MIRA INFORM REPORT

 

 

Report No. :

336183

Report Date :

05.09.2015

 

IDENTIFICATION DETAILS

 

Name :

NIIGATA POWER SYSTEMS CO., LIMITED

 

 

Registered Office :

Suneast Tatsumi, 7-26, Tatsumi 3-Chome, Koto-Ku, Tokyo

 

 

Country :

Japan

 

 

Date of Incorporation :

03.02.2003

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturer of Power System Products. 

 

Range of Products

           

  • Diesel Engines (Marine Power Generation Railway Vehicle)
  • Gas Engines
  • Dual Fuel Engines
  • Gas Turbines
  • Z-Pellers
  • Power Generators
  • Geislinger Couplings, Dampers,
  • Fuel injection equipment, Lubricating oil centrifugal filters
  • Foundry Parts

 

 

No. of Employees :

360

 


 

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 – 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

 

 

NOTE

 

In absence of subject company’s financials, no credit limit could be recommended.

 

 

Company name and address

 

NIIGATA POWER SYSTEMS CO., LIMITED

 

SUNEAST TATSUMI, 7-26, TATSUMI 3-CHOME, KOTO-KU, TOKYO, JAPAN

 

TEL:  +81-3-5534-0200, +81-3-5534-0281          

FAX: +81-3-5534-0259, +81-3-5534-0289

 

 

EXECUTIVE SUMMARY

 

INCORPORATION DATE                        : FEBRUARY 3, 2003

REGISTRATION NO.                              : N/A

LEGAL FORM                                        : PRIVATE LIMITED

CHIEF EXECUTIVE                                : MR. HIROMITSU HAMAMURA (CHAIRMAN)

STAFF STRENGTH                                : 360

PAID-UP CAPITAL                                 : N/A

BUSINESS LINE                                   : MANUFACTURER

TURNOVER                                          : N/A

EQUITIES                                             : N/A

PAYMENT                                            : AVERAGE

RECOMM. CREDIT RANGE                   : MODERATE AMOUNT

MARKET CONDITION                            : AVERAGE

FINANCIAL CONDITION                         : N/A

OPERATIONAL TREND                         : STEADY

GENERAL REPUTATION                       : AVERAGE

EXCHANGE RATE                                : JPY 119.2175 = USD 1

 

 

HISTORY

 

Enquiry Address:          14-5 Sotokanda 2 Chome, chiyoda ku.

Operating Address:       Suneast Tatsumi, 7-26, Tatsumi 3-chome, Koto-ku, Tokyo

Status:                          Active

 

Location:

 

Head Office                  9-7, Yaesu 2-chome, Chuo-ku, Tokyo 104-0028 Japan

Telephone No                +81-3-6214-2800

Fax No                         +81-3-6214-2809

E-Mail                           info@niigata-power.com 

Website                                    www.niigata-power.com

 

Branch                         Tatsumi Office

Suneast Tatsumi, 7-26, Tatsumi 3-chome, Koto-ku, Tokyo, 35-0053 Japan

TEL: +81-3-5534-0200, +81-3-5534-0281

FAX: +81-3-5534-0259, +81-3-5534-0289

 

Factory             Ohta Plant

125-1, Nishishinmachi, Ota-city, Gunma, 373-0847 Japan

+81-276-31-8113

+81-276-31-8119

 

Niigata Engine Plant

1300, Okayama, Higashi-ku, Niigata, 950-0821 Japan

+81-25-274-5115

+81-25-271-5825

 

Niigata Gas/ Turbine Plant

2756-3, Higasiko 5-chome, Seiromachi, Kitakanbara-gun, Niigata, 957-0101 Japan

+81-25-256-3511

+81-25-256-3530

 

Niigata Foundry Plant

1300, Okayama, Higashi-ku, Niigata, 950-0821 Japan

+81-25-271-1261

+81-25-271-5294

 

Warehouse                   Ohta Plant

125-1, Nishishinmachi, Ota-city, Gunma, 373-0847 Japan

+81-276-31-8113

+81-276-31-8119

 

Niigata Engine Plant

1300, Okayama, Higashi-ku, Niigata, 950-0821 Japan

+81-25-274-5115

+81-25-271-5825

 

Niigata Gas/ Turbine Plant

2756-3, Higasiko 5-chome, Seiromachi, Kitakanbara-gun, Niigata, 957-0101 Japan

+81-25-256-3511

+81-25-256-3530

 

Niigata Foundry Plant

1300, Okayama, Higashi-ku, Niigata, 950-0821 Japan

+81-25-271-1261

+81-25-271-5294

 

 

 

WEB SITE

 

Website: www.niigata-power.com the design is professional and the content is well organized. At present it is in both Japanese and English versions.

 

E-Mail: info@niigata-power.com 

 

 

LITIGATION

 

For the past two years there is no record of litigation.

 

 

OWNERSHIP/MANAGEMENT BACKGROUND

 

Major shareholders (%): 

 

Name                                                             IHI Corporation

Share Percent                                                100%

Country                                                          Japan

 

 

MANAGEMENT

 

DIRECTORS

 

Name                Mr. Hiromitsu Hamamura

Designation      Chairman 

Nationality         Japanese

           

Name                Mr. Kazuhiko Motoyama

Designation      President 

Nationality         Japanese

 

 

BUSINESS OPERATIONS

 

Line of Business                       Manufacturer

Items Dealing In                        Power System Products 

Terms of Purchase                    Local: Cash or Credit

Import: Against L/C

Terms of Sale                           Local: Cash or Credit

Export: Against L/C

 

Range of Products                 Diesel Engines (Marine Power Generation Railway Vehicle)

                                              Gas Engines

                                              Dual Fuel Engines

                                              Gas Turbines

                                             Z-Pellers

                                             Power Generators

                                             Geislinger Couplings, Dampers,

                                              Fuel injection equipment, Lubricating oil centrifugal filters

                                              Foundry Parts

 

Export Market                       Global 

Certifications                           ISO 15550

Group Name                          IHI Group

 

 

RELATED COMPANIES

 

Subsidiaries / Affiliates           

 

DOMESTIC

 

IHI Inspection & Instrumentation Co., Ltd.

Takashima Giken Co., Ltd.

IHI PACKAGED BOILER CO., LTD.

IHI Plant Construction Co., Ltd.

Japan Jurong Engineering Co., Ltd

Kotobuki Iron Works Co., Ltd.

Toyosu Energy Service Co., Ltd.

Aomori Plant Co., Ltd.

IHI Plant Engineering Corporation

Kanamachi Purification Plant Energy Service Co., Ltd.

NICO Precision Co., Inc.

IHI NeoG Algae

IHI Marine United Inc.

IHI Engineering Marine Co., Ltd.

IHI Amtec Co., Ltd.

IHI Marine Co., Ltd.

Shinkoh SBA Co., Ltd.

IHI Transport Machinery Co., Ltd.

IHI Logistic Technology Co., Ltd.

San-Etsu Co., Ltd.

CENTRAL CONVEYOR CO., Ltd.

Niigata Transys Co., Ltd.

IHI Infrastructure Systems Co., Ltd.

IHI Construction Service Co., Ltd.

Hohoemie Company Ltd.

ISHIKAWAJIMA CONSTRUCTION MATERIALS Co., Ltd.

Kanto Segment Co., Ltd.

Livecon Engineering Co., Ltd.

Japan Tunnel Systems Corporation

Nishi-nihon Sekkei Engineering Co., Ltd.

Chiba Warehouse Co., Ltd.

IHI Kankyo Engineering Co., Ltd.

IHI Machinery and Furnace Co., Ltd.

Voith IHI Paper Technology Co., Ltd.

IHI METALTECH Co., Ltd.

IHI Compressor and Machinery Co., Ltd.

IHITurbo Co., Ltd.

NC Engineering Co., Ltd.

IHI AEROSPACE CO., LTD.

IHI AEROSPACE ENGINEERING CO., LTD.

IHI Aero Manufacturing Co., Ltd.

IHI CASTINGS CO., LTD.

IHI Jet Service Co., Ltd.

IHI MASTER METAL Co., Ltd.

IHI Technical Training Institution

IHI Construction Machinery Limited

Kinki Ishiko Co., Ltd.

Diesel United, Ltd.

IHI Business Support Corporation

Seiban Development Co., Ltd.

IHI Scube Co., Ltd

IHI TECHNOLOGY SOLUTIONS INC.

IHI Trading, INC.

IHI Shibaura Machinery Corporation

IHI Shibaura Technical Service Corporation

IHI STAR Machinery Corporation

 

OVERSEAS

 

Niigata Power Systems (Europe) B.V.

Niigata Power Systems (Singapore) Pte. Ltd.

Niigata Power Systems Philippines, Inc.        

 

Member:           NIL

 

FINANCIAL HIGHLIGHTS

 

Parent Company Balance Sheet

As At 31 March 2015

Currency: Yen (In Millions)

 

Assets

 

Cash and Equivalents

94,549.0

Short-Term Investments

205.0

TOTAL CASH AND SHORT TERM INVESTMENTS

94,754.0

Accounts Receivable

431,903.0

TOTAL RECEIVABLES

431,903.0

Inventory

399,301.0

Deferred Tax Assets, Current

43,206.0

Other Current Assets

84,562.0

TOTAL CURRENT ASSETS

1,053,726.0

NET PROPERTY PLANT AND EQUIPMENT

357,625.0

Goodwill

23,301.0

Long-Term Investments

193,443.0

Deferred Tax Assets, Long Term

35,587.0

Other Intangibles

27,200.0

TOTAL ASSETS

1,690,882.0

 

 

LIABILITIES & EQUITY

 

Accounts Payable

300,148.0

Accrued Expenses

109,299.0

Short-Term Borrowings

131,135.0

Current Portion of Long-Term Debt/Capital Lease

--

Current Income Taxes Payable

23,162.0

Other Current Liabilities, Total

232,181.0

TOTAL CURRENT LIABILITIES

795,925.0

Long-Term Debt

262,320.0

Capital Leases

13,174.0

Minority Interest

13,054.0

Pension & Other Post-Retirement Benefits

157,986.0

Deferred Tax Liability Non-Current

5,445.0

Other Non-Current Liabilities

96,437.0

TOTAL LIABILITIES

1,331,287.0

Common Stock

107,165.0

Additional Paid in Capital

54,438.0

Retained Earnings

152,563.0

Treasury Stock

-655.0

Comprehensive Income and Other

33,030.0

TOTAL COMMON EQUITY

346,541.0

TOTAL EQUITY

359,595.0

TOTAL LIABILITIES AND EQUITY

1,690,882.0

 

Parent Company Income Statement

For the Year Ended 31 March 2015

Currency: Yen (In Millions)

 

Revenues

1,455,844.0

TOTAL REVENUES

1,455,844.0

Cost of Goods Sold

1,210,313.0

GROSS PROFIT

245,531.0

Selling General & Admin Expenses, Total

141,718.0

R&D Expenses

32,674.0

Depreciation & Amortization, Total

7,886.0

OTHER OPERATING EXPENSES, TOTAL

182,278.0

OPERATING INCOME

63,253.0

Interest Expense

-4,221.0

Interest and Investment Income

2,369.0

NET INTEREST EXPENSE

-1,852.0

Income (Loss) on Equity Investments

-1,701.0

Currency Exchange Gains (Loss)

5,274.0

Other Non-Operating Income (Expenses)

-8,445.0

EBT, EXCLUDING UNUSUAL ITEMS

56,529.0

Gain (Loss) on Sale of Investments

-29,089.0

Gain (Loss) on Sale of Assets

--

Other Unusual Items, Total

-175.0

Other Unusual Items

--

EBT, INCLUDING UNUSUAL ITEMS

27,265.0

Income Tax Expense

20,518.0

Minority Interest in Earnings

2,335.0

Earnings from Continuing Operations

6,747.0

NET INCOME

9,082.0

NET INCOME TO COMMON INCLUDING EXTRA ITEMS

9,082.0

NET INCOME TO COMMON EXCLUDING EXTRA ITEMS

9,082.0

 

 

BANKING

 

N/A

 

 

REMARKS

 

Company can be considered good for normal business dealings at usual trade terms and conditions.

 

SC is a large-sized company with the history of 12 years in its line. Due to lack of the financial statements, we are unable to determine the maximum credit limit for SC.

 

Interviewed with the name of KG Traders Pvt Limited

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.40

UK Pound

1

Rs.101.19

Euro

1

Rs.73.89

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

VNT

 

               

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.