MIRA INFORM REPORT

 

 

Report Date :

11.06.2014

 

IDENTIFICATION DETAILS

 

Name :

DAIKI ALUMINIUM INDUSTRY CO LTD

 

 

Registered Office :

Nichiei Bldg 8F, 1-4-8 Tosabori Nishiku Osaka 550-0001

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

October 1948

 

 

Com. Reg. No.:

1200-01-125102

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of secondary aluminum alloy ingots

 

 

No of Employees :

619

 

 

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 :

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

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:

 

DAIKI ALUMINIUM INDUSTRY CO LTD

 

 

REGD NAME:

 

KK Daiki Aluminium Kogyosho

 

 

MAIN OFFICE:    

 

Nichiei Bldg 8F, 1-4-8 Tosabori Nishiku Osaka 550-0001 JAPAN

Tel: 06-6444-2751     Fax: 06-6444-2797     -

 

URL:                 http://www.dik-net.com

E-Mail address: (thru the URL)

 

 

ACTIVITIES: 

 

Mfg of secondary aluminum alloy ingots

 

 

BRANCHES:  

 

Tokyo, Nagoya, Fukuoka

 

 

OVERSEAS:  

 

USA, Russia, China, Vietnam, Thailand, Malaysia, Indonesia, Philippines, other

 

 

FACTORIES: 

 

Mie, Shiga, Aichi, Ibaragi, Fukushima

 

 

CHIEF EXEC:

 

TAKAAKI YAMAMOTO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY:   

 

FINANCES        FAIR                             A/SALES          Yen 132,512 M

PAYMENTS      SLOW BUT CORRECT   CAPITAL           Yen 6,346 M

TREND             UP                                WORTH            Yen 20,052 M

STARTED         1948                             EMPLOYES      619

 

 

COMMENT:   

 

MFR SPECIALIZING IN SECONDARY ALUMINUM ALLOY INGOTS 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

103,341

1,199

1,022

(%)

18,111

(Consolidated)

31/03/2012

102,536

1,046

1,029

-0.78

18,780

31/03/2013

105,265

294

-101

2.66

18,873

31/03/2014

132,512

1,003

228

25.88

20,052

31/03/2015

149,600

2,720

1,780

12.90

..

Unit: In Million Yen

Forecast figures for the 31/03/2015 fiscal term.

 

 

HIGHLIGHTS:

 

The subject company was established originally in 1922 by Shigekazu Yamamoto, on his account, and has been succeeded by his descendants.  His is a top processor of secondary aluminum alloy ingots, utilizing recycled aluminum.  Mainly produces ingots for die casts and casting products.  Has pre-melting treatment facilities for aluminum scraps to reduce costs.  Production in China and Asia is expanding.  Plant in Indonesia, which started operation at the end of 2011, will expand production of cast materials, with curb on output of general-purpose products.  Second pant for secondary aluminum alloy ingots is under construction in Thailand, slated to complete in summer 2014.  The company aims to boost new demand of die cast from four-wheel vehicle makers.

 

 

FINANCIAL INFORMATION:

 

The sales volume for Mar/2014 fiscal term amounted to Yen 132,512 million, a 25.9% up from Yen 105,265 million in the previous term.   Sales of mainline secondary aluminum alloy ingots for automobiles were brisk, with expanding automobile production.  The recurring profit was posted at Yen 1,003 million and the net profit at Yen 228 million, respectively, compared with Yen 294 million recurring profit and Yen 101 million net losses, respectively, a year ago. 

           

For the current term ending Mar 2015 the recurring profit is projected at Yen 2,720 million and the net profit at Yen 1,780 million, on a 12.9% rise in turnover, to Yen 149,600 million.  Domestic sales will level off, while sales in Indonesia will increase, as aforesaid production expansion, the firm says. 

 

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

 

 

REGISTRATION:

           

Date Registered:　       Oct 1948

Regd No.:                                 1200-01-125102 (Osaka-Nishiku)

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                  160 million shares

Issued:                         48,629,235 shares

Sum:                            Yen 6,346 million

 

Major shareholders (%): Yamamoto Estate (7.9), Company’s Treasury Stock (5.0), Resona Bank (4.3), MUFG (3.6), Customers’ S/Holding Assn (3.1), Kiyo Yamamoto (2.9), Mizuho Bank (2.3), Mizuho Trust & Banking (2.2), SMBC (2.2), Nippon Life Ins (1.9); foreign owners (3.7)

 

No. of shareholders: 3,555

 

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

 

Managements: Takaaki Yamamoto, pres; Yoshimitsu Morikawa, s/mgn dir; Kazuji Goto, mgn dir; Taiji Ogawa, mgn dir; Shigenori Hayashi, dir; Masao Yamaoka, dir; Tatsuya Obatada, dir; Masao Kadoya, dir; Morihiko Tatsuno, dir

 

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

 

Related companies: Yohki Co, Daiki Metal, Daiki Nikkei Thailand, other.

 

 

OPERATION:

           

Activities: Manufactures secondary aluminum alloy ingots, secondary aluminum ingots for roll products, aluminum mother alloy ingots, aluminum smelting furnaces, other industrial furnaces, materials, other (99%), others (1%)

Overseas Sales Ratio (34%)

           

Clients: [Mfrs, wholesalers] Ryobi, Toyota Tsusho Corp, Hitachi Automotive Systems, Honda Motor, Daihatsu Ind, Isuzu Motor, UACJ, other

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Marubeni Corp, Honda Trading, Panasonic Corp, ToyotaTsusho Corp, Marubeni Tetsugen Co, RASA Corp, ALCONIX Corp, other

 

Payment record: Regular

 

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

 

Bank References:

                        Resona Bank (Osaka)

                        MUFG (Nakanoshima)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

  Annual Sales

　

132,512

105,265

  Cost of Sales

126,122

100,703

      GROSS PROFIT

6,390

4,562

  Selling & Adm Costs

4,390

4,100

      OPERATING PROFIT

2,000

461

  Non-Operating P/L

-997

-167

      RECURRING PROFIT

1,003

294

　

      NET PROFIT

228

-101

BALANCE SHEET

  Cash

　

3,397

2,675

  Receivables

30,047

24,442

  Inventory

15,604

14,014

  Securities, Marketable

　

　

  Other Current Assets

1,278

919

      TOTAL CURRENT ASSETS

50,326

42,050

  Property & Equipment

11,475

10,975

  Intangibles

91

105

  Investments, Other Fixed Assets

4,032

4,174

      TOTAL ASSETS

65,924

57,304

  Payables

6,719

7,289

  Short-Term Bank Loans

27,390

22,613

　

　

　

  Other Current Liabs

2,597

1,898

      TOTAL CURRENT LIABS

36,706

31,800

  Debentures

　

　

  Long-Term Bank Loans

8,412

5,725

  Reserve for Retirement Allw

26

365

  Other Debts

　

728

541

      TOTAL LIABILITIES

45,872

38,431

      MINORITY INTERESTS

Common stock

6,346

6,346

Additional paid-in capital

8,838

8,852

Retained earnings

3,890

3,910

Evaluation p/l on investments/securities

919

585

Others

798

(36)

Treasury stock, at cost

(739)

(784)

      TOTAL S/HOLDERS` EQUITY

20,052

18,873

　

      TOTAL EQUITIES

65,924

57,304

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2014

31/03/2013

Cash Flows from Operating Activities

　

-4,590

361

Cash Flows from Investment Activities

-1,294

-1,905

Cash Flows from Financing Activities

6,537

444

　

Cash, Bank Deposits at the Term End

　

3,380

2,659

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

Net Worth (S/Holders' Equity)

20,052

18,873

Current Ratio (%)

137.11

132.23

Net Worth Ratio (%)

30.42

32.93

Recurring Profit Ratio (%)

0.76

0.28

Net Profit Ratio (%)

0.17

-0.10

Return On Equity (%)

1.14

-0.54

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 59.26

UK Pound

1

Rs. 99.62

Euro

1

Rs. 80.59

 

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

Report Prepared by :

DPT

 

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.