MIRA INFORM REPORT

 

 

Report Date :

16.03.2013

 

IDENTIFICATION DETAILS

 

Name :

RISHO KOGYO CO LTD

 

 

Registered Office :

2-1-9 Dojima Kitaku Osaka 530-0003

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

December  1937

 

 

Com. Reg. No.:

1200-01-059699 (Osaka-Kitaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of electronic materials, insulation materials, other

 

 

No. of Employees :

500

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

Yen 290.0 Million

Status :

Moderate

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

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 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

 

RISHO KOGYO CO LTD

REGD NAME:   Risho Kogyo KK

MAIN OFFICE:  2-1-9 Dojima Kitaku Osaka 530-0003 JAPAN

Tel: 06-6345-8331      Fax: 06-6345-1388

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of electronic materials, insulation materials, other

 

BRANCHES

 

Tokyo, Nagoya, Niigata, Toyama, Okayama, Fukuoka, other (Tot 14)

 

OVERSEAS

 

China, Singapore, Taiwan, Korea

 

FACTORIES

 

Shonan, Shiga, Amagasaki

 

 

OFFICERS

 

MIKIO TOKURA, PRES              Koichi Tokura, ch

Kyozo Sakamoto, v pres           Setsuo Kitagawa, mgn dir

Atsuo Fujita, mgn dir                 Toshihiko Fujioka, dir    

           

Yen Amount:     In million Yen, unless otherwise stated

 

 


SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 14,000 M

PAYMENTSREGULAR   CAPITAL           Yen 450 M

TREND SLOW               WORTH            Yen 8,155 M

STARTED         1937                 EMPLOYES      500

 

 

COMMENT

 

MFR OF ELECTRONIC MATERIALS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 290.0 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

            The subject company was established originally in 1921 by father of Koichi Tokura for mfg electric insulation materials, on his account.  Incorporated in 1937 the firm has been succeeded by his descendants.  This is a specialized mfr of electronic materials, insulation materials & engineering plastics, cast epoxy electrical equipment, other (See OPERATION).  Goods are exported.

 

 

FINANCIAL INFORMATION

           

            The sales volume for Mar/2012 fiscal term amounted to Yen 14,000 million, a 7% down from Yen 15,000 million in the previous term.  Exports were hurt by the high Yen, reducing revenues and profits in Yen terms.  The net profit was posted at Yen 362 million, compared with Yen 585 million a year ago.

 

            For the current term ending Mar 2013 the net profit is projected at Yen 370 million, on a 4% rise in turnover, to Yen 14,500 million. 

 

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

 

 

REGISTRATION

 

Date Registered:  Dec 1937

Regd No.:         1200-01-059699 (Osaka-Kitaku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         3.6 million shares

Issued:                900,000 shares

Sum:                   Yen 450 million

Major shareholders (%): Koichi Tokura, Mikio Tokura, Kazuharu Tokura, Tokura families (--100)

No. of shareholders: 7

 

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

 

 

OPERATION

           

Activities: Manufactures electronic materials, insulating materials, industrial plastics, epoxy cast resin, others (--100%).  Goods are exported

 

(Mfg items):

Electric Materials: High performance copper clad laminates, high thermal conductive materials for heat dissipation substrate, multilayer CCL for surface mount devise LED, high Tg glass/epoxy tape for semiconductor direct bonding, material base PWB materials, stiffener for flexible printed wiring board, rubber clad laminates for aluminum electrolytic capacitor, other

Insulating Materials/Industrial Plastics: thermosetting resin laminates, thermosetting resin laminated tube & rod, entry & back-up board for PCB drilling process, high heat resistant glass/epoxy laminates for solder pallet, wave soldering pallet, industrial winding core, filament wound FRP pipe, other;

Epoxy Cast Resin Electric Device: top runner transformer, earthquake resistant test, phase advance capacitor, serial reactor, surge absorbing capacitor, insulator &bushing, other.

 

Clients: [Mfrs, wholesalers] Toppan NEC Circuit Solutions, Japan CMK, Sharp, Canon Components, Hitachi Ltd, Mitsubishi Electric, Oki Electric Ind, NEC Corp, Fujitsu Ltd, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Nagase Corp, Mitsui Metal Ind, Dow Chemical Japan, other

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Osaka-Chuo)

Resona Bank (Dojima)

Relations: Satisfactory

 

 

FINANCES

 (In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

14,500

14,000

15,000

13,000

Recur. Profit

 

 

 

 

 

Net Profit

 

370

362

585

554

Total Assets

 

 

24,493

15,129

14,575

Current Assets

 

 

7,957

8,580

7,565

Current Liabs

 

 

5,103

6,375

5,334

Net Worth

 

 

8,155

7,851

7,319

Capital, Paid-Up

 

 

450

450

450

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.57

-6.67

15.38

0.00

    Current Ratio

 

..

155.93

134.59

141.83

    N.Worth Ratio

..

33.30

51.89

50.22

    R.Profit/Sales

 

..

..

..

..

    N.Profit/Sales

2.55

2.59

3.90

4.26

    Return On Equity

..

4.44

7.45

7.57

 

Notes: Forecast (or estimated) figures for the 31/03/2013 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.16

UK Pound

1

Rs.81.74

Euro

1

Rs.70.50

 

 

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

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.