MIRA INFORM REPORT

 

 

Report Date :

02.10.2014

 

IDENTIFICATION DETAILS

 

Name :

DENSAN CORPORATION

 

 

Registered Office :

Bunseido Bldg 4F, 2-50 Aioicho Nakaku Yokohama 231-0012

 

 

Country :

Japan

 

 

Financials (as on) :

30.04.2014

 

 

Date of Incorporation :

May 1976

 

 

Com. Reg. No.:

0200-01-027718

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, wholesale of electric components & parts

 

 

No. of Employees :

7

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. 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

 

DENSAN CORPORATION

REGD NAME:    Densan Shoji KK

MAIN OFFICE:  Bunseido Bldg 4F, 2-50 Aioicho Nakaku Yokohama 231-0012 JAPAN

Tel: 045-662-8189      Fax: 045-662-8188

 

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

E-Mail address: Densan@densan.co.jp

 

 

ACTIVITIES  

 

Import, wholesale of electric components & parts

 

 

BRANCHES   

 

Osaka

 

 

OVERSEAS   

 

Taiwan, China (5) (--mfg partners)

 

 

OFFICERS

 

TOSHIO MAKINO, PRES

Takayuki Higuchi, dir

                                   

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 450 M

PAYMENTSSlow But Correct      CAPITAL           Yen 10 M

TREND UP                                WORTH            Yen 225 M

STARTED         1976                             EMPLOYES      7

 


COMMENT    

 

TRADING FIRM SPECIALIZING IN ELECTRIC PARTS & COMPONENTS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                       

HIGHLIGHTS

           

            The subject company was established by father of Nobiru Yoshimizu in order to make most of his experience in the subject line of business, and was succeeded by the present executives.  Toshio Makino took the pres office in Aug 2013.  This is a trading firm for import of electric parts & components, solar energy-related materials, nursing-care robots, other (See OPERATION).  Goods are imported from partnership makers in China and Taiwan.  Clients include major electronic makers, wholesalers, other.  Panasonic Group became one of the clients in 2012.

 

 

FINANCIAL INFORMATION

           

            Financials are only partially disclosed.

 

The sales volume for Apr/2014 fiscal term amounted to Yen 450 million, a 7% up from Yen 420 million in the previous term.  Demand from Panasonic Corp was robust.  Imports increased from China & Taiwan.  The net profit was posted at Yen 3 million, compared with Yen 16 million a year ago.

 

            For the current term ending Apr 2015 the net profit is projected at Yen 5 million, on a 4% rise in turnover, to Yen 470 million.  Business is seen expanding steadily.  Sales of solar energy-related materials will increase. 

 

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

 

 

REGISTRATION

 

Date Registered:  May 1976

Regd No.:         0200-01-027718 (Yokohama-Nakaku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         80,000 shares

Issued:                20,000 shares

Sum:                   Yen 10 million

Major shareholders (%): Toshio Makino (80)

No. of shareholders: 5

 

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

 


OPERATION

           

Activities: Imports and wholesales power supply, batteries, solar energy-related materials, nursing-care robots, others (--100%).

 

(Handling Items):

Power Supplies: AC/DC adapters, DC/DC connecters, battery chargers, power supply for LED;

Batteries: nickel metal-hydride batteries, lithium-ion batteries, other;

Solar Energy-related materials: silicon, ingot (P&N types), solar grade ingot, silicon wafers, other.

 

Clients: [Mfrs, wholesalers] Panasonic Corp, Panasonic Mobile Communications, Kaga Electronics Co, other 

No. of accounts: 300

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Sarom Electronics, Hon Kwang Electronics, other.

Imports from Taiwan, China, other

 

Payment record: slow but correct

 

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

 

Bank References:

MUFG (Yokohama-Chuo)

Resona Bank (Yokohama)

Relations: Satisfactory

 

 


FINANCES

 

 (In Million Yen)

Terms Ending:

 

30/04/2015

30/04/2014

30/04/2013

30/04/2012

Annual Sales

 

470

450

420

330

Recur. Profit

 

..

..

..

..

Net Profit

 

5

3

16

0

Total Assets

 

 

N/A

N/A

N/A

Net Worth

 

 

225

223

212

Capital, Paid-Up

 

 

10

10

10

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.44

7.14

27.27

15.79

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

 

..

..

..

    N.Profit/Sales

 

1.06

0.67

3.81

0.00

 

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 30/04/2015 fiscal term.

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.75

UK Pound

1

Rs.100.06

Euro

1

Rs.77.95

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

PDT

 

               

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.