MIRA INFORM REPORT

 

 

Report Date :

10.05.2014

 

IDENTIFICATION DETAILS

 

Name :

CHOSHU INDUSTRY CO LTD

 

 

Registered Office :

3740 Yamanoi Sanyo Onoda City Yamaguchi-Pref 757-0003

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

October, 1980

 

 

Com. Reg. No.:

2500-01-003858 (Yamaguchi-Sanyo-Onoda)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of industrial hot water systems, semiconductor manufacturing equipment

 

 

No. of Employees :

638

 

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 – 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

 

CHOSHU INDUSTRY CO LTD

 

REGD NAME:   Choshu Sangyo KK

MAIN OFFICE:  3740 Yamanoi Sanyo Onoda City Yamaguchi-Pref 757-0003 JAPAN

                        Tel: 0836-71-1038     

Fax: 0836-71-1202

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of industrial hot water systems, semiconductor mfg equipment, other

 

 

BRANCHES   

 

Tokyo, Osaka, Nagoya, Ibaraki, Nagano, Takamatsu, Kagoshima, other (To 9)

 

 

OVERSEAS   

 

Shanghais (China)

 

 

FACTORIES  

 

At the caption address, Onoda, Hiroshima, Fukuoka

 

 

OFFICERS

 

KANAME OKAMOTO, PRES      Susumu Okamoto, s/mgn dir

Hiroyuki Sekiguchi, dir               Hiromi Obaishi, dir        

Kazuyuki Omori, dir                   Toyohide Satoh, dir      

           

Yen Amount

 

In million Yen, unless otherwise stated

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 36,429 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 400 M

TREND UP                                WORTH            Yen 7,446 M

STARTED         1980                             EMPLOYES      638

 

 

COMMENT    

 

MFR OF RESIDENTIAL HOT WATER SYSTEMS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: US$1,250,000 / O/a 180 DAYS.

                       

 

HIGHLIGHTS

           

The subject company was established by Kaname Okamoto in order to make most of his experience in the subject line of business.  This is a specialized mfr of residential hot water systems, semiconductor mfg equipment, other.  Solar cell system factory has started full production.  Clients include major electronics makers, wholesalers, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2013 fiscal term amounted to Yen 36,429 million, a 22% up from Yen 29,743 million in the previous term.  This is thanks to the rising sales o sola panels, with production at its factories in full capacity.  The recurring profit was posted at Yen 3,338 million and the net profit at Yen 1,238 million, respectively, compared with Yen 210 million recurring profit and yen 138 million net profit, respectively, a year ago.  Extraordinary losses of Yen 1,100 million in the previous term were all wiped out.

 

For the term ended Mar 2014 the recurring profit was projected at Yen 3,400 million and the net profit at Yen 1,300 million, respectively, on a 6% rise in turnover, to Yen 38,500 million.  Business is seen expanding steadily.  Final results are yet to be released.

 

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

 

 

REGISTRATION

 

Date Registered:  Oct 1980

Regd No.:           2500-01-003858 (Yamaguchi-Sanyo-Onoda)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         3.2 million shares

Issued:                800,000 shares

Sum:                   Yen 400 million

Major shareholders (%): Kaname Okamoto (50), CIC Engineering (10), CIC Co (10), Susumu Okamoto (5)

No. of shareholders: 214

 

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

 

 

OPERATION

           

Activities: Manufactures residential hot water systems, solar cell systems, semiconductor mfg equipment (steppers, other), LCD panel mfg equipment, Mechatronics equipment, photovoltaic systems environmental systems, mfg equipment for OLEDs, Ultra-precision sheet metal and machinery tooling of components for semiconductor mfg equipment, others (--100%)

 

Clients: [Mfrs, wholesalers] Toray Engineering Co, Toshiba Corp, Panasonic Corp, Canon Anelva Corp, TDK Corp, Ibiden Co, Nippon Steel & Sumikin Electro Devices Inc, Nichia Corporation, other 

            No. of accounts: 500

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Sanyo Solar Energy System, Nisshin Steel Co, Mitsubishi Electric Living Environment Systems Inc, Tokuyama Corp, Omron Corp, Inabata & Co, other

 

Payment record: No complaints

 

Location: Business area in Onoda City, Yamaguchi-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

                        Yamaguchi Bank (Onoda)

                        Hiroshima Bank (Ube)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

38,500

36,429

29,743

24,913

Recur. Profit

 

3,400

3,338

210

207

Net Profit

 

1,300

1,238

138

82

Total Assets

 

 

26,105

23,254

24,159

Current Assets

 

 

15,313

11,819

14,570

Current Liabs

 

 

13,399

11,345

9,642

Net Worth

 

 

7,446

6,178

6,059

Capital, Paid-Up

 

 

400

400

400

Div.Ttl Million (¥)

 

 

20

20

40

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

5.69

22.48

19.39

32.91

    Current Ratio

 

..

114.28

104.18

151.11

    N.Worth Ratio

..

28.52

26.57

25.08

    R.Profit/Sales

 

8.83

9.16

0.71

0.83

    N.Profit/Sales

3.38

3.40

0.46

0.33

    Return On Equity

..

16.63

2.23

1.35

 

Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.05

UK Pound

1

Rs.101.65

Euro

1

Rs.83.07

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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%)

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.