MIRA INFORM REPORT

 

 

Report Date :

17.08.2013

 

IDENTIFICATION DETAILS

 

Name :

KUSUMOTO CHEMICALS LTD

 

 

Registered Office :

Kusumoto No. 18 Bldg, 1-2-7 Uchikanda Chiyodaku Tokyo 101-0047

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2012       

 

 

Date of Incorporation :

June 1972

 

 

Com. Reg. No.:

0100-01-015054 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, wholesale of industrial chemicals, synthetic resins.

 

 

No. of Employees :

250

 

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 :

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 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 & ADDRESS

 

KUSUMOTO CHEMICALS LTD

 

REGD NAME:   Kusumoto Kasei KK

MAIN OFFICE:  Kusumoto No. 18 Bldg, 1-2-7 Uchikanda Chiyodaku Tokyo 101-0047 JAPAN

Tel: 03-3292-8681      Fax: 03-3291-6780

 

                        *.. The is its registered address, and the Headquarters are

                        located at the caption address

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Import, wholesale of industrial chemicals, synthetic resins

 

 

BRANCHES   

 

Osaka, Nagoya, Sapporo, Fukuoka, Akita

 

 

OVERSEAS   

 

China, Thailand, Malaysia, Indonesia, Philippines

 

 

FACTORIES

           

Koshigaya, Soka, Kashima (--Processing)

 

 

OFFICERS

 

KEITA KUSUMOTO, PRES                    Hiroji Kusumoto, ch

Yutaka Oyama, mgn dir             Shingo Ishikawa, dir

Manami Kusumoto, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 20,732 M

PAYMENTSREGULAR   CAPITAL           Yen 450 M

TREND SLOW               WORTH            Yen 8,575 M

STARTED         1972                 EMPLOYES      250

           

 

COMMENT

 

TRADING FIRM SPECIALIZING IN INDUSTRIAL CHEMICALS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established originally in 1926 by Jiroh Kusumoto for importing industrial chemicals, on his account.  In 1948 started mfg paint additives.  Incorporated in 1972 the firm has been succeeded by his descendants.  This is a trading firm, with mfg/processing division, for import and wholesale of industrial chemicals, additives, other.  It has three business units: chemicals, additives and BTAC (environmental test chamber).  Goods are imported from USA, Spain, Netherlands, other.  Clients include major paint mfrs, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Dec/2012 fiscal term amounted to Yen 20,732 million, a 3% down from Yen 21,283 million in the previous term.  High Yen eroded earnings and profits in Yen terms.  The net profit was posted at Yen 424 million, compared with Yen 339 million a year ago.

 

For the current term ending Dec 2013 the net profit is projected at Yen 450 million, on a recurring 5% rise in turnover, to Yen 21,700 million.    

 

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

 

 

REGISTRATION

 

Date Registered:                                   Jun 1972

Regd No.:                                             0100-01-015054 (Tokyo-Chiyodaku)

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              3.6 million shares

Issued:                                     900,000 shares

Sum:                                        Yen 450 million

      Major shareholders (%):                 Kusumoto KK* (100)

*.. Holding company owned by the Kusumoto family.

 

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

 

 

OPERATION

           

Activities: Imports, exports and wholesales industrial chemicals, additives, other (--100%)

 

(Handling items):

 

Chemicals Unit: synthetic, plastic molding resins, plasticizers, organic & inorganic extender pigments. Glass fibers, non-woven cloth, Butyral resin, PET films, metal surface treating agents, water treatment chemicals, rust preventives, solvents, metal containers, metal soaps, hardening agents, UV absorbents, sepiolite, silicone products, binder for paste, meso-porous silica, LED related products, other;

 

Additives Unit: thyrotrophic agents, dispersants, anti-foaming agents, anti-popping agents, anti-catering agents, leveling agents, electrostatic assistants, powder, non-VOC and UV hardening systems, other.

 

Clients: [Mfrs, wholesalers] TDK, Kansai Paint Co, Nippon Paint Co, Atomix Co, Origin Electric Co, King, JFE Kozai Co, Mac Systems, other  

No. of accounts: 300

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] DIC, Daiwa Co, BASF Japan, Teijin DuPont Films Japan,

Ube Ind, Owens Corning Japan, Itochu Chemical Frontier, Toyotsu Chemiplas Co, other.

Imports from King Industries Inc (USA), Tolsa SA (Spain), DSM Neo Resins (Netherlands), other.

 

Payment record: Regular

 

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

 

Bank References:         SMBC (Kanda)

                                    MUFG (Kanda)

                                    Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/12/2013

31/12/2012

31/12/2011

31/12/2010

Annual Sales

 

21,700

20,732

21,283

22,249

Recur. Profit

 

 

 

377

714

Net Profit

 

450

424

339

528

Total Assets

 

 

19,077

19,030

20,109

Current Assets

 

 

13,522

13,339

14,283

Current Liabs

 

 

8,215

8,432

9,808

Net Worth

 

 

8,575

8,196

7,902

Capital, Paid-Up

 

 

450

450

450

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.67

-2.59

-4.34

16.10

    Current Ratio

 

..

164.60

158.19

145.63

    N.Worth Ratio

..

44.95

43.07

39.30

    R.Profit/Sales

 

..

..

1.77

3.21

    N.Profit/Sales

2.07

2.05

1.59

2.37

    Return On Equity

..

4.94

4.14

6.68

 

Notes: Forecast (or estimated) figures for the 31/12/2013 fiscal term.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 61.82

UK Pound

1

Rs. 96.57

Euro

1

Rs. 82.45

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.