MIRA INFORM REPORT

 

 

Report Date :

06.11.2012

 

IDENTIFICATION DETAILS

 

Name :

HARADA CORPORATION

 

 

Registered Office :

 

2-10-14 Minamisemba Chuoku Osaka 542-0081

 

 

 

 

Country :

Japan

 

 

 

 

Financials (as on) :

31.03.2012

 

 

 

 

Date of Incorporation :

May 1923

 

 

 

 

Com. Reg. No.:

1200-01-029640 (Osaka-Chuoku)

 

 

 

 

Legal Form :

Limited Company

 

 

 

 

Line of Business :

Import, export of semiconductors, medical, shipbuilding, architecture, food

 

 

 

 

No. of Employees :

187

 

 

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 :

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 – 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

 

HARADA CORPORATION

REGD NAME:    Harada Sangyo KK

MAIN OFFICE:  2-10-14 Minamisemba Chuoku Osaka 542-0081 JAPAN

                                    Tel: 06-6244-0171     Fax: 06-6244-0157

 

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

E-mail:             enquiry@haradacorp.co.jp         

 

 

ACTIVITIES

 

Import, export of semiconductors, medical, shipbuilding, architecture, food

 

 

BRANCHES

 

Osaka (2), Tokyo, Kumamoto

 

OVERSEAS

 

Germany, Singapore, Taiwan, Korea, Philippines, China (2), Thailand

 

 

OFFICER(S)

 

HISAO HARADA, PRES Kenji Harada, v pres

Kazuyoshi Nohara, dir                Satoshi Harada, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                             A/SALES          Yen 10,776 M

PAYMENTS                  NO COMPLAINTS          CAPITAL           Yen 300 M

TREND             UP                                WORTH            Yen 5,764 M

STARTED                     1923                             EMPLOYES      187

 

 

COMMENT

 

TRADING HOUSE. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

HIGHLIGHTS

           

            The subject company was established by Kametaro Harada in order to make most of his experience in the subject line of business.  Hisao is the third generation master.  This is a trading house for import, export and wholesale of various commodities: semiconductors, shipbuilding, telecommunications, pharmaceuticals, medical care, environmental, foods, other (See OPERATION).  Goods are more imported than exported.  Imports from about 500 suppliers in USA, Europe, S/E Asia, other.  Clients are major mfrs, electronics, wholesalers, other, nationwide.

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2012 fiscal term amounted to Yen 10,776 million, an 8% up from 10,013 million in the previous term.  Demand rose after the Great East Japan Earthquake for emergency commodities, such as foods, pharmaceuticals, nursing care goods, other.  The recurring profit was posted at Yen 464 million and the net profit at yen 204 million, respectively, compared with Yen 533 million recurring profit and Yen 226 million net profits, respectively, a year ago.  .

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 490 million and the net profit at Yen 220 million, respectively, on a 7% rise in turnover, to Yen 10,500 million.  Business is seen steadily expanding.

           

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

 

 

REGISTRATION

 

Date Registered:            May 1923

Regd No.:          1200-01-029640 (Osaka-Chuoku)

Legal Status:    Limited Company (Kabushiki Kaisha)

Authorized:       2.4 million shares

Issued:              600,000 shares

Sum:                 Yen 300 million

Major shareholders (%): Employees’ S/Holding Assn (19.7), Harada S/Holding Assn (13.7), Tokio Marine & Nichido Fire Ins (8.3), Hisao Harada (7.8)

No. of shareholders: 52

 

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

 

OPERATION

 

Activities: Trading firm for import, export and wholesale of: electronics & telecommunications-related (50%), shipbuilding/architecture-related (20%), medical care, pharmaceutical, nursing care-related (10%), food, beverage (13%), other (7%).

 

(Handling Items):

Industrial consumption goods: Clean room products (gloves, wipers, suits & shoes, sanitation & maintenance supplies, masks), order-made uniforms, safety equipment, disposable protective equipment, heat stroke prevention, safety vests, work gloves;

Electronics & communications: electronics control products (ionizer, plasma anomalous discharge, monitoring system), communication equipment (fiber-optic measuring devices, metal/network cable measuring devices, related products for offshore equipment);

Architecture & shipbuilding: Shipbuilding (chockfast, vacuum toilet system, push fit stainless steel piping system, fire safe sealing for pipe penetration, heat shielding film & coatings, adhesive-type vibration absorbing sheet), Architecture & industrial (floor air outlets, displacement ventilation outlets, draft-free line diffuser, residential zone air conditioning), safety protection (autoclavable shoes, autoclabable suits, gloves);

Food mfg: hair/hygiene control in food plants, high quality mold release oil, trennaktive, food stabilizing agent, material management & supply system, mondomixer;

Medical care: welfare equipment (wheelchairs, bedsores, walkers, seminars), medical devices (anti-smoking clinics, DVT & thrombosis prevention, respiratory field apparatus, obstetrics & gynecology), Pharmaceutical factories (autoclavable shoes, autoclavable suits, gloves, other)

 

Clients: [Mfrs, wholesalers] Mitsubishi Heavy Ind, IHI Marine United, JFE Steel, Sharp, NEC, Hitachi Ltd, NTT group firms, Obayashi Corp, other

No. of accounts: 800

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Imports from about 500 suppliers in USA, Europe, China, other S/E Asian countries.

 

Payment record: No Complaints

 

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

 

Bank References:

MUFG (Semba)

SMBC (Semba)

Relations: Satisfactory

 

 


FINANCES

 (In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

11,500

10,776

10,013

9,890

Recur. Profit

 

490

464

533

537

Net Profit

 

220

204

226

257

Total Assets

 

 

11,270

11,664

10,761

Current Assets

 

 

10,012

10,049

9,408

Current Liabs

 

 

4,377

4,938

4,257

Net Worth

 

 

5,764

5,632

5,477

Capital, Paid-Up

 

 

300

300

300

Div.P.Share(¥)

 

 

12.00

12.00

12.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

6.72

7.62

1.24

-2.07

    Current Ratio

 

..

228.74

203.50

221.00

    N.Worth Ratio

..

51.14

48.29

50.90

    R.Profit/Sales

 

4.26

4.31

5.32

5.43

    N.Profit/Sales

1.91

1.89

2.26

2.60

    Return On Equity

..

3.54

4.01

4.69

 

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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.08

UK Pound

1

Rs.86.68

Euro

1

Rs.69.36

 

 

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.