MIRA INFORM REPORT

 

 

Report No. :

335859

Report Date :

06.08.2015

 

IDENTIFICATION DETAILS

 

Name :

ZUIKO CO LTD

 

 

Registered Office :

15-21 Minami-Beppucho Settsu City Osaka-Pref 566-0045

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2015

 

 

Date of Incorporation :

April 1963

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is manufactures sanitary goods production machinery: sanitary napkin manufacturer of  machinery, babies, diaper mfg machinery , adults’ diaper mfg machinery

 

 

No. of Employee :

586

 

 

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 :

YEN 1,231.8 MILLION

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 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.

 

Source : CIA

 

 

 

 

Company name

 

ZUIKO CO LTD

 

 

REGD NAME

 

KK Zuiko

 

 

MAIN OFFICE

 

15-21 Minami-Beppucho Settsu City Osaka-Pref 566-0045 JAPAN

Tel: 06-6340-2215     Fax: 06-6340-4182     -

 

 

URL

 

http://www.zuiko.co.jp

E-Mail address: inquiry@zuiko.co.jp

 

 

ACTIVITIES

 

Mfg of sanitary products mfg machines (napkin diaper, other)

 

 

BRANCHES

 

Nil

 

 

OVERSEAS

 

China (subsidiary)

 

 

FACTORIES

 

Settsu (Osaka-Pref) (6)

 

 

CHIEF EXEC

 

NOBORU WADA, PRES

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                             A/SALES          Yen 27,658 M

PAYMENTS                  NO COMPLAINTS          CAPITAL           Yen 1,888 M

TREND             UP                                WORTH        Yen 21,968 M

STARTED                     1963                             EMPLOYES      586

 

 

COMMENT

 

MFR OF SANITARY PRODUCTS MFG MACHINERY, OTHER

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 1,231.8 MILLION, 30 DAYS NORMAL TERMS

 

Unit: In Million Yen

Forecast figures for the 28/02/2016 fiscal term.

 

 

 

 

 

HIGHLIGHTS

 

This is the top-ranked mfr of machines for use in production of sanitary supplies, including babies’ diapers.  Maintains overwhelming market share in sanitary napkin machines in Japan.  Stressing Improvement of production efficiency by use of advanced MCs & CAD systems.  Subsidiary in China.

 

 

FINANCIAL INFORMATION

 

The sales volume for Feb/2015 fiscal term amounted to Yen 27,658 million, a 3.9% down from Yen 28,785 million in the previous term.  The recurring profit was posted at Yen 2,655 million and the net profit at Yen 1,818 million, respectively, compared with Yen 4,009 million recurring profit and Yen 2,733 million net profit, respectively, a year ago.

 

For the current term ending Feb 2016 the recurring profit is projected at Yen 3,105 million and the net profit at Yen 2,125 million, respectively, on a 15.7% rise in turnover, to Yen 32,000 million.    

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,231.8 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　Apr 1963

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       19 million shares

Issued:                7.2 million shares

Sum:                   Yen 1,888 million

 

Major shareholders (%): Wada Holdings (12.5), SFP Value Realization Master F (8.8), Company’s Treasury Stock (8.7), Akio Wada (6.9), other: foreign owners (26.6)

 

No. of shareholders: 3,456

 

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

 

Managements: Takao Wada, ch; Noboru Wada, pres; Toyoshi Umebayashi, dir

 

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

 

 

OPERATION

           

Activities: Manufactures sanitary goods production machinery: sanitary napkin mfg machinery (6%), babies’ diaper mfg machinery (72%), adults’ diaper mfg machinery (11%), others (11%)

Overseas Sales Ratio (78%)

           

Clients: [Mfrs, wholesalers] Uny Charm, Kao Corp, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Orion Machinery Ind, Chuo Denshi, Sun Tool, other

 

Payment record: No Complaints

 

Location: Business area in Settsu City, Osaka-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

MUFG (Nakanoshima)

Mizuho Bank (Umeda)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

28/02/2015

28/02/2014

INCOME STATEMENT

 

 

 

  Annual Sales

　

27,658

28,785

 

  Cost of Sales

23,349

23,144

 

      GROSS PROFIT

4,308

5,640

 

  Selling & Adm Costs

1,813

1,951

 

      OPERATING PROFIT

2,495

3,689

 

  Non-Operating P/L

160

320

 

      RECURRING PROFIT

2,655

4,009

　

      NET PROFIT

1,818

2,733

BALANCE SHEET

 

 

 

 

  Cash

　

4,957

7,456

 

  Receivables

 

9,345

999

 

  Inventory

 

7,221

6,599

 

  Securities, Marketable

　

　

 

  Other Current Assets

4,469

10,354

 

      TOTAL CURRENT ASSETS

25,992

25,408

 

  Property & Equipment

6,808

6,200

 

  Intangibles

 

687

712

 

  Investments, Other Fixed Assets

1,213

859

 

      TOTAL ASSETS

34,700

33,179

 

  Payables

 

6,838

7,223

 

  Short-Term Bank Loans

　

　

 

　

 

　

　

 

  Other Current Liabs

5,101

5,635

 

      TOTAL CURRENT LIABS

11,939

12,858

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

104

127

 

  Other Debts

　

689

466

 

      TOTAL LIABILITIES

12,732

13,451

 

      MINORITY INTERESTS

 

 

 

  Capital, Paid-Up

1,888

1,888

 

  Surplus

 

20,080

17,839

 

      SHAREHOLDERS' EQUITY

21,968

19,727

　

      TOTAL EQUITIES

34,700

33,179

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

28/02/2015

28/02/2014

 

Cash Flows from Operating Activities

　

-1,478

-207

 

Cash Flows from Investment Activities

-469

-167

 

Cash Flows from Financing Activities

-587

-631

　

Cash, Bank Deposits at the Term End

　

4,779

6,988

ANALYTICAL RATIOS            Terms ending:

28/02/2015

28/02/2014

 

 

Net Worth (S/Holders' Equity)

21,968

19,727

 

 

Current Ratio (%)

217.71

197.60

 

 

Net Worth Ratio (%)

63.31

59.46

 

 

Recurring Profit Ratio (%)

9.60

13.93

 

 

Net Profit Ratio (%)

6.57

9.49

 

 

Return On Equity (%)

8.28

13.85

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.82

UK Pound

1

Rs.99.15

Euro

1

Rs.69.31

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

ASH

 

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.