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MIRA
INFORM REPORT
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Report No. : |
494367 |
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Report Date : |
24.02.2018 |
IDENTIFICATION DETAILS
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Name : |
SHIMA SEIKI MFG LTD |
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Registered Office : |
85 Sakata Wakayama
641-8511 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
Jul 1961 |
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Com. Reg. No.: |
1700-01-001608 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufactures weft knitting machines (81%), computer
graphic design systems (6%), glove & hosiery knitting machines (3%),
others |
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No. of Employees : |
1,332 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II 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 have significantly eroded under the dual pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2017 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. For three postwar decades, overall real economic growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which entailed considerable 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.
Japan enjoyed an 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. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the necessity of addressing its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to another recession, so Prime Minister ABE has twice postponed the next increase, now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Japan was the first country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP in January 2017, and in November 2017 the remaining 11 countries agreed on the core elements of a modified agreement, which they renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
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Source
: CIA |
Company Name And address
SHIMA SEIKI MFG LTD
REGD NAME: KK Shima Seiki Seisakusho
MAIN OFFICE: 85 Sakata Wakayama 641-8511 JAPAN
Tel: 073-471-0511 Fax: 073-474-8267
URL: http://www.shimaseiki.co.jp/
E-Mail
address: info@shimaseiki.co.jp
ACTIVITIES: Mfg
of computer controlled knitting machines
BRANCHES: Tokyo,
Osaka, Nagoya, Yamagata, Fukushima, Niigata, Kofu, other (Tot 12)
OVERSEAS: Taiwan,
Hong Kong, China, Cambodia, Thailand, Italy, Korea, UK, France, Spain,
Portugal, Morocco, USA
FACTORIES: At
the caption address
CHIEF EXEC: MASAHIRO
SHIMA, PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 62,432 M
PAYMENTS REGULAR CAPITAL Yen 14,859 M
TREND STEADY WORTH Yen
104,816 M
STARTED 1961 EMPLOYES 1,332
COMMENT
MFR SPECIALIZING IN KNITTING MACHINES.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
HIGHLIGHTS
The subject company was established
by Masahiro Shima, current pres, for mfg fully automated glove knitting
machines. Since then developed the world's first fully automated glove knitting machines
with global share standing at 40%.
Expanding business foundation by stressing in-house development of
technologies for computer graphic fashion and industrial design systems. Overseas sales ratio high. The company will apply 3D measuring systems
to the medical industry. It will
actively promote cutting machines to the aircraft, automobile, furniture, and
industrial material industries. Established the sales network consisting
of local subsidiaries & agencies in overseas markets, including Asia, but
all production takes place in the HQ plant in Wakayama City, Wakayama-Pref.
FINANCIALINFORMATION
The sales volume for Mar/2017 fiscal
term amounted to Yen 62,432 million, a 25.92% up from Yen 49,582 million in the
previous term. The recurring profit was
posted at Yen 10,043 million and the net profit at Yen 7,198 million,
respectively, compared with Yen 4,532 million recurring profit and Yen 3,271
million net profit, respectively, a year ago.
For the
current term ending Mar 2018 the recurring profit is projected at Yen 16,500 million
and the net profit at Yen 11,000 million, respectively, on a 16.93% rise in
turnover, to Yen 73,000 million.
The financial
situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Jul 1961
Regd No.:
1700-01-001608 (Wakayama-Wakayama)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized: 142 million shares
Issued: 37,600,000 shares
Sum: Yen 14,859 million
Major shareholders (%): Wajima Kosan (10.9), Japan Trustee
Services T (7.0), Company’s Treasury Stock (5.0), Kiyo Bank (4.0), Masahiro
Shima (2.9), Japan Trustee Services T9 (2.9), Mitsuhiro Shima (2.9), MUFG
(2.4), Wako LLC (2.1), Senshu Ikeda Bank (1.9); foreign owners (16.0)
No. of shareholders: 10,658
Listed on the S/Exchange (s) of: Tokyo
Managements: Masahiro Shima, pres & CEO;
Mitsuhiro Shima, v pres; Takashi Wada, mgn dir; Reiji Arikita, mgn dir; Ikuto
Umeda, mgn dir; Osamu Fujita, dir; Toshio Nakashima, dir; Takashi Nanki, dir;
Yasukazu Nishitani, dir; Kiyokata Nishikawa, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Shima Fine Press Co, TSM Industrial Co,
Kainan Seimitsu Co, Shima Seiki USA Inc, Shima Seiki Europe Ltd, other
OPERATION
Activities:
Manufactures weft knitting machines (81%), computer graphic design systems
(6%), glove & hosiery knitting machines (3%), others (10%).
Overseas Sales Ratio (88%)
Clients: [Mfrs, wholesalers] Itochu Corp, Onward Kashiyama, NHK,
Sanyo Shokai, Benetton Japan, Stephanela Corp, World, Naigai Co, Renown Inc,
other.
No. of
accounts: 2,000
Domestic areas
of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Groz-Beckert Japan,
Sun-Wa Technos Corp, Terauchi Sei- sakusho,
Ishikawa Seisakusho, Techno Hagihara, other.
Payment record: Regular
Location: Business area in Wakayama. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References:
MUFG
(Wakayama)
Ikeda Senshu
Bank (Wakayama)
Relations:
Satisfactory
FINANCIALS
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Terms Ending: |
31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual Sales |
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73,000 |
62,432 |
49,582 |
48,354 |
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Recur. Profit |
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16,500 |
10,043 |
4,532 |
8,470 |
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Net Profit |
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11,000 |
7,198 |
3,271 |
3,645 |
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Total Assets |
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141,931 |
126,415 |
126,985 |
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Current Assets |
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105,736 |
89,983 |
88,104 |
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Current Liabs |
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32,450 |
19,548 |
20,050 |
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Net Worth |
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104,816 |
98,103 |
97,985 |
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Capital, Paid-Up |
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14,859 |
14,859 |
14,859 |
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Div.Ttl in Million (¥) |
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1,454 |
1.112 |
1.112 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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16.93 |
25.92 |
2.54 |
20.78 |
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Current Ratio |
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.. |
325.84 |
460.32 |
439.42 |
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N.Worth Ratio |
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.. |
73.85 |
77.60 |
77.16 |
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R.Profit/Sales |
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22.60 |
16.09 |
9.14 |
17.52 |
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N.Profit/Sales |
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15.07 |
11.53 |
6.60 |
7.54 |
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Return On Equity |
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.. |
6.87 |
3.33 |
3.72 |
Notes: Forecast (or
estimated) figures for the 31/03/2018 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.82 |
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1 |
INR 90.40 |
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Euro |
1 |
INR 79.76 |
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YEN |
1 |
INR 0.61 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.