MIRA INFORM REPORT

 

 

Report No. :

343310

Report Date :

29.09.2015

 

IDENTIFICATION DETAILS

 

Name :

SHIZUKI ELECTRIC CO INC

 

 

Registered Office :

10-45 Taishacho Nishiku Nishinomiya Hyogo-Pref 662-0867

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

Sept., 1947

 

 

Com. Reg. No.:

1400-01-069021 (Hyogo-Nishinomiya)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Capacitors, Electric Power Systems, Information Equipment.

 

 

No. of Employees :

1,110

 

 

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 Limits :

Yen 1,022.3 Million

 

 

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

Company name and address

 

SHIZUKI ELECTRIC CO INC

 

REGD NAME:               Shizuki Denki Seisakusho KK

 

MAIN OFFICE:              10-45 Taishacho Nishiku Nishinomiya Hyogo-Pref 662-0867 JAPAN

                                                Tel: 0798-74-5821     Fax: 0798-73-3919     -

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Mfg of capacitors, electric power systems, information equipment

 

 

BRANCHES

 

Tokyo (3), Nagoya, Sapporo, Sendai, Mito, Hiroshima, Fukuoka, other (Tot 11)

 

 

OVERSEAS

 

China, Malaysia, USA, and Thailand

 

 

FACTORIES

 

At the caption address; USA, Thailand (--Factory)

 

 

CHIEF EXEC

 

KAORU ITO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES                      Yen 23,461 M

PAYMENTSNO COMPLAINTS    CAPITAL                       Yen 5,001 M

TREND UP                                WORTH                        Yen 18,990 M

STARTED         1947                             EMPLOYES                  1,110

 

 

COMMENT

 

MFR OF CAPACITORS 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 1,022.3 MILLION, 30 DAYS NORMAL TERMS

 

 

Unit: In Million Yen

Forecast figures for the 31/03/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is the medium-standing mfr of capacitors for consumer electronics and electric power industries.  Strong in large capacitors. Capacitors for electric power firms peaking out, but labor saving and large capacitors growing. Reduced inventory and improved productivity with adoption of “NPS”. In Asia, the firm will aggressively develop demand for products for electric power equipment and air-conditioners in neighboring countries, led by the subsidiary in Thailand. In the capacitor division, it will reinforce R&D of products for HV-type construction machinery and transporting equipment and new energy-related products, such as fuel cells. .The firm’s capacitors boast a track record for use in overseas railways, hybrid vehicles and electric vehicles.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 23,461 million, a 6.7% up from Yen 21,998 million in the previous term. The recurring profit was posted at Yen 2,814 million and the net profit at Yen 1,775 million, respectively, compared with Yen 2,704 million recurring profit and Yen 1,681 million net profit, respectively, a year ago. 

 

(Apr/Jun/2015 results): Sales Yen 5,089 million (down 8.9%), operating profit Yen 369 million (down 36.9%), recurring profit Yen 418 million (down 32.2%9, net profit Yen 296 million (down 22.4%). (% compared with the corresponding period a year ago).

           

For the current term ending Mar 2016 the recurring profit is projected at Yen 2,840 million and the net profit at Yen 1,790 million, on a 1.9% rise in turnover, to Yen 23,900 million. Sales of capacitors mainly to automakers will continue to stay firm. Inverter sales for use in the production of domestic industrial equipment will also increase.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 1,022.3 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　    Sept 1947

Regd No.:                     1400-01-069021 (Hyogo-Nishinomiya)

Legal Status:       Limited Company (Kabushiki Kaisha

Authorized:                     128,503,000 shares

Issued:                33,061,003 shares

Sum:                   Yen 5,001 million

 

Major shareholders (%): Mitsubishi Electric (21.1), Goldman Sachs International (13.9), Company’s Treasury Stock (11.9), Resona Bank (3.9), Shizuki Kyoyu S/Holding Assn (2.8), Minato Bank (2.7), Master Trust Bank of Japan T (2.5), Deutsche Bank LDN PB Non Treaty 613 (2.1), Nomura PB Nominees TK1 (1.8), Murata Mfg (1.7); foreign owners (20.9)

 

No. of shareholders: 2,242

 

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

 

Managements: Kaoru Ito, pres; Yasuhiko Kajikawa, ch; Nobuaki Adachi, v pres; Yoshihiro Taniguchi, s/mgn dir; Tetsuya Tomomatsu, s/mgn dir; Hisahiro Yabe, mgn dir; Atsushi Oda, mgn dir; Kengo Fujiwara, mgn dir

 

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

 

Related companies: Kyushu Shizuki, Akita Shizuki, Shizuki Electric (Shanghai), Shizuki Electric (Thailand), other.

 

 

OPERATION

           

Activities: Manufactures capacitor modules (67%), electric power systems (31%), information equipment (2%)

Overseas Sales Ratio (19%)

 

(Mfg Items): electric power systems, power distribution systems, harmonic restraint devices, capacitor-related products, voltage sag correctors, capacitor modules (for industrial/housing, other used), electric double layer capacitors, others.

           

Clients: [Mfrs, wholesalers] Mitsubishi Electric, Toshiba Corp, Hitachi Ltd, TMEIC, Toshiba Mitsubishi Electric Industrial Systems Corp, Meidensha Corp, Nitto Denko Corp, Hitachi Appliance, Murai Denki Corp, Aiden Shoji, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsui Bussan Plastic Trade, Toray KP Film, Mitsubishi Shindoh Co, Honshu Denzai Co, Denshi-Gihan Co, other

 

Payment record: No Complaints

 

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

 

Bank References:

            Resona Bank (Kobe)

            MUFG (Nishinomiya)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

23,461

21,998

　

  Cost of Sales

16,183

15,043

　

      GROSS PROFIT

7,278

6,954

　

  Selling & Adm Costs

4,775

4,562

　

      OPERATING PROFIT

2,502

2,391

　

  Non-Operating P/L

312

313

　

      RECURRING PROFIT

2,814

2,704

　

      NET PROFIT

1,775

1,681

BALANCE SHEET

　

　

  Cash

　

5,651

4,293

　

  Receivables

5,133

5,322

　

  Inventory

1,101

1,196

　

  Securities, Marketable

　

　

　

  Other Current Assets

304

345

　

      TOTAL CURRENT ASSETS

12,189

11,156

　

  Property & Equipment

10,832

10,469

　

  Intangibles

31

33

　

  Investments, Other Fixed Assets

1,999

1,559

　

      TOTAL ASSETS

25,051

23,217

　

  Payables

765

1,038

　

  Short-Term Bank Loans

900

900

　

　

　

　

　

  Other Current Liabs

2,255

2,104

　

      TOTAL CURRENT LIABS

3,920

4,042

　

  Debentures

　

　

　

  Long-Term Bank Loans

　

　

　

  Reserve for Retirement Allw

414

735

　

  Other Debts

　

1,727

1,746

　

      TOTAL LIABILITIES

6,061

6,523

　

      MINORITY INTERESTS

　

　

Common stock

5,001

5,001

　

Additional paid-in capital

3,308

3,308

　

Retained earnings

10,224

8,691

　

Evaluation p/l on investments/securities

817

455

　

Others

878

471

　

Treasury stock, at cost

(1,238)

(1,233)

　

      TOTAL S/HOLDERS` EQUITY

18,990

16,693

　

      TOTAL EQUITIES

25,051

23,217

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

2,867

2,342

　

Cash Flows from Investment Activities

-1,234

-1,380

　

Cash Flows from Financing Activities

-343

-258

　

Cash, Bank Deposits at the Term End

　

5,651

4,293

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

18,990

16,693

　

Current Ratio (%)

310.94

276.00

　

Net Worth Ratio (%)

75.81

71.90

　

Recurring Profit Ratio (%)

11.99

12.29

　

Net Profit Ratio (%)

7.57

7.64

　

　

Return On Equity (%)

9.35

10.07

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.08

UK Pound

1

Rs.100.32

Euro

1

Rs.73.81

 

INFORMATION DETAILS

 

Analysis Done by :

TRI

 

 

Report Prepared by :

NIT

 

 

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.