MIRA INFORM REPORT

 

 

Report Date :

31.10.2014

 

IDENTIFICATION DETAILS

 

Name :

AGRO-KANESHO CO LTD

 

 

Registered Office :

Akasaka Shasta East 7F, 4-2-19 Akasaka Minatoku Tokyo 107-0052

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

August 1951

 

 

Com. Reg. No.:

0104-01-002287

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacture of agrochemicals

 

 

No. of Employees :

234

 

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 :

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

 

AGRO-KANESHO CO LTD

REGD NAME:    Agro Kanesho KK

MAIN OFFICE:  Akasaka Shasta East 7F, 4-2-19 Akasaka Minatoku Tokyo 107-0052 JAPAN

Tel: 03-5570-4711     Fax: 03-5570-4708     -

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of agrochemicals

 

 

BRANCHES   

 

Sapporo, Yamagata, Nagano, Nagoya, Suita, Hiroshima, other (Tot 16)

 

 

OVERSEAS   

 

Belgium, Korea (--subsidiaries)

 

 

FACTORIES  

 

Fukushima, Niigata (2), Ibaraki

 

 

CHIEF EXEC 

 

HIRONORI KUSHIBIKI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 13,351 M

      PAYMENTSREGULAR         CAPITAL           Yen 1,809 M

TREND UP                    WORTH            Yen 15,347 M

STARTED         1951                 EMPLOYES      234

 

 

COMMENT    

 

MFR OF AGROCHEMICALS 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

 

Unit: In Million Yen

Forecast figures for the 31/12/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is a medium-scale mfr and distributer, specializing in agrochemicals for fruit trees and vegetables.  Ratio of sales via marketing routes of trading firms at high level.  Known for strong earnings because of high ratio of in-house developed products.  Earnings concentrate in 1st half of business year. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2013 fiscal term amounted to Yen 13,351 million, a 12.0% up from Yen 11,917 million in the previous term.  The recurring profit was posted at Yen 1,913 million and the net profit at Yen 1,356 million, respectively, compared with Yen 1,173 million recurring profit and Yen 655 million net profit, respectively, a year ago.

 

(Jan/Jun/2014 results): Sales Yen 7,728 million (up 3.4%), operating profit Yen 1,567 million (up 54.6%), recurring profit Yen 1,561 million (up 25.1%), net profit Yen 1,250 million (up 54.7%).  (% as compared with the corresponding period a year ago).

 

            For the current term ending Dec 2014 the recurring profit is projected at Yen 1,825 million and the net profit at Yen 939 million, respectively, on a 2.3% rise in turnover, to Yen 13,652 million.  Exports of soil disinfectant agents to Europe is growing. 

 

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

 

 

REGISTRATION

           

Date Registered:　Aug 1951

Regd No.:            0104-01-002287 (Tokyo-Minatoku)

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       20 million shares

Issued:                13,404,862 shares

Sum:                   Yen 1,809 million

 

Major shareholders (%): Kanesho Sangyo (5.6), Company’s Treasury Stock (7.2), UBS (London) IPB Segregated Cl (4.4), Mizuho Bank (3.7), Mitsui & Co (3.5), Japan Trustee Services T (3.1), Sojitz Corp (2.9), Hironori Kushibiki (2.9), HSBC Bank Marathon Fusion Japan P (2.8), Customers’ S/Holding Assn (2.5); foreign owners (10.5)

 

No. of shareholders: 2,067

 

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

 

Managements: Hironori Kushibiki, pres; Tomohiro Inoue, s/mgn dir; Takao Muraoka, mgn dir; Norioo Ichino, dir; Koichi Morita, dir; Toshihiro Tsunoda, dir; Fumio Takaishi, dir; Makoto Kanase, dir; Jun Gotoh, dir; Yukinobu Kaifu, dir

 

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

 

Related companies: Kanesho Soil Treatment (Belgium), Agro Kanesho Korea, other.

 

 

OPERATION

           

Activities: Manufactures agrochemicals: pest control agents (14%), blight control agents (6%), soil disinfectant (54%), herbicides, etc (14%), others (12%)

Overseas Sales Ratio (24%)

           

Clients: Sales dealerships, agents, prefectural economic associations, other

Exports to overseas: Europe, Asia, USA, Africa, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsui & Co, Kawasaki Kasei Chemicals Ind, other

 

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Marunouchi)

SMBC (Akasaka)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/12/2013

31/12/2012

INCOME STATEMENT

 

　

　

  Annual Sales

　

13,351

11,917

　

  Cost of Sales

8,037

6,709

　

      GROSS PROFIT

5,314

5,208

　

  Selling & Adm Costs

4,275

4,043

　

      OPERATING PROFIT

1,039

1,165

　

  Non-Operating P/L

874

8

　

      RECURRING PROFIT

1,913

1,173

　

      NET PROFIT

1,356

655

BALANCE SHEET

 

 

　

　

  Cash

　

11,776

8,666

　

  Receivables

 

3,717

3,305

　

  Inventory

 

2,559

2,625

　

  Securities, Marketable

　

　

　

  Other Current Assets

622

432

　

      TOTAL CURRENT ASSETS

18,674

15,028

　

  Property & Equipment

2,629

2,232

　

  Intangibles

 

22

768

　

  Investments, Other Fixed Assets

482

438

　

      TOTAL ASSETS

21,807

18,466

　

  Payables

 

1,717

1,078

　

  Short-Term Bank Loans

386

387

　

　

 

　

　

　

  Other Current Liabs

1,887

1,673

　

      TOTAL CURRENT LIABS

3,990

3,138

　

  Debentures

 

　

　

　

  Long-Term Bank Loans

709

1,095

　

  Reserve for Retirement Allw

460

431

　

  Other Debts

　

1,301

1,263

　

      TOTAL LIABILITIES

6,460

5,927

　

      MINORITY INTERESTS

 

　

　

Common stock

1,809

1,809

　

Additional paid-in capital

1,810

1,810

　

Retained earnings

8,932

7,821

　

Evaluation p/l on investments/securities

60

27

　

Others

 

3,195

1,531

　

Treasury stock, at cost

(459)

(459)

　

      TOTAL S/HOLDERS` EQUITY

15,347

12,539

　

      TOTAL EQUITIES

21,807

18,466

CONSOLIDATED CASH FLOWS

 

　

　

 

Terms ending:

31/12/2013

31/12/2012

　

Cash Flows from Operating Activities

　

3,616

1,549

　

Cash Flows from Investment Activities

-223

-532

　

Cash Flows from Financing Activities

-697

-199

　

Cash, Bank Deposits at the Term End

　

11,756

7,749

ANALYTICAL RATIOS            Terms ending:

31/12/2013

31/12/2012

　

 

Net Worth (S/Holders' Equity)

15,347

12,539

　

 

Current Ratio (%)

468.02

478.90

　

 

Net Worth Ratio (%)

70.38

67.90

　

 

Recurring Profit Ratio (%)

14.33

9.84

　

 

Net Profit Ratio (%)

10.16

5.50

　

　

Return On Equity (%)

8.84

5.22

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.46

UK Pound

1

Rs.98.21

Euro

1

Rs.77.45

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.