MIRA INFORM REPORT

 

 

 

Report Date :

05.11.2012

 

IDENTIFICATION DETAILS

 

Name :

YOSHIKAWA METAL CO LTD

 

 

Registered Office :

 

1981-Yoshida-Hokkedo Tsubame City Niigata-Pref 959-0214

 

 

 

 

Country :

Japan

 

 

 

 

Financials (as on) :

30.06.2012

 

 

 

 

Date of Incorporation :

September 1946

 

 

 

 

Com. Reg. No.:

1100-01-016170 (Niigata-Tsubame)

 

 

 

 

Legal Form :

Limited Company

 

 

 

 

Line of Business :

Manufacturer of stainless steel products (sheets, coils, pipes, other)

 

 

 

 

No. of Employees :

76

 

 

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

 

YOSHIKAWA METAL CO LTD

REGD NAME:    Yoshikawa Kinzoku KK

MAIN OFFICE:  1981-Yoshida-Hokkedo Tsubame City Niigata-Pref 959-0214 JAPAN

                                    Tel: 0256-92-3111      Fax: 0256-92-3713

 

URL:                 http://www.yoshikawa-group.co.jp/kinzoku

E-Mail address: k-a-tanabe@yoshikawa-group.co.jp/kinzoku

 

 

ACTIVITIES

 

Mfg of stainless steel products (sheets, coils, pipes, other)

 

BRANCHES

 

Soka, Niigata

 

FACTORIES

 

At the caption address, Yoshida-Shimonakano (Niigata)

 

 

OFFICERS

 

TSUTOMU YOSHIKAWA, PRES

Toshiya Otake, s/mgn dir            Toshio Yanagihara, mgn dir

Yuichi Tanabe, mgn dir               Tetsuro Kobayashi, mgn dir       

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                             A/SALES          Yen 7,631 M

PAYMENTS                  SLOW BUT CORRECT   CAPITAL           Yen 73 M

TREND             SLOW                          WORTH            Yen 1,081 M

STARTED                     1946                             EMPLOYES      76

 

COMMENT    

 

MFR OF STAINLESS STEEL PRODUCTS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

           

HIGHLIGHTS

           

            The subject company was established by Gontaro Yoshikawa on obtaining agent dealership from Nippon Stainless Steel Co Ltd.  Tsutomu Yoshikawa is his descendant, who took the pres office in 2005.  He is concurrently pres at Yoshikawa Holdings Co, holding four subsidiaries in the Group, including the captioned firm.  This is a specialized mfr of stainless steel products: sheets, coils, pipers, other.  Goods are exported.

 

 

FINANCIAL INFORMATION

           

            The sales volume for Jun/2012 fiscal term amounted to Yen 7,631 million, a 3% down from Yen 7,340 million in the previous term.  This is primarily referred to the high Yen, decreasing export revenues and profits in Yen terms.  The recurring profit was posted at Yen 162 million and the net profit at Yen 7 million, respectively, compared with Yen 158 million recurring profit and yen 3 million net profit, respectively, a year ago.

 

            For the current term ending Jun 2013 the recurring profit is projected at Yen 170 million and the net profit at Yen 10 million, respectively, on a 4% rise in turnover, to Yen 7,900 million.  Exports continue rising.

 

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

 

 

REGISTRATION

 

Date Registered:      Sept 1946

Regd No.:                     1100-01-016170 (Niigata-Tsubame)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         5.6 million shares

Issued:                1,464,100 shares

Sum:                   Yen 73,205,000.00

Major shareholders (%): Yoshikawa Holdings Co* (100)

*.. Holding company of Yoshikawa group companies, four in total

 

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

 

 

OPERATION

 

Activities: Manufactures stainless steel products: coils, sheets, pipes, other (--100%)

 

Clients: [Mfrs, wholesalers] Corona Corp (10%), Yoshikawa (5%), Nippon Fruehauf Co, Toyama Ind, Toto Ltd, other 

No. of accounts: 300

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Sumitomo Corp, Metal One Corp, Marubeni Itochu Steel Inc, NS Stainless Corp, JFE Shoji Trading, other

 

Payment record: Slow but Correct

 

Location: Business area in Tsubame City, Niigata-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Daishi Bank (Tsubame)

Hokuetsu Bank (Tsubame)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

30/06/2013

30/06/2012

30/06/2011

30/06/2010

Annual Sales

　

7,900

7,631

7,840

7,019

Recur. Profit

　

170

162

158

　

Net Profit

　

10

7

3

4

Total Assets

　

　

4,969

5,619

5,767

Current Assets

　

　

3,553

3,950

　

Current Liabs

　

　

2,463

2,876

　

Net Worth

　

　

1,081

1,074

1,071

Capital, Paid-Up

　

　

73

73

73

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.53

-2.67

11.70

-8.67

    Current Ratio

 

..

144.25

137.34

..

    N.Worth Ratio

..

21.75

19.11

18.57

    R.Profit/Sales

 

2.15

2.12

2.02

..

    N.Profit/Sales

0.13

0.09

0.04

0.06

    Return On Equity

..

0.65

0.28

0.37

 

Notes: Forecast (or estimated) figures for the 30/06/2013 fiscal term.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.66

UK Pound

1

Rs.86.37

Euro

1

Rs.69.24

 

 

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.