MIRA INFORM REPORT
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Report Date : |
20.07.2013 |
IDENTIFICATION DETAILS
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Name : |
HARIMA CHEMICALS GROUP INC |
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Registered Office : |
4-4-7 Imabashi Chuoku Osaka |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
November 1947 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturer of resins, chemicals, electronic materials |
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No. of Employees : |
1575 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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.
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Source : CIA |
Company name
HARIMA CHEMICALS GROUP INC
REGD NAME
Harima Kasei Group
KK
MAIN OFFICE
Nihombashi Sakuradori
Bldg 5F, 3-8-4 Nihombashi Chuoku Tokyo 103-0027 JAPAN
Tel:
03-5205-3080 Fax: 03-5105-3035
*.. Registered at: 4-4-7 Imabashi Chuoku Osaka
URL: http://www.harima.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Mfg of
resins, chemicals, electronic materials
BRANCHES
Tokyo, Osaka, Nagoya, Fukuoka
OVERSEAS
Czech,
Belgium, Netherlands, China (11), Korea, Malaysia, Taiwan, Thailand,
New
Zealand, USA (7), Brazil, Argentine (2)
FACTORIES
Kakogawa,
Tsukuba, Hokkaido, Sendai, Ibaraki, Soka, Fuji, Ehime
CHIEF EXEC
YOSHIHIRO
HASEGAWA, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 64,203 M
PAYMENTSNo
Complaints CAPITAL Yen
10,012 M
TREND SLOW WORTH Yen 29,822 M
STARTED 1947 EMPLOYES 1,575
COMMENT
MFR OF RESINS & CHEMICALS
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast figures for the 31/03/2014
fiscal term.
HIGHLIGHTS
This is the pioneer in chemical products derived from tall oil. Produces resins for paints, paper-sizing agents and paper-reinforcing agents, and emulsifiers for synthetic rubber, with wide applications tall oil fatty acids and their derivatives. Has Harima MID, JV with US paper maker Mead Corp for fractionating tall oil in Japan. A joint venture in North Europe is starting production of tall resins in the second half, subsidized by the government. The company is lowering he ratio of gum resins, while introducing materials from Russia into Lawter (subsidiary maker in Europe). It is reorganizing and integrating 11 plants in China.
FINANCIAL INFORMATION
The sales volume for Mar/2013 fiscal term amounted to Yen 64,203
million, a 10.3% down from Yen 71,535 million in the previous term. Stagnation in European market, in which the
said Lawter Inc has adversely affected its business performance. Lawter Inc is posted Yen 900 million
operating loss. The recurring profit was
posted at Yen 1,421 million and the net profit at Yen 216 million,
respectively, compared with Yen 2,159 million recurring profit and Yen 1,011
million net profit, respectively, a year ago.
For the current term ending Mar 2014 the recurring profit is projected
at Yen 1,900 million and the net profit at Yen 1,000 million, on a 13.7% rise
in turnover, to Yen 73,000 million.
Demand for soldering materials for automobiles will be brisk. Some of the paper-making chemicals will
suffer setback in the US, but Lawter Inc will recover to the breakeven level
after posting Yen 900 million operating account deficit in the preceding
term. Soaring crude oil costs will peak
out. Operating profit will jump thank to
the weakening Yen with high overseas sales ratio. North Europe JV will start production in the
second half.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date Registered: Nov 1947
Legal Status:
Limited Company (Kabushiki Kaisha
Authorized: 59.5 million shares
Issued:
26,080,396 shares
Sum: Yen 10,012
million
Major shareholders
(%):
Hasegawa Kosan (17.4), Yoshihiro Hasegawa (6.6), SMBC (4.1), Customers’
S/Holding Assn (3.5), Shorai Found for Sci. & Tech (3.0), Minato Bank
(2.6), Shorai Ltd (2.6), Keihanshin Kogyo (2.5), Master Trust Bank of Japan T
(2.1), Hyogo-Pref Credit Fed (2.0); foreign owners (4.3)
No. of
shareholders: 2,759
Listed on the
S/Exchange (s) of: Tokyo
Managements: Yoshihiro
Hasegawa, pres; Nobuo Makino, s/mgn dir; Masanao Kohno, mgn dir; Teruo Kinjo,
mgn dir; Masashi Inaba, mgn dir; Satoshi Iwasa, dir; Yorishige Matsuba, dir;
Ysuhiro Mizutani, dir; Yukinobu Mizutani, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies:
Harima Chemical, Harima MID, Lawter Inc, other.
OPERATION
Activities: Manufactures
resins & chemicals (32%), paper-mfg chemicals (19%), electronic materials
(75), Lawter Inc (39%), others (2%)
Overseas Sales
Ratio (53%)
(Mfg Items)
Resins &
Chemicals: printing ink resin, paint resin, adhesive resin, synthetic rubber
emulsifier:
Paper Chemicals: sizing agents,
paper strengthening agent, coating agents & chemical specialties;
Electronics
Materials: solder paste, conductive paste, aluminum brazing materials, other
Clients: [Mfrs,
wholesalers] Toyochem Co, Nippon Paper Ind, Nippon Daishowa Paperboard, Daio
Paper, DIC Graphics, Denso Corp, JSR, Denki Kagaku Kogyo, Tokyo Printing Ink
Mfg, Toka, T&K, other
No. of accounts: 800
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Harima MID, Mitsui Bussan Chemical, Marubeni Plax Co, Hyogo
Trading, Maruzen Chemical Trading, Miyoshi Kasei Ind, other
Payment record: No Complaints
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
SMBC
(Osaka)
MUFG
(Osaka)
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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64,203 |
71,535 |
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Cost of Sales |
51,858 |
57,370 |
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GROSS PROFIT |
12,344 |
14,165 |
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Selling & Adm Costs |
11,767 |
11,051 |
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OPERATING PROFIT |
576 |
3,114 |
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Non-Operating P/L |
665 |
-955 |
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RECURRING PROFIT |
1,421 |
2,159 |
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NET PROFIT |
216 |
1,011 |
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BALANCE SHEET |
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Cash |
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3,474 |
5,221 |
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Receivables |
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17,542 |
18,650 |
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Inventory |
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9,255 |
9,987 |
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Securities, Marketable |
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Other Current Assets |
2,744 |
2,117 |
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TOTAL CURRENT ASSETS |
33,015 |
35,975 |
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Property & Equipment |
22,498 |
21,547 |
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Intangibles |
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882 |
967 |
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Investments, Other Fixed Assets |
4,960 |
4,939 |
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TOTAL ASSETS |
61,355 |
63,428 |
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Payables |
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6,854 |
7,412 |
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Short-Term Bank Loans |
8,662 |
9,082 |
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Other Current Liabs |
6,268 |
6,216 |
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TOTAL CURRENT LIABS |
21,784 |
22,710 |
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Debentures |
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Long-Term Bank Loans |
6,014 |
7,482 |
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Reserve for Retirement Allw |
868 |
886 |
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Other Debts |
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2,866 |
2,769 |
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TOTAL LIABILITIES |
31,532 |
33,847 |
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MINORITY INTERESTS |
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Common
stock |
10,012 |
10,012 |
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Additional
paid-in capital |
9,744 |
9,744 |
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Retained
earnings |
9,742 |
9,889 |
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Evaluation
p/l on investments/securities |
509 |
220 |
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Others |
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(124) |
(223) |
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Treasury
stock, at cost |
(61) |
(61) |
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TOTAL S/HOLDERS` EQUITY |
29,822 |
29,581 |
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TOTAL EQUITIES |
61,355 |
63,428 |
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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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3,234 |
1,647 |
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Cash
Flows from Investment Activities |
-2,171 |
-1,713 |
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Cash
Flows from Financing Activities |
-3,116 |
-1,713 |
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Cash,
Bank Deposits at the Term End |
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3,470 |
5,217 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
29,822 |
29,581 |
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Current
Ratio (%) |
151.56 |
158.41 |
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Net
Worth Ratio (%) |
48.61 |
46.64 |
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Recurring
Profit Ratio (%) |
2.21 |
3.02 |
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Net
Profit Ratio (%) |
0.34 |
1.41 |
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Return
On Equity (%) |
0.72 |
3.42 |
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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.59.79 |
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UK Pound |
1 |
Rs.91.03 |
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Euro |
1 |
Rs.78.52 |
INFORMATION DETAILS
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Report Prepared
by : |
MNL |
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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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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.