MIRA INFORM REPORT
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Report Date : |
03.08.2013 |
IDENTIFICATION DETAILS
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Name : |
DAIICHISEIKA COLOR & CHEMICALS MFG CO
LTD |
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Registered Office : |
1-7-6 Nihombashi-Bakurocho Chuoku Tokyo 103-8383 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
December, 1939 |
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Legal Form : |
Limited Company |
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Line of Business : |
Mfg of pigments, coloring agents |
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No. of Employees : |
3,613 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 small agricultural sector is highly subsidized and protected, with crop
yields among the highest in the world. While self-sufficient in rice
production, Japan imports about 60% of its food on a caloric basis. 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. Modest economic growth continued after 2000, but the
economy has fallen into recession three times since 2008. A sharp downturn in
business investment and global demand for Japan's exports in late 2008 pushed Japan
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 and the ensuing tsunami in March disrupted manufacturing.
The economy has largely recovered in the two years since the disaster, but
reconstruction in the Tohoku region has been uneven. Newly-elected Prime
Minister Shinzo ABE has declared the economy his government's top priority; he
has pledged to reconsider his predecessor's plan to permanently close nuclear
power plants and is pursuing an economic revitalization agenda of fiscal
stimulus and regulatory reform and has said he will press the Bank of Japan to
loosen monetary policy. Measured on a purchasing power parity (PPP) basis that
adjusts for price differences, Japan in 2012 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 2012. The new government will
continue a longstanding debate 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
DAIICHISEIKA COLOR & CHEMICALS MFG CO LTD
REGD NAME
Dainichi Seika
Kogyo KK
MAIN OFFICE
1-7-6
Nihombashi-Bakurocho Chuoku Tokyo 103-8383JAPAN
Tel: 03-3662-7111 Fax: 03-3669-3924-
URL: http://www.daicolor.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Mfg of pigments,
coloring agents
BRANCHES
Sapporo, Sendai,
Saitama, Shizuoka, Nagoya, Kyoto, Osaka, other (Tot 17)
OVERSEAS
USA, China (6),
Hong Kong, Taiwan, Korea, Spain, Brazil, Italy, Netherlands,
Germany,
Indonesia, Philippines, Thailand, Malaysia, Vietnam, India (--subsidiaries/JVs)
FACTORIES
(Domestic)
Sapporo, Saitama, Tokyo (2), Chiba, Shizuoka, Nagoya, Osaka, other (Tot 17),
(Overseas) China
(6), Indonesia, Hong Kong, Taiwan, Thailand, India, USA, and Brazil
CHIEF EXEC
KOJI TAKAHASHI,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen151,994 M
PAYMENTSREGULAR CAPITAL Yen10,039
M
TREND SLOW WORTH Yen 57,954 M
STARTED 1939 EMPLOYES 3,613
COMMENT
MFR OF PIGMENTS & COLORING AGENTS.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
Unit: In Million Yen
Forecast (or estimated) figures for the 31/03/2014 fiscal term.
HIGHLIGHTS
This is a leading producer of pigments & coloring agents for
synthetic resins & fibers. Produces
printing ink, too. Aims to become
comprehensive chemical mfr. Depends
heavily on automobile & household electric appliance industries. Engaged in production of data recording
materials. The firm is carrying on the
development of chitosan, natural polymer extract, for environment-friendly
paints. It is also increasing the
variety of water-based flexographic ink.
In natural chitosan business, the
firm is seeking for new applications other than existing uses for cosmetics,
etc. The HQ building will be rebuilt
with larger areas for partial lease, with completion slated two years hence.
FINANCIAL INFORMATION
The sales volume for Mar 2013 fiscal term amounted to Yen 151,994
million, an 2.6% down from Yen 156,025 million in the previous term. Japanese economy showed signs of recovery in
the beginning of the period on the strength of demand related to
post-earthquake reconstruction, etc.
From the middle of the period, exports and production declined due to
the impact of the economic slowdown overseas as a result of financial
uncertainties in Europe, and the economy weakened overall. The sales decline was in part referred to the
drop in net sales of a subsidiary in Thailand witch suffered from flood
damage. Sales declined in all sectors,
except Polymer business which was up 6.3% over the previous term. The recurring profit was posted at Yen 8,604
million and the net profit at Yen 5,727 million, respectively, compared with
Yen 8,529 million recurring profit and Yen 4,314 million net profit,
respectively, a year ago. The net profit
increase (by 32.8% over the previous term) was mostly due to the posing of
insurance income for the floods in Thailand as extraordinary income.
For the current term ending Mar 2014 the recurring profit is projected
at Yen 8,900 million and the net profit at Yen 5,600 million, on a 0.7% rise in
turnover, to Yen 153,000 million. Sales
of mainline chemicals, such as resin coloring agents, will increase and polymer
products will grow further. Demand for
information recording materials will show signs of recovery. Operating profit will rise steadily, with the
flood-damaged plant in Thailand restored completely.
The financial situation is considered FAIR
and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Dec 1939
Legal Status: Limited Company (Kabushiki Kaisha
Authorized: 250 million shares
Issued: 93,065,554shares
Sum: 10,039 million
Major
shareholders (%): SMBC (4.7), Sompo Japan Ins (3.7), Mitsui Life Ins (3.5), Japan
Trustee Services T (3.3), MUFG (3.2), Mizuho Bank (3.1), Employees’ S/Holding
Assn (2.9), Mizuho Trust (2.9), Sompo Japan Ins (2.4), Master Trust Bank of
Japan T (2.4), Osamu Takahashi (1.9); foreign owners (6.8)
No. of shareholders: 4,090
Listed on the S/Exchange (s) of: Tokyo
Managements: Osamu Takahashi,
ch; Koji Takahashi, pres; Yoshihisa Makino, s/mgn dir; Ryuichi Inoue, mgn dir;
Akio Yoshida, mgn dir; Yoshihiko Takeichi, mgn dir; Kengo Nakajo, dir; Kazuo
Nakamura, dir; Kazuyuki Hanada, dir; Takanori Sanan, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Hi-Tech Chemie, Dainichi Color (Thailand),
Ukima Gosei, other
OPERATION
Activities: Manufactures: chemical
products (pigments) (15%), coloring agents (54%), high-polymer products (11%),
printing inks (19%), others (1%).
Overseas
Sales Ratio (26%)
(Mfg
items): Pigments (organic/inorganic/prepared pigments); Prepared colors &
chemicals (plastic colorant); Polymers; Printing ink (offset/gravure inks);
Specialties (chitosan, functional coating materials, bio-chemicals, composite
chemical deodorizer, color matching system, chemical blowing agents,
electronics relative products, others)
Clients: [Mfrs, wholesalers]
Poly-Plastics, Prime Polymer, Mitsui Chemical, LG Chemical,
The Ink-Tec,
T&K TOKA, Mitsubishi Chemical, Sumitomo Electric Ind, Japan Polypropylene,
other
No. of accounts: 1,000
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs, wholesalers] Ukima Gosei,
Hitec-Chemie, Poly-Plastics, Japan
Polypropylene, Prime Polymer, Nagase &
Co, Mitsui Chemical, Sojitz Corp, Shoei
Chemical, Mitsubishi Chemical, other
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
Mizuho Corporate
Bank (Ohtemachi)
SMBC (Nihombashi)
Relations:
Satisfactory
FINANCES
(In Million
Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
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151,994 |
156,025 |
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Cost of Sales |
127,683 |
131,397 |
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GROSS PROFIT |
24,310 |
24,627 |
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Selling & Adm Costs |
16,235 |
16,109 |
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OPERATING PROFIT |
8,074 |
8,517 |
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Non-Operating P/L |
530 |
-7,988 |
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RECURRING PROFIT |
8,604 |
8,529 |
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NET PROFIT |
5,727 |
4,314 |
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BALANCE SHEET |
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Cash |
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27,659 |
23,458 |
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Receivables |
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43,501 |
45,731 |
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Inventory |
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23,035 |
22,245 |
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Securities, Marketable |
161 |
125 |
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Other Current Assets |
2,993 |
3,399 |
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TOTAL CURRENT ASSETS |
97,349 |
94,958 |
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Property & Equipment |
42,079 |
41,430 |
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Intangibles |
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1,041 |
981 |
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Investments, Other Fixed Assets |
16,742 |
15,036 |
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TOTAL ASSETS |
157,211 |
152,405 |
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Payables |
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28,032 |
30,266 |
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Short-Term Bank Loans |
22,855 |
25,042 |
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Other Current Liabs |
16,908 |
18,528 |
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TOTAL CURRENT LIABS |
67,795 |
73,836 |
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Debentures |
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Long-Term Bank Loans |
22,030 |
17,501 |
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Reserve for Retirement Allw |
6,620 |
7,631 |
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Other Debts |
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2,812 |
2,752 |
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TOTAL LIABILITIES |
99,257 |
101,720 |
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MINORITY INTERESTS |
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Common
stock |
10,039 |
10,039 |
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Additional
paid-in capital |
9,193 |
9,193 |
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Retained
earnings |
39,255 |
34,642 |
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Evaluation
p/l on investments/securities |
1,569 |
629 |
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Others |
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(2,011) |
(3,730) |
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Treasury
stock, at cost |
(91) |
(89) |
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TOTAL S/HOLDERS` EQUITY |
57,954 |
50,684 |
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TOTAL EQUITIES |
157,211 |
152,405 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2013 |
31/03/2012 |
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Cash
Flows from Operating Activities |
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9,507 |
7,781 |
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Cash
Flows from Investment Activities |
-5,519 |
-2,968 |
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Cash
Flows from Financing Activities |
-245 |
-2,765 |
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Cash,
Bank Deposits at the Term End |
|
27,506 |
23,301 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
57,954 |
50,684 |
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Current
Ratio (%) |
143.59 |
128.61 |
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Net
Worth Ratio (%) |
36.86 |
33.26 |
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Recurring
Profit Ratio (%) |
5.66 |
5.47 |
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Net Profit
Ratio (%) |
3.77 |
2.76 |
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Return
On Equity (%) |
9.88 |
8.51 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.80 |
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|
1 |
Rs.91.95 |
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Euro |
1 |
Rs.80.36 |
INFORMATION DETAILS
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Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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---- |
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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.