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Report No. : |
337002 |
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Report Date : |
21.08.2015 |
IDENTIFICATION DETAILS
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Name : |
SHIN NIPPON MACHINERY CO LTD |
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Registered Office : |
Think Park Tower, 2-1-1 Osaki Shinagawaku Tokyo 141-6025 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
December 1951 |
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Com. Reg. No.: |
0107-01-015023 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufactures steam turbines (37%), process pumps (48%): for use in
irrigation, rain water, sewage treatment, industrial fasteners (13%), others
(2%). |
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No of Employees : |
355 |
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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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 |
SHIN NIPPON
MACHINERY CO LTD
Shin Nippon Zoki KK (Zoki means machinery-making)
Think Park Tower, 2-1-1 Osaki Shinagawaku Tokyo 141-6025 Japan
Tel: 03-6737-2630
Fax: 03-6866-5120
E-Mail address: admins@snm.co.jp
ACTIVITIES: Mfg of steam turbines, pumps, industrial
fasteners
BRANCHES: Osaka, Nagoya, Hiroshima, Niihama, Fukuoka,
Naha, other
OVERSEAS: Thailand
FACTORIES: Kure (Hiroshima), Amagasaki, Nigata
(Hiroshima)
OFFICER(S): MASAMI DEGUCHI, PRES Kiyoshi Boda, mgn dir
Futoshi Okada, dir Koji Maruyama dir
Hirotaka Sakoda, dir Osamu
Sekiya, dir
Yen Amount: In million Yen,
unless otherwise stated
FINANCES FAIR A/SALES Yen 18,262 M
PAYMENTS NO COMPLAINTS CAPITAL Yen 2,408 M
TREND UP WORTH Yen
22,925 M
STARTED 1951 EMPLOYES 355
COMMENT: MFR SPECIALIZING IN TURBINES, PUMPS AND FASTENERS, WHOLLY OWNED BY SUMITOMO HEAVY INDUSTRIES LTD. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARYBUSINESS ENGAGEMENTS.
The subject company was established originally in 1929 for mfg
industrial pumps & turbines and was incorporated in 1961. Specializes in mfg steam turbines and pumps
for overseas chemical makers and industrial fasteners mainly for automobile and
light electric makers. Features high
export ratio of power-generation turbines.
The firm was listed on the Tokyo S/E (Second Section) in Dec 1982 but
was de-listed in Apr 2004 when the firm was wholly taken over by Sumitomo Heavy
Industries Ltd (see REGISTRATION). Exports account for over 80% of total
sales. In July 2012 opened a subsidiary
office in Thailand. Domestic clients
include heavy machinery makers, wholesalers, other, nationwide
The sales volume for Mar/2014 fiscal term amounted to Yen 18,252
million, a 15% down from Yen 21,464 million in the previous term. The recurring profit was posted at Yen 2,863
million and the net profit at Yen 1,765 million, respectively, compared with
Yen 2,847 million recurring profit and Yen 2,088 million net profit,
respectively, a year ago.
.
For the current term ending Mar 2015 the recurring profit is projected
at Yen 2,950 million and the net profit at Yen 1,800 million, respectively, on
a 2% rise in turnover, to Yen 18,700 million.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
Date Registered: Dec
1951
Regd No.: 0107-01-015023 (Tokyo-Shinagawaku)
Legal Status: Limited Company (Kabushiki
Kaisha)
Authorized: 60 million shares
Issued:
17.39 million
shares
Sum: Yen
2,408 million
Major shareholders
(%):
Sumitomo Heavy Industries Co
Ltd* (100)
*..Mfr of heavy electric machinery, one of Sumitomo Group core firms,
founded 1934, listed Tokyo S/E, capital Yen 30,872 million, turnover Yen
615,271 million, operating profit Yen 34,329 million, recurring profit Yen
33,000 million, net profit Yen 17,891 million, total assets Yen 715,426
million, net worth Yen 325,126 million, employees 18,043, pres Shunsuke
Betsukawa
Nothing detrimental is knows as to the commercial morality of
executives.
Activities: Manufactures
steam turbines (37%), process pumps (48%): for use in irrigation, rain water,
sewage treatment, industrial fasteners (13%), others (2%).
(% is all about)
(Export ratio 85%).
Clients: [Mfrs, wholesalers]
Nikki Shoji, Takuma Co, Shinsho Corp, Sumitomo Heavy Ind, Nissei Co, Mitsubishi
Heavy Ind, Samsung Engineering TD Power Systems Ltd, other
No. of accounts: 800
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Seisa Gear, Pacific Sowa, Shinko Electric, Moriya Corp, Otofuji
Corp, Sinfonia Technologies, Meidensha, BRUSH, other.
Payment record: No Complaints
Location: Business area in
Tokyo. Office premises at the caption
address are owned by the parent, Sumitomo Heavy Industries, and maintained
satisfactorily.
Bank References:
SMBC (Tokyo)
MUFG (Shimbashi)
Relations: Satisfactory
(In Million Yen)
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Terms Ending: |
31/03/2015 |
31/03/2014 |
31/03/2013 |
31/03/2012 |
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Annual Sales |
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18,700 |
18,252 |
21,464 |
20,026 |
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Recur. Profit |
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2,950 |
2,863 |
2,847 |
2,075 |
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Net Profit |
|
1,800 |
1,765 |
2,088 |
1,187 |
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Total Assets |
|
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31,868 |
30,664 |
30,728 |
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Current Assets |
|
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18,540 |
19,196 |
22,291 |
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Current Liabs |
|
|
7,303 |
7,550 |
9,136 |
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Net Worth |
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22,925 |
21,532 |
19,966 |
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Capital, Paid-Up |
|
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2,408 |
2,408 |
2,408 |
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Div.Ttl in Million (¥) |
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|
515 |
475 |
627 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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2.45 |
-14.96 |
7.18 |
9.71 |
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Current Ratio |
|
.. |
253.87 |
254.25 |
243.99 |
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N.Worth Ratio |
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.. |
71.94 |
70.22 |
64.98 |
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R.Profit/Sales |
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15.78 |
15.69 |
13.26 |
10.36 |
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N.Profit/Sales |
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9.63 |
9.67 |
9.73 |
5.93 |
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Return On Equity |
|
.. |
7.70 |
9.70 |
5.95 |
Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.65.23 |
|
|
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 : |
ANK |
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.