MIRA INFORM REPORT
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Report No. : |
353539 |
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Report Date : |
04.12.2015 |
IDENTIFICATION DETAILS
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Name : |
SHINTOKOGIO LTD |
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Registered Office : |
Nagoya Inter City 10F, 1-11-11
Nishiki Nakaku Nagoya Aichi-Pref 460-0003 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
October 1934 |
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Legal Form : |
Limited Company |
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Line of Business : |
Subject Engaged in
Manufactures of castings (34%), surface treatment (42%), environment-related
equipment (10%), conveyors (6%), specialty machinery (8%) |
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No. of Employee : |
3,873 |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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
summery
SHINTOKOGIO LTD
REGD NAME: Shinto Kogyo KK
MAIN OFFICE: Nagoya Inter City 10F, 1-11-11 Nishiki Nakaku Nagoya
Aichi-Pref 460-0003
JAPAN
Tel: 052-585-9211 Fax:
052-586-2279 -
URL: http://www.shinto.co.jp
E-Mail
address: (thru the URL)
ACTIVITIES: Mfg of casting machines/equipment, other
BRANCHES: Tokyo, Osaka, Nagoya, other (Tot 24)
OVERSEAS: Germany, Austria, USA, Mexico, Brazil,
China, Korea, Taiwan, Thailand, India, Indonesia (--subsidiaries)
FACTORIES: Aichi, Toyokawa, other (Tot 8)
CHIEF EXEC: ATSUSHI NAGAI, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY: FINANCES FAIR A/SALES Yen 93,258 M
PAYMENTS REGULAR CAPITAL Yen 5,752 M
TREND UP WORTH Yen
95,278 M
STARTED 1934 EMPLOYES 3,873
COMMENT
MFR OF CASTING MACHINES, OTHER
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast figures for the 31/10/2016 fiscal term.
HIGHLIGHTS
This is the largest mfr of casting machines. Well-known for vacuum casting process (called
v-process). Licensing many technologies
overseas. Aggressive in overseas
operations. Highly competitive in
casting products for use in car production.
Also makes shale gas wells-related equipment. Clients include automotive, aviation, rail,
shipbuilding, iron & steel Industries, other.
FINANCIAL
INFORMATION
The sales volume for Mar/2015 fiscal term amounted to Yen 93,258
million, a 4.7% up from Yen 89,105 million in the previous term. The recurring profit was posted at Yen 4,412
million and the net profit at Yen 2,637 million, respectively, compared with
Yen 5,334 million recurring profit and Yen 2,824 million net profit,
respectively, a year ago.
(Apr/Sept/2015 results): Sales Yen 46,223 million (up 9.3%),
operating profit Yen 2,037 million (up 80.5%), recurring profit Yen 1,752
million (up 13.2%), net profit Yen 1,028 million (up 14.2%). (% as compared with the corresponding period
a year ago).
For the current term ending Mar 2016 the recurring profit is
projected at Yen 4,700 million and the net profit at Yen 2,700 million,
respectively, on a 1.9% rise in turnover, to Yen 95,000 million. Sales of mainstay castings will rebound in
the domestic market, and will grow in China and ASEAN countries. .
The financial situation is considered FAIR and good for
ORDINARY business engagements.
REGISTRATION
Date Registered: Oct
1934
Legal Status: Limited Company (Kabushiki Kaisha
Authorized: 230,476,000 shares
Issued:
56,554,009 shares
Sum: Yen 5,752 million
Major shareholders (%): MUFG (4.0), Master Trust Bank
of Japan T (4.0), Meiji Yasuda Life Ins (4.0), Company’s Treasury Stock (4.0), Japan
Trustee Services T (3.1), Resona Bank (2.9), Nagai Foundation for S&T
(2.4), Goldman Sachs (Regular) Acct (1.7), Mat. Suppliers’ S/Holding Assn
(1.7), Mizuho Bank (1.7); foreign owners (21.7)
No. of shareholders: 4,066
Listed on the S/Exchange (s) of:
Tokyo, Nagoya
Managements: Masayuki Hirayama, ch; Atsushi Nagai,
pres; Kenji Hirai, s/mgn dir; Ikuhisa Uratsuji, s/mgn dir; Tsuneyasu Kuno, mgn
dir; Moriyasu Izawa, dir; Shinji Takahashi, dir; Yatsuka Taniguchi, dir;
Masatoshi Ozawa, dir; Yasuhito Yamauchi, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: KK
Mwikikou, Heinrich Wagner Shinto, other (Domestic 22, Overseas 31).
OPERATION
Activities: Manufactures: castings (34%), surface
treatment (42%), environment-related equipment (10%), conveyors (6%), specialty
machinery (8%)
Overseas Sales Ratio (44%)
Clients: [Mfrs, wholesalers] Sojitz Machinery,
Toyota Tsusho Corp, KYB-CADAC, Aisin AW,
CFS, Jatco Ltd, other
No. of
accounts: 500
Domestic
areas of activities: Nationwide
Suppliers:
[Mfrs, wholesalers] Fujiwa Denki, Elec Hishiki, Yuken Kogyo, Zenitaka Corp,
Fujikake Iron & Steel, Kumagai
Tokushuko, Shinto V-Cerax Ltd, other
Payment record:
Regular
Location: Business area in Nagoya. Office premises at the caption address are
leased and maintained satisfactorily.
Bank
References
MUFG
(Nagoya-Chuo)
Resona Bank (Nagoya-Ekimae)
Relations: Satisfactory
FINANCES
(In Million Yen)
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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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93,258 |
89,105 |
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Cost of Sales |
66,659 |
63,722 |
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GROSS PROFIT |
26,598 |
25,382 |
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Selling & Adm Costs |
23,220 |
21,545 |
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OPERATING PROFIT |
3,378 |
3,836 |
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Non-Operating P/L |
1,034 |
1,498 |
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RECURRING PROFIT |
4,412 |
5,334 |
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NET PROFIT |
2,637 |
2,824 |
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BALANCE SHEET |
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Cash |
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26,668 |
19,499 |
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Receivables |
31,065 |
29,414 |
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Inventory |
10,814 |
9,678 |
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Securities, Marketable |
9,216 |
7,876 |
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Other Current Assets |
2,371 |
2,128 |
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TOTAL CURRENT ASSETS |
80,134 |
68,595 |
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Property & Equipment |
29,196 |
26,678 |
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Intangibles |
3,767 |
2,634 |
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Investments, Other Fixed
Assets |
33,218 |
29,001 |
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TOTAL ASSETS |
146,315 |
126,908 |
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Payables |
13,754 |
13,811 |
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Short-Term Bank Loans |
1,665 |
1,313 |
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Other Current Liabs |
14,727 |
10,976 |
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TOTAL CURRENT LIABS |
30,146 |
26,100 |
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Debentures |
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66 |
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Long-Term Bank Loans |
11,479 |
7,665 |
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Reserve for Retirement
Allw |
794 |
1,565 |
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Other Debts |
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8,618 |
6,397 |
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TOTAL LIABILITIES |
51,037 |
41,793 |
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MINORITY INTERESTS |
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Common stock |
5,752 |
5,752 |
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Additional paid-in capital |
6,269 |
6,269 |
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Retained earnings |
64,446 |
62,291 |
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Evaluation p/l on investments/securities |
10,692 |
6,431 |
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Others |
9,428 |
5,679 |
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Treasury stock, at cost |
(1,309) |
(1,308) |
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TOTAL S/HOLDERS`
EQUITY |
95,278 |
85,114 |
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TOTAL EQUITIES |
146,315 |
126,908 |
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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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4,502 |
7,176 |
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Cash Flows from Investment Activities |
-4,931 |
-7,189 |
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Cash Flows from Financing Activities |
2,904 |
-1,498 |
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Cash, Bank Deposits at the Term End |
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22,063 |
19,303 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net Worth (S/Holders' Equity) |
95,278 |
85,114 |
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Current Ratio (%) |
265.82 |
262.82 |
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Net Worth Ratio (%) |
65.12 |
67.07 |
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Recurring Profit Ratio (%) |
4.73 |
5.99 |
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Net Profit Ratio (%) |
2.83 |
3.17 |
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Return On Equity (%) |
2.77 |
3.32 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian
Rupees |
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US Dollar |
1 |
Rs.66.75 |
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UK Pound |
1 |
Rs.99.61 |
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Euro |
1 |
Rs.70.67 |
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YEN |
1 |
Rs.0.54 |
Note : Above are approximate rates obtained
from sources believed to be correct
INFORMATION DETAILS
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Analysis
Done by : |
KAR |
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Report
Prepared by : |
TRU |
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 |
-- |
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.