MIRA INFORM REPORT
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Report No. : |
323709 |
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Report Date : |
21.05.2015 |
IDENTIFICATION DETAILS
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Name : |
NIPPON SADA CO LTD |
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Registered Office : |
2-2-1 Ohtemachi Chiyodaku Tokyo 100-8165 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Year of Establishment : |
1920 |
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Legal Form : |
Limited Company |
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Line of Business : |
Subject is manfactrer of fine
chemicals, agrochemicals |
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No. of Employee : |
2,543 |
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 – 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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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 and address
NIPPON SADA CO LTD
REGD NAME: Nihon
Soda KK
MAIN OFFICE: 2-2-1
Ohtemachi Chiyodaku Tokyo 100-8165 JAPAN
Tel: 03-3245-6054 Fax: 03-3245-6238
URL: http://www.nippon-soda.co.jp/
E-Mail
address: info@nippon-soda.co.jp
ACTIVITIES
Mfg of
fine chemicals, agrochemicals
BRANCHES
Osaka,
Tokyo (Nihombashi), Sapporo, Sendai, Nagoya, Niigata, Toyama,
Matsuyama,
Fukuoka, other (Tot 14)
OVERSEAS
USA, China, Brazil, Korea,
Belgium, Germany, Brazil, other (--subsidiaries)
FACTORIES
Niigata,
Toyama, Okayama, Chiba (Tot 4)
CHIEF
EXEC
YUTAKA
KINEBUCHI, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 148,062 M
PAYMENTS NO COMPLAINTS CAPITAL Yen
29,166 M
TREND STEADY WORTH Yen
127,181 M
STARTED 1920 EMPLOYES 2,543
COMMENT
MFR OF FINE CHEMICALS,
AGROCHEMICAL, OTHER.
FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast
(or estimated) figures for 31/03/2016 fiscal term
HIGHLIGHTS
This is a midsize chemical mfr focusing on fine
chemicals. Emphasis put more on
agrochemicals including herbicides, pharmaceuticals and functional
products. Functional products include
water-treatment agents and transparent conductive glass. Has subsidiary, Sanwa Soko, warehouse
operator listed on Tokyo S/E. In
agrochemicals, contracts with a Brazilian agrochemical mfr on licensee mfg
agreement.
FINANCIAL
INFORMATION
The sales volume for Mar/2015 fiscal term amounted to Yen
148,062 million, a 5.3% up from Yen 140,649 million in the previous term. The recurring profit was posted at Yen 14,924
million and the net profit at Yen 10,945 million, respectively, compared with
Yen 9,740 million recurring profit and Yen 5,833 million net profit,
respectively, a year ago.
For the current term ending Mar 2016 the recurring profit is
projected at Yen 12,700 million and the net profit at Yen 10,000 million, on a 1.3%
rise in turnover, to Yen 150,000 million.
Sales of agrochemicals will benefit from the clearance of increased
inventory of new products bound for the Brazil market.
The
financial situation is considered FAIR and good for ORDINARY business
engagements. .
REGISTRATION
Date Registered: Feb 1935
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized:
480 million shares
Issued:
154,317,630 shares
Sum:
Yen 29,166 million
Major shareholders (%):
Master Trust Bank of Japan T (8.8), Japan Trustee Services T (7.3), Mitsui
& Co (3.2), Norin Chukin Bank (2.6), Customers’ S/Holding Assn (2.6),
Mizuho Bank (2.6), JP Morgan Chase Bank 385632 (2.4), Bank of NY OCM Client
MAPNB (2.2), Trust & Custody Services Inv T (1.6), Resona Bank (1.5);
foreign owners (27.0)
No. of shareholders:
4,295
Listed
on the S/Exchange (s) of: Tokyo
Managements:
Yutaka Kinebuchi, pres; Eiji Ito, s/mgn dir; Makoto Masuda, mgn dir; Shingo
Nakamura, mgn dir; Akira Ishii, mgn dir; Hiroyuki Uryu, mgn dir; Naoyuki Hori,
dir
Nothing detrimental is known as to
the commercial morality of executives.
Related
companies: Nisso Trading, Sanwa Soko, Nisso Metal, other.
OPERATION
Activities:
Manufactures: chemicals (including fine chemicals) (29%), agrochemicals (31%), trading companies (25%),
transportation & warehousing (--3%), construction (7%), others (5%)
Overseas Sales Ratio (34%):
Clients:
[Mfrs, wholesalers] Mitsui & Co, Zen-Noh Corp, Nisso Shoji, Nisso Chemical Europe, Nisso America, Kaneko Seeds, other
No. of accounts: 800
Domestic areas of activities:
Nationwide
Suppliers:
[Mfrs, wholesalers] Mitsui & Co, Nisso BASF, Agro Japan, Nisso Fine, Zen-Noh Corp, other.
Payment record: No
Complaint
Location:
Business area in Tokyo. Office premises
at the caption address are leased and
maintained satisfactorily.
Bank
References:
Mizuho Bank (H/O)
Norin Chukin Bank (H/O)
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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148,062 |
140,649 |
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Cost of Sales |
111,776 |
105,323 |
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GROSS PROFIT |
36,285 |
35,325 |
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Selling & Adm Costs |
29,000 |
28,926 |
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OPERATING PROFIT |
7,285 |
6,399 |
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Non-Operating P/L |
7,639 |
3,341 |
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RECURRING PROFIT |
14,924 |
9,740 |
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NET PROFIT |
10,945 |
5,833 |
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BALANCE SHEET |
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Cash |
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14,875 |
12,424 |
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Receivables |
44,049 |
43,886 |
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Inventory |
28,400 |
27,464 |
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Securities, Marketable |
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Other Current Assets |
4,905 |
5,085 |
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TOTAL CURRENT ASSETS |
92,229 |
88,859 |
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Property & Equipment |
53,581 |
54,631 |
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Intangibles |
2,496 |
2,828 |
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Investments, Other Fixed Assets |
72,979 |
57,979 |
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TOTAL ASSETS |
221,285 |
204,297 |
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Payables |
21,355 |
22,757 |
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Short-Term Bank Loans |
31,706 |
32,259 |
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Other Current Liabs |
12,781 |
13,702 |
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TOTAL CURRENT LIABS |
65,842 |
68,718 |
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Debentures |
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Long-Term Bank Loans |
17,292 |
17,701 |
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Reserve for Retirement Allw |
2,837 |
2,883 |
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Other Debts |
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8,133 |
6,770 |
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TOTAL LIABILITIES |
94,104 |
96,072 |
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MINORITY INTERESTS |
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Common
stock |
29,166 |
29,166 |
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Additional
paid-in capital |
26,095 |
26,095 |
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Retained
earnings |
52,790 |
44,174 |
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Evaluation
p/l on investments/securities |
7,043 |
2,919 |
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Others |
12,746 |
6,514 |
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Treasury
stock, at cost |
(659) |
(644) |
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TOTAL S/HOLDERS` EQUITY |
127,181 |
108,224 |
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TOTAL EQUITIES |
221,285 |
204,297 |
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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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9,588 |
11,260 |
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Cash Flows
from Investment Activities |
-4,600 |
-11,805 |
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Cash
Flows from Financing Activities |
-2,776 |
-1,888 |
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Cash,
Bank Deposits at the Term End |
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14,853 |
12,402 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
127,181 |
108,224 |
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Current
Ratio (%) |
140.08 |
129.31 |
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Net
Worth Ratio (%) |
57.47 |
52.97 |
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Recurring
Profit Ratio (%) |
10.08 |
6.93 |
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Net
Profit Ratio (%) |
7.39 |
4.15 |
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Return
On Equity (%) |
8.61 |
5.39 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.63.87 |
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|
1 |
Rs.98.89 |
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Euro |
1 |
Rs.70.73 |
INFORMATION DETAILS
|
Analysis Done by
: |
SAN |
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Report Prepared
by : |
ASH |
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.