MIRA INFORM REPORT

 

 

Report Date :

30.08.2012

 

IDENTIFICATION DETAILS

 

Name :

COVALENT MATERIALS CORPORATION

 

 

Registered Office :

1-6-3 Ohsaki Shinagawaku Tokyo 141-0032

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

October 2006

 

 

Com. Reg. No.:

0107-01-018794 (Tokyo-Shinagawaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of silicon wafers, ceramics products

 

 

No. of Employees :

1,672

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow

Litigation :

Clear

 

 

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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

 

COVALENT MATERIALS CORPORATION

REGD NAME:   Covalent Material KK

MAIN OFFICE:  1-6-3 Ohsaki Shinagawaku Tokyo 141-0032 JAPAN

Tel: 03-5437-8411     Fax: 03-5437-7172

 

                        * The is its subsidiary, Covalent Materials Sekikawa Corporation

 

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

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

 

 

ACTIVITIES

 

Mfg of silicon wafers, ceramics products

 

BRANCHES

 

Osaka, Kariya, Kitakyushu, Sendai

 

OVERSEAS

 

USA (2), Korea, Germany, Taiwan, China (--subsidiaries)

 

FACTORIES  

 

Yamagata, Hadano (Kanagawa), Aichi

 

SUBSIDIARIES

 

7 domestic, 6 overseas

 

 

OFFICER(S)  

 

TOSHIO NAGAHAMA, PRES     Takeo Kasahara, v pres

Yukihiko Kimura, dir                   Osamu Yamamoto, dir

Tatsuo Kawasaki, dir                  Masao Hirano, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 68,421 M

PAYMENTS      SLOW               CAPITAL           Yen 34,941 M

TREND             SLOW               WORTH            Yen 8,530 M

STARTED         2006                 EMPLOYES      1,672

 

 

COMMENT    

 

MFR OF SILICON WAFERS. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

            Notes: Unit: In Million Yen

            Forecast (or estimated) figures for the 31/03/2013 fiscal term

 

 

HIGHLIGHTS

 

The subject company was established originally in 1928 as Toshiba Ceramics Co Ltd, and in Oct 2006 separated from the Toshiba group by MBO.  This is a specialized mfr of silicon wafers, quartz glass & ceramic products.  The firm is capitalized by Carlyle Japan & group firms.  Has 7 domestic subsidiaries and 6 overseas subsidiaries.  Domestic subsidiaries are engaged in mfg, while the overseas subsidiaries are sales agents.  Domestic clients include electronics mfrs, wholesalers, other, nationwide.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 68,421 million, a 17% down from Yen 82,866 million in the previous term.  Sales were negatively affected by the Great East Japan Earthquake that hit in Mar 2011.  Supply chains were disrupted.  Demand declined.  By Divisions, Silicon Wafers down 18.6% to Yen 33,350 million; Ceramics down 13.8% to Yen 32,594 million.  The operations continued in the red to register Yen 7,172 million recurring loss and Yen 34,058 million net losses, respectively, compared with Yen 372 million recurring loss and Yen 572 million net profit, respectively, a year ago.

 

For the current term ending Mar 2013 the operations are projected to come back to profitability to post Yen 300 recurring profit and Yen 300 million net profit, respectively, on a 3% rise in turnover, to Yen 70,500 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

REGISTRATION

 

Date Registered:  Oct 2006

Regd No.:          0107-01-018794 (Tokyo-Shinagawaku)

Legal Status:    　Limited Company (Kabushiki Kaisha)

Authorized:      　198,962,820 shares

Issued:             　52,529,025 shares

Sum:                　Yen 34,941,193,000.00

Major shareholders (%): Carlyle Japan International Partners & group firms (--100%)

No. of shareholders: 5

 

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

 

 

OPERATION

 

Activities: Manufactures silicon wafers (49.2%), ceramic products (49.6%), others (4.9%).

 

(Mfg items): silicon wafers (for semiconductor substrates; FPD related products for mfg flat panel displays; environment related products that serves to solve environmental & energy problems; semiconductor related products (materials & parts for mfg semiconductors); general industrial products; bio & medical related products

 

Clients: [Electronics mfrs, wholesalers] Toshiba Corp, Covalent Sales, Covalent Materials Niigata, Sharp Corp, Hoya Ltd, Tokyo Electron Miyagi, Hoya Electronics Malaysia SDN, BHD, Covalent Silicon, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs] Covalent Materials Niigata, Covalent Materials Nagasaki, Toshiba Finance, Covalent Materials Tokuyama, Air Water Hydro, Tokai Carbon, other.

 

Payment record: Slow

 

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

 

Bank References:

SMBC (H/O)

Mizuho Corporate Bank (H/O)

Relations: Satisfactory

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

68,421

82,866

 

  Cost of Sales

57,060

65,056

 

      GROSS PROFIT

11,361

17,810

 

  Selling & Adm Costs

16,300

15,076

 

      OPERATING PROFIT

-4,939

2,733

 

  Non-Operating P/L

-2,233

2,361

 

      RECURRING PROFIT

-7,172

-372

　

      NET PROFIT

-34,058

572

BALANCE SHEET

 

 

 

 

  Cash

　

26,765

17,502

 

  Receivables

 

5,755

11,910

 

  Inventory

 

8,698

15,849

 

  Securities, Marketable

　

　

 

  Other Current Assets

12,718

10,882

 

      TOTAL CURRENT ASSETS

53,936

56,143

 

  Property & Equipment

30,772

64,249

 

  Intangibles

 

11,340

25,004

 

  Investments, Other Fixed Assets

1,246

3,626

 

      TOTAL ASSETS

97,294

149,022

 

  Payables

 

3,601

8,678

 

  Short-Term Bank Loans

7,746

　

 

　

 

　

　

 

  Other Current Liabs

68,681

24,055

 

      TOTAL CURRENT LIABS

80,028

32,733

 

  Debentures

 

　

55,000

 

  Long-Term Bank Loans

　

6,915

 

  Reserve for Retirement Allw

3,704

6,060

 

  Other Debts

　

5,032

5,652

 

      TOTAL LIABILITIES

88,764

106,360

 

      MINORITY INTERESTS

 

 

 

Common stock

34,941

34,941

 

Additional paid-in capital

40,269

40,269

 

Retained earnings

(67,279)

(33,239)

 

Evaluation p/l on investments/securities

(964)

132

 

Others

 

1,563

559

 

Treasury stock, at cost

　

　

 

      TOTAL S/HOLDERS` EQUITY

8,530

42,662

　

      TOTAL EQUITIES

97,294

149,022

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

3,156

14,246

 

Cash Flows from Investment Activities

10,676

-1,625

 

Cash Flows from Financing Activities

-13,514

-11,540

　

Cash, Bank Deposits at the Term End

　

17,682

17,386

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

8,530

42,662

 

 

Current Ratio (%)

67.40

171.52

 

 

Net Worth Ratio (%)

8.77

28.63

 

 

Recurring Profit Ratio (%)

-10.48

-0.45

 

 

Net Profit Ratio (%)

-49.78

0.69

 

 

Return On Equity (%)

-399.27

1.34

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.66

UK Pound

1

Rs.88.04

Euro

1

Rs.69.91

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.