MIRA INFORM REPORT

 

 

Report Date :

24.10.2013

 

IDENTIFICATION DETAILS

 

Name :

KENKO CORPORATION

 

 

Registered Office :

Iwamotocho Toyo Bldg 4F, 3-1-2 Iwamotocho Chiyodaku Tokyo 101-0032

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

December, 1965

 

 

Com. Reg. No.:

0100-01-034552 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, Export and Wholesale of Industrial Chemical.

 

 

No. of Employees :

76

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

No Complaints

 

 

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

 

KENKO CORPORATION

 

 

REGD NAME

 

KK Kenko Tsusho

 

 

MAIN OFFICE

 

Iwamotocho Toyo Bldg 4F, 3-1-2 Iwamotocho Chiyodaku Tokyo 101-0032 JAPAN

Tel: 03-3258-8061    

Fax: 03-3258-8060

 

URL:                 http://www.kenkoco.com 

E-Mail address: contact@kenkoco.com

 

 

ACTIVITIES

 

Import, export, wholesale of industrial chemicals

 

 

BRANCHES

 

Osaka, Nagoya

 

 

OVERSEAS

 

China (4), India, USA (3), Germany, Israel, Russia

 

 

OFFICERS

 

SATOMI TSUCHIBE, PRES        Hisazo Matsuo, v pres

Yasushi Nakai, s/mgn dir            Tateo Kurusu, mgn dir   

Tsuneyasu Nakano, mgn dir        Shunji Ohtaki, mgn dir               

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                             A/SALES          Yen 12,021 M

PAYMENTS                  NO COMPLAINTS          CAPITAL           Yen 245 M

TREND             SLOW                          WORTH            Yen 1,255 M

STARTED                     1965                             EMPLOYES      76

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN INDUSTRIAL CHEMICALS.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established by Satomi Tsuchibe in order to make most of his experience in the subject line of business.  This is a trading firm for import, export and wholesale of food additives, synthetic dyestuffs, organic pigments, fertilizing chemicals, seeds and other industrial chemicals.  The firm has 6 divisions: Health-care Div; Food Additive Div; Fine Chemicals Div; Feed Additive Div; Agricultural Div; Mfg/R&D Div.  Strong business ties with domestic major chemical firms, such as Nisshin Pharma Inc, a major mfr of chemicals, and Chisso Corp, a leading mfr of fine chemicals, both having shares in the subject.  Actively engaged in overseas operations with offices in Beijing, Shanghai, Mumbai, Moscow, Cairo, other.  Also overseas affiliates: USA (4), China (5), Germany (1).  In Apr 2012 the firm increased the paid-in capital amount to Yen 245 million from the Yen 195 million to make up for the loss posted in the previous period.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2013 fiscal term amounted to Yen 12,021 million, a 3% down from Yen 12,423 million in the previous term.  Imports/exports revenues were hurt by the high Yen, reducing considerably in Yen terms.  Withdrawal from overseas operations ate into profits.  The net profit was posted at Yen 2 million, compared with Yen 38 million a year ago. 

 

For the current term ending Mar 2014 the net profit is projected at Yen 35 million, on a 2% rise in turnover, to Yen 12,300 million.

 

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

 

 

REGISTRATION

 

Date Registered:          Dec 1965

Regd No.:                                 0100-01-034552 (Tokyo-Chiyodaku)

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  1.3 million shares

Issued:                         490,480 shares

Sum:                            Yen 245.24 million

Major shareholders (%): Satomi Tsuchibe (31)), Yoko Tsuchibe (6), Chisso Corp (2), Nisshin Pharma (2), MJ    Investment Fund (1)

No. of shareholders:     30

 

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

 

 

OPERATION

 

Activities: Trading house for import, export and wholesale of industrial chemicals (--100%):

 

(Handling items by Divisions):

Fine Chemicals Div: aliphatic organic chemicals, aromatic organic chemicals, oil & fats,   plastic additives, industrial additives, natural chemicals, rare earth chemicals, drug & pharmaceutical intermediates, materials for electronics industries;

Feed Additives Div: chlorine chloride, DI-Methionine, calcium L-acerbate, vitamin AD3, amino acid, minerals;

Fertilizer Div: seaweed origin fertilizer, soil conditioner, fermented soil, perennial rye grass, tall fescue, zoysia Japonica, turf-grass mixture;

Health-care Div: plant extract, powder & liquid;

Food Additives Div: guar gum, ascorbic acid, monosodium glutamate, sorbet, other;

Agriculture Div: Exclusive agent for Seed Research of Oregon Inc, USA.

Export Agent for: Nisshin Pharma for exporting their principal product, Co-enzyme Q10 mainly to US market;

Chisso Corporation for exporting their fine & organic chemicals mainly to US & European markets.

 

Clients: [Chemical mfrs, wholesalers] BASF Japan, Soft Gel Technology, Fujikawa Pharmaceutical, Sakata Seeds, Ashland Chemical, Chemco Ind, Nippon Kayaku Co, Maruzen Yuka Shoji, Shiratori Pharmaceutical, Tokiwa Photochemical Co, Kenko International, Astellas Pharma Inc, Meito Adams, other.

Exports to USA, Europe, Russia, China, India, etc.

No. of accounts: 800

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Kaneka Corp, Mitsubishi Corp, Nisshin Pharma, Chisso Corp, Ube Ind, Mitsui Chemical, Tokiwa Photochemical, Mitsubishi Rayon, other. 

Imports from Seed Research of Oregon Inc (USA), other from USA, Europe, Asia, etc.

 

Payment record: NO COMPLAINTS

 

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

 

Bank References:

            Mizuho Bank (Nihombashi)

            MUFG (Kanda-Ekimae)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

　

12,300

12,021

12,423

13,524

Recur. Profit

　

　

　

330

252

Net Profit

　

35

2

38

-998

Total Assets

　

　

6,665

6,362

6,547

Current Assets

　

　

5,041

4,575

4,329

Current Liabs

　

　

4,515

4,497

4,879

Net Worth

　

　

1,255

1,253

1,214

Capital, Paid-Up

　

　

245

245

245

Div.Ttl in Million (¥)

　

　

0.00

0.00

5.1

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.32

-3.24

-8.14

9.30

    Current Ratio

 

..

111.65

101.73

88.73

    N.Worth Ratio

..

18.83

19.70

18.54

    R.Profit/Sales

 

..

..

2.66

1.86

    N.Profit/Sales

0.28

0.02

0.31

-7.38

    Return On Equity

..

0.16

3.03

-82.21

 

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

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.53

UK Pound

1

Rs.99.75

Euro

1

Rs.84.75

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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.