MIRA INFORM REPORT

 

 

Report Date :

27.10.2012

 

IDENTIFICATION DETAILS

 

Name :

UNITIKA LTD

 

 

Registered Office :

Osaka Center Bldg, 4-1-3 Kyutaromachi Chuoku Osaka 541-8566

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

June 1889

 

 

Com. Reg. No.:

1200-09-013637 (Osaka-Chuoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of high-polymer products, functional materials, textiles

 

 

No. of Employees :

4,745 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

 

UNITIKA LTD

 

 

REGD NAME

 

Unitika KK

 

 

MAIN OFFICE

 

Osaka Center Bldg, 4-1-3 Kyutaromachi Chuoku Osaka 541-8566 JAPAN

Tel: 06-6281-5695     Fax: 06-6281-5697-

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Mfg of high-polymer products, functional materials, textiles, others

 

 

BRANCHES

 

Tokyo, Okazaki, Uji, Kaizuka, Akoo, other (Tot 8)

 

 

OVERSEAS

 

USA, Europe, China, other Asia, other

 

 

FACTORIES

 

(subsidiaries)

 

 

CHIEF EXEC

 

KENJI YASUE, PRES

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 　A/SALES       Yen 174,662 M

PAYMENTS                  REGULAR         　CAPITAL        Yen 26,298 M

TREND             SLOW              　WORTH         Yen 32,207 M

STARTED                     1889                 　EMPLOYES   4,745

 

 

COMMENT    

 

MFR OF FUNCTIONAL CHEMICALS, TEXTILES, OTHER 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

                        Notes: Unit: In Million Yen

Forecast figures for the 31/03/2013 fiscal term.

 

 

HIGHLIGHTS

 

This is an old-established company, formerly major general textile mfr, and pushing ahead with restructuring of textile business thru integration and pull-outs.  Striving to improve earnings base by expanding non-textiles, including high-polymer and environmental engineering on water treatment.  Stressing environment-friendly fields such as biodegradable plastics.  The company is integrating full-swing operations in the March 2013 term at the domestic JV established in Apr 2011.  It is also considering overseas production.  But production is temporarily halted due to fire at the Tarui Plant.  The company is developing low-price radiation-blocking sheets with a high degree of flexible processing.  It plans to create post-earthquake reconstruction teams in conjunction with other functional products.  The mechanized parking lot business and fish net business were sold in July 2012 with the aim of eliminating deficits.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 174,662 million, a 3.3% down from Yen 182,239 million in the previous term.  High polymers grew slowly without rushing demand in the first half.  Shipments of nylon for automobile sector, a major sector, stagnated in the first half of the year due to production cutbacks.  Textiles were solid in the first half, but lost steam due to sluggish demand in the second half of the year.  By Divisions, High-Polymer Products up by Yen 278 million to Yen 67,294 million; Functional Materials down by Yen 88 million to Yen 15,020 million; Textiles down by Yen 394 million to Yen 76,701 million.  The recurring profit was posted at Yen 5,753 million and the net profit at Yen 1,297 million, respectively, compared with Yen 6,119 million recurring profit and Yen 2,444 million net profit, respectively, a year ago.  Wrote off Yen 2,792 million as extraordinary losses coming from business reconstruction costs.

 

(Apr/Jun/2012 results): Sales Yen 38,883 million (down 12.7%), operating profit Yen 1,454 million (down 52.2%), recurring profit Yen 559 million (down 73.7%), net profit Yen 59 million (down 93.1%).  (% compared with the corresponding period a year ago)

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 6,000 million and the net profit at Yen 2,000 million, on a 0.2% rise in turnover, to Yen 175,000 million.  High polymers for automobile will recover, but sales of films will struggle in absence of earthquake-related reconstruction demand.  In mainline textiles, sales of industrial vinylon will decline due to the impact of the strong Yen and economic slump in Europe.

 

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

 

 

REGISTRATION

 

Date Registered:　Jun 1889

Regd No.:         1200-09-013637 (Osaka-Chuoku)

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       1,786 million shares

Issued:                475,969,000 shares

Sum:                   Yen 26,298 million

 

Major shareholders (%):Isao Nasu (4.6), MUFG (4.0), Master Trust Bank of Japan T (3.4), Japan Trustee Services T (2.7), Employees’ S/Holding Assn (1.9), Daido Life Ins (1.3), Nippon Life Ins (1.3), Tokio Marine and Nichido Fire Ins (1.1), Japan Trustee Services T4 (1.0), Company’s Treasury Stock (0.9); foreign owners (8.7)

 

No. of shareholders: 53,136

 

Listed on the S/Exchange (s) of: Tokyo, Osaka S/E’s

 

Managements: Kenji Yasue, pres; Yusei Yamaguchi, s/mgn dir; Akio Nakagi, mgn dir; Hiroyuki Shime, dir; Takuro Matsunaga, dir

 

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

 

Related companies: Unitika Trading, Esther Japan, other.

 

 

OPERATION

           

Activities: Manufactures high-polymer products, functional materials, textiles, other:

(Sales Breakdown by Divisions):

 

High-Polymer Products (39%): films (nylon, polyester), resins (nylon, polyester, polyarylate), PVA fiber, nonwoven fabrics (polyester, nylon spun-bonded, cotton spunlace), biodegradable plastic materials;

 

Functional Materials (9%): glass fiber products, glass beads, activated fibers, amorphous metal fibers, phenol-based resins, other;

 

Textiles (44%), yarns, cloth, cotton, polyester yarns, other;

 

Others (12%)

 

Overseas Sales Ratio (14%)

           

Clients: [Mfrs, wholesalers] Unitika Trading, Itochu Corp, Canon Inc, Kao Corp, Itochu Plastics, Ministry of Defense, Vendor Service Co, Itochu Plastics Corp, other

            No. of accounts: 600

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Ube Ind, Toray Ind, Kuraray, Teijin DuPont Film, Kanebo Cosmetics Inc, Nitto Boseki Co, Japan Vam & Poval Co, other

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Osaka)

Mizuho Corporate Bank (Osaka)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

174,662

180,706

 

  Cost of Sales

140,843

146,098

 

      GROSS PROFIT

33,819

34,607

 

  Selling & Adm Costs

24,239

24,093

 

      OPERATING PROFIT

9,579

10,513

 

  Non-Operating P/L

-3,826

-4,394

 

      RECURRING PROFIT

5,753

6,119

　

      NET PROFIT

1,297

2,444

BALANCE SHEET

 

 

 

 

  Cash

　

15,361

16,786

 

  Receivables

 

39,884

41,898

 

  Inventory

 

47,797

46,615

 

  Securities, Marketable

　

　

 

  Other Current Assets

5,383

4,281

 

      TOTAL CURRENT ASSETS

108,425

109,580

 

  Property & Equipment

153,146

151,869

 

  Intangibles

 

773

731

 

  Investments, Other Fixed Assets

6,142

6,560

 

      TOTAL ASSETS

268,486

268,740

 

  Payables

 

25,191

24,952

 

  Short-Term Bank Loans

69,993

73,893

 

　

 

　

　

 

  Other Current Liabs

48,838

50,461

 

      TOTAL CURRENT LIABS

144,022

149,306

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

68,601

71,176

 

  Reserve for Retirement Allw

7,189

5,651

 

  Other Debts

　

16,466

15,629

 

      TOTAL LIABILITIES

236,278

241,762

 

      MINORITY INTERESTS

 

 

 

Common stock

26,298

23,798

 

Additional paid-in capital

4,161

1,661

 

Retained earnings

(646)

(1,943)

 

Evaluation p/l on investments/securities

26

(49)

 

Others

 

2,423

2,565

 

Treasury stock, at cost

(55)

(55)

 

      TOTAL S/HOLDERS` EQUITY

32,207

25,977

　

      TOTAL EQUITIES

268,486

268,740

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

10,798

10,416

 

Cash Flows from Investment Activities

-7,449

-2,959

 

Cash Flows from Financing Activities

-4,393

-10,844

　

Cash, Bank Deposits at the Term End

　

15,339

16,589

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

32,207

25,977

 

 

Current Ratio (%)

75.28

73.39

 

 

Net Worth Ratio (%)

12.00

9.67

 

 

Recurring Profit Ratio (%)

3.29

3.39

 

 

Net Profit Ratio (%)

0.74

1.35

 

 

Return On Equity (%)

4.03

9.41

 

 

           

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.63

UK Pound

1

Rs.86.18

Euro

1

Rs.69.75

 

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.