MIRA INFORM REPORT

 

 

Report No. :

310437

Report Date :

28.02.2015

 

IDENTIFICATION DETAILS

 

Name :

NICHIMOKU SANGYO LTD

 

 

Registered Office :

4-1-8 Ayukawacho Hitachi City Ibaraki-Pref 310-0036

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

March 1970

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Engineering works of housing/construction & manufactures pre-cut timbers for housing, other (--100%)

 

 

No. of Employees :

102

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

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

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 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.

 

Source : CIA

 

Company summary

 

NICHIMOKU SANGYO LTD

 

REGD NAME:   Nichimoku Sangyo KK

 

MAIN OFFICE:  4-1-8 Ayukawacho Hitachi City Ibaraki-Pref 310-0036 JAPAN

                        Tel: 0294-34-4151      Fax: 0294-25-7071

 

URL:                 http://www.nichimoku.co.jp

E-Mail address: (thru the URL)

 

ACTIVITIES:     Engineering works of construction/earth works, housing pre-cut wood, other

BRANCHES:     Tsukuba, Hitachi

FACTORIES:    Hitachi-Naka City, Ibaraki-Pref

 

OFFICERS:       HISAO OONUKI, PRES              Norio Minakawa, dir

                        Koichi Mori, dir                          Shoichi Takino, dir

                        Takanori Oowa, dir                     Takaaki Wada, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 10,806 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 80 M

TREND             SLOW                           WORTH            Yen 1,856 M     

STARTED         1970                             EMPLOYES      102

 

COMMENT:      ENGINEERING WORKS OF HOUSING & MATERIALS.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: ESTIMATED AT YEN 286.3 MILLION, ON 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company was established by on the basis of a division separated from Hitachi Mokuzai Kogyo KK (now Hitachi Life Ltd) (See REGISTRATION).  This is an engineering company of housing and housing materials (pre-cut timber, other).  40% of works are for Hitachi Life Ltd.  Clients include house builders, construction firms, other.

 

 


FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 10,806 million, a 6% down from Yen 11,483 million in the previous term.  Housing works were sluggish.  The recurring profit was posted at Yen 228 million and the net profit at Yen 132 million, respectively, compared with Yen 378 million recurring profit and Yen 242 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 240 million and the net profit at Yen 150 million, respectively, on a 6% rise in turnover, to Yen 11,500 million. 

 

The financial situation is considered FAIR and good for ORDINARY business    engagements.  Max credit limit is estimated at Yen 286.3 million, on 30 days normal terms.

 

 

REGISTRATION

    

Date Registered:           Mar 1970

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  640,000 shares

Issued:                         160,000 shares

Sum:                            Yen 80 million

Major shareholders (%): Hitachi Life Ltd* (100)

 

*.. Real Estate Management, Tokyo, founded 1966, capital Yen 1,000 million, sales Yen   29,312million, operating profit Yen 2,422 million, recurring profit Yen 2,311 million, net         profit Yen 791 million, total assets Yen 52,988 million, employees 631, pres Shuji Sato

 

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

 

 

OPERATION

           

Activities: Engineering works of housing/construction & manufactures pre-cut timbers for housing, other (--100%)

 

 

Clients: [Mfrs, wholesalers] Hitachi Life Ltd (40%), CS Lumber, Sojitz Building Materials, Century Homes, Suteki Nice Group firms, Engel House, other  

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Hitachi Life Ltd, Sojitz Building Materials, Kobayashi Komuten, Akai Seisakusho, Hitachi Civil Engineering, Yamatake Ringyo, Kajima Corp, Ibamoku Co, other

 

Payment record: No Complaints

 

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

 

Bank References:

Joyo Bank (Hitachi)

Toho Bank (Hitachi)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

11,500

10,806

11,483

9,790

Recur. Profit

 

240

228

378

 

Net Profit

 

150

132

242

96

Total Assets

 

 

5,780

7,240

5,438

Current Assets

 

 

5,097

6,488

 

Current Liabs

 

 

3,629

5,088

 

Net Worth

 

 

1,856

1,823

1,612

Capital, Paid-Up

 

 

80

80

80

Div.Ttl in Million (¥)

 

 

101

30

57

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

6.42

-5.90

17.29

-3.73

    Current Ratio

 

..

140.45

127.52

..

    N.Worth Ratio

 

..

32.11

25.18

29.64

    R.Profit/Sales

 

2.09

2.11

3.29

..

    N.Profit/Sales

 

1.30

1.22

2.11

0.98

    Return On Equity

 

..

7.11

13.27

5.96

 

Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.79

UK Pound

1

Rs.95.42

Euro

1

Rs.69.29

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

               


 

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.