MIRA INFORM REPORT
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Report No. : |
307514 |
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Report Date : |
10.02.2015 |
IDENTIFICATION DETAILS
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Name : |
NITTO SEIKO CO LTD |
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Registered Office : |
20 Umegahata Inokuracho Ayabe City Kyoto
623-0054 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2013 (Consolidated) |
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Date of Incorporation : |
25.02.1938 |
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Legal Form : |
Limited Company |
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Line of Business : |
Subject operates
through following divisions Fastener
Division Engaged in manufacturing
various screws such as precision screws, self-tapping screws, and
self-locking screws, as well as industrial fasteners such as rivets, pins,
and special cold-forged parts. Machinery
Division Engaged in designing and manufacturing screw-fastening machines such as
single-spindle or multi-spindle screwdrivers, screwdriving robots,
screwdrivers, and screw feeders, automatic clamping machines such as riveting
machines and eyeleting machines, and special automatic assembly machines
tailored to our customers needs. Control Systems Division Engaged in supplying flow meters, LP Gas
dispensers, and other fluid-measuring instruments to help meet your various
measurement and control needs, both in the workplace and in the home. Recently,
the Division has been providing special instrumentation systems tailored to
our customers’ needs by combining data processing technologies with
labor-saving technologies. |
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No of Employees : |
1,377 |
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 Limit : |
Yen 936.2 Million |
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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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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
NITTO SEIKO CO LTD
REGD
NAME
Nitto Seiko KK
MAIN
OFFICE
20 Umegahata
Inokuracho Ayabe City Kyoto 623-0054 JAPAN
Tel:
0773-42-3111 Fax: 0773-42-8426
URL: http://www.nittoseiko.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Subject operates
through following divisions
Fastener Division
Engaged in manufacturing
various screws such as precision screws, self-tapping screws, and self-locking
screws, as well as industrial fasteners such as rivets, pins, and special
cold-forged parts.
Machinery Division
Engaged in designing and manufacturing screw-fastening machines such as single-spindle
or multi-spindle screwdrivers, screwdriving robots, screwdrivers, and screw
feeders, automatic clamping machines such as riveting machines and eyeleting
machines, and special automatic assembly machines tailored to our customers
needs.
Control Systems Division
Engaged in supplying flow meters, LP Gas
dispensers, and other fluid-measuring instruments to help meet your various
measurement and control needs, both in the workplace and in the home. Recently,
the Division has been providing special instrumentation systems tailored to our
customers’ needs by combining data processing technologies with labor-saving
technologies.
BRANCHES
Tokyo,
Yokohama, Sapporo, Osaka, Nagoya, Fukuoka (Tot 7)
OVERSEAS
Taiwan,
Thailand, China, Malaysia, Indonesia, USA
FACTORIES
At the
caption address; two other in Kyoto
CHIEF
EXEC
MASAMI
ZAIKI, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 23,848 M
PAYMENTSNo Complaints
CAPITAL Yen 3,522 M
TREND SLOW WORTH Yen 21,801 M
STARTED 1938 EMPLOYES 1,377
COMMENT
INDUSTRIAL SCREW MFR
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 936.2 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast figures for the 31/12/2014
fiscal term.
HIGHLIGHTS
This is the major industrial screw mfr excelling in precision screws for electronic and OA fields. Also engaged in industrial machinery including automatic screw driving systems and screw fastening robots for automobiles. Strengthening overseas business mainly for automotive-use.
FINANCIAL
INFORMATION
The sales volume for Dec/2014 fiscal term amounted to Yen 23,848 million, a 5.4% down from Yen 25,207 million in the previous term. This is referred to stagnant sales of screws for domestic makers, which prolonged. The recurring profit was posted at Yen 2,496 million and the net profit at Yen 1,414 million, respectively, compared with Yen 2,340 million recurring profit and Yen 1,037 million net profit, respectively, a year ago.
(Jan/Sept/2014 results): Sales Yen 19,657 million (up 9.6%), operating profit Yen 2,007 million (up 18.5%), recurring profit Yen 2,146 million (up 17.2%), net profit Yen 1,300 million (up 24.1%). (% as compared with the corresponding period a year ago).
For the term that ended Dec 2014 the recurring profit was projected at Yen 2,690 million and the net profit at Yen 1,570 million, respectively, on a 7.3% rise in turnover, to Yen 25,600 million. Automobile-use machinery continued vigorously growing. Final results are yet to be released.
The financial situation is considered ^FAIR and good for ^ORDINARY business engagements. Max credit limit is estimated at Yen 936.2 million, on 30 days normal terms.
REGISTRATION
Date Registered: 25 Feb 1938
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized: 98.8
million shares
Issued:
39,985,017 shares
Sum: Yen 3,522
million
Major shareholders (%): Company’s Kyoyukai Assn (6.9),
Gunze Ltd (5.2), Bank of Kyoto (4.7), Sumitomo Mitsui Trust Bank (4.4),
Company’s Treasury Stock (4.2), Shinsho Corp (3.7), MUFG (3.3), Japan Trustee
Services T (2.4), Master Trust Bank of Japan T (2.0), Employees’ S/Holding Assn
(1.9); foreign owners (3.8)
No. of shareholders: 2,783
Listed on the S/Exchange (s) of: Tokyo
Managements: Nobuyasu Shiota, ch; Masami Zaiki,
pres; Kazunori Imagawa, mgn dir; Yoshiaki Suwa, dir; Yoshiro Kobayashi, dir; Yoshiaki
Watanabe, dir; Naoki Ota, dir; Yukio Adachi, dir; Shoichi Murakami, dir;
Yoshikuni Otsuka, dir
Nothing detrimental is known as
to the commercial morality of executives.
Related companies:
Nitto Koshin Co, Wako Co, Nitto Seiko China, other.
OPERATION
Activities: Manufactures
fasteners (67%), industrial machinery (22%), control equipment (11%).
Overseas Sales
Ratio (25%)
Clients: [Mfrs,
wholesalers] Tokyo Byokane Co, Olip Co, K Mac, Fujita Rashi Kougyou Co, Wako
Co, Mitsukawa Seiki Co, Techno Associe Co, other
No. of accounts: 350
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Shinsho Corp, O&K, Nitto Associates, other
Payment record: No
Complaints
Location: Business area in
Kyoto. Office premises at the caption
address are owned and maintained satisfactorily.
Bank
References:
Bank of Kyoto (Ayabe)
MUFG (Kyoto-Chuo)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/12/2013 |
31/12/2012 |
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INCOME STATEMENT |
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Annual Sales |
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23,848 |
25,207 |
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Cost of Sales |
17,682 |
19,364 |
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GROSS PROFIT |
6,166 |
5,843 |
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Selling & Adm Costs |
3,853 |
3,605 |
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OPERATING PROFIT |
2,312 |
2,237 |
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Non-Operating P/L |
184 |
103 |
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RECURRING PROFIT |
2,496 |
2,340 |
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NET PROFIT |
1,414 |
1,037 |
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BALANCE SHEET |
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Cash |
|
5,369 |
6,577 |
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Receivables |
6,901 |
6,589 |
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Inventory |
3,224 |
3,891 |
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Securities, Marketable |
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Other Current Assets |
2,883 |
1,732 |
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TOTAL CURRENT ASSETS |
18,377 |
18,789 |
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Property & Equipment |
8,571 |
7,921 |
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Intangibles |
47 |
25 |
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Investments, Other Fixed Assets |
7,412 |
5,308 |
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TOTAL ASSETS |
34,407 |
32,043 |
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Payables |
3,468 |
3,101 |
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Short-Term Bank Loans |
3,293 |
2,786 |
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Other Current Liabs |
3,614 |
3,408 |
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TOTAL CURRENT LIABS |
10,375 |
9,295 |
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Debentures |
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Long-Term Bank Loans |
181 |
769 |
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Reserve for Retirement Allw |
1,752 |
1,742 |
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Other Debts |
|
238 |
236 |
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TOTAL LIABILITIES |
12,546 |
12,042 |
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MINORITY INTERESTS |
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Common
stock |
3,522 |
3,522 |
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Additional
paid-in capital |
2,518 |
2,518 |
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Retained
earnings |
14,760 |
13,691 |
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Evaluation
p/l on investments/securities |
168 |
45 |
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Others |
1,361 |
687 |
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Treasury
stock, at cost |
(468) |
(462) |
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TOTAL S/HOLDERS` EQUITY |
21,861 |
20,001 |
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TOTAL EQUITIES |
34,407 |
32,043 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/12/2013 |
31/12/2012 |
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Cash
Flows from Operating Activities |
|
1,795 |
3,142 |
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Cash
Flows from Investment Activities |
-1,119 |
-1,031 |
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Cash
Flows from Financing Activities |
-501 |
-978 |
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Cash,
Bank Deposits at the Term End |
|
4,633 |
4,216 |
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ANALYTICAL RATIOS Terms ending: |
31/12/2013 |
31/12/2012 |
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Net
Worth (S/Holders' Equity) |
21,861 |
20,001 |
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Current
Ratio (%) |
177.13 |
202.14 |
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Net
Worth Ratio (%) |
63.54 |
62.42 |
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Recurring
Profit Ratio (%) |
10.47 |
9.28 |
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Net
Profit Ratio (%) |
5.93 |
4.11 |
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Return
On Equity (%) |
6.47 |
5.18 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.14 |
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UK Pound |
1 |
Rs.94.79 |
|
Euro |
1 |
Rs.70.38 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
MNL |
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 |
|
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 |
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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.