MIRA INFORM REPORT

 

Report No. :

337055.2

Report Date :

05.09.2015

 

IDENTIFICATION DETAILS

 

Name :

NIPPON SEISEN CO LTD

 

 

Registered Office :

Kogin Bldg 9F, 4-1-1 Koraibashi Chuoku Osaka541-0043

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

June 1951

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Subject is manufactures of stainless steel wires (86%), metal fibers (14%).

 

 

No. of Employee :

741

 

 

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

 

Maximum Credit Limit :

YEN 1,497.8 MILLION

 

 

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

 

NIPPON SEISEN CO LTD

 

REGD NAME:   Nihon Seisen KK

MAIN OFFICE:  Kogin Bldg 9F, 4-1-1 Koraibashi Chuoku Osaka541-0043 JAPAN

                                    Tel: 06-6222-5431     Fax: 06-6222-0718     -

 

URL:                 http://www.n-seisen.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of secondary products of stainless steel wire

 

 

BRANCHES

 

Tokyo, Nagoya, other (Tot5)

 

 

OVERSEAS

 

Thailand, Korea, China

 

 

FACTORIES

 

Hirakata, Higashi-Osaka, Nagoya

 

 

CHIEF EXEC

 

TATSUO KONDO, PRES

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 30,917 M

PAYMENTS      REGULAR         CAPITAL           Yen 5,000 M

TREND UP                    WORTH            Yen 23,665 M

STARTED         1951                 EMPLOYES      741

 

 

COMMENT

 

MFR OF SECONDARY PRODUCTS OF STAINLESS STEEL WIRE

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

MAX CREDIT LIMIT: YEN 1,497.8 MILLION, 30 DAYS NORMAL TERMS

 

 

Unit: In Million Yen

Forecast figures for the 31/10/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is the leading mfr of secondary products of stainless steel wires, including screws, springs and metal nets for automobiles, consumer electronics.  Daido Steel became the top shareholder thru share acquisition from Nippon Yakin.  Emphasis put more on metal fibers.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 30,917 million, a 4.8% up from Yen 29,500 million in the previous term.  The recurring profit was posted at Yen 2,294 million and the net profit at Yen 1,414 million, respectively, compared with Yen 2,029 million recurring profit and Yen 1,245 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 2,600 million and the net profit at Yen 1,700 million, respectively, on a 3.5% rise in turnover, to Yen 32,000 million.  Stainless wires for building materials and automobiles are anticipated to enjoy sales recovery, sending up plant capacity utilization rates.  Demand for metal fibers will expand, supported by active capital investments in semiconductor sector.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 1,497.8 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　       Jun 1951

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:                   82.8 million shares

Issued:                32,461,468 shares

Sum:                   Yen 5,000 million

 

Major shareholders (%): Daido Steel (40.3), Japan Trustee Services T (5.6), Nippon Yakin Kogyo (5.2), Mizuho Bank (3.3), Tokuhatsu Co (1.6), Kazuo Maeo (1.4), Japan Trustee Services T (1.2), Senshu Ikeda Bank (1.2), Master Trust Bank of Japan T (1.1), MUFG (1.0); foreign owners (7.1)

 

No. of shareholders: 2,975

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Tatsuo Kondo, pres; Koson Kinukawa, mgn dir; Masahiko Kishimoto, mgn dir; Masahiro Taga, mgn dir; Yasuaki Akita, dir, Kazuhito Tachibana, dir

 

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

 

Related companies: Thai Seisen, China Seisen, other.

 

 

OPERATION

           

Activities: Manufactures stainless steel wires (86%), metal fibers (14%)

Overseas Sales Ratio (21%)

           

Clients: [Mfrs, wholesalers] Metal One, Daido Kogyo, Marubeni Itochu Steel Inc, Metal One Steep Products Corp, Umetoku Inc, NAS Trading, Daiichi Kinzoku, Sakuma Special         Steel, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Daido Kogyo, Mitsui Bussan Steel, Posco Japan, Misawa                        Trading, Nippon Steel & Sumikin Bussan, Shinko Stainless, Yamako Technos, other

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Osaka)

SMBC (Bingomachi)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

  Annual Sales

　

30,917

29,500

  Cost of Sales

25,871

24,843

      GROSS PROFIT

5,046

4,657

  Selling & Adm Costs

2,793

2,613

      OPERATING PROFIT

2,252

2,043

  Non-Operating P/L

42

-14

      RECURRING PROFIT

2,294

2,029

　

      NET PROFIT

1,414

1,245

BALANCE SHEET

  Cash

　

9,231

7,421

  Receivables

6,737

5,779

  Inventory

5,425

5,682

  Securities, Marketable

　

　

  Other Current Assets

431

386

      TOTAL CURRENT ASSETS

21,824

19,268

  Property & Equipment

9,722

9,878

  Intangibles

292

305

  Investments, Other Fixed Assets

2,225

2,034

      TOTAL ASSETS

34,063

31,485

  Payables

3,973

3,390

  Short-Term Bank Loans

667

1,275

　

　

　

  Other Current Liabs

1,785

1,333

      TOTAL CURRENT LIABS

6,425

5,998

  Debentures

　

　

  Long-Term Bank Loans

704

　

  Reserve for Retirement Allw

3,094

2,897

  Other Debts

　

174

181

      TOTAL LIABILITIES

10,397

9,076

      MINORITY INTERESTS

  Capital, Paid-Up

5,000

5,000

  Surplus

18,665

17,408

      SHAREHOLDERS' EQUITY

23,665

22,408

　

      TOTAL EQUITIES

34,063

31,485

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2015

31/03/2014

Cash Flows from Operating Activities

　

3,273

2,835

Cash Flows from Investment Activities

-1,325

-1,602

Cash Flows from Financing Activities

-269

-505

　

Cash, Bank Deposits at the Term End

　

9,179

7,462

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

Net Worth (S/Holders' Equity)

23,665

22,408

Current Ratio (%)

339.67

321.24

Net Worth Ratio (%)

69.47

71.17

Recurring Profit Ratio (%)

7.42

6.88

Net Profit Ratio (%)

4.57

4.22

Return On Equity (%)

5.98

5.56

 

 

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 :

DIV

 

 

Report Prepared by :

ASH

 

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.