MIRA INFORM REPORT

 

 

Report Date :

02.10.2014

 

IDENTIFICATION DETAILS

 

Name :

DIC CORPORATION

 

 

Registered Office :

2-101 Kanda-Awajicho Chiyodaku Tokyo 01-0063

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

March 1937

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturing of printing ink, synthetic resins, organic pigments

 

 

No. of Employees :

20,193

 

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

 

Maximum Credit Limit :

Yen 13,367.2 Million

Status :

Good

Payment Behaviour :

Regular

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

 

DIC CORPORATION

 

REGD NAME:    DIC KK

MAIN OFFICE:  2-101 Kanda-Awajicho Chiyodaku Tokyo 01-0063 JAPAN

Tel: 03-6733-3000     Fax: 03-6733-3020

 

                        *.. Moved to the caption address

 

URL:                 http://www.dic.co.j@/

E-Mail address: info@dic.co.jp

 

 

ACTIVITIES  

 

Mfg of printing ink, synthetic resins, organic pigments

 

 

BRANCHES   

 

Osaka, Nagoya, Sapporo, Shizuoka, Fukuoka, other (Total 13)

 

 

OVERSEAS

 

USA, Europe, Africa, Asia, Oceania, Central/South America

 

 

FACTORIES

 

Tokyo, Kashima, Suita, Chiba, Sakai, Yokkaichi, Fukuoka, other (Tot 10)

 

 

CHIEF EXEC 

 

YOSHIYUKI NAKANISHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 705,647 M

PAYMENTS      REGULAR         CAPITAL           Yen 91,154 M

TREND             UP                    WORTH            Yen 218,947 M

STARTED         1937                 EMPLOYES      20,193

 

 

COMMENT    

 

MFR OF PRINTING INK. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR BUSINESS  ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 13,367.2 MILLION, 30 DAYS NORMAL TERMS.

 

Unit: Million Yen

Accounting term changed to Jan/Dec from 31/12/2013 fiscal term.

Forecast (or estimated) figures for 31/12/2014 fiscal term

 

 

HIGHLIGHTS

 

This is the comprehensive mfr of chemicals, with inks and synthetic resins as mainlines.  Engaged in diverse products of fine chemicals.  Renamed as captioned in Apr 2008 from the former, Dainippon Ink & Chemicals Co Ltd.  Top-ranked in color chemicals.  Advancing overseas with purchases of graphic arts div of Sun Chemical (US) in 1986.  Expanding sales activity of TFT LCD materials.

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2013 fiscal term (changed to Jan/Dec from this term) amounted to Yen 705,647 million, compared with Yen 703,781 million in the previous term (Apr/Mar period).  The recurring profit was posted at Yen 37,123 million and the net profit at Yen 26,771 million, respectively, compared with Yen 36,137 million recurring profit and Yen 19,064 million net profit, respectively, a year ago for Apr/Mar period.

 

(Jan/Jun/2014 results): Sales Yen 408,385 million, operating profit Yen 19,807 million, recurring profit Yen 18,371 million, net profit Yen 10,319 million.  

           

For the current term ending Dec 2014 the recurring profit is projected at Yen 46,000 million and the net profit at Yen 24,500 million, on a 20% rise in turnover, to Yen 850,000 million.  This term will return to normal 12-month accounting period of regular settlement.  Sales of ink for packages will perform well.  Orders for organic pigments such as those for color filters will show a growth. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 13,367.2 million, on 30 days normal terms. 

 

 

 

REGISTRATION

 

Date Registered:  Mar 1937

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         1,500 million shares

Issued:                919,372,048 shares

Sum:                   Yen 91,154 million

 

Major shareholders (%): Japan Trustee Services T (7.9), Master Trust Bank of Japan T (6.9), Nissei Real Estate (5.7), Japan Trustee Services T9 (5.6), Dainichi Seikan (4.6),  Dai-ichi Life Ins (3.8), Nisshin Trading (3.4), Aioi Nissay Dowa Ins (2.8), Chase London SL Omnibus Acct (2.4), SBT OD05 Omnibus Acct Treaty (2.1); foreign owners (23.0)

 

No. of shareholders: 32,264

 

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

 

Managements: Kazuo Sugie, ch: Yoshiyuki Nakanishi, pres; Akira Konishi, mgn dir; Toshio Hasumi, mgn dir; Tetsuro Agawa, mgn dir; Hitoshi Wakabayashi, mgn dir; Kazunari Sakai, mgn dir; Naoyoshi Furuta, dir; Masao Hotozuka, dir; Masami Hatao, dir

 

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

 

Related companies: Sun Chemical, DIC Graphics, others

 

 

OPERATION

 

Activities: Manufactures inks & chemicals: printing inks (53%), fine chemicals (12%), polymers (20%), application materials (15%)

 

Overseas Sales Rati (67%)

 

Clients: [Printing houses, chemical mfrs, house builders] DIC Graphics, Nagase Corp,

PS Japan Corp, Sekisui House Ind, Mitsui & Co, Mitsubishi Corp, INAX Tostem,

Matsushita Electric Works, Cleanup Corp, other.

No. of accounts: 2,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsui & Co, Mitsubishi Corp, Mitsubishi Gas & Chemicals, Tosoh Ltd, Idemitsu Kosan, Asahi Kasei Chemical, OG Corp, other.

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Nihombashi)

Mizuho Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/12/2013

31/03/2012

INCOME STATEMENT

 

　

　

  Annual Sales

　

705,647

703,781

　

  Cost of Sales

558,033

560,504

　

      GROSS PROFIT

147,614

143,277

　

  Selling & Adm Costs

107,433

104,793

　

      OPERATING PROFIT

40,181

38,484

　

  Non-Operating P/L

-3,058

-3,347

　

      RECURRING PROFIT

37,123

35,137

　

      NET PROFIT

26,771

19,064

BALANCE SHEET

 

 

　

　

  Cash

　

15,576

22,654

　

  Receivables

 

212,821

183,221

　

  Inventory

 

145,848

129,179

　

  Securities, Marketable

　

　

　

  Other Current Assets

16,549

16,803

　

      TOTAL CURRENT ASSETS

390,794

351,857

　

  Property & Equipment

233,759

214,043

　

  Intangibles

 

15,561

14,799

　

  Investments, Other Fixed Assets

121,576

112,292

　

      TOTAL ASSETS

761,690

692,991

　

  Payables

 

116,023

109,058

　

  Short-Term Bank Loans

38,324

42,392

　

　

 

　

　

　

  Other Current Liabs

123,880

120,244

　

      TOTAL CURRENT LIABS

278,227

271,694

　

  Debentures

 

28,000

33,000

　

  Long-Term Bank Loans

180,262

178,367

　

  Reserve for Retirement Allw

32,830

29,711

　

  Other Debts

　

23,424

19,488

　

      TOTAL LIABILITIES

542,743

532,260

　

      MINORITY INTERESTS

 

　

　

Common stock

91,154

91,154

　

Additional paid-in capital

88,758

88,758

　

Retained earnings

89,166

68,444

　

Evaluation p/l on investments/securities

1,945

410

　

Others

 

(51,193)

(87,162)

　

Treasury stock, at cost

(883)

(873)

　

      TOTAL S/HOLDERS` EQUITY

218,947

160,731

　

      TOTAL EQUITIES

761,690

692,991

CONSOLIDATED CASH FLOWS

 

　

　

 

Terms ending:

31/12/2013

31/12/2012

　

Cash Flows from Operating Activities

　

33,859

41,433

　

Cash Flows from Investment Activities

-9,828

-23,725

　

Cash Flows from Financing Activities

-32,758

-26,616

　

Cash, Bank Deposits at the Term End

　

15,004

22,579

ANALYTICAL RATIOS            Terms ending:

31/12/2013

31/03/2012

　

 

Net Worth (S/Holders' Equity)

218,947

160,731

　

 

Current Ratio (%)

140.46

129.50

　

 

Net Worth Ratio (%)

28.74

23.19

　

 

Recurring Profit Ratio (%)

5.26

4.99

　

 

Net Profit Ratio (%)

3.79

2.71

　

　

Return On Equity (%)

12.23

11.86

 

Notes: Accounting term changed to Jan/Dec from the 31/12/2013 fiscal term.]

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.75

UK Pound

1

Rs.100.07

Euro

1

Rs.77.95

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIS

 

               

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.