MIRA INFORM REPORT

 

 

Report Date :

24.11.2011

 

IDENTIFICATION DETAILS

 

Name :

DAIWABO HOLDINGS CO LTD

 

 

Registered Office :

3-6-8 Kyutaromachi Chuoku Osaka 541-0056

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

May 1941

 

 

Com. Reg. No.:

(Osaka-Chuoku) 077473

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Cotton spinner

 

 

No. of Employees :

6,010

 

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 6,369.2 Million

Status :

Satisfactory

Payment Behaviour :

No Complaints

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

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 and address

 

DAIWABO HOLDINGS CO Ltd

REGD NAME:    Daiwabo Holdings KK

MAIN OFFICE:  3-6-8 Kyutaromachi Chuoku Osaka 541-0056 JAPAN

                        Tel: 06-6281-2325     Fax: 06-6281-2522-

 

URL:                 http://www.daiwabo-holdings.com

E-Mail address: info@daiwabo-holdings.com

 

 

ACTIVITIES

 

Cotton spinner

 

BRANCHES   

 

Tokyo

 

OVERSEAS   

 

Jakarta

 

FACTORIES  

 

(subsidiary makers), China

 

 

CHIEF EXEC

 

MASAAKI SAKAGUCHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 　A/SALES       Yen 452,495 M

PAYMENTS                  REGULAR         　CAPITAL        Yen 21,696 M

TREND             SLOW              　WORTH         Yen 39,643 M

STARTED                     1941                 　EMPLOYES   6,010

 

 

COMMENT

 

COTTON SPINNER 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 6,369.2 MILLION, 30 DAYS NORMAL TERMS

 

                        Forecast figures for the 31/03/2012 fiscal term.

 

 

HIGHLIGHTS

 

This is a medium-scale cotton spinner formed in 1941 thru the merger of 4 mid-size textile makers under national policy, as Daiwabo Co Ltd.  Strong in materials bound for paper makers.    Also produces bicycle tires, golf balls and other rubber products to expand into non-textile sectors.  In 2009, merged with Daiwabo Information System Co, and other subsidiaries, and renamed as captioned.  Operates five major subsidiaries under the firm.  In July 2011 opened Jakarta Office.  In July 2011 merged O-M Ltd, a machinery tools maker, Tokyo.  The firm plans to step up the shift to HVA products overseas, and will move into functional products in China, the casual wear sewing base.  

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2011 fiscal term amounted to Yen 452,495 million, a 0.8% up from Yen 448,970 million in the previous term.  The Distribution Center of the subsidiary Daiwabo Information System Co Ltd was damaged by the North Japan Earthquake and suspended operations for some time.  Supply channel was disrupted.  It resumed operations in May.  By Divisions, IT Infrastructure & Distribution up 0.7% to Yen 393,184 million; Synthetic Textiles & Functional materials up 0.9% to Yen 32,845 million; Clothing & Lifestyle products up 7.1% to Yen 20,813 million.  The recurring profit was posted at Yen 5,435 million and the net profit at Yen 1,403 million, respectively, compared with Yen 3,626 million recurring profit and Yen 1,454 million net profit, respectively, a year ago. 

 

            (Apr/Sept/2011 results): Sales Yen 230,484 million (up 9.4%), operating profit Yen 3,337 million (up 60.8%), recurring profit Yen 3,071 million (up 73.9%), net profit Yen 1,936 million (up from Yen 693 million losses).  (% & figures compared with the corresponding period a year ago)

           

            For the current term ending Mar 2012 the recurring profit is projected at Yen 6,000 million and the net profit at Yen 2,600 million, on a 6.1% rise in turnover, to Yen 480,000 million.  The conversion of O-M Ltd to a subsidiary will contribute, and operating profits will continue growth.  Mainstay IT equipment will benefit from power savings in the first half and terrestrial digital-related extraordinary demand.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 6,369.2 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　May 1941

Regd No.:         (Osaka-Chuoku) 077473

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       100 million shares

Issued:                183,397,488 shares

Sum:                   Yen 21,696 million

 

Major shareholders (%): MUFG (2.7), Japan Trustee Services T (2.4), Dai-ichi Life Ins (2.1), Mizuho Corporate Bank (1.9), Nipponkoa Ins (1.7), Master Bank of Trust Bank of Japan T (1.4), Japan Securities Finance (1.1), Matsui Securities (0.8), Company’s Kyoeikai Assn (0.7); foreign owners (5.7)

 

No. of shareholders: 16,087

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

 

Managements: Hajime Sugano, ch; Masaaki Sakaguchi, pres; Koichi Kita, s/mgn dir; Yoshihiro Nogami, s/mgn dir; Eiji Yamamura, s/mgn dir; Tatsuya Yasunaga, mgn dir; Yoshio Yamamura, mgn dir; Hideki Monzen, mgn dir; Hiroshi Wakatsuki, mgn dir

 

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

 

Related companies: Daiwabo Information System, Daiwabo Rayon, Daiwabo Progress, Daiwabo Polytec, Daiwabo Plus, Daiwabo Neu, other.

 

 

OPERATION

           

Activities: Manufactures, exports, imports and wholesales: IT infrastructure & distribution (87%), synthetic textiles & functional materials (7%), clothing & lifestyle products (5%), machine tools, automation machinery, other (1%).

           

Clients: [Mfrs, wholesalers] Daiwabo group firms

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Daiwabo group firms

 

Payment record: Regular

 

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

 

Bank References:

                        MUFG (Osaka)

                        Mizuho Corporate Bank (Osaka)

                        Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

452,495

448,970

 

  Cost of Sales

409,721

407,328

 

      GROSS PROFIT

42,773

41,641

 

  Selling & Adm Costs

36,631

36,629

 

      OPERATING PROFIT

6,141

5,012

 

  Non-Operating P/L

-706

-1,386

 

      RECURRING PROFIT

5,435

3,626

　

      NET PROFIT

1,403

1,454

BALANCE SHEET

 

 

 

 

  Cash

　

15,262

7,021

 

  Receivables

 

89,672

96,279

 

  Inventory

 

26,723

21,214

 

  Securities, Marketable

　

　

 

  Other Current Assets

12,271

12,121

 

      TOTAL CURRENT ASSETS

143,928

136,635

 

  Property & Equipment

46,187

40,437

 

  Intangibles

 

12,529

10,291

 

  Investments, Other Fixed Assets

9,870

14,592

 

      TOTAL ASSETS

212,514

201,955

 

  Payables

 

87,842

93,986

 

  Short-Term Bank Loans

30,427

17,460

 

　

 

　

　

 

  Other Current Liabs

11,632

10,335

 

      TOTAL CURRENT LIABS

129,901

121,781

 

  Debentures

 

　

500

 

  Long-Term Bank Loans

28,889

30,080

 

  Reserve for Retirement Allw

5,157

4,465

 

  Other Debts

　

8,924

8,575

 

      TOTAL LIABILITIES

172,871

165,401

 

      MINORITY INTERESTS

 

 

 

Common stock

21,696

21,696

 

Additional paid-in capital

6,366

6,366

 

Retained earnings

12,953

12,099

 

Evaluation p/l on investments/securities

(324)

(1,688)

 

Others

 

(930)

(1,866)

 

Treasury stock, at cost

(118)

(54)

 

      TOTAL S/HOLDERS` EQUITY

39,643

36,553

　

      TOTAL EQUITIES

212,514

201,955

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

4,284

5,314

 

Cash Flows from Investment Activities

-5,260

-1,617

 

Cash Flows from Financing Activities

8,261

-3,892

　

Cash, Bank Deposits at the Term End

　

13,723

6,611

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

39,643

36,553

 

 

Current Ratio (%)

110.80

112.20

 

 

Net Worth Ratio (%)

18.65

18.10

 

 

Recurring Profit Ratio (%)

1.20

0.81

 

 

Net Profit Ratio (%)

0.31

0.32

 

 

Return On Equity (%)

3.54

3.98

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.52.10

UK Pound

1

Rs.81.30

Euro

1

Rs.70.07

 

 

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.