MIRA INFORM REPORT

 

 

Report Date :           

19.03.2011

 

IDENTIFICATION DETAILS

 

Name :

PENTEL CO LTD 

 

 

Registered Office :

7-2 Nihombashi-Koamicho Chuoku Tokyo 103-8538

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

March 1946

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of writing instruments, office supplies, electronic devices

 

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 357.6 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 – December 31, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

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

 

PENTEL CO LTD

 

 

REGD NAME 

 

Pentel KK

 

 

MAIN OFFICE

 

7-2 Nihombashi-Koamicho Chuoku Tokyo 103-8538 JAPAN　

Tel: 03-3667-3333     Fax: 03-5695-7303

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

E-mail:                         (thru the URL)   

 

 

ACTIVITIES  

 

Mfg of writing instruments, office supplies, electronic devices

 

 

BRANCHES

 

Sapporo, Sendai, Nagoya, Osaka, Hiroshima, Fukuoka

 

 

OVERSEAS   

 

China (3), Taiwan, Hong Kong, Singapore, Malaysia, Thailand, Europe (6), USA, Australia, Mexico, Brazil, other (Tot 20)

 

 

FACTORIES  

 

Soka, Yoshikawa (--Saitama)

 

 

OVERSEAS   

 

Los Angeles, Poland, China, Malaysia, other (8)

 

OFFICER(S)

 

KEIMA HORIE, PRES                Masaru Wada, mgn dir

Michikazu Shiraishi, dir              Mitsuaki Iizuka, dir

Naoki Hirama, dir                                   Noboru Yoshimura, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 22,692 M

PAYMENTS      REGULAR         CAPITAL           Yen 450 M

TREND             SLOW              WORTH            Yen 9,875 M

STARTED                     1946                 EMPLOYES      826

 

 

COMMENT    

 

MFR OF WRITING INSTRUMENTS, STATIONERIES, OTHER 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

MAX CREDIT LIMIT: YEN 357.6 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established on the basis of restructuring Bunkaido KK, a wholesaler of calligraphy materials (ink brush, Japanese ink, ink slab), Tokyo.  In 1950, started selling “Pentel”-brand crayons.  This is a specialized mfr of writing instruments, office products, electronic devices, other (See OPERATION).  Operates 8 overseas factories and 20 sales networks in 18 countries.  Products are exported to over 120 countries worldwide.  Clients include major stationery mfrs, office equipment mfrs, wholesalers, other, nationwide.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 22,692 million, a 9% down from Yen 24,851 million in the previous term.  Business environment continued deteriorated as the unprecedented global financial crisis intensified from the fall of 2008.  Consumer spending was sluggish.  Exports continuously decreased because of a decline in demand and the appreciation of the Yen.  Export revenues & profits were hurt by the high Yen.  The operations plunged into the red to register Yen 500 million net losses for the term.  This is referred to the extraordinary losses coming from the devaluation of inventories.  This compares with Yen 33 million net profits a year ago.

 

For the current term ending Mar 2011 the recurring profit is projected at Yen 100 million and the net profit at Yen 30 million respectively, on a 4% rise in turnover, to Yen 23,500 million.  Exports have revived.  High Yen continues to erode export earnings & profits in Yen terms.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 357.6 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:          Mar 1946

Legal Status:   　         Limited Company (Kabushiki Kaisha)

Authorized:      　         36 million shares

Issued:                         9 million shares

Sum:                　         Yen 450 million

 

Major shareholders (%): Yukio Horie (17.4), Employees’ S/Holding Assn (5), Keiko Horie (5), Keima Horie (4), Hanako Horie (2)

 

No. of shareholders: 463

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

 

 

OPERATION

 

Activities: Manufactures writing instruments, office supplies (--86%), electronics devices (6%), labor-saving equipment, others (4%).

Export (39%).

 

(Mfg items):

Writing Instruments & Office Stationery: ball-point pens, automatic pencils, roller pens, gel ink pens, automatic drafting pencil, pencil refills, pen refills, porous point pens, blotter pens, blotting-pad, erasers, correction fluid, correction tapes, oil colors, water colors, paint box, sketch box, fountain pens, cosmetic cases (cream, eye-liner, lipsticks), other;

Electronic devices: input terminals (for games, Fax, communication, AV devices), electronic writing instruments, touch panels, liquid crystal panels, multi-display system, antistatic key-holders, touch switch, panel computer, AD board, other.

 

Clients: [Mfrs, wholesalers] Mitsubishi Stationery Co, Ecole Ryutsu Group, Katouken Holdings, ASKUL Corp, Tokyo Crown, Plus Group, other

No. of accounts: 1,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Morris Pen Corp, Nippon Pigment, Du Pont KK, Kao Corp, DIC, Nissha Printing, Union Chemical, Sato Metal Trading, Seiwa Sangyo, Nisshin Meric, Fuji Seisakusho, other.

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Tokyo)

Mizuho Bank (Marunouchi-Chuo)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2011

31/03/2010

31/03/2009

31/03/2008

Annual Sales

　

23,500

22,692

24,851

27,541

Recur. Profit

　

100

26

151

1,386

Net Profit

　

30

-500

33

725

Total Assets

　

　

37,779

39,076

40,011

Current Assets

　

　

14,317

14,417

14,707

Current Liabs

　

　

8,988

9,445

9,357

Net Worth

　

　

9,875

10,474

10,620

Capital, Paid-Up

　

　

450

450

450

Div.P.Share(¥)

　

　

0.00

3.00

6.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.56

-8.69

-9.77

5.96

    Current Ratio

 

..

159.29

152.64

157.18

    N.Worth Ratio

..

26.14

26.80

26.54

    R.Profit/Sales

 

0.43

0.11

0.61

5.03

    N.Profit/Sales

0.13

-2.20

0.13

2.63

    Return On Equity

..

-5.06

0.32

6.83

 

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

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.09

UK Pound

1

Rs.72.82

Euro

1

Rs.63.43

 

 

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.