MIRA INFORM REPORT

 

 

Report Date :

31.08.2014

 

IDENTIFICATION DETAILS

 

Name :

KENKO CORPORATION

 

 

Registered Office :

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

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

December 1965

 

 

Com. Reg. No.:

0100-01-034552

 

 

Legal Form :

Limited Company

 

 

Line of Business :

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

 

 

No. of Employees :

60

 

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 :

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. 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 & address

 

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 (5), India, USA (4), Germany, Israel, Russia

 

 

OFFICERS

 

HISAO MATSUO, PRES                        Yasushi Nakai, s/mgn dir                       

Yasuo Yagisawa, dir                              Tsuneyasu Nakano, dir  

Tatsuya Uoh, dir                                    Yoshihiro Kawabata, dir             

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 16,075 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 245 M

TREND             UP                                WORTH            Yen 1,311 M

STARTED         1965                             EMPLOYES      60

 

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.  Hisazo Matsuo took the pres office in Jan 2014 upon the death of Satomi Tsuchibe.  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 China, USA, Russia, India, Israel and Germany, including overseas affiliates.  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/2014 fiscal term amounted to Yen 16,075 million, a 34% up from Yen 12,021 million in the previous term.  Health food materials were in much demand.  Weaker Yen contributed to raise earnings in Yen term.  The recurring profit was posted at Yen 149 million and the net profit at Yen 38 million, respectively, compared with Yen 2 million net profit a year ago. 

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 160 million and the net profit at Yen 45 million, respectively, on a 3% rise in turnover, to Yen 16,500 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 218.4 million, on 30 days normal terms. 

 

 

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; and:

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

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

 

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)

SMBC (Nihombashi)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

   Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

　

16,500

16,075

12,021

12,423

Recur. Profit

　

160

149

　

330

Net Profit

　

45

38

2

38

Total Assets

　

　

7,441

6,665

6,362

Current Assets

　

　

5,810

5,041

4,575

Current Liabs

　

　

5,210

4,515

4,497

Net Worth

　

　

1,311

1,255

1,253

Capital, Paid-Up

　

　

245

245

245

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

2.64

33.72

-3.24

-8.14

    Current Ratio

　

..

111.52

111.65

101.73

    N.Worth Ratio

　

..

17.62

18.83

19.70

    R.Profit/Sales

　

0.97

0.93

..

2.66

    N.Profit/Sales

　

0.27

0.24

0.02

0.31

    Return On Equity

　

..

2.90

0.16

3.03

 

Notes: Forecast (or estimated) for the 31/03/2015 fiscal term

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.47

UK Pound

1

Rs.100.35

Euro

1

Rs.79.86

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

SHG

 

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.