MIRA INFORM REPORT

 

 

Report Date :

17.10.2012

 

IDENTIFICATION DETAILS

 

Name :

RIN KAGAKU KOGYO CO LTD

 

 

Registered Office :

34 Shinbori Imizu City Toyama-Pref 934-0035

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

November 1943

 

 

Com. Reg. No.:

2300-01-012583 (Toyama-Imizu)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of phosphoric acid

 

 

No. of Employees :

80 employees

 

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

(31.03.2012)

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

 

RIN KAGAKU KOGYO CO LTD

 

 

REGD NAME

 

Rin Kagaku Kogyo KK

 

 

MAIN OFFICE

 

34 Shinbori Imizu City Toyama-Pref 934-0035 JAPAN

Tel: 0766-86-25110035      Fax: 0766-86-1178

 

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

E-Mail address:            (thru the UEL)

 

 

ACTIVITIES  

 

Mfg of phosphoric acid

 

 

BRANCHES

 

Tokyo

 

 

FACTORIES

 

At the caption address

 

 

OFFICERS

 

YOICHI YASUDA, PRES           

           

Yen Amount:     In million Yen, unless otherwise stated

 


SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 2,947 M

PAYMENTSNo Complaints    CAPITAL           Yen 120 M

TREND UP                                WORTH            Yen 2,454 M

STARTED         1943                             EMPLOYES      80

 

 

COMMENT    

 

MFR OF PHOSPHORIC ACID, OWNED BY TOSOH CORP.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established on the basis of a division separated from Tosoh Corp (See REGISTRATION).  This is a specialized mfr of polymer phosphate, other (See OPERATION).  Clients include major chemical mfrs, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2012 fiscal term amounted to Yen 2,947 million, a 9% up from Yen 2,698 million in the previous term.  The recurring profit was posted at Yen 474 million and the net profit at Yen 263 million, respectively, compared with Yen 360 million recurring profit and yen 218 million net profit, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 500 million and the net profit at Yen 270 million, respectively, on a 5% rise in turnover, to Yen 3,100 million. 

 

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

 

 

REGISTRATION

 

Date Registered:  Nov 1943

Regd No.:         2300-01-012583 (Toyama-Imizu)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         240,000 shares

Issued:                240,000 shares

Sum:                   Yen 120 million

 

Major shareholders (%): Tosoh Corp* (100)

 

*.. Major comprehensive chemical mfr, Tokyo, founded 1935, listed Tokyo S/E, capital Yen 40,633 million, sales Yen 687,131 million, operating profit Yen 23,737 million, recurring profit Yen 24,773 million, net profit Yen 9,379 million, total assets Yen 708,720 million, net worth Yen 200,197 million, employees 11,238, pres Ken’ichi Udagawa

 

Consolidated Financials are attached (See SUPPLEMENTS)

 

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

 

 

OPERATION

           

Activities: Manufactures high purity phosphoric acid, polymer phosphate, red phosphorus flame control additives, other (--100%)

 

Clients: [Mfrs, wholesalers] Rinka Ind Inc, Organo Corp, Toray Ltd, Daiichi-Kasei Co, Nippon Unicar Co, other 

            No. of accounts: 300

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Toyota Tsusho Corp, Tosoh Corp, Tosoh Nikkemi Corp, Mitsubishi Corp, Sumitomo Corp, other

 

Payment record: No Complaints

 

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

 

Bank References:

Toyama Daiichi Bank (H/O)

Shoko Chukin Bank (Toyama)

Relations: Satisfactory

 

 


FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

3,100

2,947

2,698

3,171

Recur. Profit

 

500

474

360

421

Net Profit

 

270

265

218

239

Total Assets

 

 

3,705

3,453

3,868

Current Assets

 

 

2,252

1,933

2,227

Current Liabs

 

 

628

783

1,000

Net Worth

 

 

2,454

2,632

2,334

Capital, Paid-Up

 

 

120

120

120

Div.Ttl I Million (¥)

 

 

100

98

22

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

5.19

9.23

-14.92

-31.81

    Current Ratio

 

..

358.60

246.87

222.70

    N.Worth Ratio

..

66.23

76.22

60.34

    R.Profit/Sales

 

16.13

16.08

13.34

13.28

    N.Profit/Sales

8.71

8.99

8.08

7.54

    Return On Equity

..

10.80

8.28

10.24

 

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

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, TOSOH CORP

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

 

687,131

684,398

 

  Cost of Sales

567,614

552,613

 

      GROSS PROFIT

119,516

131,785

 

  Selling & Adm Costs

95,779

98,253

 

      OPERATING PROFIT

23,737

33,531

 

  Non-Operating P/L

1,036

-3,710

 

      RECURRING PROFIT

24,773

29,821

 

      NET PROFIT

9,379

10,014

BALANCE SHEET

 

 

 

 

  Cash

 

67,701

53,863

 

  Receivables

 

165,563

181,765

 

  Inventory

 

121,911

115,599

 

  Securities, Marketable

 

 

 

  Other Current Assets

25,718

20,999

 

      TOTAL CURRENT ASSETS

380,893

372,226

 

  Property & Equipment

251,239

276,963

 

  Intangibles

 

3,292

5,121

 

  Investments, Other Fixed Assets

73,296

71,607

 

      TOTAL ASSETS

708,720

725,917

 

  Payables

 

94,042

96,113

 

  Short-Term Bank Loans

198,484

195,906

 

 

 

 

 

 

  Other Current Liabs

42,407

40,409

 

      TOTAL CURRENT LIABS

334,933

332,428

 

  Debentures

 

24

40

 

  Long-Term Bank Loans

145,033

168,210

 

  Reserve for Retirement Allw

17,588

18,502

 

  Other Debts

 

10,944

13,225

 

      TOTAL LIABILITIES

508,522

532,405

 

      MINORITY INTERESTS

 

 

 

Common stock

40,633

40,633

 

Additional paid-in capital

30,053

30,053

 

Retained earnings

109,047

101,485

 

Evaluation p/l on investments/securities

1,938

2,166

 

Others

 

19,472

20,163

 

Treasury stock, at cost

(946)

(988)

 

      TOTAL S/HOLDERS` EQUITY

200,197

193,512

 

      TOTAL EQUITIES

708,720

725,917

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

 

55,322

49,643

 

Cash Flows from Investment Activities

-17,582

-26,986

 

Cash Flows from Financing Activities

-22,661

-25,907

 

Cash, Bank Deposits at the Term End

 

67,358

52,862

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

200,197

193,512

 

 

Current Ratio (%)

113.72

111.97

 

 

Net Worth Ratio (%)

28.25

26.66

 

 

Recurring Profit Ratio (%)

3.61

4.36

 

 

Net Profit Ratio (%)

1.36

1.46

 

 

Return On Equity (%)

4.68

5.17

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.82

UK Pound

1

Rs.84.96

Euro

1

Rs.68.61

 

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.