.

MIRA INFORM REPORT

 

 

Report Date :

29.01.2014

 

IDENTIFICATION DETAILS

 

Name :

FUSO CHEMICAL CO LTD

 

 

Registered Office :

4-3-10 Koraibashi Chuoku Osaka 541-0043

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

June 1957

 

 

Com. Reg. No.:

1200-01-088372 (Osaka-Chuoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of fruit acid & electronics materials. 

 

 

No. of Employees :

786

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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

 

FUSO CHEMICAL CO LTD

 

 

REGD NAME 

 

Fuso Kagaku Kogyo KK

 

MAIN OFFICE

 

4-3-10 Koraibashi Chuoku Osaka 541-0043 JAPAN

Tel: 06-6203-4771     Fax: 06-6203-1455

 

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

E-Mail address:            info@fusokk.co.jp

 

 

ACTIVITIES

 

Manufacturer of fruit acid & electronics materials. 

 

 

BRANCHES   

 

Tokyo, Fukuoka, Shin-Osaka

 

 

OVERSEAS   

 

China (2), USA, Thailand

 

 

FACTOR (IES)    

 

At the caption address, Osaka (2), Kyoto (2); Qingdao (China)

 


CHIEF EXEC

 

RYOTA AKAZAWA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                                       A/SALES          Yen 27,355 M

PAYMENTSNo Complaints              CAPITAL           Yen 1,180 M

TREND SLOW                                    WORTH            Yen 23,404 M

STARTED         1957                                       EMPLOYES      786

 

 

COMMENT

 

MFR OF FRUIT ACID & ELECTRONICS MATERIALS. 

 

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

29,798

2,410

1,435

(%)

16,653

(Consolidated)

31/03/2011

30,251

4,355

2,331

1.52

18,271

 

31/03/2012

28,247

3,826

2,508

-6.62

20,719

 

31/03/2013

27,355

3,231

1,903

-3.16

23,404

 

31/03/2014

30,000

3,400

2,000

9.67

..

                        Unit: In Million Yen

                        Forecast (or estimated) figures for 31/03/2014 fiscal term

 

 

HIGHLIGHTS

 

The subject company was established originally in 1952 by Shozo Akazawa, researcher at the Faculty of Medicine in Osaka Univ, for conducting pharmaceutical research.  Incorporated in 1957 in Osaka, and began mfg chlorine compounds and fatty acid chloride.  This is a comprehensive fruit acid producer having largest market share in malic & citric acids in Japan.  Maintains 50% global market share in apple acid.  Also major maker of electronic materials, including silicon wafer abrasive agents.  In 2003 purchased the domestic chemical business and total shares of its subsidiary “PMP Fermentation Products Inc” in the US from Astellas Pharma Inc.

           

 


FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 27,355 million, a 3.2% down from Yen 28,247 million in the previous term.  The recurring profit was posted at Yen 3,231 million and the net profit at Yen 1,903 million, respectively, compared with Yen 3,826 million recurring profit and Yen 2,508 million net profit, respectively, a year ago.

           

(Apr/Sept/2013 results): Sales Yen 14,311 million (up 4.2%), operating profit Yen 1,429 million (down 23.3%), recurring profit Yen 1,444 million (down 18.8%), net profit Yen 828 million (down 21.6%).  (% as compared with the corresponding period a year ago).

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 3,400 million and the net profit at Yen 2,000 million, on a 9.7% rise in turnover, to Yen 30,000 million.  Business is seen expanding steadily.

 

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

 

 

REGISTRATION

           

      Date Registered:      Jun 1957

      Regd No.:                  1200-01-088372 (Osaka-Chuoku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         19 million shares

Issued:                6,302,200 shares

Sum:                   Yen 1,180 million

 

Major shareholders (%): Teikoku Seiyaku (10.5), Shozo Akazawa (9.7), Osaka Small Business Investment (5.0), Teisan Co (4.3), Nippon Shokubai (3.7), Hyakujushi Bank (3.5), Goldman Sachs International (3.5), Misako Fujioka (2.9), Resona Bank (2.5); foreign owners (8.1)

 

No. of shareholders: 1,499

 

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

 

Managements: Shozo Akazawa, ch; Ryota Akazawa, pres; Shuzo Enomoto, mgn dir; Haruo Masauji, dir; Takehiko Mukawa, dir; Misako Fujioka, dir; Tomomi Tada, dir

 

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

 

Related companies: Fuso Corporation, Qingdao Fuso Refining & Processing Co, other

           

 


OPERATION

           

Activities: Manufactures fruit acid & electronic materials:

 

(Sales Breakdown by Divisions):

 

Life Science (69%): Food applications (fruit acids, antioxidants, antioxidant preparations, preparations for noodles, preparations for daily dishes, preparations for tofu, others); Agricultural applications (feed additives, mixed feeds, soil conditioners); Industrial applications (fruits acids, water-soluble reducing agents, water-soluble corrosion inhibitors, water-soluble grinding fluids, water-soluble cutting fluids, rubber processing aids, plastic processing aids);

 

Electronic Materials & Functional Chemical Products (31%): Electronic Materials (silica-related derivatives: ultra-high-purity colloidal silica, high-purity spherical silica); Functional Chemicals (fine chemicals: intermediates for photographic chemicals, intermediates for pharmaceuticals cu, raw materials for cosmetics, plastic additives, pigments);

 

Overseas Sales Ratio (30%)

 

Clients: [Mfrs, wholesalers] Fujimi Inc, Kirin Foodtec, Nagase Corp, Kao Corp, Maruzen Chemicals, NOF Corp, Sumitomo Shoji Chemical, Kirin Kyowa Foods, other

           

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] NOF Corp, Nippon Shokubai, Sojitz Corp, Exxon Mobile, Marubeni Chemix, Inabata & Co, Kawasaki Chemical, other

 

Payment record: No Complaints 

 

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

 

Bank References:

Resona Bank (Osaka)

SMBC (Bingomachi)

Relations: Satisfactory

 


FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

 

27,355

28,247

 

  Cost of Sales

16,946

17,137

 

      GROSS PROFIT

10,409

11,109

 

  Selling & Adm Costs

7,186

7,201

 

      OPERATING PROFIT

3,223

3,908

 

  Non-Operating P/L

8

-82

 

      RECURRING PROFIT

3,231

3,826

 

      NET PROFIT

1,903

2,508

BALANCE SHEET

 

 

 

 

  Cash

 

4,606

4,124

 

  Receivables

 

7,198

7,188

 

  Inventory

 

6,824

6,389

 

  Securities, Marketable

 

 

 

  Other Current Assets

685

1,092

 

      TOTAL CURRENT ASSETS

19,313

18,793

 

  Property & Equipment

12,570

12,909

 

  Intangibles

 

386

446

 

  Investments, Other Fixed Assets

1,514

1,708

 

      TOTAL ASSETS

33,783

33,856

 

  Payables

 

1,282

1,454

 

  Short-Term Bank Loans

3,047

3,637

 

 

 

 

 

 

  Other Current Liabs

2,640

1,958

 

      TOTAL CURRENT LIABS

6,969

7,049

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

1,974

4,822

 

  Reserve for Retirement Allw

1,157

1,014

 

  Other Debts

 

279

251

 

      TOTAL LIABILITIES

10,379

13,136

 

      MINORITY INTERESTS

 

 

 

Common stock

1,180

1,180

 

Additional paid-in capital

1,667

1,667

 

Retained earnings

19,908

18,195

 

Evaluation p/l on investments/securities

228

162

 

Others

 

423

(483)

 

Treasury stock, at cost

(2)

(2)

 

      TOTAL S/HOLDERS` EQUITY

23,404

20,719

 

      TOTAL EQUITIES

33,783

33,856

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

 

4,266

1,838

 

Cash Flows from Investment Activities

-322

-882

 

Cash Flows from Financing Activities

-3,637

-4,063

 

Cash, Bank Deposits at the Term End

 

4,606

4,057

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

23,404

20,719

 

 

Current Ratio (%)

277.13

266.61

 

 

Net Worth Ratio (%)

69.28

61.20

 

 

Recurring Profit Ratio (%)

11.81

13.54

 

 

Net Profit Ratio (%)

6.96

8.88

 

 

Return On Equity (%)

8.13

12.10

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.99

UK Pound

1

Rs.104.61

Euro

1

Rs.86.17

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.