MIRA INFORM REPORT

 

 

Report Date :

05.07.2012

 

IDENTIFICATION DETAILS

 

Correct Name :

DIC CORPORATION

 

 

Registered Office :

DIC Bldg, 3-7-20 Nihombashi Chuoku Tokyo103-8233

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

March 1937

 

 

Com. Reg. No.:

0100-01-112151 (Tokyo-Chuoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of printing ink, synthetic resins, peroxides

 

 

No. of Employees :

20,750

 

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

 

Status :

Good

Payment Behaviour :

No Complaints

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

 

DIC CORPORATION

 

 

REGD NAME

 

DIC KK

 

 

MAIN OFFICE

 

DIC Bldg, 3-7-20 Nihombashi Chuoku Tokyo103-8233 JAPAN

Tel: 03-3272-4511     Fax: 03-3278-8558

 

URL:                             http://www.dic.co.j@/

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

 

 

ACTIVITIES

 

Mfg of printing ink, synthetic resins, peroxides

 

 

BRANCHES

 

Osaka, Nagoya, Sapporo, Shizuoka, Fukuoka, other (Total 21)

 

 

OVERSEAS

 

USA, Europe, Africa, Asia, Oceania, Central/South America

 

 

FACTORIES

 

Tokyo, Kashima, Suita, Chiba, Sakai, Yokkaichi, Fukuoka, other (Tot 11)

 

 

CHIEF EXEC

 

KAZUO SUGIE, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 734,726 M

PAYMENTS No Complaints   CAPITAL           Yen 91,154 M

TREND SLOW                          WORTH            Yen 124,496 M

STARTED         1937                             EMPLOYES      20,750

 

 

COMMENT    

 

MFR OF PRINTING INK. 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR BUSINESS  ENGAGEMENTS.

 

                        Unit: Million Yen

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

 

 

HIGHLIGHTS

           

This is the comprehensive mfr of chemicals, with inks and synthetic resins as mainlines.  Engaged in diverse products of fine chemicals.  Renamed as captioned in Apr 2008 from the former, Dainippon Ink & Chemicals Co Ltd.  Top-ranked in color chemicals.  Advancing overseas with purchases of graphic arts div of Sun Chemical (US) in 1986.  World’s largest ink mfr.  Promoting biotech business centering on functional ingredients, data storage and biodegradable products.  The firm will turn an Indian plant into a production base for inks for the US, Europe and Asia, thereby lowering prime cost.  It is fostering ink-jet inks and functional pigments.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 734,276 million, a 5.7% down from Yen 778,964 million in the previous term.  Sales of printing ink slumped in industrialized countries, while demand for resin to coat cellular phones weakened as smartphones grew more popular.  The recurring profit was posted at Yen 30,802 million and the net profit at Yen 18,158 million, respectively, compared with Yen 31,701 million recurring profit and Yen 15,761 million net profit, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 37,000 million and the net profit at Yen 20,000 million, on a 3.5% rise in turnover, to Yen 760,000 million.  Sales of LCD-related HVA products will continue to increase.  Sales of inks for food package printing will grow in Japan and emerging countries, offsetting flagging demand for paper printing inks.

 

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

 

 

REGISTRATION

 

Date Registered:  Mar 1937

Regd No.:         0100-01-112151 (Tokyo-Chuoku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         1,500 million shares

Issued:                919,372,048 shares

Sum:                   Yen 91,154 million

 

Major shareholders (%): Japan Trustee Services T (9.3), Master Trust Bank of Japan T (8.3), Japan Trustee Services T9 (5.9), Nissei Real Estate (5.7), Dainichi Seikan (4.6),  Dai-ichi Life Ins (3.8), Nisshin Trading (3.4), Aioi Nissay Dowa Ins (2.8), Japan Trustee Services T4 (2.3), Nippon Life Ins (2.0); foreign owners (13.4)

 

No. of shareholders: 38,897

 

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

 

Managements: Kazuo Sugie, ch: Yoshiyuki Nakanishi, pres; Masayuki Saito, v pres; Yasufumi Miyazaki, s/mgn dir; Yoshihisa Kawamura, s/mgn dir; Yoshiaki Msuda, s/mgn dir; Yutaka Hashimoto, s/mgn dir; Akira Konishi, s/mgn dir

 

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

 

Related companies: Sun Chemical, DIC Graphics, others 

 

 

OPERATION

 

Activities: Manufactures inks & chemicals:

 

(Sales breakdown by divisions):

 

Printing Inks Div (51%): printing inks, printing supplies;

 

New Graphic Arts Div (10%): organic pigments, imaging & reprographic products, liquid crystal materials;

 

Synthetic Resins Div (19%): synthetic resins, additives & chemicals;

 

Chemical Solutions Materials Div (20%): special compounds and colorants, materials, packaging materials, pressure-sensitive adhesive materials, plastic molded products, engineering plastics, hollow-fiber membranes, color & comfort;

 

Overseas Trading Ratio (5%)

 

Clients: [Printing houses, chemical mfrs, house builders] Dainippon Printing, Toppan Printing, Mitsui & Co, Mitsubishi Corp, INAX Tostem, Matsushita Electric Works, Sekisui House, Cleanup Corp, other.

 

No. of accounts: 2,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsui & Co, Mitsubishi Corp, Mitsubishi Gas & Chemicals, Tosoh Ltd, Idemitsu Kosan, Asahi Kasei Chemical, OG Corp, other.

 

Payment record: No Complaints

 

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

 

Bank References:

MUFG (Nihombashi)

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

　

734,276

778,964

 

  Cost of Sales

590,716

619,632

 

      GROSS PROFIT

143,560

159,332

 

  Selling & Adm Costs

108,600

122,180

 

      OPERATING PROFIT

34,960

37,152

 

  Non-Operating P/L

-4,158

-5,451

 

      RECURRING PROFIT

30,802

31,701

　

      NET PROFIT

18,158

15,761

BALANCE SHEET

 

 

 

 

  Cash

　

29,695

22,957

 

  Receivables

 

173,599

185,391

 

  Inventory

 

124,185

122,251

 

  Securities, Marketable

　

　

 

  Other Current Assets

21,200

24,199

 

      TOTAL CURRENT ASSETS

348,679

354,798

 

  Property & Equipment

202,825

220,631

 

  Intangibles

 

11,803

12,317

 

  Investments, Other Fixed Assets

111,760

116,014

 

      TOTAL ASSETS

675,067

703,760

 

  Payables

 

109,754

121,224

 

  Short-Term Bank Loans

32,341

23,951

 

　

 

　

　

 

  Other Current Liabs

123,200

119,204

 

      TOTAL CURRENT LIABS

265,295

264,379

 

  Debentures

 

36,000

36,000

 

  Long-Term Bank Loans

201,001

222,962

 

  Reserve for Retirement Allw

29,948

22,135

 

  Other Debts

　

18,327

27,905

 

      TOTAL LIABILITIES

550,571

573,381

 

      MINORITY INTERESTS

 

 

 

Common stock

91,154

91,154

 

Additional paid-in capital

88,758

88,758

 

Retained earnings

53,963

39,475

 

Evaluation p/l on investments/securities

(422)

(73)

 

Others

 

(108,297)

(88,278)

 

Treasury stock, at cost

(660)

(657)

 

      TOTAL S/HOLDERS` EQUITY

124,496

130,379

　

      TOTAL EQUITIES

675,067

703,760

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

31,243

30,910

 

Cash Flows from Investment Activities

-17,593

-12,340

 

Cash Flows from Financing Activities

-7,144

-26,299

　

Cash, Bank Deposits at the Term End

　

29,592

22,884

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

124,496

130,379

 

 

Current Ratio (%)

131.43

134.20

 

 

Net Worth Ratio (%)

18.44

18.53

 

 

Recurring Profit Ratio (%)

4.19

4.07

 

 

Net Profit Ratio (%)

2.47

2.02

 

 

Return On Equity (%)

14.59

12.09

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.55

UK Pound

1

Rs.85.48

Euro

1

Rs.68.70

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.