MIRA INFORM REPORT

 

 

Report Date :

20.01.2011

 

IDENTIFICATION DETAILS

 

Name :

CHORI CO LTD 

 

 

Registered Office :

2-4-7 Awajimachi Chuoku Osaka 540-8603

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

September  1948

 

 

Com. Reg. No.:

(Osaka-Chuoku) 077485

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, Export, Wholesale of Textiles, Chemicals

 

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 5,447.0 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 – 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

 

CHORI CO LTD

 

 

REGD NAME 

 

Chori KK

 

 

MAIN OFFICE

 

2-4-7 Awajimachi Chuoku Osaka 540-8603 JAPAN

Tel: 06-6226-5015     Fax: 06-6228-5546

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

E-Mail address:                        info@chori.co.jp

 

 

ACTIVITIES  

 

Import, export, wholesale of textiles, chemicals, others

 

 

BRANCH (ES)

 

Tokyo, Osaka, Yokohama, Kanazawa, Ashikaga, Niigata, Okayama

 

 

OVERSEAS   

 

New York, Santiago, Germany, Moscow, Teheran, Dubai, Jeddah, China (13), Kuala Lumpur, Bangkok, Jakarta, Taipei, Ho Chi Minh City

 

(-subsidiaries/branch offices/representative offices)

 

 

CHIEF EXEC 

 

SHUJI YAMAZAKI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 191,149 M

PAYMENTS                  REGULAR         CAPITAL           Yen 6,800 M

TREND             SLOW              WORTH            Yen 21,590 M

STARTED                     1948                 EMPLOYES      1,137

 

 

COMMENT    

 

MAJOR TEXTILE TRADING HOUSE, AFFILIATED TO TORAY INDUSTRIES. 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 5,447.0 MILLION, 30 DAYS NORMAL TERMS.

 

                        Forecast (or estimated) figures for 31/03/2011 fiscal term

 

 

HIGHLIGHTS

 

This is an old-established company dating back to 1861 starting as a raw silk wholesaler in Kyoto, the center of Japanese kimono makers.  In 1948 incorporated and moved the headquarters to Osaka in 1952.  In 1987, upgraded its Tokyo Branch to Tokyo Headquarters Office.  This is a trading company specializing in textiles and chemicals, two pillars of operations, after drastic reorganizations.  In 2003, the firm lodged huge losses amounting to Yen 4,927 million and received rescue fund from its major shareholders.  In restructuring and pushing for improvement of earnings base. The firm received financial support from Toray Industries Inc (See REGISTRATION).

 

Strong presence in China where operating six subsidiaries and seven offices.  The China business began in 1961, when the firm was designated a “friendly trading company” by the Chinese government.  From 1970 to mid-1980s, Chori exported chemical plant facilities, followed by establishing a series of JV factories for textiles.  In 2005, Chori (China) Co Ltd was established in Shanghai.  Chori has strengthened ties with the Inner Mongolia Erdos Group, one of the largest global suppliers of high-grade cashmere, and is planning a new business venture with the group.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 191,149 million, a 14.3% down from Yen 223,016 million in the previous term.  The financial crisis emanating from USA affected the business.  Yen’s advance and falling stock prices worked as negative factor.  Sales declined in all segments.  By Divisions, Textiles down 16.9% to Yen 102,100 million, as consumer spending was sluggish; Chemicals down 9.2% to Yen 58,600 million; Machinery down 14.5% to Yen 29,300 million.  By Regions, Japan down 13.3%, Asia down 22.6% and other regions down 37.0%.  The recurring profit was posted at Yen 4,728 million and the net profit at Yen 2,918 million, respectively, compared with Yen 6,015 million recurring profit and Yen 3,231 million net profit, respectively, a year ago. 

 

(Apr/Sept/2010 results): Sales Yen 105,919 million (up 19.2%), operating profit Yen 2,512 million (up 4.8%), recurring profit Yen 2,562 million (up 5.1%), net profit Yen 3,765 million (up 105.9%).  (% compared with the corresponding period a year ago). 

           

For the current term ending Mar 2011 the recurring profit is projected at Yen 5,000 million and the net profit at Yen 5,250 million, on a 10.9% rise in turnover, to Yen 212,000 million.  In chemicals, sales will rise steadily in a continued recovery.  In textiles, sales will show greater signs of hitting bottom, buoyed by solid sales for automobiles as well as favorable sales growth on apparels.  Profit ratio is expected to improve, backed by stepped-up sales of area-oriented production.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 5,447.0 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:          Sept 1948

Regd No.:                                 (Osaka-Chuoku) 077485

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  550 million shares

Issued:                         238,691,442 shares

Sum:                            Yen 6,800 million

 

Major shareholders (%): Toray Industries Inc*(51.2), Master Trust Bank of Japan T (2.8%), Japan Trustee Services T (1.4), Wacoal Corp (1.2), Mitsui Sumitomo Ins (0.7), Japan Securities Finance (0.7), Mellon Bank Treaty Cl. Omnibus (0.6), Nissay Dowa General Ins (0.6), Mizuho Corporate Bank (0.6), Mellon Bank Mellon Omnibus US P (0.6); foreign owners (5.3)

           

No. of shareholders: 8,819

 

* Largest mfr of synthetic fibers, Tokyo, founded 1925, listed Tokyo, Osaka, Nagoya, London, Luxemburg S/E’s, capital Yen 147,873 million, turnover Yen 1,359,631 million, operating profit Yen 40,107 million, recurring profit Yen9,006 million, net loss Yen 14,158 million, total assets Yen 1,595,395 million, net worth Yen 570,695 million, employees 38,507, pres Akihiro Nikkaku

 

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

 

Managements: Shuji Yamazaki, pres; Jun’ichiro Kunihara, v pres; Shin’ichi Takenaka, mgn/dir; Noboru Kojima, dir; Nagao Iseda, dir; Kunihisa Inoue, dir; Masayuki Hatsuya, dir

           

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

 

Related companies: Tokyo Kutsushita, Chori Gomu, other.

 

 

OPERATION

           

Activities: A trading house for import, export and wholesale of textiles, chemicals, others:

 

(Sales Breakdown by Divisions):

 

Textile Division (54%): raw yarns made of chemical fibers, synthetic fibers, raw silk & other natural fibers, non-woven textiles, woven fabrics, knit fabrics, and other products made of chemical fibers, synthetic fibers, silk fibers & other natural fibers, industrial materials;

 

Chemicals Division (31%): organic & inorganic chemicals (monomer, synthetic fiber, polyurethane materials, fine chemicals (medical, agricultural & organic intermediaries), industrial chemicals (glass substrate materials used in flat-panel displays, inorganic fine chemicals), life science (protein- & sweetener-based food chemicals, additives, health foods, taurine, energy drink ingredients);

 

Machinery Division (15%): cars, motorcycles, specialized vehicles & parts thereof, membranes for caustic soda plants, packaging machines, solar battery components;

 

Overseas Sales Ratio (44.7%): Asia (China) 28.0%; Americas 14.0%, other 2.7%

 

Clients: [Mfrs, wholesalers] Toray Ind, Kawashima Selkon Textiles, Itokin Inc, Wacoal Corp, Aoyama Trading, other.

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Toray Ind, Asahi Kasei Chemicals, Teijin Ltd, Mitsui Takeda Chemical, Asahi Kasei Fibers Corp, Nihon Polyurethanes Industries Assn, other. .

 

Payment record: Regular

 

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

 

Bank References:

·         Mizuho Corporate Bank (Osaka)

·         MUFG (Osaka)

Relations: Satisfactory

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

191,149

223,016

 

  Cost of Sales

172,881

203,057

 

      GROSS PROFIT

18,267

19,958

 

  Selling & Adm Costs

13,576

14,116

 

      OPERATING PROFIT

4,690

5,842

 

  Non-Operating P/L

38

173

 

      RECURRING PROFIT

4,728

6,015

　

      NET PROFIT

2,918

3,231

BALANCE SHEET

 

 

 

 

  Cash

　

7,160

6,166

 

  Receivables

 

29,636

27,572

 

  Inventory

 

7,014

8,990

 

  Securities, Marketable

　

　

 

  Other Current Assets

6,689

5,330

 

      TOTAL CURRENT ASSETS

50,499

48,058

 

  Property & Equipment

510

597

 

  Intangibles

 

97

109

 

  Investments, Other Fixed Assets

5,997

5,615

 

      TOTAL ASSETS

57,103

54,379

 

  Payables

 

28,431

29,514

 

  Short-Term Bank Loans

378

968

 

　

 

　

　

 

  Other Current Liabs

5,191

3,757

 

      TOTAL CURRENT LIABS

34,000

34,239

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

1,098

1,075

 

  Other Debts

　

415

134

 

      TOTAL LIABILITIES

35,513

35,448

 

      MINORITY INTERESTS

 

 

 

Common stock

6,800

6,800

 

Additional paid-in capital

1,700

1,700

 

Retained earnings

14,514

12,113

 

Evaluation p/l on investments/securities

(287)

(729)

 

Others

 

(1,097)

(917)

 

Treasury stock, at cost

(40)

(36)

 

      TOTAL S/HOLDERS` EQUITY

21,590

18,931

　

      TOTAL EQUITIES

57,103

54,379

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

3,812

-2,219

 

Cash Flows from Investment Activities

-530

-135

 

Cash Flows from Financing Activities

-1,113

47

　

Cash, Bank Deposits at the Term End

　

11,103

9,097

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

21,590

18,931

 

 

Current Ratio (%)

148.53

140.36

 

 

Net Worth Ratio (%)

37.81

34.81

 

 

Recurring Profit Ratio (%)

2.47

2.70

 

 

Net Profit Ratio (%)

1.53

1.45

 

 

Return On Equity (%)

13.52

17.07

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.38

UK Pound

1

Rs.72.71

Euro

1

Rs.61.15

 

 

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

----

NB

New Business

----

 

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.