MIRA INFORM REPORT

 

 

Report Date :

15.09.2012

 

IDENTIFICATION DETAILS

 

Name :

DAI NIPPON TORYO HOKKAIDO KK

 

 

Registered Office :

1-5-1 Chuo-2-Jo Shiraishiku Sapporo 003-0012

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

September 1986

 

 

Com. Reg. No.:

4300-01-021863 (Hokkaido-Shiraishiku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Wholesale of paints & coatings, painting goods; painting works

 

 

No. of Employees :

27 employees

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Status :

Moderate

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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

 

DAI NIPPON TORYO HOKKAIDO KK

 

 

REGD NAME

 

Dai Nippon Toryo Hokkaido KK

 

 

MAIN OFFICE

 

1-5-1 Chuo-2-Jo Shiraishiku Sapporo 003-0012 JAPAN

Tel: 011-823-1641     Fax: 011-823-1617

 

URL:                 N/A

 

 

ACTIVITIES  

 

Wholesale of paints & coatings, painting goods; painting works

 

 

BRANCHES

 

Sapporo (color painting service station)

 

 

OFFICERS

 

YOSHINORI HIROYA, PRES

Kazuyoshi Matsuyama, mgn dir

Yasuo Umemori, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        R/WEAK                                   A/SALES          Yen 1,629 M

PAYMENTS Slow but Correct        CAPITAL           Yen 40 M

TREND SLOW                                      WORTH            Yen 48 M

STARTED         1986                                         EMPLOYES      27

 

COMMENT    

 

WHOLESALER SPECIALIZING IN PAINTS; PAINTING WORKS. 

 

FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established by a certain Konishi as a paint shop, on his account.  This is a wholesaler, subsidiary of Dai Nippon Toryo Co Ltd, specializing in paints & coatings, painting tools & equipment, etc.  In 1995, when the firm went into financial difficulties, accepted the financial aegis from Dai Nippon Toryo Co Ltd (see REGISTRATION), who owns 75% of the share in the firm; together with its subsidiary real estate management company, controls 100% of the subject firm.  Executes painting works as subcontractor under local contractors.   Operations are centered in Hokkaido.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 1,629 million, a 13% down from Yen 1,870 million in the previous term.  Domestic sales decreased as affected by the Great East Japan Earthquake.  Overseas business suffered reduced demand for automotive paints, floods in Thailand and the high Yen.  The net profit was posted at Yen 29 million, compared with Yen 26 million a year ago.

 

For the current term ending Mar 2013 the net profit is projected at Yen 30million, on a 3% rise in turnover, to Yen 1,680 million.  Sales of mainline construction-use paints will increase, fueled by post-disaster reconstruction demand.

 

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements. 

 

 

REGISTRATION

 

Date Registered:  Sept 1986

Regd No.:         4300-01-021863 (Hokkaido-Shiraishiku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         3,200 shares

Issued:                800 shares

Sum:                   Yen 40 million

Major shareholders (%): Dai Nippon Toryo Co Ltd*(75), Nitto Fudosan KK** (25)

No. of shareholders: 2

 

*.. Nation’s fourth largest specialist paint mfr, Osaka, founded 1929, listed Tokyo, Osaka S/E’s, capital Yen 8,827 million, turnover Yen 70,231 million, operating profit Yen 2,639 million, recurring profit Yen 2,237 million, net profit Yen 1,417 million, total assets Yen 68,906 million, net worth Yen 18,616 million, employees 2,266, pres Toshijiro Iwasa

Consolidated Financials are attached (See SUPPLEMENTS)

 

**..Subsidiary real estate manager of Dai Nippon Toryo Co Ltd.

 

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

 

 

OPERATION

 

Activities: Wholesales paints & coatings, painting tools & equipment; executes painting works as subcontractors (--100%). 

 

Clients: [Mfrs, painting houses] Itou Tokoubu, Asahi Inovex, Kobayashi Tsusho, Konishi, Akiyama Kogyo, Sunbic, Yamaya Shokai, Usami Shokai, Souda Token, Toho, other.

            No. of accounts: 400

            Domestic areas of activities: Centered in Hokkaido

 

Suppliers: [Mfrs, wholesalers] Dai Nippon Toryo (80%), SK Kaken, Kikusui Chemical Ind, Kuboko Paint Hokkaido, Kowa Chemical Ind, Ohtsuka Paint Brush Mfg, other.

 

Payment record: Slow but Correct 

 

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

 

 

Bank References:

MUFG (Sapporo)

North Pacific Bank (Kita-15-Jo)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

　

1,680

1,629

1,870

1,718

Recur. Profit

　

　

　

　

　

Net Profit

　

30

29

26

-48

Total Assets

　

　

428

447

556

Current Assets

　

　

410

421

532

Current Liabs

　

　

351

396

536

Net Worth

　

　

48

18

-7

Capital, Paid-Up

　

　

40

40

40

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.13

-12.89

8.85

3.93

    Current Ratio

 

..

116.81

106.31

99.25

    N.Worth Ratio

..

11.21

4.03

-1.26

    R.Profit/Sales

 

..

..

..

..

    N.Profit/Sales

1.79

1.78

1.39

-2.79

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

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, DAI NIPPON TORYO CO LTD

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

70,231

70,837

 

  Cost of Sales

50,518

49,906

 

      GROSS PROFIT

19,713

20,931

 

  Selling & Adm Costs

17,074

17,908

 

      OPERATING PROFIT

2,639

3,023

 

  Non-Operating P/L

-402

-838

 

      RECURRING PROFIT

2,237

2,185

　

      NET PROFIT

1,417

1,014

BALANCE SHEET

 

 

 

 

  Cash

　

2,622

3,590

 

  Receivables

 

18,420

16,599

 

  Inventory

 

11,358

11,557

 

  Securities, Marketable

　

　

 

  Other Current Assets

2,223

2,193

 

      TOTAL CURRENT ASSETS

34,623

33,939

 

  Property & Equipment

23,424

24,379

 

  Intangibles

 

1,377

1,901

 

  Investments, Other Fixed Assets

9,482

9,873

 

      TOTAL ASSETS

68,906

70,092

 

  Payables

 

18,693

17,415

 

  Short-Term Bank Loans

11,792

12,466

 

　

 

　

　

 

  Other Current Liabs

5,639

5,792

 

      TOTAL CURRENT LIABS

36,124

35,673

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

7,977

8,330

 

  Reserve for Retirement Allw

2,934

3,072

 

  Other Debts

　

3,255

4,189

 

      TOTAL LIABILITIES

50,290

51,264

 

      MINORITY INTERESTS

 

 

 

Common stock

8,827

8,827

 

Additional paid-in capital

2,443

2,443

 

Retained earnings

3,803

2,533

 

Evaluation p/l on investments/securities

445

454

 

Others

 

3,107

4,580

 

Treasury stock, at cost

(9)

(9)

 

      TOTAL S/HOLDERS` EQUITY

18,616

18,828

　

      TOTAL EQUITIES

68,906

70,092

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

3,373

3,363

 

Cash Flows from Investment Activities

-2,085

663

 

Cash Flows from Financing Activities

-1,942

-3,504

　

Cash, Bank Deposits at the Term End

　

2,532

3,211

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

18,616

18,828

 

 

Current Ratio (%)

95.84

95.14

 

 

Net Worth Ratio (%)

27.02

26.86

 

 

Recurring Profit Ratio (%)

3.19

3.08

 

 

Net Profit Ratio (%)

2.02

1.43

 

 

Return On Equity (%)

7.61

5.39

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.73

UK Pound

1

Rs.88.61

Euro

1

Rs.71.34

 

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.