MIRA INFORM REPORT

 

 

Report Date :

29.07.2014

 

IDENTIFICATION DETAILS

 

Name :

DAIDO KOGYO CO LTD

 

 

Registered Office :

Daido Shinagawa Bldg, 1-6-35 Konan Minatoku Tokyo 108-0075

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

30.01.1946

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Importer, exporter and wholesaler of Steel & Products, Raw Materials, Electronic Materials & Machinery

 

Subject product lines are as follows:

 

Steel

Specialty Steel Products, Ordinary Steel Products, Iron & Steel Secondary Products, Automobile Parts, Springs, Steel Strip, Cast And Forged Steel Products, Welding Wire, Magnetic Materials, Copper & Other Nonferrous Metals

 

Raw Materials

Ferrous Alloys, Pig Iron, Rare Metals, Iron Scrap, Stainless Scrap, High Alloy Scrap, Refractory, Ceramic Materials, Petroleum Products, and Petrochemicals

 

Machinery

Industrial Furnaces, Nc & Cnc Processing Machine, Industrial Machinery, Machinery Parts, and Private Power Generation Systems

 

Electronic Devices

Led Chips & Photo Diode Chips

 

 

No of Employees :

325

 

 

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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

 

DAIDO KOGYO CO LTD

 

 

REGD NAME 

 

Daido Kogyo KK

 

 

MAIN OFFICE

 

Daido Shinagawa Bldg, 1-6-35 Konan Minatoku Tokyo 108-0075 JAPAN

Tel: 03-5495-7185      Fax: 03-5495-7202

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Importer, exporter and wholesaler of Steel & Products, Raw Materials, Electronic Materials & Machinery

 

Subject product lines are as follows:

 

Steel

Specialty Steel Products, Ordinary Steel Products, Iron & Steel Secondary Products, Automobile Parts, Springs, Steel Strip, Cast And Forged Steel Products, Welding Wire, Magnetic Materials, Copper & Other Nonferrous Metals

 

Raw Materials

Ferrous Alloys, Pig Iron, Rare Metals, Iron Scrap, Stainless Scrap, High Alloy Scrap, Refractory, Ceramic Materials, Petroleum Products, and Petrochemicals

 

Machinery

Industrial Furnaces, Nc & Cnc Processing Machine, Industrial Machinery, Machinery Parts, and Private Power Generation Systems

 

Electronic Devices

Led Chips & Photo Diode Chips

 

 

BRANCHES

 

Nagoya, Osaka, Hamamatsu, Fukuoka

 

 

OVERSEAS

 

Singapore, Korea, Taiwan, China (3), Philippines, Vietnam, USA, Thailand, India, Germany, Indonesia

 

 

OFFICERS

 

HITOSHI HORIE, PRES              Satoru Yuna, mgn dir

Koji Okimatsu, mgn dir               Hideo Morii, mgn dir

Yukio Usui, mgn dir                                Bukichi Miyake, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 206,710 M

PAYMENTSNo Complaints    CAPITAL           Yen 1,511 M

TREND UP                                WORTH            Yen 15,927 M   

STARTED         1946                             EMPLOYES      325

           

 

COMMENT    

 

TRADING FIRM SPECIALIZING IN STEEL PRODUCTS, MACHINERY.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established on the basis of a trading division separated from Daido Steel Co Ltd (See REGISTRATION).  This is a trading firm for import, export and wholesale of steel, steel products, steel materials, machinery.  Goods are more exported than imported.  Operates 13 overseas subsidiaries and offices in 11 countries.  Clients include steel makers, wholesalers, other, nationwide

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 206,710 million, a 7% up from Yen 193,881 million in the previous term.  Demand rose prior to the increase of consumption taxes in Apr 2014.  Some of the products unit prices were increased.  The recurring profit was posted at Yen 1,640 million and the net profit at Yen 984 million, respectively, compared with Yen 1,377 million recurring profit and Yen 822 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 1,700 million and the net profit at Yen 1,000 million, respectively, on a 4% rise in turnover, to Yen 215,000 million.  Business is seen expanding steadily.

 

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

 

 

REGISTRATION

 

Date Registered:  30 Jan 1946

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         10.2 million shares

Issued:              2.55 million shares

Sum:                   Yen 1,511 million

Major shareholders (%): Daido Steel Co Ltd* (66.2), Kowa Real Estate (18.2), Employees’ S/Holding Assn (2.7), Riken Corp (2.4)

 

No. of shareholders: 202

 

*.. Daido Steel Co Ltd, top-ranked mfr of special steel in world, Tokyo, founded 1945, listed Tokyo S/E, capital Yen 37,172 million, sales Yen 457,731 million, operating profit Yen 18,977 million, recurring profit Yen 20,287 million, net profit Yen 12,616 million, total assets Yen 557,522 million, net worth Yen 232,152 million, employees 10,709, pres Tadashi Shimao

 

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

 

 

OPERATION

           

Activities: Imports, exports and wholesales steel & products (47%), raw materials (32%), electronic materials (16%), machinery (5%).

 

(Handling items):

 

Steel: specialty steel products, ordinary steel products, iron & steel secondary products, automobile parts, springs, steel strip, cast and forged steel products, welding wire, magnetic materials, copper & other nonferrous metals, other

 

Raw materials: ferrous alloys, pig iron, rare metals, iron scrap, stainless scrap, high alloy scrap, refractory, ceramic materials, petroleum products, and petrochemicals, other

 

Machinery: industrial furnaces, NC & CNC processing machine, industrial machinery, machinery parts, and private power generation systems, other

 

Electronic devices: LED chips, photo diode chips, other

 

Clients: [Mfrs, wholesalers] Daido Steel Co (15%), Shimomura Tokushu Seiko, Nippon Seisen Co, Kinomoto Shinsen, Fuji Oozx Inc, Rinnai Corp, other 

            No. of accounts: 350

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Daido Steel Co (43%), Daido Castings, Daido Special Metal, Daido Electronics, Sumitomo Metal Mining, Idemitsu Kosan Kaisha, other

 

Payment record: No Complaints 

 

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

 

Bank References:

MUFG (Nagoya)

Mizuho Bank (Nagoya)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

 

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

　

215,000

206,710

193,881

233,027

Recur. Profit

　

1,700

1,640

1,377

2,054

Net Profit

　

1,000

984

822

1,100

Total Assets

　

　

81,757

72,689

89,740

Current Assets

　

　

71,508

62,728

80,214

Current Liabs

　

　

53,880

49,436

65,680

Net Worth

　

　

15,927

15,249

14,747

Capital, Paid-Up

　

　

1,511

1,511

1,511

Div.P.Share(¥)

　

　

7.00

7.00

15.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.01

6.62

-16.80

-3.25

    Current Ratio

 

..

132.72

126.89

122.13

    N.Worth Ratio

..

19.48

20.98

16.43

    R.Profit/Sales

 

0.79

0.79

0.71

0.88

    N.Profit/Sales

0.47

0.48

0.42

0.47

    Return On Equity

..

6.18

5.39

7.46

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.102.04

Euro

1

Rs.80.74

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.