MIRA
INFORM REPORT
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Report Date : |
22.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
UNITIKA SAKAI LTD |
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Registered Office : |
1-13-20 Junka Fukui 910-0023 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
March 1985 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Wholesale of Nylon, Polyester Yarns, Other Synthetic
Yarns; Processing of Woven & Knitted Goods |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Regular |
name & address
UNITIKA SAKAI LTD
REGD NAME: Unitika Sakai KK
MAIN OFFICE: 1-13-20 Junka Fukui 910-0023 JAPAN
Tel:
0776-22-2111 Fax: 0776-22-2117
* Osaka Headquarters at: Shin-Kawaramachi Bldg 4F, 2-4-7 Kawaramachi
Chuoku Osaka
** Tokyo branch
office at: 2-13-5-5 Higashi-Nihombashi Chuoku Tokyo, as given
URL: http://www.unitika.co.jp/ (Of the parent, Unitika
Ltd)
E-Mail address: info@unitika.co.jp
ACTIVITIES
Wholesale of nylon, polyester yarns, other synthetic yarns;
processing of woven & knitted goods
BRANCHES
Tokyo (2), Osaka
FACTORY(IES)
At the caption address (processing yard)
OFFICER(S)
YOSHIAKI SAWADA, PRES
Yukinobu Maeda, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES WEAK A/SALES Yen 15,025 M
PAYMENTS REGULAR CAPITAL Yen 100 M
TREND SLOW WORTH Yen (-) 676 M
STARTED 1985 EMPLOYES 84
COMMENT
WHOLESALER OF SYNTHETIC FIBER YARNS, WHOLLY OWNED BY UNITIKA
LTD.
FINANCIAL SITUATION CONSIDERED WEAK BUT SHOULD BE GOOD FOR MODERATE
BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
DUE TO THE NEGATIVE NET WORTH, ANY & ALL CREDITS ARE RECOMMENDED WITH GURANTEE FROM THE PARENT, UNITIKA LTD
HIGHLIGHTS
The subject company was established on the basis of a division separated from Unitika Ltd, major general textile mfr, Osaka (See REGISTRATION). This is a trading firm for importing, exporting and wholesaling synthetic fiber yarns (nylon, polyester yarns), the products of the parent. Also processes woven & knitted goods. Goods are mostly for use in women’s garments, sports wear, other. Acts as insurance broker, too. Clients other than group firms include apparel mfrs, general trading houses, other, nationwide.
FINANCIAL INFORMATION
The sales volume for Mar/2008 fiscal term amounted to Yen 15,025 million, an 8% drop from Yen 16,321 million in the previous term. Textile prices declined. Some extraordinary losses are reported, actual amount has not been disclosed. The operations continued in the red for three consecutive years, to register Yen 713 million net losses for the term, the loss amount having been widened from Yen 204 million net losses a year ago. The net worth is negative. The accumulated losses at the term’s end are reported at Yen 947 million, to be carried over into the next term. Financials are released in digested form.
For the current term ending Mar 2009 the operations are projected to come back to profitability but still limited to a minimum amount post-taxes, on a 3% rise in turnover, to Yen 15,500 million..
The financial situation is considered WEAK but should be good for MODERATE business engagements on the strength of the parent’s financial capacities. However, we recommend that any and all credits to be tied with the parent’s full guarantee. Note the negative net worth.
REGISTRATION
Date Registered: Mar 1985
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 8,000 shares
Issued: 2,000 shares
Sum: Yen 100 million
Major shareholders (%)
Unitika Ltd*(100)
* Major textile mfr, Osaka, founded 1889, listed Tokyo, Osaka S/E’s, capital Yen 23,798 million, turnover Yen 234,744 million, operating profit Yen 11,553 million, recurring profit Yen 8,013 million, net profit Yen 1,550 million, total assets Yen 309,043 million, net worth Yen 33,610 million, employees 5,531, pres Otofumi Ohnishi
Consolidated Financials are as attached (See SUPPLEMENTS)
Nothing detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Imports, exports and wholesales synthetic fiber yarns: nylon, polyester yarns, the products o the parent, Unitika Ltd, as materials for women’s clothing, sports wear, other; processes woven & knitted goods; acts as life & non-life insurance broker (--100%).
Clients
[Apparel mfrs, wholesalers] Unitika Fiber, Unitika Textile, Moririn, Takisada Osaka, Takisada Nagoya, Itochu Corp, Leasing Textile, NI Teijin Shoji, Chori Co, other.
No. of accounts: 500
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Unitika Fiber, Unitika Textile, Morita Textile, Itochu Corp, other.
Payment record: Regular
Location
Business area in Fukui. Office premises at the caption address are owned and maintained satisfactorily.
Bank References
Fukui Bank (H/O)
MUFG (Osaka)
Relations: Satisfactory
FINANCES: (In Million Yen)
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Terms Ending: |
31/03/2008 |
31/03/2007 |
31/03/2006 |
31/03/2005 |
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Annual
Sales |
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15,500 |
15,025 |
16,321 |
15,089 |
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Recur.
Profit |
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27 |
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Net
Profit |
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0 |
-713 |
-204 |
-81 |
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Total
Assets |
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8,569 |
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Current
Assets |
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7,407 |
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Current
Liabs |
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9,187 |
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Net
Worth |
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-676 |
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Capital,
Paid-Up |
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100 |
100 |
100 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
3.16 |
-7.94 |
8.16 |
1.13 |
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Current Ratio |
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.. |
80.62 |
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.. |
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N.Worth Ratio |
.. |
-7.89 |
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.. |
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R.Profit/Sales |
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.. |
0.18 |
.. |
.. |
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N.Profit/Sales |
0.00 |
-4.75 |
-1.25 |
-0.54 |
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Notes: Financials are only partially disclosed, except for
the 31/03/2008 fiscal term in digest figures.
Forecast (or estimated) figures for the 31/03/2009 fiscal
term.
SUPPLEMENTS:
CONSOLIDATED
FINANCIALS OF THE PARENT, UNITIKA LTD.
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2008 |
31/03/2007 |
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INCOME STATEMENT |
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Annual Sales |
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234,744 |
220,572 |
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Cost of Sales |
191,942 |
178,211 |
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GROSS PROFIT |
42,801 |
42,360 |
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Selling & Adm Costs |
31,247 |
31,189 |
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OPERATING PROFIT |
11,553 |
11,171 |
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Non-Operating P/L |
-3,540 |
-2,713 |
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RECURRING PROFIT |
8,013 |
8,458 |
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NET PROFIT |
1,550 |
2,562 |
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BALANCE SHEET |
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Cash |
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13,045 |
16,501 |
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Receivables |
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50,039 |
46,734 |
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Inventory |
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62,222 |
65,266 |
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Securities, Marketable |
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Other Current Assets |
8,473 |
11,564 |
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TOTAL CURRENT ASSETS |
133,779 |
140,065 |
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Property & Equipment |
154,012 |
164,115 |
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Intangibles |
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1,498 |
1,651 |
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Investments, Other Fixed Assets |
19,754 |
22,551 |
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TOTAL ASSETS |
309,043 |
328,382 |
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Payables |
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38,385 |
41,999 |
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Short-Term Bank Loans |
72,273 |
66,391 |
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Other Current Liabs |
75,514 |
60,609 |
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TOTAL CURRENT LIABS |
186,172 |
168,999 |
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Debentures |
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800 |
1,200 |
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Long-Term Bank Loans |
62,823 |
88,998 |
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Reserve for Retirement Allw |
3,891 |
4,420 |
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Other Debts |
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16,979 |
24,806 |
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TOTAL LIABILITIES |
270,665 |
288,423 |
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MINORITY INTERESTS |
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Common
stock |
23,798 |
23,798 |
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Additional
paid-in capital |
1,661 |
1,661 |
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Retained
earnings |
7,196 |
6,660 |
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Evaluation
p/l on investments/securities |
(120) |
1,039 |
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Others |
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5,886 |
6,838 |
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Treasury
stock, at cost |
(43) |
(37) |
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TOTAL S/HOLDERS` EQUITY |
38,378 |
39,959 |
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TOTAL EQUITIES |
309,043 |
328,382 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2008 |
31/03/2007 |
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Cash
Flows from Operating Activities |
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8,129 |
11,903 |
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Cash
Flows from Investment Activities |
-5,500 |
-7,097 |
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Cash Flows
from Financing Activities |
-5,113 |
-3,779 |
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Cash,
Bank Deposits at the Term End |
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13,209 |
15,479 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
38,378 |
39,959 |
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Current
Ratio(%) |
71.86 |
82.88 |
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Net
Worth Ratio (%) |
12.42 |
12.17 |
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Recurring
Profit Ratio (%) |
3.41 |
3.83 |
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Net
Profit Ratio (%) |
0.66 |
1.16 |
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Return
On Equity (%) |
4.04 |
6.41 |
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FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.43.38 |
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UK Pound |
1 |
Rs.81.34 |
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Euro |
1 |
Rs.64.55 |
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)