MIRA INFORM REPORT

 

 

Report Date :

02.08.2007

 

IDENTIFICATION DETAILS

 

Name :

DISCO ABRASIVE SYSTEMS KK

 

 

Registered Office :

Technisco Bldg 4F, 2-2-15 Minamishinagawa Shinagawaku Tokyo 140-0004

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Sept 2001

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of diamond cutting tools

 

 

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 48.9 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

name

 

DISCO ABRASIVE SYSTEMS KK

 

 

REGD NAME

 

Disco Abrasive Systems KK

 

 

MAIN OFFICE

 

Technisco Bldg 4F, 2-2-15 Minamishinagawa Shinagawaku Tokyo 140-0004 JAPAN

Tel        : 03-5461-7501 

Fax       : 03-5461-7525

 

*.. Kure plant: 1-23 Hiro Bunkacho Kure City Hiroshima-Pref, as given

                       

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

E-Mail address: cvoiceas@disco.co.jp

 

 

ACTIVITIES

 

Mfg of diamond cutting tools

 

 

BRANCHES

 

Kure, Osaka, Kumamoto, Sendai

 

 

FACTORY(IES)

 

Kure, as given

 

 

OFFICERS

 

KAZUMA SEKIYA, PRES                       Toru Sekiya, s/mgn dir

Makoto Tokizawa, dir                             Hitoshi Mizorogi, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 2,700 M

PAYMENTS      REGULAR                     CAPITAL           Yen 490 M

TREND             SLOW                          WORTH            Yen 681 M

STARTED         2001                             EMPLOYES      104

 

 

COMMENT

 

MFR SPECIALIZING IN DIAMONT CUTTING TOOLS, WHOLLY OWNED BY DISCO CORPORATION. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 48.9 MILLION, 30 DAYS NORMAL TERMS. 

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a division separated from Disco Corporation, largest integrated mfr of semiconductor grinding & cutting equipment, including blades, Tokyo (See REGISTRATION).  The firm has a factory at the parent’s factory at the given address. 

 

Specializes in mfg diamond cutting tools, wire saws, diamond drilling bits, other.  Goods are shipped centrally to the parent for distribution to mfrs nationwide.

 

 

FINANCIAL INFORMATION

           

Financials are all consolidated by the parent and only partial figures are made available.

 

The sales volume for Mar/2006 fiscal term amounted to Yen 2,700 million, a similar amount in the previous term.  The net profit is also reported at Yen 50 million, unchanged from previous year.

 

For the term ended Mar 2007 the net profit is projected at Yen was projected and believed posted at Yen 50 million, on a 4% rise in turnover, to Yen 2,800 million.  Business is seen uprising.

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 48.9 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:            Sept 2001

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    9,800 shares

Issued:                          9,800 shares

Sum:                            Yen 490 million

Major shareholders (%): Disco Corporation*(100)

*.. Largest integrated mfr of semiconductor grinding & cutting equipment, Tokyo, founded 1940, listed Tokyo S/E, capital 14,485 million, turnover Yen 86,160 million, recurring profit Yen 19,667 million, net profit Yen 10,936 million, total assets Yen 113,791 million, net worth Yen 81,306 million, employees 2,012, pres Hitoshi Mizorogi

 

Consolidated financials are as attached.

           

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

 

 

OPERATION

 

Activities: Manufactures diamond cut-off wheels & surfacing wheels, wire saws, diamond drilling bits, other industrial diamond wheels (--100%).

 

Clients: [Mfrs, wholesalers] Disco Corp, Yamatome Co, Matsunaga Stone Co, Kensetsu Koki, Electrolux Japan, other. 

 

No. of accounts: 800

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsui & Co, Disco Corp, DD Diamond Corp, Kudsoh Concrete, Element Six ltd, other.

 

Payment record: Regular

 

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

 

 

Bank References

 

MUFG (Hibiya)

 

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

 

Terms Ending:

　

31/03/2007

31/03/2006

31/03/2005

31/03/2004

Annual Sales

　

2,800

2,700

2,700

2,746

Recur. Profit

(*)

..

..

103

115

Net Profit

　

50

50

50

45

Total Assets

　

　

N/A

N/A

N/A

Net Worth

　

　

681

631

581

Capital, Paid-Up

　

　

490

490

490

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

3.70

0.00

-1.68

-0.83

       Current Ratio

 

 

..

..

..

       N.Worth Ratio

 

..

..

..

       N.Profit/Sales

1.79

1.85

1.85

1.64

 

Note: Financials are only partially disclosed.

Forecast (or estimated) for the 31/03/2007 fiscal term.

 

SUPPLEMENTS:

CONSOLIDATED FINANCIALS OF THE PARENT, DISCO CORPORATION:

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

86,160

68,885

 

  Cost of Sales

42,106

32,734

 

      GROSS PROFIT

44,054

36,150

 

  Selling & Adm Costs

24,529

22,201

 

      OPERATING PROFIT

19,524

13,949

 

  Non-Operating P/L

143

461

 

      RECURRING PROFIT

19,667

14,410

　

      NET PROFIT

10,936

8,230

BALANCE SHEET

 

 

 

 

  Cash

　

27,045

22,003

 

  Receivables

 

27,797

24,424

 

  Inventory

 

17,283

15,749

 

  Securities, Marketable

　

　

 

  Other Current Assets

3,674

2,103

 

      TOTAL CURRENT ASSETS

75,799

64,279

 

  Property & Equipment

33,603

29,057

 

  Intangibles

 

925

758

 

  Investments, Other Fixed Assets

3,464

5,224

 

      TOTAL ASSETS

113,791

99,318

 

  Payables

 

12,894

11,825

 

  Short-Term Bank Loans

300

606

 

　

 

　

　

 

  Other Current Liabs

15,625

13,062

 

      TOTAL CURRENT LIABS

28,819

25,493

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

828

700

 

  Reserve for Retirement Allw

1,361

1,787

 

  Other Debts

　

959

637

 

      TOTAL LIABILITIES

31,967

28,617

 

      MINORITY INTERESTS

 

424

 

Common stock

14,485

13,412

 

Additional paid-in capital

15,567

14,494

 

Retained earnings

50,553

41,899

 

Evaluation p/l on investments/securities

696

303

 

Others

 

575

207

 

Treasury stock, at cost

(53)

(39)

 

      TOTAL S/HOLDERS` EQUITY

81,823

70,276

　

      TOTAL EQUITIES

113,791

99,318

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

13,194

12,322

 

Cash Flows from Investment Activities

-8,952

-4,409

 

Cash Flows from Financing Activities

-2,428

-3,031

　

Cash, Bank Deposits at the Term End

　

24,045

22,003

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

81,823

70,276

 

 

Current Ratio (%)

263.02

252.14

 

 

Net Worth Ratio (%)

71.91

70.76

 

 

Recurring Profit Ratio (%)

22.83

20.92

 

 

Net Profit Ratio (%)

12.69

11.95

 

 

Return On Equity (%)

13.37

11.71

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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%)

 

 

 

 

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