MIRA INFORM REPORT
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Report No. : |
337055 |
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Report Date : |
21.08.2015 |
IDENTIFICATION DETAILS
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Name : |
NIPPON SEIRO CO LTD |
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Registered Office : |
Kyobashi Soseikan 10F, 2-5-18 Kyobashi Chuoku Tokyo 104-0031 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
February 1951 |
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Com. Reg. No.: |
0100-01-034983 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufactures petroleum waxes, wax products (paraffin wax,
microcrystalline wax, anti-ozone wax for rubber & tire), other (49%),
fuel oil (residue of crude oil) (50%), others (1%) |
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No. of Employees : |
233 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limits : |
Yen 974.5 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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 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.
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Source
: CIA |
Company
name
NIPPON SEIRO CO
LTD
REGD
NAME
Nippon Seiro KK
MAIN
OFFICE
Kyobashi Soseikan 10F, 2-5-18 Kyobashi Chuoku Tokyo 104-0031 JAPAN
Tel: 03-3538-3061
URL: http://www.seiro.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Mfg of petroleum waxes, wax products, fuel oil
BRANCHES
Osaka, Ibaraki, other (Tot 4)
FACTORIES
Yamaguchi; Thailand
CHIEF
EXEC
HIROSHI INOUE, PRES
Yen Amount: In million Yen,
unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 35,974 M
PAYMENTS SLOW BUT CORRECT CAPITAL Yen
1,120 M
TREND SLOW WORTH Yen 10,759 M
STARTED 1951 EMPLOYES 233
COMMENT
MFR OF PETROLEUM WAXES, WAX PRODUCTS.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 974.5 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million
Yen
Forecast figures
for the 31/12/2015 fiscal term.
HIGHLIGHTS
This is the oldest and largest mfr of petroleum waxes in Japan. Procuring main materials, waxy topped crude
oil, from Indonesia. Also selling
residue of crude oil (fuel oil) for electric utilities, and other industries. Expanding imports of intermediate materials
from Malaysia. A variety of products are
used in production of paper, tire rubber, toner, candle, etc, such as
anti-ozone ant waxes. Yoshihiko Fukuma,
originally from JX Nippon Oil & Energy and having extensive familiarity
with production site, became director.
He will lead efficiency improvement of the main plant in Tokuyama. Maintains business and capital alliance with
Itochu Corp.
FINANCIAL
INFORMATION
The sales volume for Dec/2014 fiscal term amounted to Yen 35,974
million, a 9.0% down from Yen 39,543 million in the previous term. In wax business, higher material cost hurt in
the first half. Fuel oil business faced
decreased sales to thermal power plants.
Inventory valuation loss of some Yen 300 million was posted in the first
half. Operations plunged into the red to
post Yen 217 million recurring loss and Yen 121 net losses, respectively,
compared with Yen 275 million recurring profit and Yen 389 million net profit,
respectively, a year ago.
For the current term ending Dec 2015 the recurring profit is projected
at Yen 540 million and the net profit at Yen 420 million, on a 22.2% fall in
turnover, to 28,000 million. In wax
business, domestic demand for tire’ and toner-related products is anticipated
to decrease slightly. Start-up costs
related with a new consolidated subsidiary in Thailand may hurt.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit is estimated
at Yen 974.5 million, on 30 days normal terms.
REGISTRATION
Date Registered: Feb 1951
Regd No.: 0100-01-034983 (Tokyo-Chuoku)
Legal Status: Limited Company (Kabushiki Kaisha
Authorized: 89,600,000
million shares
Issued:
22,400,000 shares
Sum: Yen
1,120 million
Major shareholders
(%):
Company’s Treasury Stock (20.0), Itochu Corp (8.6), Mitsubishi Corp (5.0),
Seiji Kanda (2.9), Mitsubishi UFJ Trust Bank (2.4), Saikyo Bank (2.2), Sankyu
Inc (2.0), ATS (1.8), Ando Parachemic (1.3), Tokki Co (1.3); foreign owners
(0.4)
No. of
shareholders: 2,098
Listed on the
S/Exchange (s) of: Tokyo (Second Section)
Managements: Yoshida
Yasukuni, ch: Hiroshi Inoue, pres; Toshio Saito, v pres; Shigenobu Nishida, v
pres; Shoji Higashi, s/mgn dir; Hachiro Hosoda, mgn dir; Tadashi Sekiya, dir;
Tsukasa Ando, dir; Yoshihiko Fukuma, dir; Naohiro Jokei, dir
Nothing detrimental is known as to the commercial morality of
executives.
OPERATION
Activities: Manufactures
petroleum waxes, wax products (paraffin wax, microcrystalline wax, anti-ozone
wax for rubber & tire), other (49%), fuel oil (residue of crude oil) (50%),
others (1%)
Overseas Sales
Ratio (17%)
Clients: [Oil refineries,
wholesalers] Sasol Wax North America, Mitsubishi Corp, Chugoku Electric Power,
Tokyo Electric Power, Meiwa Trading Co, Tokyo Oil & Fat Co, other
No. of accounts: 500
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] PPT, JX Nippon Oil & Energy Corp, Leef Energy KK, Kanematsu
Petroleum Corp, Ueno Transtech, Komatsu Lift, Uni Carriers Corp, other
Payment record: Slow but correct
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
Mitsubishi
UFJ Trust Bank (H/O)
Hiroshima Bank (Tokyo)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated in million yen) |
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Terms Ending: |
31/12/2014 |
31/12/2013 |
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INCOME STATEMENT |
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Annual Sales |
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35,974 |
39,543 |
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Cost of Sales |
34,065 |
36,971 |
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GROSS PROFIT |
1,909 |
2,572 |
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Selling & Adm Costs |
2,147 |
2,273 |
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OPERATING PROFIT |
-237 |
299 |
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Non-Operating P/L |
20 |
-24 |
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RECURRING PROFIT |
-217 |
275 |
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NET PROFIT |
-121 |
389 |
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BALANCE SHEET |
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Cash |
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942 |
350 |
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Receivables |
4,834 |
4,817 |
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Inventory |
10,450 |
10,320 |
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Securities, Marketable |
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Other Current Assets |
688 |
550 |
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TOTAL CURRENT ASSETS |
16,914 |
16,037 |
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Property & Equipment |
13,564 |
13,848 |
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Intangibles |
164 |
219 |
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Investments, Other Fixed Assets |
698 |
496 |
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TOTAL ASSETS |
31,340 |
30,600 |
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Payables |
1,423 |
1,109 |
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Short-Term Bank Loans |
7,800 |
7,120 |
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Other Current Liabs |
3,538 |
3,452 |
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TOTAL CURRENT LIABS |
12,761 |
11,681 |
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Debentures |
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Long-Term Bank Loans |
4,334 |
4,337 |
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Reserve for Retirement Allw |
67 |
98 |
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Other Debts |
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3,419 |
3,565 |
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TOTAL LIABILITIES |
20,581 |
19,681 |
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MINORITY INTERESTS |
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Common stock |
1,120 |
1,120 |
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Additional paid-in capital |
25 |
14 |
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Retained earnings |
5,118 |
5,423 |
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Evaluation p/l on
investments/securities |
66 |
40 |
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Others |
5,567 |
5,567 |
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Treasury stock, at cost |
(1,137) |
(1,245) |
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TOTAL S/HOLDERS` EQUITY |
10,759 |
10,919 |
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TOTAL EQUITIES |
31,340 |
30,600 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/12/2014 |
31/12/2013 |
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Cash Flows from Operating Activities |
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587 |
932 |
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Cash Flows from Investment
Activities |
-783 |
-494 |
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Cash Flows from Financing Activities |
756 |
-745 |
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Cash, Bank Deposits at the Term End |
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942 |
350 |
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ANALYTICAL RATIOS Terms ending: |
31/12/2014 |
31/12/2013 |
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Net Worth (S/Holders' Equity) |
10,759 |
10,919 |
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Current Ratio (%) |
132.54 |
137.29 |
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Net Worth Ratio (%) |
34.33 |
35.68 |
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Recurring Profit Ratio (%) |
-0.60 |
0.70 |
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Net Profit Ratio (%) |
-0.34 |
0.98 |
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Return On Equity (%) |
-1.12 |
3.56 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.65.24 |
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1 |
Rs.102.21 |
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Euro |
1 |
Rs.72.57 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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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.