MIRA INFORM REPORT

 

 

Report Date :

22.03.2014

 

IDENTIFICATION DETAILS

 

Name :

DAICEL CORPORATION

 

 

Registered Office :

3-4-5 Umeda Kitaku Osaka 530-0001

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

08.09.1919

 

 

Com. Reg. No.:

1200-01-125937 (Osaka-Kitaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of industrial chemicals including cellulose acetate for cigarette filters, organic chemicals, synthetic resins, photographic films, LCDs, functional products & aerospace as well as defense systems

 

Subject product range includes :

·         Cellulose acetate

Acetate Tow for cigarette filters

Carboxymethyl cellulose (CMC)

Hydroxyethyl cellulose (HEC)

Cationic cellulose

Microfibrillated cellulose

 

 

No. of Employees

9,407

 


 

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

 

DAICEL CORPORATION

 

REGD NAME

 

KK Daicel

 

 

MAIN OFFICE

 

3-4-5 Umeda Kitaku Osaka 530-0001 JAPAN

Tel: 06-6342-6111     Fax: 06-6342-6118     -

 

URL:                 http://www.daicel.com

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Manufacturer of industrial chemicals including cellulose acetate for cigarette filters, organic chemicals, synthetic resins, photographic films, LCDs, functional products & aerospace as well as defense systems

 

Subject main product includes :

·         Cellulose acetate

Acetate Tow for cigarette filters

Carboxymethyl cellulose (CMC)

Hydroxyethyl cellulose (HEC)

Cationic cellulose

Microfibrillated cellulose

 

 

BRANCHES

 

Tokyo, Nagoya, Himeji, Amagasaki, other (Tot 8)

 

OVERSEAS   

 

China (5), India (2), Thailand (2), Taiwan, Hong Kong, Singapore, Malaysia, USA (6), Mexico, Germany, Poland, France, other

 

FACTORIES  

 

Niigata, Hiroshima, Kanzaki, Harima, Himeji (--Hyogo)

 

 

CHIEF EXEC 

 

MISAO FUDABA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 358,513 M

PAYMENTS      No Complaints          CAPITAL           Yen 36,275 M

TREND             UP                                WORTH            Yen 262,899 M

STARTED                     1919                             EMPLOYES      9,407

 

 

COMMENT    

 

MFR SPECIALIZING IN ORGANIC CHEMICALS OTHERS 

 

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

320,243

19,993

11,069

(%)

229,004

(Consolidated)

31/03/2011

353,684

31,561

16,802

10.44

235,336

 

31/03/2012

341,942

21,094

11,827

-3.32

234,711

 

31/03/2013

358,513

28,580

15,372

4.85

262,899

 

31/03/2014

407,000

38,000

21,000

13.52

..

                        Unit: In Million Yen

Forecast figures for the 31/03/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is the leading mfr of organic chemicals and cellulose acetate for cigarette filters, photographic films & LCDs .  Established thru merger among 8 celluloid makers in 1919.  Mother company of Fujifilm Corp.  Major player in car airbag inflators and LCD films.  The company started up plant manufacturing products for airbag use in Dec 2013.  It has set about expanding filter tip production capacity at JV in China.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 358,513 million, a 4.8% up from Yen 341,942 million in the previous term.   The recurring profit was posted at Yen 28,580 million and the net profit at Yen 15,372 million, respectively, compared with Yen 21,094 million recurring profit and Yen 11,827 million net profit, respectively, a year ago.

 

(Apr/Dec/2013 results): Sales Yen 303,230 million (up 141%), operating profit Yen 28,262 million (up 42.2%), recurring profit Yen 31,802 million (up 48.3%), net profit Yen 19,007 million (up 61.5%).  (% compared with the corresponding period a year ago)

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 38,000 million and the net profit at Yen 21,000 million, on a 13.5% rise in turnover, to Yen 407,000 million.  Tobacco filter tip exports are on the rise.  Sales of airbag-use gas generators are also rising.  Weaker Yen is contributing.

 

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

 

 

REGISTRATION

 

Date Registered: 08 Sept 1919

Regd No.:            1200-01-125937 (Osaka-Kitaku)

Legal Status:       Limited Company (Kabushiki Kaisha

Authorized:       1,450 million shares

Issued:                364,942,682 shares

Sum:                   Yen 36,275 million

 

Major shareholders (%): Master Trust Bank of Japan T (6.9), Japan Trustee Services T (6.5), Nippon Life Ins (4.9), Fujifilm Corp (4.7), Japan Trustee Services T9 (4.3), Toyota Motor (4.1), Company’s Treasury Stock (3.6), SMBC (1.9), Mitsui Sumitomo Ins (1.8), MUFG (1.7); foreign owners (28.6)

 

No. of shareholders: 12,720

 

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

 

Managements: Daisuke Ogawa, ch; Misao Fudaba, pres; Masumi Fukuda, s/mgn dir; Tetsuzo Miyazaki, s/mgn dir; Masayuki Mune, mgn dir; Yuji Iguchi, mgn dir; Yoshimi Ogawa, mgn dir; Hisao Nishimura, mgn dir; Yasunori Iwai, dir

 

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

 

Related companies: Poly Plastics Co, Daicel Polymer, Kyodo Ascetic Acid, other.

 

 

OPERATION

           

Activities: Manufactures industrial chemicals: celluloses (21%), organic chemicals (20%), synthetic resins (39%), functional products & aerospace & defense systems (18%), others (2%)

 

Overseas Sales Ratio (42%)

           

Clients: [Mfrs, wholesalers] Fujifilm Corp, Toyoda Gosei Co, Kyodo Ascetic Acid, Mitsubishi Rayon, Nagase Corp, GL Science, Nihon Plast Co, other

 

No. of accounts: 500

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Kyodo Ascetic Acid, Daicel Safety Systems, Showa    Denko, Mitsubishi Gas Chemicals, Mitsui & Co, Daicel USA, Toyo Styrene, other

 

Payment record: No Complaints 

 

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

 

Bank References:

Mizuho Bank (Osaka)

MUFG (Osaka)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

 

358,513

341,942

 

  Cost of Sales

277,644

271,200

 

      GROSS PROFIT

80,869

70,742

 

  Selling & Adm Costs

54,672

50,316

 

      OPERATING PROFIT

26,196

20,426

 

  Non-Operating P/L

2,384

668

 

      RECURRING PROFIT

28,580

21,094

 

      NET PROFIT

15,372

11,827

BALANCE SHEET

 

 

 

 

  Cash

 

47,005

31,649

 

  Receivables

 

76,970

76,675

 

  Inventory

 

82,977

71,134

 

  Securities, Marketable

7,741

3,925

 

  Other Current Assets

17,507

13,787

 

      TOTAL CURRENT ASSETS

232,200

197,170

 

  Property & Equipment

149,323

139,204

 

  Intangibles

 

13,605

2,393

 

  Investments, Other Fixed Assets

66,384

59,429

 

      TOTAL ASSETS

461,512

398,196

 

  Payables

 

49,896

46,212

 

  Short-Term Bank Loans

19,118

12,020

 

 

 

 

 

 

  Other Current Liabs

44,212

43,591

 

      TOTAL CURRENT LIABS

113,226

101,823

 

  Debentures

 

20,000

20,000

 

  Long-Term Bank Loans

46,768

27,730

 

  Reserve for Retirement Allw

11,834

10,498

 

  Other Debts

 

6,785

3,434

 

      TOTAL LIABILITIES

198,613

163,485

 

      MINORITY INTERESTS

 

 

 

Common stock

36,275

36,275

 

Additional paid-in capital

31,579

31,579

 

Retained earnings

164,927

152,858

 

Evaluation p/l on investments/securities

15,001

11,507

 

Others

 

21,142

8,503

 

Treasury stock, at cost

(6,025)

(6,011)

 

      TOTAL S/HOLDERS` EQUITY

262,899

234,711

 

      TOTAL EQUITIES

461,512

398,196

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

 

44,480

34,000

 

Cash Flows from Investment Activities

-35,312

-9,190

 

Cash Flows from Financing Activities

5,737

-25,044

 

Cash, Bank Deposits at the Term End

 

53,238

33,435

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

262,899

234,711

 

 

Current Ratio (%)

205.08

193.64

 

 

Net Worth Ratio (%)

56.96

58.94

 

 

Recurring Profit Ratio (%)

7.97

6.17

 

 

Net Profit Ratio (%)

4.29

3.46

 

 

Return On Equity (%)

5.85

5.04

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

        Rs.61.05

UK Pound

1

Rs.100.80

Euro

1

Rs.84.18

 

 

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.