MIRA INFORM REPORT

 

 

Report Date :

18.02.2011

 

IDENTIFICATION DETAILS

 

Name :

DOWA ELECTRONICS MATERIALS OKAYAMA CO LTD

 

 

Registered Office :

1-3-1 Kaigandori Minamiku Okayama 702-8045

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

May 2006

 

 

Com. Reg. No.:

(Okayama-Minamiku) 009042

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Smelting, processing of metals & nonferrous metals powders

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

Yen 187.9 Million

Status :

Small Company 

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 – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

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

 

DOWA ELECTRONICS MATERIALS OKAYAMA CO LTD

 

 

REGD NAME

 

Dowa Electronics Okayama KK

 

 

MAIN OFFICE

 

1-3-1 Kaigandori Minamiku Okayama 702-8045 JAPAN

Tel: 086-262-1121     Fax: 086-262-1033

URL:                 http//:www.dowa-electronics.co.jp

E-mail:             (thru the URL)   

 

 

ACTIVITIES  

 

Smelting, processing of metals & nonferrous metals powders

 

 

BRANCHES   

 

Nil

 

 

FACTORIES  

 

At the caption address

 

 

OFFICER(S)

 

KENTARO YAMAUCHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 4,042 M

PAYMENTS                  REGULAR         CAPITAL           Yen 100 M

TREND             SLOW              WORTH            Yen 3,237 M

STARTED                     2006                 EMPLOYES      65

 

 

COMMENT

 

SMELTER OF METALS & NON-FERROUS METALS POWDERS, WHOLLY OWNED BY DOWA ELECTRONICS MATERIALS CO LTD 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 187.9 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

 

The subject company was established on the basis of an electronics division separated from Dowa Mining KK (now owned by Dowa Holdings Co Ltd) (See REGISTRATION).  This is a specialized smelter of metals & non-ferrous metals powders.  Products are wholly shipped to the parent, Dowa Electronics Materials Co Ltd (See REGISTRATION). 

 

 

FINANCIAL INFORMATION

 

Financials are consolidated by the top parent, Dowa Holdings Co Ltd, and only partially (in digested forms) disclosed.

 

The sales volume for Mar/2010 fiscal term amounted to Yen 4,042 million, a 6% down from Yen 4,281 million in the previous term.  IT-related materials and some other materials, waste materials were slow to recover overall, and business conditions remained severe.  In soil remediation, construction projects declined and the market itself was dormant, leading to falling demand.  The net profit was posted at Yen 280 million, compared with Yen 300 million a year ago.

 

For the current term ending Mar 2011 the net profit is projected at Yen 400 million, on a 10% rise in turnover, to Yen 4,450 million.  Metal prices are rising.  The global market for solar cells has grown sharply as different countries offer subsidies and other inventive to encourage their use.  Sales of silver powder used in electronics surged as well. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 187.9 million, on 30 days normal terms. 

 

REGISTRATION

 

Date Registered:  May 2006

Regd No.:             (Okayama-Minamiku) 009042

Legal Status:   　Limited Company (Kabushiki Kaisha)

Authorized:      　80,000 shares

Issued:             　20,000 shares

Sum:                　Yen 1,000 million

Major shareholders (%): Dowa Electronics Materials Co Ltd* (100)

 

* Mfr of semiconductor, electric materials, magnetic materials, Tokyo, founded 2006, wholly owned by Dowa holdings Co Ltd**, capital Yen 1,000 million, sales Yen 50,000 million, employees 170, pres Akira Otsuka

           

** Leading nonferrous metals mfr, Tokyo, founded 1937, listed Tokyo, Osaka, Nagoya, Fukuoka, Sapporo S/E’s, capital Yen 36,437 million, sales Yen 307,462 million, operating profit Yen 13,701 million, recurring profit Yen 13,809 million, net profit Yen 4,359 million, total assets Yen 318,770 million, net worth Yen 106,921 million, employees 4,499, pres Masao Yamada

 

Consolidated Financials are attached (See SUPPLEMENTS)

           

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

 

 

OPERATION

 

Activities: Manufactures & smelts metals & nonferrous metals powders, other (--100%)

 

(Mfg/smelting items)

Nonferrous Metals Segment: gold, silver, copper, zinc, lead, zinc alloy, indium,   platinum, and other nonferrous metals powders;

 

Metal Processing Segment: mfg of copper, brass, copper alloy strips and other copper strip products, strip plating, brass bars & forged parts;

           

Clients: Wholly shipped to Dowa Electronics Materials Co Ltd

            No. of accounts: 1 (for distribution nationwide, exports)

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Supplied wholly from the group & subsidiary firms: Dowa Metal Mine, Dowa Electronics Okayama, Dowa IP Creation, Dowa High-Tech, other.

 

Payment record: Regular

 

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

Bank References:

Mizuho Corporate Bank (H/O)

Chugoku Bank (Okaminami)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2011

31/03/2010

31/03/2009

31/03/2008

Annual Sales

　

4,450

4,042

4,281

4,457

Recur. Profit

　

　

　

　

　

Net Profit

　

400

280

300

400

Total Assets

　

　

4,471

4,662

　

Current Assets

　

　

1,031

973

　

Current Liabs

　

　

805

1,526

　

Net Worth

　

　

3,237

2,631

　

Capital, Paid-Up

　

　

100

100

100

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

10.09

-5.58

-3.95

100.77

    Current Ratio

 

..

128.07

63.76

..

    N.Worth Ratio

..

72.40

56.44

..

    R.Profit/Sales

 

..

..

..

..

    N.Profit/Sales

8.99

6.93

7.01

8.97

    Return On Equity

..

8.65

11.40

..

 

Notes: Forecast (or estimated) figures for the 31/03/2011 fiscal term. 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, DOWA HOLDINGS CO LTD)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

307,462

346,885

 

  Cost of Sales

268,738

329,340

 

      GROSS PROFIT

38,724

17,545

 

  Selling & Adm Costs

25,022

26,042

 

      OPERATING PROFIT

13,701

-8,497

 

  Non-Operating P/L

108

-4,853

 

      RECURRING PROFIT

13,809

-13,350

　

      NET PROFIT

4,359

-28,138

BALANCE SHEET

 

 

 

 

  Cash

　

27,390

50,824

 

  Receivables

 

50,954

34,584

 

  Inventory

 

56,730

53,161

 

  Securities, Marketable

　

　

 

  Other Current Assets

13,626

13,541

 

      TOTAL CURRENT ASSETS

148,700

152,110

 

  Property & Equipment

105,597

116,031

 

  Intangibles

 

8,877

8,578

 

  Investments, Other Fixed Assets

67,546

66,489

 

      TOTAL ASSETS

330,720

343,208

 

  Payables

 

28,712

18,509

 

  Short-Term Bank Loans

65,724

72,192

 

　

 

　

　

 

  Other Current Liabs

22,212

31,255

 

      TOTAL CURRENT LIABS

116,648

121,956

 

  Debentures

 

10,000

7

 

  Long-Term Bank Loans

73,639

98,289

 

  Reserve for Retirement Allw

11,964

12,588

 

  Other Debts

　

6,802

6,538

 

      TOTAL LIABILITIES

219,053

239,378

 

      MINORITY INTERESTS

 

 

 

Common stock

36,437

36,436

 

Additional paid-in capital

26,362

26,361

 

Retained earnings

42,791

41,262

 

Evaluation p/l on investments/securities

7,533

4,238

 

Others

 

4,303

1,151

 

Treasury stock, at cost

(5,759)

(5,618)

 

      TOTAL S/HOLDERS` EQUITY

111,667

103,830

　

      TOTAL EQUITIES

330,720

343,208

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

25,011

33,593

 

Cash Flows from Investment Activities

-14,602

-36,477

 

Cash Flows from Financing Activities

-33,888

49,303

　

Cash, Bank Deposits at the Term End

　

27,115

50,681

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

111,667

103,830

 

 

Current Ratio (%)

127.48

124.73

 

 

Net Worth Ratio (%)

33.76

30.25

 

 

Recurring Profit Ratio (%)

4.49

-3.85

 

 

Net Profit Ratio (%)

1.42

-8.11

 

 

Return On Equity (%)

3.90

-27.10

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.38

UK Pound

1

Rs.73.08

Euro

1

Rs.61.60

 

 

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%)

 

 

 

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.