MIRA INFORM REPORT

 

 

Report Date :

18.10.2013

 

IDENTIFICATION DETAILS

 

Name :

HOKOKU CORPORATION

 

 

Registered Office :

4-170 Oihara Yao City Osaka-Pref 581-0092

 

 

Country :

Japan

 

 

Date of Incorporation :

December, 1951

 

 

Com. Reg. No.:

(Osaka-Yao) 020006

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of caster oil & derivatives

 

 

No. of Employees :

98

 

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

 

HOKOKU CORPORATION

 

 

REGD NAME 

 

Hokoku Seiyu KK (Seiyu means oil-mfg)

 

 

MAIN OFFICE

 

4-170 Oihara Yao City Osaka-Pref 581-0092 JAPAN

Tel: 072-949-4121     Fax: 072-949-9124

 

URL:                 http//:www.hokoku-corp.co.jp

E-mail:             (thru the URL)   

 

 

ACTIVITIES

 

Mfg of caster oil & derivatives

 

 

BRANCHES

 

Tokyo

 

 

FACTORIES       

 

At the caption address, Mie; China

 

 

OFFICER(S)  

 

KAZUAKI IMAKAWA, PRES      

Hiromichi Imakawa, s/mgn dir

Shigeo Satoh, mgn dir               

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 9,200 M

PAYMENTS      SLOW BUT CORRECT   CAPITAL           Yen 92 M

TREND             UP                                WORTH            Yen 10,574 M

STARTED         1951                             EMPLOYES      98

 

 

COMMENT    

 

MFR OF CASTER OIL & DERIVATIVES. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

 

 

HIGHLIGHTS

           

The subject company was established by father of Kazuaki Imakawa in order to make most of his experience in the subject line of business.  This is a specialized mfr of caster oil & derivatives, sebasic oil & derivatives, other.  Nation’s top maker of caster oil & sebasic acids.  Goods are exported.  Domestic clients include major chemical makers.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 9,200 million, a 1% up from Yen 9,100 million in the previous term.  Exports increased.  The weak Yen in Feb/Mar contributed to raise earnings in Yen terms.  The recurring profit was posted at Yen 1,218 million and the net profit at Yen 395 million, respectively, compared with Yen 904 million recurring profit and Yen 46 million net profit, respectively, a year ago.  .

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 1,300 million and the net profit at Yen 450 million, respectively, on a 3% rise in turnover, to Yen 9,500 million. 

           

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

 

 

REGISTRATION

 

Date Registered:          Dec 1951

Regd No.:                     (Osaka-Yao) 020006

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  736,000 shares

Issued:                         184,000 shares

Sum:                            Yen 92 million

Major shareholders (%): Kazuaki Imakawa (26), Jinro (10), Tetsuro Taguchi (7)

No. of shareholders:       32

 

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

 

 

OPERATION

 

Activities: Manufactures caster oil & derivatives, sebasic oil, caster oil polyol, undecylenic acids & derivatives, esters & salt, other (--100%)

 

Clients: [Mfrs, wholesalers] Mitsui Chemical, Kuraray Corp, Daicel Chemical Ind, Ube Industries, Nippon Paint, DIC, Mitsui Fine Chemical Inc, Kyowa Yuka, Sanyo Chemical Ind, other

            No. of accounts: 500

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Toyota Tsusho Corp, Mitsui & Co, Mitsubishi Corp, Koa Corp, Ube Industries, Kuraray Corp, other.

Imports from India, China, other

 

Payment record: Slow but Correct

 

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

 

Bank References:

SMBC (Hirano)

MUFG (Yao-Ekimae)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

　

9,500

9,200

9,100

9,764

Recur. Profit

　

1,300

1,218

904

1,054

Net Profit

　

450

395

46

412

Total Assets

　

　

13,569

12,690

12,171

Current Assets

　

　

6,697

7,118

6,385

Current Liabs

　

　

2,193

1,921

1,829

Net Worth

　

　

10,574

10,190

10,175

Capital, Paid-Up

　

　

92

92

92

Div.Ttl in Million (¥)

　

　

125

125

125

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.26

1.10

-6.80

17.31

    Current Ratio

 

..

305.38

370.54

349.10

    N.Worth Ratio

..

77.93

80.30

83.60

    R.Profit/Sales

 

13.68

13.24

9.93

10.79

    N.Profit/Sales

4.74

4.29

0.51

4.22

    Return On Equity

..

3.74

0.45

4.05

 

Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term. 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.58

UK Pound

1

Rs.98.51

Euro

1

Rs.83.49

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.