MIRA
INFORM REPORT
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Report No. : |
335592 |
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Report Date : |
05.08.2015 |
IDENTIFICATION DETAILS
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Name : |
SHIMA SEIKI MFG LTD |
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Registered Office : |
85 Sakata |
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Country : |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
July, 1961 |
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Com. Reg. No.: |
(Wakayama-Wakayama) 001508 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Computer Controlled Knitting Machines. |
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No. of Employees : |
1,766 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Yen 1,706.6 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 an 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. Scarce in many natural resources,
Japan has long been dependent on imported raw materials. Since the complete
shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster
in 2011, Japan's industrial sector has become even more dependent than it was
previously on imported fossil 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
impressive - 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 aftereffects 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. 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 of that year disrupted
manufacturing. The economy has largely recovered in the four years since the
disaster, although reconstruction in the affected Tohoku region has lagged, in
part due to a shortage of labor in the construction sector. Japan enjoyed a
sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s
“Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of
monetary easing, “flexible” fiscal policy, and structural reform. Abe’s
government has replaced the preceding administration’s plan to phase out nuclear
power with a new policy of seeking to restart nuclear power plants that meet
strict new safety standards, and emphasizing nuclear energy’s importance as a
base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP)
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 first-place China, which surpassed Japan in 2001, and third-place
India, which edged out Japan in 2012. While seeking to stimulate and reform the
economy, the government must also devise a strategy for reining in Japan's huge
government debt, which amounts to more than 230% of GDP. To help raise
government revenue, Japan adopted legislation in 2012 to gradually raise the
consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8%
implemented in April 2014. That increase had a contractionary effect on GDP,
however, so PM Abe in late 2014 decided to postpone the final phase of the
increase until April 2017 to give the economy more time to recover. Led by the
Bank of Japan’s aggressive monetary easing, Japan is making progress in ending
deflation, but demographics - low birthrate and an aging, shrinking population
- pose major long-term challenges for the economy.
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Source
: CIA |
Company Name and address
SHIMA SEIKI MFG LTD
REGD NAME: KK
Shima Seiki Seisakusho
MAIN OFFICE: 85
Sakata Wakayama 641-8511 JAPAN
Tel:
073-471-0511 Fax: 073-474-8267
URL: http://www.shimaseiki.co.jp/
E-Mail address: info@shimaseiki.co.jp
ACTIVITIES
Mfg of computer
controlled knitting machines
BRANCHES
Tokyo, Osaka,
Nagoya, Yamagata, Fukushima, Niigata, Kofu, other (Tot 12)
OVERSEAS
Taiwan, Hong Kong,
China (2), Cambodia, Thailand, Italy, Korea, UK, France, Spain, Portugal, Morocco, USA
FACTORIES
At the caption
address
CHIEF EXEC
MASAHIRO SHIMA,
PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 48,354 M
PAYMENTS REGULAR CAPITAL Yen 14,859 M
TREND STEADY WORTH Yen 98,179 M
STARTED 1961 EMPLOYES 1,766
COMMENT
MFR SPECIALIZING IN KNITTING MACHINES.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 1,706.6 MILLION, ON 30 DAYS NORMAL TERMS
Unit: in Million Yen
Forecast for the 31/03/2016 fiscal term.
HIGHLIGHTS
The subject company was established by Masahiro Shima,
current pres, for mfg fully automated glove knitting machines. Since then developed
the world's first fully automated glove knitting machines with global share
standing at 40%. Expanding business foundation by stressing in-house
development of technologies for computer graphic fashion and industrial design
systems. Overseas sales ratio high. The company will apply 3D measuring systems
to the medical industry. It will
actively promote cutting machines to the aircraft, automobile, furniture, and
industrial material industries.
FINANCIAL INFORMATION
The sales volume
for Mar/2015 fiscal term amounted to Yen 48,354 million, a 19.0% up from Yen
40,636 million in the previous term. In
the mainline weft knitting machine business, orders for the SSR series,
lower-priced models, advanced in Bangladesh and S/E Asia. The recurring profit was posted at Yen 8,470
million and the net profit at Yen 3,645 million, respectively, compared with
Yen 7,352 million recurring profit and Yen 4,863 million net profit,
respectively, a year ago.
For the current
term ending Mar 2016 the recurring profit is projected at Yen 7,500 million and
the net profit at Yen 5,000 million, respectively, on a 5.5% rise in turnover,
to Yen 51,000 million. Large-lot orders
for products bound for S/E Asia from knitwear makers in Hong Kong will
contribute to earnings.
The financial
situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is considered to be Yen
1,706.6 million, on 30 days normal terms.
REGISTRATION
Date Registered:
Jul 1961
Regd No.:
(Wakayama-Wakayama) 001508
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 142 million shares
Issued:
37,600,000 shares
Sum: Yen 14,859 million
Major shareholders
(%): Wajima Kosan (7.8), Company’s Treasury Stock (6.5), Kiyo Bank (3.5),
Japan Trustee Services T (2.9), Masahiro Shima (2.9), Mitsuhiro Shima (2.8),
MUFG (2.4), Wako LLC (2.0), Employees’ S/Holding Assn (2.0), Senshu Ikeda Bank
(1.9); foreign owners (10.6)
No.
of shareholders: 15,662
Listed
on the S/Exchange (s) of: Tokyo
Managements: Masahiro Shima,
pres & CEO; Mitsuhiro Shima, v pres; Takashi Wada, mgn dir; Reiji Arikita,
mgn dir; Ikuto Umeda, mgn dir; Osamu Fujita, dir; Toshio Nakashima, dir;
Takashi Nanki, dir; Yasukazu Nishitani, dir; Kiyokata Nishikawa, dir
Nothing detrimental is known as to the
commercial morality of executives.
Related companies: Shima Fine Press
Co, TSM Industrial Co, Kainan Seimitsu Co, Shima Seiki USA Inc, Shima Seiki
Europe Ltd, other
OPERATION
Activities: Manufactures weft
knitting machines (75%), computer graphic design systems (8%), glove &
hosiery knitting machines (6%), others (12%).
Overseas Sales
Ratio (84%)
Clients: [Mfrs,
wholesalers] Itochu Corp, Onward Kashiyama, NHK, Sanyo Shokai, Benetton Japan,
Stephanela Corp, World, Naigai Co, Renown Inc, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Groz-Beckert Japan,
Sun-Wa Technos Corp, Terauchi Sei-sakusho, Ishikawa
Seisakusho, Techno Hagihara, other.
Payment record: Regular
Location: Business area in Wakayama. Office premises at
the caption address are owned and maintained satisfactorily.
Bank References:
MUFG (Wakayama)
Ikeda Senshu Bank (Wakayama)
Relations: Satisfactory
FINANCIALS
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2015 |
31/03/2014 |
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INCOME STATEMENT |
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Annual Sales |
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48,354 |
40,636 |
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Cost of Sales |
26,488 |
23,367 |
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GROSS PROFIT |
21,865 |
17,269 |
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Selling & Adm Costs |
16,120 |
14,537 |
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OPERATING PROFIT |
5,745 |
2,731 |
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Non-Operating P/L |
5,725 |
4,621 |
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RECURRING PROFIT |
8,470 |
7,352 |
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NET PROFIT |
3,645 |
4,863 |
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BALANCE SHEET |
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Cash |
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14,512 |
16,002 |
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Receivables |
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52,578 |
42,964 |
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Inventory |
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18,675 |
19,589 |
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Securities, Marketable |
60 |
70 |
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Other Current Assets |
2,279 |
1,672 |
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TOTAL CURRENT ASSETS |
88,104 |
80,297 |
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Property & Equipment |
20,013 |
19,876 |
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Intangibles |
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5,157 |
4,852 |
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Investments, Other Fixed Assets |
13,713 |
14,702 |
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TOTAL ASSETS |
126,987 |
119,727 |
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Payables |
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6,384 |
4,290 |
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Short-Term Bank Loans |
6,250 |
6,695 |
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Other Current Liabs |
7,416 |
7,529 |
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TOTAL CURRENT LIABS |
20,050 |
18,514 |
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Debentures |
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Long-Term Bank Loans |
5,000 |
5,000 |
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Reserve for Retirement Allw |
1,068 |
526 |
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Other Debts |
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2,689 |
2,464 |
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TOTAL LIABILITIES |
28,807 |
26,504 |
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MINORITY INTERESTS |
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Capital, Paid-Up |
14,859 |
14,859 |
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Surplus |
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83,320 |
78,363 |
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SHAREHOLDERS' EQUITY |
98,179 |
93,222 |
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TOTAL EQUITIES |
126,987 |
119,727 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2015 |
31/03/2014 |
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Cash
Flows from Operating Activities |
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-1,956 |
-2,401 |
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Cash
Flows from Investment Activities |
2,287 |
-366 |
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Cash Flows
from Financing Activities |
-1,966 |
-1,596 |
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Cash,
Bank Deposits at the Term End |
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13,164 |
13,819 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
98,179 |
93,222 |
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Current
Ratio (%) |
439.42 |
433.71 |
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Net
Worth Ratio (%) |
77.31 |
77.86 |
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Recurring
Profit Ratio (%) |
17.52 |
18.09 |
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Net
Profit Ratio (%) |
7.54 |
11.97 |
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Return
On Equity (%) |
3.71 |
5.22 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.93 |
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|
1 |
Rs.99.82 |
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Euro |
1 |
Rs.70.05 |
INFORMATION DETAILS
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Analysis Done by
: |
TRI |
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Report Prepared
by : |
NIT |
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.