MIRA INFORM REPORT

 

 

Report Date :

22.04.2014              

 

IDENTIFICATION DETAILS

 

Name :

DALTON CORPORATION

 

 

Registered Office :

Hamarikyu Parkside Place 10F/15F, 5-6-10 Tsukiji Chuoku Tokyo 104-0045

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

July 1948

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of chemical research equipment, flour milling machines

 

 

No. of Employees

361

 

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 :

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy

 

Source : CIA

 

 

 


Company name and address

 

DALTON CORPORATION

 

REGD NAME:   KK Dalton

MAIN OFFICE:  Hamarikyu Parkside Place 10F/15F, 5-6-10 Tsukiji Chuoku Tokyo 104-0045

JAPAN

Tel: 03-3549-6800         

Fax: 03-3549-6854         -

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of chemical research equipment, flour milling machines

 

 

BRANCHES

 

Sapporo, Sendai, Nagoya, Osaka, Hiroshima, Fukuoka, other (Tot 15)

 

 

FACTORIES

 

(subcontracted – group firms)

 

 

CHIEF EXEC

 

HIDEO YAZAWA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 15,160 M

PAYMENTS      SLOW BUT CORRECT   CAPITAL           Yen 1,387 M

TREND             UP                                WORTH            Yen 3,542 M

STARTED         1948                             EMPLOYES      361

 

COMMENT

 

TRADING FIRM SPECIALIZING IN SCIENTIFIC EQUIPMENT 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

15,502

281

208

(%)

2,494

(Consolidated)

30/09/2011

16,037

305

427

3.45

3,457

30/09/2012

17,293

309

269

7.83

3,734

30/09/2013

15,160

-8

-202

-12.33

3,542

30/09/2014

18,100

383

237

19.39

..

Unit: In Million Yen

Forecast figures for the 30/09/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is the leading mfr & wholesaler of equipment used in chemical research, and flour milling machines, mainly to corporations and local governments. (For products see OPERATION).  Maintains strong market share in experiment stands.  Subsidiary of Itoki Corp.  Clients include technical research firms, chemical firms, other, nationwide.

 

 

FINANCIAL INFORMATION

 

The sales volume for Sept/2013 fiscal term amounted to Yen 15,160 million, a 12.3% down from Yen 17,293 million in the previous term.   The operations plunged into the red to post Yen 8 million recurring loss and Yen 202 million net loss, respectively, compared with Yen 309 million recurring profit and Yen 269 million net profit, respectively, a year ago

 

(Oct/Dec/2013 results):  Sales Yen 2,859 million (down 1.5%), operating loss Yen 333 million (previously Yen 285 million loss), recurring loss Yen 354 million (previously Yen 310 million loss), net loss Yen 396 million (previously Yen 442 million loss).  (% & figures compared with the corresponding period a year ago).

           

For the current term ending Sept 2014 the recurring profit is projected at Yen 383 million and the net profit at Yen 237 million, on a 19.4% rise in turnover, to Yen 18,100 million. 

 

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

 

 


 

REGISTRATION

           

Date Registered: Jul 1948

Legal Status:       Limited Company (Kabushiki Kaisha

Authorized:       42 million shares

Issued:                14,197,438 shares

Sum:                   Yen 1,387 million

 

Major shareholders (%): Itoki Corp (51.0), Hidemi Yazawa (5.6), Toshie Yazawa (3.3), Akio Yazawa (3.2), Mizue Yazawa (2.9), Chizuko Hashida (2.5), Kazutaka Muraguchi (2.1), Employees’ S/Holding Assn (1.8), Company’s Treasury Stock (1.4); foreign owners (1.0)

 

No. of shareholders: 503

 

Listed on the S/Exchange (s) of: JASDAQ

 

Managements: Takeshi Togo, ch; Hideto Yazawa, pres; Takayuki Ando, v pres; Hiroyuki Seo, s/mgn dir; Kunio Sakai, mgn dir; Toshiyuki Kuwahara, dir; Yuji Shoji, dir; Eiji Omori, dir; Shinji Haruhara, dir; Hidefumi Kanazawa, dir; Yuichi Yoshinaga, dir

 

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

 

Related companies: Fuji Paudal Co, Kogei Dalton Corp, other.

 

 

OPERATION

           

Activities: Manufactures (subcontracted) laboratory apparatus: laboratory table, draft chamber, other (--100%)

 

(Main Products)

(Research Facilities Department):draft chamber (fume hood), laboratory table, sink, working table, exhaust gas/waste fluid processing unit, high temperature constant humidity room, low temperature test room, clean room, bio clean room, semiconductor devices such as wet bus, etching booth;

 

(Powder Machinery Department): granulator, grinding machinery, dryer, mixer, magnet separator, conveyer, other

           

Clients: [Mfrs, wholesalers] Fuji Rika Kogyo, Nikkyo Technos Co, LCI Corporation, Daiichi Sankyo Propharma, Asahi Kasei Engineering, Daiwa Kasei, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Fuji Paudal, Kogei Dalton Corp, Shinagawa Machinery Works, Tokiwa Stainless Ind, Fujino Kogyo, Sanritsu Kogyo, Asuka Technology, other

 

Payment record: Slow but correct

 

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

 

Bank References:

Mizuho Bank (Yotsuya)

MUFG (Ichigaya)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

30/09/2013

30/09/2012

INCOME STATEMENT

  Annual Sales

 

15,160

17,293

  Cost of Sales

9,979

11,875

      GROSS PROFIT

5,181

5,417

  Selling & Adm Costs

5,095

5,000

      OPERATING PROFIT

85

417

  Non-Operating P/L

77

-108

      RECURRING PROFIT

-8

309

 

      NET PROFIT

-202

269

BALANCE SHEET

  Cash

 

2,382

2,910

  Receivables

3,892

3,533

  Inventory

1,165

1,138

  Securities, Marketable

 

 

  Other Current Assets

270

327

      TOTAL CURRENT ASSETS

7,709

7,908

  Property & Equipment

5,406

4,232

  Intangibles

922

443

  Investments, Other Fixed Assets

988

874

      TOTAL ASSETS

15,025

13,457

  Payables

2,824

3,222

  Short-Term Bank Loans

2,542

2,203

 

 

 

  Other Current Liabs

1,286

1,150

      TOTAL CURRENT LIABS

6,652

6,575

  Debentures

668

305

  Long-Term Bank Loans

2,055

1,150

  Reserve for Retirement Allw

883

925

  Other Debts

 

1,224

767

      TOTAL LIABILITIES

11,482

9,722

      MINORITY INTERESTS

Common stock

1,387

1,387

Additional paid-in capital

1,116

1,116

Retained earnings

1,030

1,232

Evaluation p/l on investments/securities

18

1

Others

51

57

Treasury stock, at cost

(60)

(59)

      TOTAL S/HOLDERS` EQUITY

3,542

3,734

 

      TOTAL EQUITIES

15,025

13,457

CONSOLIDATED CASH FLOWS

Terms ending:

30/09/2013

30/09/2012

Cash Flows from Operating Activities

 

-448

424

Cash Flows from Investment Activities

-1,532

-500

Cash Flows from Financing Activities

1,434

721

 

Cash, Bank Deposits at the Term End

 

1,498

2,045

ANALYTICAL RATIOS            Terms ending:

30/09/2013

30/09/2012

Net Worth (S/Holders' Equity)

3,542

3,734

Current Ratio (%)

115.89

120.27

Net Worth Ratio (%)

23.57

27.75

Recurring Profit Ratio (%)

-0.05

1.79

Net Profit Ratio (%)

-1.33

1.56

Return On Equity (%)

-5.70

7.20

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.34

UK Pound

1

Rs.101.41

Euro

1

Rs.83.38

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIS

 

               

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.