

 

 

Registered Office :

2220 Ohmaru Inagi City Tokyo-Metrop 206-0801

 

 

Country :

Japan

 

 

Financials (as on) :

30.11.2014

 

 

Date of Incorporation :

March 1936

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures industrial function filters & conveyors (70%), electronic parts & masks (19%), environment & water treatment-related (7%), real estate leasing (4%)

 

 

No. of Employees :

1,158

 

 

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

 

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

 

NIPPON FILCON CO LTD

 

 

REGD NAME

 

Nippon Filcon KK

 

 

MAIN OFFICE

 

2220 Ohmaru Inagi City Tokyo-Metrop 206-0801 JAPAN

Tel: 042-377-5711     Fax: 042-377-5714     -

 

URL:                 http://www.filcon.co.jp

E-Mail address: (thru the URL)

 

ACTIVITIES:     Mfg of industrial metal nets

BRANCHES:     Chiba, Fuji, Suita, Sendai (Tot 4)

OVERSEAS:     USA, Thailand, China, Singapore, Australia

FACTORIES:    At the caption address, Fuji

 

CHIEF EXEC:   HIROYUKI NAGURA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 24150 M

PAYMENTSREGULAR   CAPITAL           Yen 2,685 M

TREND UP                    WORTH            Yen 15,123 M

STARTED         1936                 EMPLOYES      1,158

 

COMMENT:      MFR OF INDUSTRIAL METAL NETS  FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

 

Unit: In Million Yen

Forecast figures for the 30/11/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is a Tokyo-based mfr of industrial nets mainly from special alloys.  Maintains overwhelming domestic market share in metal nets for paper-making machines.  Also engaged in production of photomasks and etching mfg for touch panels & medical equipment, etc.

 

 

FINANCIAL INFORMATION

 

The sales volume for Nov/2014 fiscal term amounted to Yen 24150 million, a 5.0% up from Yen 23,000 million in the previous term.  The recurring profit was posted at Yen 1,466 million and the net profit at Yen 1,182 million, respectively, compared with Yen 1,261 million recurring profit and Yen 1,134 million net profit, respectively, a year ago.

 

(Dec/2014/Feb 2015 results): Sales Yen 6,181 million (up 14.1%), operating profit Yen 344 million (up 233.6%), recurring profit Yen 403 million (up 201.7%), net profit Yen 330 million (up 243.5%).  (% as compared with the corresponding period a year ago).

 

For the current term ending Nov 2015 the recurring profit is projected at Yen 1,250 million and the net profit at Yen 1,100 million, respectively, on a 1.4% rise in turnover, to Yen 24,500 million.    

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

           

Date Registered:　          Mar 1936

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              80 million shares

Issued:                         22,167,211 shares

Sum:                            Yen 2,685 million

 

Major shareholders (%): Oji Holdings (12.1), Daio Paper (8.1), Nippon Paper Ind (7.0), Employees’ S/Holding Assn (6.7), UFG (4.6), other; foreign owners (2.0)

 

No. of shareholders: 12,688

 

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

 

Managements: Hiroyuki Nagura, pres; Yoshio Matsuki, mgn dir; Yoshiharu Saitoh, dir; Hideaki Yuki, dir; Atsushi Matsushita, dir; Yukio Osawa, dir

 

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

OPERATION

           

Activities: Manufactures industrial function filters & conveyors (70%), electronic parts & masks (19%), environment & water treatment-related (7%), real estate leasing (4%)

 

Overseas Sales Ratio (32%)

           

Clients: [Mfrs, wholesalers] Oji Materia, Nippon Paper, Hamamatsu Photonics, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Toray Mono Filament, Teijin Mono Filament, Hoya, other

 

Payment record: Regular

 

Location: Business area in Inagi City, Tokyo-Metrop.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Mitsubishi UFJ Trust Bank (H/O)

Mizuho Bank (Shinjuku)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

Finances: (consolidated in million yen)

　

　

　

Terms ending:

30/11/2014

30/11/2013

INCOME STATEMENT

　

　

  Annual Sales

　

24,150

23,000

　

  Cost of Sales

15,716

15,171

　

      GROSS PROFIT

8,433

7,828

　

  Selling & Adm Costs

7,266

6,959

　

      OPERATING PROFIT

1,167

869

　

  Non-Operating P/L

299

392

　

      RECURRING PROFIT

1,466

1,261

　

      NET PROFIT

1,182

1,134

BALANCE SHEET

　

　

  Cash

　

2,112

3,027

　

  Receivables

6,948

6,561

　

  Inventory

5,002

4,847

　

  Securities, Marketable

　

　

　

  Other Current Assets

710

612

　

      TOTAL CURRENT ASSETS

14,772

15,047

　

  Property & Equipment

12,108

12,293

　

  Intangibles

1,067

1,102

　

  Investments, Other Fixed Assets

3,925

3,640

　

      TOTAL ASSETS

31,872

32,082

　

  Payables

3,071

3,179

　

  Short-Term Bank Loans

1,741

3,202

　

　

　

　

　

  Other Current Liabs

3,811

4,200

　

      TOTAL CURRENT LIABS

8,623

10,581

　

  Debentures

　

　

　

  Long-Term Bank Loans

4,656

4,184

　

  Reserve for Retirement Allw

190

496

　

  Other Debts

　

3,280

3,183

　

      TOTAL LIABILITIES

16,749

18,444

　

      MINORITY INTERESTS

　

　

Common stock

2,685

2,685

　

Additional paid-in capital

1,912

1,912

　

Retained earnings

9,713

8,729

　

Evaluation p/l on investments/securities

212

215

　

Others

794

(876)

　

Treasury stock, at cost

(193)

(28)

　

      TOTAL S/HOLDERS` EQUITY

15,123

12,637

　

      TOTAL EQUITIES

31,872

31,082

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

30/11/2014

30/11/2013

　

Cash Flows from Operating Activities

　

2,148

1,015

　

Cash Flows from Investment Activities

-1,124

-1,234

　

Cash Flows from Financing Activities

-2,028

538

　

Cash, Bank Deposits at the Term End

　

2,062

3,019

ANALYTICAL RATIOS            Terms ending:

30/11/2014

30/11/2013

　

Net Worth (S/Holders' Equity)

15,123

12,637

　

Current Ratio (%)

171.31

142.21

　

Net Worth Ratio (%)

47.45

40.66

　

Recurring Profit Ratio (%)

6.07

5.48

　

Net Profit Ratio (%)

4.89

4.93

　

　

Return On Equity (%)

7.82

8.97

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.35

UK Pound

1

Rs.93.10

Euro

1

Rs.67.13

 

 

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%)

 

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.