MIRA INFORM REPORT

 

 

Report No. :

353684

Report Date :

05.12.2015

 

IDENTIFICATION DETAILS

 

Name :

TSUBAKI NAKASHIMA CO LTD

 

 

Registered Office :

19 Shakudo Katsuragi Nara-Pref 639-2162

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

Jan., 2007

 

 

Com. Reg. No.:

1500-01-014908 (Nara-Katsuragi)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Bearings.

 

 

No. of Employees :

800

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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 and address

 

TSUBAKI NAKASHIMA CO LTD

 

REGD NAME:               KK Tsubaki Nakashima

 

MAIN OFFICE:              19 Shakudo Katsuragi Nara-Pref 639-2162 JAPAN 

                                                Tel: 0745-48-2891     Fax: 0745-48-6583

 

                                    *.. The given address is its Koriyama Factory

 

URL:                 http://www.tsubaki.com/

E-mail:                         hideyuki-sakai@tsubaki.com     

 

 

ACTIVITIES

 

Mfg of bearings

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya (Tot 3)

 

 

OVERSEAS

 

USA (3), Poland, China (2), Taiwan, India (--subsidiaries)

 

 

FACTORIES

 

At the caption address, Koriyama (Nara-Pref), Sasebo (Nagasaki); USA, China, Poland

 

 

OFFICER(S)

 

KENJI YAMADA, PRES             Tsutomu Takamiya, rep dir

Shakil Ohara, s/mgn dir              Tetsuo Naraha, mgn dir

Koji Hirota, mgn dir                               Kazuya Shimada, mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES                      Yen 17,551 M

PAYMENTSREGULAR   CAPITAL                       Yen 15,824 M

TREND STEADY           WORTH                        Yen 36,334 M

STARTED         2007                 EMPLOYES                  800

 

 

COMMENT

 

MFR OF BEARINGS 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

 

HIGHLIGHTS

           

The subject company was established originally by Kosaburo Kondo in order to make most of his experience in the subject line of business, as Tsubakimoto Seiko KK.  In 2007, operations went under and restructured by merging Nakashima Corp, and renamed as captioned.  This is a specialized mfr of bearings (stainless steel, ceramic, synthetic resin make).  In Apr 2011, the owner Nomura Holdings transferred the whole share in the firm to Carlyle Group, USA and the firm became its subsidiary.  Clients are major mfrs, wholesalers, other, nationwide.

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2014 fiscal term amounted to Yen 17,551 million, an 11% up from Yen 15,758 million in the previous term. Production increased in USA and China. The recurring profit was posted at Yen 2,926 million and the net profit at Yen 415 million, respectively, compared with Yen 1,860 million recurring profit and Yen 600 million net profit, respectively, a year ago. 

 

For the current term ending Dec 2015 the recurring profit is projected at Yen 3,100 million and the net profit at Yen 430 million, respectively, on a 5% rise in turnover, to Yen 18,500 million.  Business is seen steadily expanding.

           

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

            Date Registered:  Jan 2007

            Regd No.:            1500-01-014908 (Nara-Katsuragi)

            Legal Status:      Limited Company (Kabushiki Kaisha)

            Authorized:        100 million shares

            Issued:               3.92 million shares

            Sum:                  Yen 15,824 million

            Major shareholders (%): CJP TN Holdings, LP (90), other

            No of shareholders: 5

 

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

 

 

OPERATION

 

Activities: Mfg of bearings, machinery parts & components, air blowers, their parts & components (--100%)

 

(Mfg items): precision balls, precision machine balls, feed screws, positioning tables, blowers & general industrial machinery, other

 

Clients: [Mfrs, wholesalers] J-Tect, Nachi-Fujikoshi Corp, Minebea Co, NTN Corp, Pilot Corp, Okuma Corp, Mitsubishi Corp, Pilot Ink, Toshiba Machinery, DAIBEA Co, Kawasaki Heavy Machinery, Mitsubishi Heavy Machinery, other           

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers [Mfrs, wholesalers] Nachi-Fujikoshi Corp, Tungaloy Corp, Umetoku Inc, Daido Metal Ind, Okaya & Co, Asahi Diamond Ind, Kanehira Steel Co, Koshuha-Foundry Co, Kyocera Corp, other.

 

Payment record: Regular

 

Location: Business area in Nara.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

            MUFG (Osaka)

            Resona Bank (Osaka)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/12/2015

31/12/2014

31/12/2013

31/12/2012

Annual Sales

 

18,500

17,551

15,758

13,840

Recur. Profit

 

3,100

2,926

1,860

1,386

Net Profit

 

430

415

600

420

Total Assets

 

 

72,476

80,174

79,002

Current Assets

 

 

20,196

23,734

23,095

Current Liabs

 

 

2,785

5,554

2,835

Net Worth

 

 

26,334

33,154

32,471

Capital, Paid-Up

 

 

15,824

15,824

15,824

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.41

11.38

13.86

-11.88

    Current Ratio

 

..

725.17

427.33

814.64

    N.Worth Ratio

 

..

36.33

41.35

41.10

    R.Profit/Sales

 

16.76

16.67

11.80

10.01

    N.Profit/Sales

 

2.32

2.36

3.81

3.03

    Return On Equity

 

..

1.58

1.81

1.29

 

Notes: Forecast (or estimated) figures for the 31/12/2015 fiscal term

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.84

UK Pound

1

Rs.101.04

Euro

1

Rs.73.05

Yen

1

Rs.0.54

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               


 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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