MIRA
INFORM REPORT
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Report Date : |
04.03.2013 |
IDENTIFICATION DETAILS
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Name : |
DAIICHI JITSUGYO CO LTD |
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Registered Office : |
Kowa Nibancho Bldg, 11-19 Nibancho Chiyodaku Tokyo 102-0084 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
August 1948 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export, wholesale of industrial machinery, electronics |
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No. of Employees : |
1,029 |
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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. 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. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 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 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further 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 in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues 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 and address
DAIICHI JITSUGYO CO LTD
REGD NAME: Daiichi
Jitsugyo KK
MAIN OFFICE: Kowa Nibancho
Bldg, 11-19 Nibancho Chiyodaku Tokyo 102-0084 JAPAN
Tel:
03-5214-8500 Fax: 03-5214-8503
E-Mail address: info@djk.co.jp
ACTIVITIES
Import, export,
wholesale of industrial machinery, electronics
BRANCH(ES)
Osaka, Nagoya,
Sapporo, Sendai, Hiroshima, Fukuoka, Shizuoka, other (Tot 9)
OVERSEAS
USA (6), China (6), Singapore, Hong Kong, Seoul, Frankfurt, Hungary, Poland, Mexico, Brazil, Malaysia, Philippines, Thailand, Jakarta, Vietnam (2), India. (--subsidiaries)
CHIEF EXEC
KEN KOBAYASHI,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 125,502 M
PAYMENTS REGULAR CAPITAL Yen 5,105 M
TREND UP WORTH Yen 26,167 M
STARTED 1948 EMPLOYES 1,029
COMMENT
TRADING HOUSE SPECIALIZING IN INDUSTRIAL MACHINERY.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
Notes:
Unit: In Million Yen
Forecast (or estimated) figures for 31/03/2013
fiscal term
HIGHLIGHTS
This is a
medium-sized trading house specializing in semiconductor/FA-related equipment
and industrial machinery. With worldwide
network of 24 bases the firm provides latest technologies and products
globally. Close to Mitsubishi Heavy Ind and
Matsushita Electric Ind, being major vendors.
Shifted emphasis in mid-1980s from large plants and oil-drilling rigs to
smaller machinery & equipment.
Strong in oil development projects and information equipment. In China, spurring sales of eco-friendly
water-based paint equipment made in Malaysia.
Has excellent subs engaging in fields of machinery maintenance, paper
making pumps, etc. The company plans to
start up solar power sales using a fixed price purchasing system in Kashima, in
Feb/Mar 2013. It will focus on
electronics-related business in Indonesia, Thailand and Vietnam, key growth
markets.
FINANCIAL INFORMATION
The sales volume for
Mar/2012 fiscal term amounted to Yen 125,502 million, a 16.1% up from Yen
108,079 million in the previous term.
Business remained steady due to a considerable rise in sales from
overseas-related transactions, despite some negative effects from the Great
East Japan Earthquake and floods in Thailand.
By Divisions: Plant & Energy Div up41.7% to Yen 26,589 million;
Electronics Div up 25.0% to Yen 42,695 million, thanks to robust demand for
IT/Digital-related goods from China, Korea, Thailand, other; Industrial
Machinery Div down 3.8% to Yen33,139 million, as orders received declined;
Overseas Company Div up 18.4% to Yen20,387 million. The recurring profit was posted at Yen 5,434
million and the net profit at Yen 2,643 million, respectively, compared with
Yen 4,362 million recurring profit and Yen 2,448 million net profit,
respectively, a year ago.
(Apr/Dec/2012 results):
Sales Yen 88,494 million (up 2.4%), operating profit Yen 2,655 million (down
17.0%), recurring profit Yen 2,989 million (down 16.0%), net profit Yen 1,674
million (up 2.9%). (% compared with the
corresponding period a year ago)
For the current term
ending Mar 2010 the recurring profit is projected at Yen 5,500 million and the
net profit at Yen 3,100 million, respectively, on a 5.0% rise in turnover, to
Yen 133,000 million. Sales of plants are
growing steadily, partly thanks to a large-lot contract for LNG
facilities. Sales of electronic
parts-mounting machinery in use for digital equipment mfg are making
contribution in the second half. Net
profit will hit a new high.
The financial situation is considered FAIR
and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Aug
1948
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 160 million shares
Issued: 57,432,000 shares
Sum: Yen 5,105 million
Major
shareholders (%): Company’s Treasury Stock (5.1), Mizuho Corporate Bank (4.6), SMBC
(4.6), Japan Trustee Services T (4.2), MUFG (3.3), Resona Bank (3.0), Master
Trust Bank of Japan T (2.9), Nipponkoa Ins (2.7), Mitsubishi Heavy Ind (2.6),
Meiji Yasuda Life Ins (1.6); foreign owners (6.6).
No. of shareholders: 5,895
Listed on the S/Exchange (s) of: Tokyo
Managements: Kunihiro Yano,
ch; Koji Yamagata, pres; Tatsuo Uemura, s/mgn dir; Yukio Konishi, mgn dir;
Yoshihide Yamanaka, mgn dir; Tohru Tsuda, mgn dir
Nothing detrimental
is known as to the commercial morality of executives.
Related
companies: Daiichi Mecha-Tech Corp, Daiichi Jitsugyo (America) Inc, Shanghai Yishi
Trading, Daiichi Jitsugyo Asia, other (Tot 26 subsidiaries & affiliates)
OPERATION
Activities: Imports, exports and wholesales
plants & energy-related (21%), electronics (34%), Industrial machinery
(26%), overseas company (16%), others (2%)
(Handling Items):
Energy Resources
& Development: oil drilling rigs, down hole equipment & tools,
drilling bits, oil gas & & geothermal production facilities, petroleum
refining plants, petrochemical plants & equipment;
Semiconductor/Computers: SMT systems,
CAD/CAM systems, instrumentation control systems, information
processing/communication systems;
FA
Systems/Plastics/Rubber/Ceramics: FA systems, automatic packaging lines,
automated assembly lines, pharmaceutical tablet/powder inspecting system, food
& pharmaceutical product & brewing-related machinery, metallurgy
processing machinery, injection molding machines, cement-related machinery,
ceramic-related equipment, FMS, robotic systems, extruders;
Pulp &
Paper/Printing: equipment for wood & pulp processing chemical recovery, stock preparation, paper mg, coating,
finishing, screen printing equipment, antistatic/gravure printing equipment;
Environment/High
Technology Facilities: ventilation equipment, elevator/escalators, above
ground parking facilities, cooling/freezing facilities, reinforcing materials
of concrete structures, health promenade, ecoland wave reduction pipes;
Aviation/Aerospace
& Airport: ground support equipment & hydrant systems for airport; Agents for:
Vestergaard A/S (Denmark); Tug Technologies Corp, Melabar International,
Tronair Inc, Laktro Inc, Stanley (--USA), Gold Hofer AG, Trepel Airport
Equipment GmbH (--Germany), Hitzinger GmbH (Austria), etc;
Overseas Sales
ratios (52.0%)
Clients: [Mfrs,
wholesalers] Samsung Japan, Cal-Comp Electronics Public Ltd, Kawasaki Heavy
Ind, Daiichi Jitsugyo Inc, Japan Drilling Co, Nippon Paper Group Inc, Denso
Corp, Daiichi Jitsugyo Asia Co Ltd, Toyo Engineering, Shell Eastern Petroleum,
JGC Corp, Orix Corp, Denso Corp, Ibiden Co, Nippon Shokubai, other.
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Panasonic Corp, Mitsubishi Heavy Industries Compressor Corp,
Noritake Company Ltd, Daiichi Jitsugyo Asia Pte Ltd, Panasonic FS Engineering,
Mitsubishi Heavy Ind, MHI Plastic Engineering, SHI Plastic Engineering, Daiichi
Mecha-Tech, Noritake Co, Fanuc Co, Panasonic PS Engineering, other..
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
Mizuho Corporate
Bank (Uchisaiwaicho)
SMBC (Kojimachi)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2012 |
31/03/2011 |
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INCOME STATEMENT |
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Annual Sales |
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125,502 |
108,079 |
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Cost of Sales |
108,689 |
92,855 |
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GROSS PROFIT |
16,813 |
15,224 |
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Selling & Adm Costs |
11,714 |
10,981 |
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OPERATING PROFIT |
5,098 |
4,243 |
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Non-Operating P/L |
336 |
119 |
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RECURRING PROFIT |
5,434 |
4,362 |
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NET PROFIT |
2,643 |
2,448 |
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BALANCE SHEET |
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Cash |
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13,604 |
12,347 |
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Receivables |
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42,809 |
38,023 |
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Inventory |
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9,156 |
8,943 |
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Securities, Marketable |
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Other Current Assets |
10,252 |
6,533 |
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TOTAL CURRENT ASSETS |
75,821 |
65,846 |
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Property & Equipment |
1,784 |
1,666 |
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Intangibles |
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83 |
98 |
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Investments, Other Fixed Assets |
6,071 |
5,712 |
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TOTAL ASSETS |
83,759 |
73,322 |
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Payables |
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30,193 |
28,549 |
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Short-Term Bank Loans |
14,731 |
10,239 |
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Other Current Liabs |
12,041 |
9,877 |
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TOTAL CURRENT LIABS |
56,965 |
48,665 |
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Debentures |
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Long-Term Bank Loans |
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152 |
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Reserve for Retirement Allw |
251 |
369 |
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Other Debts |
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375 |
359 |
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TOTAL LIABILITIES |
57,591 |
49,545 |
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MINORITY INTERESTS |
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Common
stock |
5,105 |
5,105 |
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Additional
paid-in capital |
3,786 |
3,789 |
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Retained
earnings |
18,063 |
17,013 |
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Evaluation
p/l on investments/securities |
343 |
89 |
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Others |
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(553) |
(1,688) |
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Treasury
stock, at cost |
(577) |
(531) |
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TOTAL S/HOLDERS` EQUITY |
26,167 |
23,777 |
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TOTAL EQUITIES |
83,759 |
73,322 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2012 |
31/03/2011 |
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Cash
Flows from Operating Activities |
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-1,661 |
690 |
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Cash
Flows from Investment Activities |
-274 |
-396 |
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Cash
Flows from Financing Activities |
3,692 |
4,557 |
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Cash,
Bank Deposits at the Term End |
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13,604 |
11,878 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
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Net
Worth (S/Holders' Equity) |
26,167 |
23,777 |
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Current
Ratio (%) |
133.10 |
135.30 |
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Net
Worth Ratio (%) |
31.24 |
32.43 |
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Recurring
Profit Ratio (%) |
4.33 |
4.04 |
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Net
Profit Ratio (%) |
2.11 |
2.27 |
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Return
On Equity (%) |
10.10 |
10.30 |
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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.54.48 |
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|
1 |
Rs.82.72 |
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Euro |
1 |
Rs.71.27 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
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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 |
-- |
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.