MIRA INFORM REPORT

 

 

Report Date :

26.06.2013

 

IDENTIFICATION DETAILS

 

Name :

DAISHIN INDUSTRIES LTD 

 

 

Registered Office :

1520-1 Funatsuke Yorocho Yorogun Gifu-Pref 503-1382

 

 

Country :

Japan

 

 

Financials (as on) :

31.08.2012

 

 

Date of Incorporation :

August 1971

 

 

Com. Reg. No.:

2000-01-013851 (Gifu-Yorogun)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of generators, pumps, sprayers, brush cutters, tillers

 

 

No. of Employees :

53

 

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 :

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 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

 

DAISHIN INDUSTRIES LTD

 

 

REGD NAME

 

KK Daishin

 

 

MAIN OFFICE

 

1520-1 Funatsuke Yorocho Yorogun Gifu-Pref 503-1382 JAPAN

Tel: 0584-36-0501     Fax: 0584-36-0504

 

URL:                 http://www.daishin-japan.co.jp/

E-Mail address:            overseas@daishin-japan.co.jp

 

 

ACTIVITIES  

 

Mfg of generators, pumps, sprayers, brush cutters, tillers

 

 

BRANCHES   

 

Nil

 

 

OVERSEAS

           

Korea, China (Dalian, Shanghai), Europe (agent)

 

 

FACTORIES

 

At the caption address (site area 33,800 m2)

 

 

OFFICER(S)

 

SHIGENORI SOBAJIMA, PRES  Yoshifumi Sataka, mgn dir         

Minoru Yamada, dir                                Hironori Yoshida, dir

Takeshi Minowa, dir                               Naoki Kawase, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

           

FINANCES        FAIR                             A/SALES          Yen 3,109 M

PAYMENTS      Slow but Correct  CAPITAL           Yen 60 M

TREND             SLOW              WORTH                        Yen 195 M

STARTED         1971                             EMPLOYES      53

 

 

COMMENT

 

MFR SPECIALIZING IN GENERATORS & PUMPS.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established in order to produce manual sprayers at the caption address, and in 1972 started manufacturing power sprayers, followed by pumps in 1980, brush cutters and high pressure washing plunger pumps in 1987.  In 1993 began producing welding generators, and in 1999 mini tillers for gardening.  The firm’s handling items include: sprayers, industrial & construction generators, welding generators, hedge trimmers, brush cutters, other related products used in such areas as agriculture, civil engineering & construction industries.  In 1995 established Korea Daishin Co Ltd and in 2002 Dalian Daishin Industries Ltd, followed by Shanghai Office in 2005.  Clients include heavy machinery mfrs and specialty wholesalers.

 

 

FINANCIAL INFORMATION

 

The sales volume for Aug/2012 fiscal term amounted to Yen 3,109 million, an 18% down from Yen 3,788 million in the previous term.  Exports were hurt by the Thai flood.  Production decreased.  The operations lunged into the red to post Yen 105 million recurring loss and Yen 115 million net losses, respectively, compared with Yen 12 million recurring profit and Yen 7 million net profit, respectively, a year ago 

 

For the current term ending Aug 2013 the recurring profit is projected at Yen 15 million and the net profit at Yen 10 million, respectively, on a 5% rise in turnover, to Yen 3,250 million.   

 

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

 

 

REGISTRATION

 

Date Registered:             Aug 1971

Regd No.:                        2000-01-013851 (Gifu-Yorogun)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:                    480,000 shares

Issued:                            120,000 shares

Sum:                   Yen 60 million

Major shareholders (%): Shigenori Sobajima (41), Shigehito Sobajima (6), Shoji

Haginaga (56), Yoshifumi Sataka (5)

 

No. of shareholders: 26

 

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

 

 

OPERATION

 

Activities: Manufactures industrial & construction generators, high pressure plunger pumps (water pumps, semi-trash pumps, trash pumps, diaphragm pumps, etc), mini tillers for gardening, brush cutters, hedge trimmers, welding generators, horticultural pumps, others (--100%).

 

Clients: [Mfrs, wholesalers] Tsurumi Mfg, Fuji Heavy Ind, Nagata Seisakusho, Fujiwara       Ind, Toshin Technica, SM Jaffer, EES, Tech Itoh, Kawasaki Heavy Ind, other.

            No. of accounts: 500

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Honda Motors, Mitsubishi Heavy Ind Chubu Hambai, Tokai

Denka Kogyosho, Howa Kikai Kogyo, Fuji Heavy Ind, Mitsubishi Heavy Ind Engine System, other.

 

Payment terms: Slow but Correct 

 

Location: Light industrial area in Yorogun, Gifu-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Ogaki Kyoritsu Bank (Fujie)

MUFG (Ogaki)

Relations: Satisfactory


 

FINANCES

 (In Million Yen)

 

       Terms Ending:

31/08/2013

31/08/2012

31/08/2011

31/08/2010

Annual Sales

 

3,250

3,109

3,788

3,314

Recur. Profit

 

15

-106

12

-58

Net Profit

 

10

-115

7

-66

Total Assets

 

 

2,888

3,119

3,237

Current Assets

 

 

1,280

1,412

2,450

Current Liabs

 

 

1,562

1,780

1,851

Net Worth

 

 

195

231

184

Capital, Paid-Up

 

 

60

60

60

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.54

-17.93

14.30

-18.33

    Current Ratio

 

..

81.95

79.33

132.36

    N.Worth Ratio

..

6.75

7.41

5.68

    R.Profit/Sales

 

0.46

-3.41

0.32

-1.75

    N.Profit/Sales

0.31

-3.70

0.18

-1.99

    Return On Equity

..

-58.97

3.03

-35.87

 Notes: Forecast figures for the 31/08/2013 fiscal term

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.70

UK Pound

1

Rs.92.25

Euro

1

Rs.78.38

 

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.