MIRA INFORM REPORT

 

 

Report Date :

07.08.2010

 

IDENTIFICATION DETAILS

 

Name :

NEW JAPAN CHEMICAL CO LTD

 

 

Registered Office :

Bingomachi Nomura Bldg, 2-1-8 Bingomachi Chuoku Osaka 541-0051

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

November 1919 

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of oleo-chemicals & chemical products

 

 

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 647.9 Million

Status :

Satisfactory

Payment Behaviour :

Regular 

Litigation :

----

 

 

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 – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

Company name

 

NEW JAPAN CHEMICAL CO LTD

 

 

REGD NAME

 

Shin-Nihon Rika KK

 

 

MAIN OFFICE

 

Bingomachi Nomura Bldg, 2-1-8 Bingomachi Chuoku Osaka 541-0051JAPAN

Tel: 06-6202-0624     Fax: 06-6222-0062-

URL:                 http://www.ni-chem.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of oleo-chemicals & chemical products

 

 

BRANCHES   

 

Tokyo

 

 

FACTORIES  

 

Kyoto (2), Tokushima, Kawasaki, Sakai

 

 

CHIEF EXEC

 

MANTARO FUJIMOTO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES                    FAIR                 　A/SALES       Yen 25,778 M

PAYMENTS      REGULAR         　CAPITAL        Yen 5,660 M

TREND             SLOW              　WORTH         Yen 11,665 M

STARTED                     1919                 　EMPLOYES   474

 

 

COMMENT    

 

MFR SPECIALIZING IN OLEO-CHEMICALS & CHEMICAL PRODUCTS 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 647.9 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

 

This is a medium-scale mfr of oils & fats and chemical products.  Originally started mfg of oxygen & hydrogen, and has expanded into mfg: oleo-chemical derivatives and functional resin materials/additives.  Has strength in hydrogenation technologies and in-house developed reduction know-how.  The firm is eager to export acid anhydrate by stabilizing operation of new facilities, completed at Sakai plant in Apr 2010, at an early date.  Prospects are uncertain for the resumption of work for facility expansion at Kyoto plant.  Some facilities damaged by fire at Kawasaki plant were restored to the former state in Jun this year. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 25,778 million, a 16.2% down from Yen 30,774 million in the previous term.  Global economic downturn affected the sales.  Exports were hurt by the high Yen.  Poor sales of housing-related products affected overall performance.  By divisions, Oil & Fats Products down 10.5% to Yen 9,766 million; Petrochemicals down 19.4% to Yen 16,011 million.  The recurring profit was posted at Yen 5 million, but net losses of Yen 216 million, compared with Yen 681 million recurring loss and Yen 1,346 million net losses, respectively, a year ago.  Wrote off extraordinary losses of Yen 184 million as expenses of environmental spending for Kyoto, Tokushima and Kawasaki plants. 

           

For the current term ending Mar/2011 the recurring profit is projected at Yen 820 million and the net profit at Yen 570 million, on a 15.6% rise in turnover, to Yen 29,800 million.  Sales of housing-related products will be depressed, but sales volume of oil/fat products and petrochemicals recovered, mainly in the automobile-related field. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 647.9 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:　      Nov 1919

Legal Status:               Limited Company (Kabushiki Kaisha

Authorized:                  150 million shares

Issued:                         38,008,906 shares

Sum:                            Yen 5,660 million

 

Major shareholders (%): Morgan Stanley International (5.5), Resona Bank (4.9), Union Bancaire Privee (4.9), Dai-ichi Kangyo Bank (Schweitz) (4.4), Nishi-Nippon City Bank (4.2), Kyowa Hakko Chemical (3.1), Fukuda Denshi (3.1), Japan Trustee Service T4 (3.0), Mitsui Sumitomo Ins (2.4), MOF Corp (2.4); foreign owners (16.3)

 

No. of shareholders: 3,539

 

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

 

Managements: Mantaro Fujimoto, pres; Kenji Hara, mgn dir; Jun Kato, mgn dir; Shizuo Terazawa, dir; Yutaka Hayashi, dir; Yoshika Joya, dir

 

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

             

           

OPERATION

           

Activities: Manufactures oleo-chemicals & petrochemical products:

 

(Sales breakdown by divisions):

Oleo-chemicals (38%): fatty acids, glycorin, fatty alcohols, unsaturated alcohols, special fatty alcohols, surfactants;

Petrochemical products (62%): plasticizers, benzene derivatives, acid anhydrides, epoxy resins, synthetic resins, electronic materials, resin additives, medical & agricultural intermediates, other;

Overseas Sales Ratio (10.4%): Asia/Oceania 6.1%, Europe 3.0%, USA 1.3%

           

Clients: [Mfrs, wholesalers] Mitsubishi Corp, Toyotsu Chemi Plus, Sojitz Corp, other

            No. of accounts: 500

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Kyowa Hakko Chemical, JFE Chemical, Mitsubishi Corp, other.

 

Payment record: Regular

 

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

 

Bank References:

Resona Bank (Osaka)

Nishi Nippon City Bank (Osaka)

Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

25,778

30,774

 

  Cost of Sales

22,249

27,290

 

      GROSS PROFIT

3,528

3,484

 

  Selling & Adm Costs

3,689

4,205

 

      OPERATING PROFIT

-160

-720

 

  Non-Operating P/L

-155

-39

 

      RECURRING PROFIT

5

-681

　

      NET PROFIT

-216

-1,346

BALANCE SHEET

 

 

 

 

  Cash

　

1,958

1,782

 

  Receivables

 

9,814

8,031

 

  Inventory

 

3,618

6,019

 

  Securities, Marketable

　

　

 

  Other Current Assets

119

224

 

      TOTAL CURRENT ASSETS

15,509

16,056

 

  Property & Equipment

9,789

8,128

 

  Intangibles

 

229

284

 

  Investments, Other Fixed Assets

7,852

6,814

 

      TOTAL ASSETS

33,379

31,282

 

  Payables

 

5,506

4,064

 

  Short-Term Bank Loans

2,832

6,941

 

　

 

　

　

 

  Other Current Liabs

3,459

1,814

 

      TOTAL CURRENT LIABS

11,797

12,819

 

  Debentures

 

358

　

 

  Long-Term Bank Loans

5,330

5,397

 

  Reserve for Retirement Allw

1,944

1,826

 

  Other Debts

　

2,285

600

 

      TOTAL LIABILITIES

21,714

20,642

 

      MINORITY INTERESTS

 

 

 

Common stock

5,660

5,660

 

Additional paid-in capital

4,246

4,246

 

Retained earnings

1,288

1,504

 

Evaluation p/l on investments/securities

956

384

 

Others

 

(317)

(986)

 

Treasury stock, at cost

(168)

(168)

 

      TOTAL S/HOLDERS` EQUITY

11,665

10,640

　

      TOTAL EQUITIES

33,379

31,282

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

3,829

410

 

Cash Flows from Investment Activities

-1,136

-2,646

 

Cash Flows from Financing Activities

-2,627

2,499

　

Cash, Bank Deposits at the Term End

　

1,829

1,767

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

11,665

10,640

 

 

Current Ratio (%)

131.47

125.25

 

 

Net Worth Ratio (%)

34.95

34.01

 

 

Recurring Profit Ratio (%)

0.02

-2.21

 

 

Net Profit Ratio (%)

-0.84

-4.37

 

 

Return On Equity (%)

-1.85

-12.65

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.46.02

UK Pound

1

Rs.73.21

Euro

1

Rs.60.70

 

 

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

 

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.