MIRA INFORM REPORT

 

 

Report Date :

20.12.2013

 

IDENTIFICATION DETAILS

 

Name :

HAKKO CO LTD

 

 

Registered Office :

1486 Isobe Chikuma City Nagano-Pref 389-0806

 

 

Country :

Japan

 

 

Financials (as on) :

31.05.2013

 

 

Date of Incorporation :

August 1944

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacture of medical equipment & supplier of injection needles, operation tables & equipment.

 

 

No. of Employees :

272

 

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 :

No Complaints 

 

 

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 – September 30th, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

 

HAKKO CO LTD

 

 

REGD NAME 

 

KK Hakko

 

 

MAIN OFFICE

 

1486 Isobe Chikuma City Nagano-Pref 389-0806 JAPAN

 

Tel: 026-275-0121      Fax: 026-276-0491

 

URL:                 www.hakko.co.jp

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Mfg of medical equipment & supplies: operation instruments, injection needle

 

BRANCHEs   

 

Tokuyo (2), Sendai

 

FACTORIES

 

At the caption address

 

 

OFFICERS

 

MASARU MARUYAMA, PRES   Ryoichi Sakha, ch

Shuji Kikuchi, v ch                                 Toshinori Ichikawa, v ch

Kotobuki Sekiguchi, dir               Kiyoshi Ishiai, dir

           

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 5,705 M

PAYMENTS      No Complaints          CAPITAL           Yen 18 M

TREND             SLOW                          WORTH            Yen 2,319 M

STARTED                     1944                             EMPLOYES      272

 

 

COMMENT    

 

MFR OF MEDICAL EQUIMENT.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

                       

HIGHLIGHTS

           

The subject company was established by father of Masaru Maruyama in order to make most of his experience in the subject line of business.  This is a specialized mfr of medical equipment & supplies: injection needles, operation tables & equipment.  It separated electric oven operations to a subsidiary in 2013.  Clients include hospitals, universities, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for May/2013 fiscal term amounted to Yen 5,705 million, a 15% down from Yen 6,687 million in the previous term.  This is the result of the separation of electric oven operations to a subsidiary.  The recurring profit was posted at Yen 484 million and the net profit at Yen 274 million, respectively, compared with Yen 377 million recurring profit and yen 205 million net profit, respectively, a year ago.

 

For the current term ending May 2014 the recurring profit is projected at Yen 490 million and the net profit at Yen 290 million, respectively, on a 5% rise in turnover, to Yen 5,990 million.  .

 

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

 

REGISTRATION

 

Date Registered:          `  Aug 1944

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         245,360 shares

Issued:                36,340 shares

Sum:                   Yen 18.17 million

Major shareholders (%): Hakko Kohatsu (47), Hakko Engineering (19), Eiichi Sakai (15)

No. of shareholders: 18

 

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

 

 

OPERATION

           

Activities: Manufactures medical equipment/supplies; injection needles, operation tables & equipment, other (90.8%), operates hotels (9.2%)

 

Clients: [Mfrs, wholesalers] Okayama Hakko Shoji, Nagano Hakko Shoji, Nagoya Hakko Shoji, Johnson & Johnson, SL Bearing, other 

 

            No. of accounts: 300

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Japan Sealbond, other

 

Payment record: No Complaints 

 

Location: Business area in Chikuma, Nagano-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Hachijuni Bank (H/O)

Mizuho Bank (Nagano)

Relations: Satisfactory

 


FINANCES

(In Million Yen)

 

       Terms Ending:

31/05/2014

31/05/2013

31/05/2012

31/05/2011

Annual Sales

 

5,990

5,705

6,687

8,064

Recur. Profit

 

490

484

377

 

Net Profit

 

290

274

205

201

Total Assets

 

 

7,980

7,896

8,352

Current Assets

 

 

4,000

4,045

 

Current Liabs

 

 

3,329

3,643

 

Net Worth

 

 

2,319

2,045

1,840

Capital, Paid-Up

 

 

18

18

18

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

5.00

-14.69

-17.08

10.51

    Current Ratio

 

..

120.16

111.03

..

    N.Worth Ratio

..

29.06

25.90

22.03

    R.Profit/Sales

 

8.18

8.48

5.64

..

    N.Profit/Sales

4.84

4.80

3.07

2.49

    Return On Equity

..

11.82

10.02

10.92

 

Notes: Forecast (or estimated) figures for the 31/05/2014 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.38

UK Pound

1

Rs.102.15

Euro

1

Rs.85.29

 

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.