MIRA INFORM REPORT

 

 

Report Date :

12.07.2014

 

IDENTIFICATION DETAILS

 

Name :

DAISHO CO LTD

 

 

Registered Office :

Auto Center Bldg 3F, 2-11-16 Kawarayamachi Chuoku Osaka 542-0066

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2014

 

 

Date of Incorporation :

March, 1952

 

 

Com. Reg. No.:

1200-01-083418 (Osaka-Chuoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Export of spinning machines & components

 

 

No. of Employees :

3

 

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

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately 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

 

DAISHO CO LTD

 

REGD NAME:    Daisho KK

MAIN OFFICE:  Auto Center Bldg 3F, 2-11-16 Kawarayamachi Chuoku Osaka 542-0066 JAPAN

                        Tel: 06-6768-1345     

Fax: 06-6768-1349

                                               

URL:                 N/A

 

 

ACTIVITIES  

 

Export of spinning machines & components

 

 

BRANCHES

 

Nil

 

 

OFFICERS

 

YOSHIHIKO KAWAGUCHI, PRES

Ishimori Hyoni, dir

Toshiko Kawaguchi, dir                                                  

 

 

Yen Amount

 

In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        R/WEAK                                   A/SALES          Yen 160 M

PAYMENTS      SLOW BUT CORRECT               CAPITAL           Yen 12 M

TREND             UP                                            WORTH            Yen 19 M

STARTED         1952                                         EMPLOYES      3

 

 

COMMENT

 

EXPORTER OF SPINNING MACHINES.

FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established by father of Yoshihiko Kawaguchi in order to make most of his experience in the subject line of business.  This is a trading firm for exporting spinning machines & components.  Exports to centrally Asian countries, including Ethiopia and Egypt.  

 

 

FINANCIAL INFORMATION

           

Financials are only partially disclosed as from the 29/02/2012 fiscal term.

 

The sales volume for Feb/2014 fiscal term amounted to Yen 160 million, a 7% up from Yen 150 million.  The weaker Yen helped to raise export earnings in Yen terms.  The net profit was posted at Yen 2 million, compared with Yen 2 million net losses a year ago.

 

For the current term ending Feb 2015 the net profit is projected at Yen 3 million, on a 3% rise in turnover, to Yen 165 million.

 

The financial situation is considered RTHER WEAK but should be good for MODERATE business engagements. 

 

 

REGISTRATION

 

Date Registered:  Mar 1952

Regd No.:            1200-01-083418 (Osaka-Chuoku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         80,000 shares

Issued:                24,000 shares

Sum:                   Yen 12 million

Major shareholders (%): Yoshihiko Kawaguchi (38), Setsu Nishikawa (20), Isamu Ido (9)

No. of shareholders: 10

           

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

 

 

 

 

 

OPERATION

           

Activities: Exports spinning machines and components (--100%)

 

Clients: [Mfrs, wholesalers] Exports to Korea, Thailand, Pakistan, Bangladesh, Malaysia, Hong Kong, India, Taiwan, Ethiopia, Egypt, other

            No. of accounts: Unavailable

            Domestic areas of activities: Centered in greater-Osaka

Suppliers: [Mfrs, wholesalers] Synztec Co, Toyota Seiki Seisakusho, Shuttle Co, other.

Also imports from Indonesia, other.

 

Payment record: Slow but correct

 

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

 

Bank References:

                        MUFG (Ueroku)

                        Kinki Osaka Bank (Tanimachi)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

Terms Ending:

　

28/02/2015

28/02/2014

28/02/2013

29/02/2012

Annual Sales

　

165

160

150

150

Recur. Profit

　

..

..

..

..

Net Profit

　

3

2

-2

-2

Total Assets

　

　

N/A

N/A

N/A

Net Worth

　

　

19

17

19

Capital, Paid-Up

　

　

12

12

12

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.13

6.67

0.00

-14.77

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

..

..

..

    N.Profit/Sales

1.82

1.25

-1.33

-1.33

Notes: Financials are only partially disclosed as from the 29/02/2012 fiscal term.

Forecast (or estimated) figures for the 28/02/2015 fiscal term.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.19

UK Pound

1

Rs.103.15

Euro

1

Rs.81.87

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NNA

 

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%)

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