MIRA INFORM REPORT
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Report Date : |
02.09.2013 |
IDENTIFICATION DETAILS
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Name : |
DAIDO KOGYO CO
LTD |
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Registered Office : |
1-197 Kumasakacho Kaga Ishikawa-Pref 922-8686 |
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Country : |
Japan |
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Financials (as on) : |
3.03.2013 |
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Date of Incorporation : |
May 1933 |
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Com. Reg. No.: |
2200-01-013264 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufactures motorcycle & auto
parts (motorcycle & automotive chains, industrial machinery chains,
rims/wheels, conveyor systems, welfare equipment, other); |
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No. of Employees : |
2,424 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 – March 31st, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 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
DAIDO KOGYO CO LTD
REGD NAME: Daido
Kogyo KK
MAIN OFFICE: 1-197
Kumasakacho Kaga Ishikawa-Pref 922-8686 JAPAN
Tel:
0761-72-6064 Fax: 0761-72-1754 -
URL: http://www.did-daido.co.jp
E-Mail
address: (thru the URL)
ACTIVITIES
Mfg of
motorcycle chains, other
BRANCHES
Tokyo,
Osaka, Nagoya, Hamamatsu, Kumamoto
OVERSEAS
Thailand
(4), Indonesia, China, USA, Vietnam, India, Brazil, Italy
FACTORIES
At the
caption address, Ishikawa (2); Thailand
CHIEF EXEC
KOZO
ARAYA, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 37,851 M
PAYMENTS No
complaints CAPITAL Yen 2,726 M
TREND UP WORTH Yen 19,955 M
STARTED 1933 EMPLOYES 2,424
COMMENT
MFR OF MOTORCYCLE CHAINS
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast figures for the 31/03/2014 fiscal term.
HIGHLIGHTS
This
is the major chain mfr maintaining highest domestic share in motorcycle and
bicycle chains. Advanced to motorcycle
rims, farm machinery wheels and conveyors after WWII. Honda Motor main client. Other products include chair/wheelchair lifts
for stairways. Sister company of Araya
Industrial, largest bicycle rim maker.
The company will expand its facilities at its subsidiary in India that
manufactures chains in motorcycles, in a bid to introduce an integrated
production system doing all processes from parts procurement to assembly
locally. As the distribution base in
Thailand started operations, the company will strengthen production and sales
in the overseas market.
FINANCIAL INFORMATION
The sales volume
for Mar/2013 fiscal term amounted to Yen 37,851 million, a 1.4% down from Yen
38,393 million in the previous term.
Sales of chains for motorcycles, mainstay, slowed down in emerging
countries including Vietnam, hit by the impact stricter financing regulations,
and not covered by the growth in orders for chains for four-wheelers. The recurring profit was posted at Yen 992
million and the net profit at Yen 695 million, respectively, compared with Yen
993 million recurring profit and Yen 424 million net profit, respectively, a
year ago.
(Apr/Jun/2013
results): Sales Yen 10,168 million (up 11.3%), operating profit Yen 654 million
(up 473.8%), recurring profit Yen 868 million (up 304.0%), net profit Yen 532
million (up 453.4%). (% compared with
the corresponding period a year ago).
For the
current term ending Mar 2014 the recurring profit is projected at Yen 2,000
million and the net profit at Yen 1,100 million, on a 9.6% rise in turnover, to
Yen 41,500 million. Orders for chains
for motorcycles, mainstay, will grow, mainly in Thailand, and will cover slump
in South America and Indonesia. Orders
for chains for four wheelers will expand in various countries. Overseas sales will advance, thanks to
increase in exports under the weaker Yen.
Its subsidiary in Thailand, which manufactures and sells
distribution/conveyor systems, will make a full-term contribution. Operating profit will significantly rise.
The
financial situation is considered FAIR and good for ORDINARY business
engagements.
REGISTRATION
Date Registered: May
1933
Regd No.: 2200-01-013264 (Ishikawa-Kaga)
Legal Status:
Limited Company (Kabushiki Kaisha
Authorized: 160 million shares
Issued:
47,171,006 shares
Sum: Yen 2,726
million
Major shareholders (%): Hokkoku Bank (4.8), Iida Co
(4.4), Master Trust Bank of Japan T (2.9), Nippon Life Ins (2.9), Kaga Shoko
Ltd (2.7), Daido Life Ins (2.7), MUFG (2.7), Mizuho Bank (2.7), Mariko Araya
(2.7), Sumitomo Mitsui Trust Bank (2.4); foreign owners (3.1)
No. of shareholders: 3,843
Listed on the S/Exchange (s) of:
Tokyo
Managements: Kozo Araya, pres; Yasuyuki Tatsuta,
s/mgn dir; Kin’ichiro Nakano, mgn dir; Shin’ichi Hirano, mgn dir; Hirofumi Araya,
mgn dir; Katsuyuki Kikuchi, dir; Toshihiro Shimizu, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies:
Daido General Service, DID, other.
OPERATION
Activities: Manufactures motorcycle & auto
parts (motorcycle & automotive chains, industrial machinery chains,
rims/wheels, conveyor systems, welfare equipment, other);
(Sales in areas): Japan (63%), Asia (22%), North America
(6%), South America (7%), Europe (2%)
Clients: [Mfrs, wholesalers] DID, Honda
Motors, Bridgestone Tire Sales Kinki/Shikoku,
Suzuki Motors, Yamaha Motor,
Daido Corp of America, Daido Sittipol, Toyota Motor, Hyundai Motor Co, other
No. of
accounts: 500
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Metal One, Daido
Techno, Daido General Service, DID, JFE Shoji Trading, Honda Motor, Tsukiboshi
Mfg Co, Shinsho Corp, other
Payment record: No
complaints
Location:
Business area in Kaga City, Ishikawa-Pref.
Office premises at the caption address are owned and maintained
satisfactorily.
Bank References:
Hokkoku
Bank (Daishoji)
MUFG
(Kanazawa-Chuo)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
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37,851 |
38,393 |
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Cost of Sales |
31,151 |
31,640 |
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GROSS PROFIT |
6,699 |
6,753 |
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Selling & Adm Costs |
5,994 |
5,842 |
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OPERATING PROFIT |
704 |
911 |
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Non-Operating P/L |
288 |
82 |
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RECURRING PROFIT |
992 |
993 |
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NET PROFIT |
695 |
424 |
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BALANCE SHEET |
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Cash |
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3,294 |
3,069 |
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Receivables |
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9,425 |
9,080 |
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Inventory |
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7,608 |
8,036 |
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Securities, Marketable |
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Other Current Assets |
772 |
675 |
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TOTAL CURRENT ASSETS |
21,099 |
20,860 |
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Property & Equipment |
15,382 |
14,814 |
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Intangibles |
|
390 |
160 |
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Investments, Other Fixed Assets |
13,563 |
11,826 |
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TOTAL ASSETS |
50,434 |
47,660 |
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Payables |
|
4,032 |
4,878 |
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Short-Term Bank Loans |
10,175 |
7,603 |
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Other Current Liabs |
2,761 |
7,363 |
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TOTAL CURRENT LIABS |
16,968 |
19,844 |
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Debentures |
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4,500 |
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Long-Term Bank Loans |
3,867 |
5,194 |
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Reserve for Retirement Allw |
3,286 |
3,630 |
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Other Debts |
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1,857 |
1,281 |
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TOTAL LIABILITIES |
30,478 |
29,949 |
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MINORITY INTERESTS |
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Common
stock |
2,726 |
2,726 |
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Additional
paid-in capital |
2,060 |
2,060 |
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Retained
earnings |
7,180 |
6,626 |
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Evaluation
p/l on investments/securities |
4,634 |
3,928 |
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Others |
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3,373 |
2,388 |
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Treasury
stock, at cost |
(18) |
(17) |
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TOTAL S/HOLDERS` EQUITY |
19,955 |
17,711 |
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TOTAL EQUITIES |
50,434 |
47,660 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2013 |
31/03/2012 |
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Cash
Flows from Operating Activities |
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1,367 |
1,466 |
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Cash
Flows from Investment Activities |
-1,223 |
-2,015 |
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Cash
Flows from Financing Activities |
-3 |
-1,623 |
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Cash,
Bank Deposits at the Term End |
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2,732 |
2,314 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
19,955 |
17,711 |
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Current
Ratio (%) |
124.35 |
105.12 |
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Net
Worth Ratio (%) |
39.57 |
37.16 |
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Recurring
Profit Ratio (%) |
2.62 |
2.59 |
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Net Profit
Ratio (%) |
1.84 |
1.10 |
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Return
On Equity (%) |
3.48 |
2.39 |
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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.66.57 |
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|
1 |
Rs.103.34 |
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Euro |
1 |
Rs.88.16 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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 |
|
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.