MIRA INFORM REPORT

 

 

Report Date :

19.10.2012

 

IDENTIFICATION DETAILS

 

Correct Name :

HITACHI CHEMICAL DUPONT MICROSYSTEMS LTD

 

 

Registered Office :

Nikkyohan Bldg 3F, 1-4-25 Koraku Bunkyoku Tokyo 112-0004

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

August 1997        

 

 

Com. Reg. No.:

0100-01-083964 (Tokyo-Bunkyoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of liquid polyimides & PBO precursors

 

 

No. of Employees :

34 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 :

Good

Payment Behaviour :

Regular

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

 

HITACHI CHEMICAL DUPONT MICROSYSTEMS LTD

 

 

REGD NAME

 

Hitachi Kasei DuPont Microsystems KK

 

 

MAIN OFFICE

 

Nikkyohan Bldg 3F, 1-4-25 Koraku Bunkyoku Tokyo 112-0004 JAPAN

Tel: 03-3868-8124      Fax: 03-3868-8126

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Mfg of liquid polyimides & PBO precursors

 

 

BRANCHES

 

Hitachi

 

 

OVERSEAS

 

USA (2), Germany

 

 

FACTORIES

 

Hitachi, Korea, Taiwan


 

OFFICERS

 

HIROSHI SUZUKI, PRES           Naoshi Tanaka, dir

Masami Yamamori, dir               Minoru Yoshida, dir

Kaname Takatsuka, dir  

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        1997                 A/SALES          Yen 473,069 M*

PAYMENTSREGULAR   CAPITAL           Yen 400 M

TREND SLOW               WORTH            Yen 287,239 M*

STARTED         1997                 EMPLOYES      34

                                    *.. Financials are consolidated by the Japanese parent and these

                                    figures are all cited from the parent’s Financial Statement

 

 

COMMENT    

 

MR OF LIQUID POLYIMIDES & PBO PRECURSORS, JV WITH HITACHI CHIMICAL CO AND DUPONT USA.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established jointly by Hitachi Chemical Co Ltd (See REGISTRATION) and DuPont USA.  Japanese Partner owns 90% of the shares of the JV company.  This is a specialized mfr of liquid polyimides & PBO preservers for semiconductors.  Goods are manufactured at Hitachi Plant and Korea & Taiwan plants.  Clients include major semiconductor mfrs, both domestic and abroad.  Goods are exported.

 

 

FINANCIAL INFORMATION

 

Financials are consolidated by the Japanese Parent and no individual Financials are disclosed.

 

The sales volume for Mar/2012 fiscal term amounted to Yen 473,069 million, a 4.9% down from Yen 497,452 million in the previous term.  Hit by the Earthquake and Thailand floods, sales plunged with unexpected plunge of demand for electronic materials.  The recurring profit was posted at Yen 27,789 million and the net profit at Yen 16,427 million, respectively, compared with Yen 45,042 million recurring profit and yen 18,942 million net profit, respectively, a year ago.  The electronic functional materials account for 51% of the parent’s total sales.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 35,000 million and the net profit at Yen 21,500 million, respectively, on a 7.8% rise in turnover, to Yen 510,000 million.  Sales of electronic materials will rise steadily.

 

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

 

 

REGISTRATION

 

Date Registered:  Aug 1997

Regd No.:         0100-01-083964 (Tokyo-Bunkyoku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         32,000 shares

Issued:                8,000 shares

Sum:                   Yen 400 million

Major shareholders (%): Hitachi Chemical Co Ltd* (90), DuPont Microsystems USA (10)

No. of shareholders: 2

 

*.. Hitachi Chemical Co Ltd, leading mfr of synthetic resins, with electric & electronic materials as major earning source, Tokyo, listed Tokyo S/E, capital Yen 15,454 million, sales Yen 473,059 million, operating profit Yen 24,495 million, recurring profit Yen 27,799 million, net profit Yen 16,427 million, total assets Yen 440,981 million, net profit Yen 287,239 million, employees 16,986, pres Kazuyuki Tanaka

 

Consolidated Financials are attached (See SUPPLEMENTS)

 

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

 

 

OPERATION

           

Activities: Manufactures liquid polyimides & PBO precursors, others (--100%)

 

Clients: Semiconductor makers both domestic & abroad

            No. of accounts: Unavailable

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Hitachi Kasei Co Ltd (90%), DuPont Microsystems (10%)

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Corporate Bank (H/O)

Mizuho Bank (H/O)

Relations: Satisfactory

 

FINANCES

(In Million Yen)

 

CONSOLIDATED BY THE JAPANESE PARTNER AND NOT DISCLOSED

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF HITACHI CHEMICAL CO LTD

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

 

473,069

497,452

 

  Cost of Sales

368,983

383,214

 

      GROSS PROFIT

104,086

114,238

 

  Selling & Adm Costs

79,591

80,767

 

      OPERATING PROFIT

24,495

33,471

 

  Non-Operating P/L

3,304

11,571

 

      RECURRING PROFIT

27,799

45,042

 

      NET PROFIT

16,427

18,943

BALANCE SHEET

 

 

 

 

  Cash

 

37,703

39,984

 

  Receivables

 

107,126

106,939

 

  Inventory

 

42,519

38,583

 

  Securities, Marketable

1,897

5,691

 

  Other Current Assets

59,254

78,953

 

      TOTAL CURRENT ASSETS

248,499

270,150

 

  Property & Equipment

131,295

120,513

 

  Intangibles

 

29,705

6,559

 

  Investments, Other Fixed Assets

31,482

34,962

 

      TOTAL ASSETS

440,981

432,184

 

  Payables

 

50,367

52,741

 

  Short-Term Bank Loans

15,931

12,895

 

 

 

 

 

 

  Other Current Liabs

43,116

43,007

 

      TOTAL CURRENT LIABS

109,414

108,643

 

  Debentures

 

20,000

10,000

 

  Long-Term Bank Loans

4,739

4,031

 

  Reserve for Retirement Allw

16,544

16,044

 

  Other Debts

 

3,045

3,155

 

      TOTAL LIABILITIES

153,742

141,873

 

      MINORITY INTERESTS

 

 

 

Common stock

15,454

15,454

 

Additional paid-in capital

36,113

36,113

 

Retained earnings

248,325

239,422

 

Evaluation p/l on investments/securities

732

1,553

 

Others

 

(13,194)

(2,043)

 

Treasury stock, at cost

(191)

(188)

 

      TOTAL S/HOLDERS` EQUITY

287,239

290,311

 

      TOTAL EQUITIES

440,981

432,184

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

 

42,072

44,015

 

Cash Flows from Investment Activities

-67,202

290,311

 

Cash Flows from Financing Activities

4,611

-6,823

 

Cash, Bank Deposits at the Term End

 

76,318

96,775

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

287,239

290,311

 

 

Current Ratio (%)

227.12

248.66

 

 

Net Worth Ratio (%)

65.14

67.17

 

 

Recurring Profit Ratio (%)

5.88

9.05

 

 

Net Profit Ratio (%)

3.47

3.81

 

 

Return On Equity (%)

5.72

6.53

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.96

UK Pound

1

Rs.85.45

Euro

1

Rs.69.46

 

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.