MIRA
INFORM REPORT
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Report Date : |
23.08.2014 |
IDENTIFICATION DETAILS
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Name : |
CHORI CO LTD |
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Registered Office : |
2-4-7 Awajimachi Chuoku |
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Country : |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
Sept. 1948 |
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Com. Reg. No.: |
1200-01-077485 (Osaka-Chuoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, Export and Wholesale of Textiles, Chemicals. |
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No. of Employees : |
1,292 |
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 – June 01, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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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
CHORI CO LTD
REGD NAME: Chori
KK
MAIN OFFICE: 2-4-7
Awajimachi Chuoku
Tel:
06-6226-5015 Fax: 06-6228-5546
*.. The firm is
correctly located at this address and registered.
We cannot confirm the
address given from you. It is wrong.
E-Mail address: info@chori.co.jp
ACTIVITIES
Import, export,
wholesale of textiles, chemicals, others
BRANCH (ES)
Tokyo, Osaka,
Yokohama, Kanazawa, Ashikaga, Niigata, Okayama
OVERSEAS
China (15), Asia
& Middle East (15), Europe (3), Russia, USA. (subsidiaries/branch
offices/representative offices)
CHIEF EXEC
SHUJI YAMAZAKI,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 244,286 M
PAYMENTSNO
COMPLAINTS CAPITAL Yen 6,800 M
TREND UP WORTH Yen 36,417 M
STARTED 1948 EMPLOYES 1,292
COMMENT
MAJOR TEXTILE TRADING HOUSE, AFFILIATED TO TORAY INDUSTRIES.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast
(or estimated) figures for 31/03/2015 fiscal term
HIGHLIGHTS
This is an
old-established company dating back to 1861 starting as a raw silk wholesaler
in Kyoto, the center of Japanese kimono makers.
In 1948 incorporated and moved the headquarters to Osaka in 1952. In 1987, upgraded its Tokyo Branch to Tokyo
Headquarters Office. This is a trading
company specializing in textiles and chemicals, two pillars of operations,
after drastic reorganizations. In 2003,
the firm lodged huge losses amounting to Yen 4,927 million and received rescue
fund from its major shareholders. In
restructuring and pushing for improvement of earnings base. The firm received
financial support from Toray Industries Inc
Strong presence in
China where operating six subsidiaries and seven offices. The China business began in 1961, when the
firm was designated a “friendly trading company” by the Chinese
government. From 1970 to mid-1980s,
Chori exported chemical plant facilities, followed by establishing a series of
JV factories for textiles. In 2005,
Chori (China) Co Ltd was established in Shanghai. Chori has strengthened ties with the Inner
Mongolia Erdos Group, one of the largest global suppliers of high-grade
cashmere, and is planning a new business venture with the group.
FINANCIAL INFORMATION
The sales volume
for Mar/2014 fiscal term amounted to Yen 244,286 million, a 10.1% up from Yen
221,847 million in the previous term.
Sales of textiles fared well, mainly in materials. Chemicals business benefited from overseas business
expansion. The recovery of the urethane
materials and electrical materials markets also contributed to earnings. The recurring profit was posted at Yen 5,831
million and the net profit at Yen 3,715 million, respectively, compared with
Yen 5,466 million recurring profit and Yen 2,944 million net profit,
respectively, a year ago.
(Apr/Jun/2014
results): Sales Yen 54,891 million (down 6.5%), operating profit Yen 728
million (up 0.4%), recurring profit Yen 724 million (down 25.6%), net profit
Yen 1,371 million (up 80.5%). (%
compared with the corresponding period a year ago).
For the current
term ending Mar 2015 the recurring profit is projected at Yen 6,200 million and
the net profit at Yen 4,000 million, on a 6.4% rise in turnover, to Yen 260,000
million. Profit margin on the textiles
business will improve, thanks to upgraded production bases in Asia.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date Registered:
Sept 1948
Regd No.:
1200-01-077485
(Osaka-Chuoku)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 550 million shares
Issued: 25,303,478 shares
Sum: Yen 6,800 million
Major
shareholders (%): Toray Industries Inc*(51.2), BBH Fidelity PTRS Intrinsic OF(3.2), Company’s Treasury
Stock (3.0), Royal Bank of Canada T (2.4), Wacoal Corp (2.1), Master Bank of
Japan T (1.2), Japan Trustee Services T (0.8), Mellon Bank Treaty Cl. Omnibus
(0.8), Mitsui Sumitomo Insurance (0.7), BBH Fidelity LPSF (0.6); foreign owners
(15.0)
No. of shareholders: 6,467
* Largest mfr of synthetic fibers, Tokyo,
founded 1925, listed Tokyo S/E, capital Yen 147,873 million, turnover Yen
1,837,778 million, operating profit Yen 105,253 million, recurring profit Yen
110,648 million, net profit Yen 59,608 million, total assets Yen 2,119,683
million, net worth Yen 859,001 million, employees 45,881, pres Akihiro Nikkaku
Listed on the S/Exchange (s) of: Tokyo
Managements: Shuji Yamazaki,
pres; Jun Kobayashi, mgn dir; Nagao Iseda, mgn dir; Masayuki Hatsuya, mgn dir;
Kunihisa Inoue, dir; Makoto Miura, dir; Kazuo Sakihama dir; Jun Furuya, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies:
Tokyo Kutsushita, Chori Gomu, Chori Imaging Corp, other.
OPERATION
Activities: A trading house
for import, export and wholesale of textiles, chemicals, others:
(Sales Breakdown by Divisions):
Textile
Division (47%): raw yarns made of chemical fibers, synthetic fibers, raw silk & other
natural fibers, non-woven textiles, woven fabrics, knit fabrics, and other
products made of chemical fibers, synthetic fibers, silk fibers & other
natural fibers, industrial materials;
Chemicals
Division (35%): organic & inorganic chemicals (monomer, synthetic fiber,
polyurethane materials, fine chemicals (medical, agricultural & organic
intermediaries), industrial chemicals (glass substrate materials used in
flat-panel displays, inorganic fine chemicals), life science (protein- &
sweetener-based food chemicals, additives, health foods, taurine, energy drink
ingredients);
Machinery
Division (18%): cars, motorcycles, specialized vehicles & parts thereof, membranes
for caustic soda plants, packaging machines, solar battery components;
Overseas Sales Ratio (51%)
Clients: [Mfrs,
wholesalers] Toray Ind, Kawashima Selkon Textiles, Itokin Inc, Wacoal Corp,
Aoyama Trading, Ministry of Defense, Fukuvi Chemical Ind, Itokin China, Nippon
Electric Glass, other.
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Toray Ind, Asahi Kasei Chemicals, Teijin Ltd, Mitsui Takeda
Chemical, Asahi Kasei Fibers Corp, Nihon Polyurethanes Industries Assn, Mitsui
Chemical Ind, Showa Denko, Asahi Kasei Chemicals, Takisada Nagoya, Takisada
Osaka, Shimada Trading, Nishikawa Keori KK, other. .
Payment record: No Complaints
Location: Business area in
Osaka. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
Mizuho Bank (Osaka)
MUFG (Osaka)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME STATEMENT |
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Annual Sales |
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244,286 |
221,847 |
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Cost of Sales |
222,755 |
202,076 |
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GROSS PROFIT |
21,530 |
19,700 |
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Selling & Adm Costs |
16,037 |
14,665 |
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OPERATING PROFIT |
4,492 |
5,035 |
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Non-Operating P/L |
1,339 |
431 |
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RECURRING PROFIT |
5,831 |
5,466 |
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NET PROFIT |
3,715 |
2,944 |
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BALANCE SHEET |
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Cash |
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5,821 |
6,350 |
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Receivables |
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42,328 |
38,875 |
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Inventory |
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10,378 |
10,107 |
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Securities, Marketable |
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Other Current Assets |
8,591 |
6,364 |
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TOTAL CURRENT ASSETS |
67,118 |
61,696 |
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Property & Equipment |
744 |
723 |
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Intangibles |
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857 |
965 |
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Investments, Other Fixed Assets |
9,502 |
8,467 |
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TOTAL ASSETS |
78,221 |
71,851 |
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Payables |
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32,324 |
30,876 |
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Short-Term Bank Loans |
949 |
779 |
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Other Current Liabs |
6,231 |
6,845 |
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TOTAL CURRENT LIABS |
39,504 |
38,500 |
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Debentures |
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Long-Term Bank Loans |
52 |
84 |
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Reserve for Retirement Allw |
2,076 |
1,605 |
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Other Debts |
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171 |
277 |
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TOTAL LIABILITIES |
41,803 |
40,466 |
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MINORITY INTERESTS |
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Common
stock |
6,800 |
6,800 |
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Additional
paid-in capital |
1,700 |
1,700 |
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Retained
earnings |
27,671 |
24,563 |
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Evaluation
p/l on investments/securities |
458 |
177 |
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Others |
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568 |
(1,078) |
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Treasury
stock, at cost |
(780) |
(777) |
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TOTAL S/HOLDERS` EQUITY |
36,417 |
31,385 |
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TOTAL EQUITIES |
78,221 |
71,851 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash Flows
from Operating Activities |
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1,716 |
5,792 |
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Cash
Flows from Investment Activities |
-208 |
-2,980 |
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Cash
Flows from Financing Activities |
-506 |
-1,641 |
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Cash,
Bank Deposits at the Term End |
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9,638 |
8,198 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
36,417 |
31,385 |
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Current
Ratio (%) |
169.90 |
160.25 |
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Net
Worth Ratio (%) |
46.56 |
43.68 |
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Recurring
Profit Ratio (%) |
2.39 |
2.46 |
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Net
Profit Ratio (%) |
1.52 |
1.33 |
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Return
On Equity (%) |
10.20 |
9.38 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.44 |
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1 |
Rs.100.24 |
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Euro |
1 |
Rs.80.35 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
NIT |
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 |
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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 |
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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.