MIRA INFORM REPORT

 

 

Report Date :

01.11.2012

 

IDENTIFICATION DETAILS

 

Name :

NAGASE-OG COLOR & CHEMICALS CO LTD

 

 

 

 

Registered Office :

Nagase Sangyo Bldg 8F, 1-1-17 Shinmachi Nishiku Osaka 550-0013

 

 

 

 

Country :

Japan

 

 

 

 

Financials (as on) :

31.03.2012

 

 

 

 

Date of Incorporation :

January 1957

 

 

 

 

Legal Form :

Limited Company

 

 

 

 

Line of Business :

Import, export, wholesale of textiles, industrial chemicals, dyestuffs, direct color, other

 

 

 

 

No. of Employees :

149

 

 

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 :

Satisfactory

Payment Behaviour :

Slow but correct

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

JAPAN - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

Source : CIA

Company name and address

 

NAGASE-OG COLOR & CHEMICALS CO LTD

REGD NAME:    OG Nagase Color Chemical KK

MAIN OFFICE:  Nagase Sangyo Bldg 8F, 1-1-17 Shinmachi Nishiku Osaka 550-0013 JAPAN

Tel: 06-6535-2206      Fax: 06-6535-2054

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Import, export, wholesale of textiles, industrial chemicals, dyestuffs, direct color, other

 

BRANCHES

 

Tokyo, Nagoya, Osaka, Fukui

 

OVERSEAS

 

China (2)

 

 

OFFICERS

 

YASUHIRO YAMAZAKI, PRES   Kenji Kobayashi, v pres

Teisaku Sumasu, dir                              Seiichi Hikari, dir

Hiroshi Hanamoto, dir                 Eigoro Kunimoto, dir      

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 12,900 M

PAYMENTSSLOW BUT CORRECT         CAPITAL           Yen 100 M

TREND SLOW                          WORTH            Yen 776 M

STARTED         1957                             EMPLOYES      149

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN INDUSTRIAL CHEMICALS, JOINTLY

OWNED BY NAGASE & CO LTD AND .OG CORPORATION

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

            The subject company was established jointly by Nagase & Co Ltd and OG Corporation (See REGISTRATION).  This is a trading firm specializing in import, export and wholesale of industrial chemicals: textiles, dyes, pigments, dyeing chemicals, other.  Goods are supplied by the joint parents for export.  Clients include major textile mfrs, chemical makers, other.

 

 

FINANCIAL INFORMATION

           

            The sales volume for Mar/2012 fiscal term amounted to Yen 12,900 million, a 14% down from Yen 14,955 million in the previous term.  Sales were hit by the Great East Japan Earthquake .  The net profit was posted at Yen 55 million, compared with Yen 150 million a year ago.

 

            For the current term ending Mar 2013 the net profit is projected at Yen 60 million, on a 4% rise in turnover, to Yen 13,500 million.  Automobile-use synthetic resins will grow. 

 

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

 

 

REGISTRATION

 

Date Registered:  Jan 1957

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         800,000 shares

Issued:                200,000 shares

Sum:                   Yen 100 million

Major shareholders (%): Nagase & Co Ltd* (50), OG Corporation** (50)

No. of shareholders: 2

 

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

 

*.. Top-ranked trader of chemical products, Tokyo, founded 1917, listed Tokyo, Osaka S/E’s, capital Yen 9,699 million, sales Yen 631,853 million, operating profit Yen 13,427 million, recurring profit Yen 18,670 million, net profit Yen 8,570 million, total assets Yen 50,742 million, net worth Yen 212,744 million, employees 5,694, pres Hirose Nagase

Consolidated Financials are attached (See SUPPLEMENTS)

 

**.Trading firm specializing in industrial chemicals, Osaka, founded 1923, capital Yen 111 million, sales Yen 140,138 million, recurring profit Yen 1,338 million, net profit Yen 825 million, total assets Yen 67,733 million, net worth Yen 12,827 million, employees 475, pres Hiroyuki Takino

 

 

OPERATION

           

Activities: Trading firm for import, export and wholesale of industrial chemicals: textiles, dyes, pigments, dyeing chemicals, paints, automobile-use synthetic resins, functional materials, other (--100%)

 

Clients: [Mfrs, wholesalers] Toyota Tsusho Corp, Emori & Co, Komatsu Seiki Seisakusho, Gunze Ltd, Tokai Senko KK, Mizutani Shoten, KB Seiren Ltd, Kureha Tech, Kurabo Ind, Suminoe Textile Co, Japan Wool Textile Co, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Nagase & Co, OG Corp, Dyestar Japan, Clariant Japan, Nikka Chemical, Nippon Kayaku Ltd, Japan Carlit Co, other

 

Payment record: Slow but correct

 

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

 

Bank References:

SMBC (Osaka-Nishi)

MUFG (Otsucho)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

　

13,500

12,900

14,955

12,961

Recur. Profit

　

　

　

　

　

Net Profit

　

60

55

150

90

Total Assets

　

　

5,889

5,940

5,392

Current Assets

　

　

5,744

5,765

　

Current Liabs

　

　

5,045

5,143

　

Net Worth

　

　

776

721

571

Capital, Paid-Up

　

　

100

100

100

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.65

-13.74

15.38

-4.64

    Current Ratio

 

..

113.86

112.09

..

    N.Worth Ratio

..

13.18

12.14

10.59

    R.Profit/Sales

 

..

..

..

..

    N.Profit/Sales

0.44

0.43

1.00

0.69

    Return On Equity

..

7.09

20.80

15.76

Notes: Forecast (or estimated) figures for the 31/03/2012 fiscal term.

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, NAGASE 6 CO LTD

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

631,854

660,213

 

  Cost of Sales

560,226

587,204

 

      GROSS PROFIT

71,628

73,008

 

  Selling & Adm Costs

58,200

54,276

 

      OPERATING PROFIT

13,427

18,732

 

  Non-Operating P/L

2,263

1,893

 

      RECURRING PROFIT

15,690

20,625

　

      NET PROFIT

8,570

12,823

BALANCE SHEET

 

 

 

 

  Cash

　

29,184

47,202

 

  Receivables

 

197,702

186,113

 

  Inventory

 

45,258

36,714

 

  Securities, Marketable

　

　

 

  Other Current Assets

10,136

7,275

 

      TOTAL CURRENT ASSETS

282,280

277,304

 

  Property & Equipment

56,727

39,916

 

  Intangibles

 

57,454

3,674

 

  Investments, Other Fixed Assets

54,381

54,442

 

      TOTAL ASSETS

450,842

375,336

 

  Payables

 

109,163

101,679

 

  Short-Term Bank Loans

38,633

15,525

 

　

 

　

　

 

  Other Current Liabs

33,893

21,313

 

      TOTAL CURRENT LIABS

181,689

138,517

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

38,200

10,555

 

  Reserve for Retirement Allw

10,032

7,295

 

  Other Debts

　

8,176

9,653

 

      TOTAL LIABILITIES

238,097

166,020

 

      MINORITY INTERESTS

 

 

 

Common stock

9,699

9,699

 

Additional paid-in capital

10,041

10,041

 

Retained earnings

186,907

181,665

 

Evaluation p/l on investments/securities

12,731

13,188

 

Others

 

(1,174)

183

 

Treasury stock, at cost

(5,460)

(5,460)

 

      TOTAL S/HOLDERS` EQUITY

212,744

209,316

　

      TOTAL EQUITIES

450,742

375,336

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

5,690

10,997

 

Cash Flows from Investment Activities

-81,066

-9,147

 

Cash Flows from Financing Activities

56,961

3,564

　

Cash, Bank Deposits at the Term End

　

28,517

47,202

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

212,744

209,316

 

 

Current Ratio (%)

155.36

200.19

 

 

Net Worth Ratio (%)

47.20

55.77

 

 

Recurring Profit Ratio (%)

2.48

3.12

 

 

Net Profit Ratio (%)

1.36

1.94

 

 

Return On Equity (%)

4.03

6.13

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.12

UK Pound

1

Rs.87.07

Euro

1

Rs.70.15

 

 

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.