MIRA INFORM REPORT

 

 

Report No. :

315811

Report Date :

21.04.2015

 

IDENTIFICATION DETAILS

 

Name :

CHK SPRING INDUSTRY CO LTD

 

 

Registered Office :

503 Niibarumachi, Hita city, Oita, 877-8501

 

 

Country :

Japan

 

 

Financials (as on) :

30.11.2014

 

 

Date of Incorporation :

November 1948

 

 

Com. Reg. No.:

3200-01-010069

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturing of Spring Based Products.

 

 

No. of Employees :

157

 

 

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 27.1 Million

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 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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 & address

 

ENGLISH COMPANY NAME

CHK SPRING INDUSTRY CO LTD

Japanese company name

CHUO HATSUJYO KOGYO KK

Registered Office

1. Street Number and District

503 Niibarumachi

2. City and Perefecture

Hita city, Oita

3. ZIP Code

877-8501

4. Country

JAPAN

*Registered at…503 Jyunimachi Hita city, Oita Japan

("Jyunimachi" and "Niibarumachi" is the same town and "Jyunimachi" is the old name.)

TEL

03-3225-1161

FAX

03-3225-1160

URL

www.chksp.co.jp/

Email Address

thru the URL

Activities (Services & Products)

Mfg of spring based products.

 

 

 

 

 

SUMMARY OF REPORT

Annual Sales (MM YEN)

4,468

*It is actual results of 2013 fiscal term.

Capital Amount (MM YEN)

50

Net Worth (MM YEN)

Unavailable

FINANCES

FAIR

TREND

UP

EMPLOYEES

157

CREDIT LIMIT PROPOSED(MM YEN)

27.1

 

 

 

OTHER INFORMATION FOLLOWS:

Year Started

1948

Month and Year Registered

Nov. 1948

Regd No.

3200-01-010069

Major Shareholders

1

Kazuaki Takeuchi (30%)

2

Yasuaki Takeuchi (11%)

3

Other

Number of Shareholders

109

Authorized Shares

4,000,000

Issued Shares

1,000,000

Executives

PRESIDENT

YASUAKI TAKEUCHI

Chairman

Kazuaki Takeuchi

Mgn Director

Masahiko Kumadaki

Mgn Director

Tetsua Tajima

Director

Kikuo Sakamoto

Director

Tetsuya Hashiguchi

Main Banks

1

Oita Bank (Hita)

2

Fukuoka Bank (Hita)

Relations

Satisfactory

Clients

1

Mazda Motor Corporation

2

Delta Kogyo Co., Ltd.

3

Daikyo Nishikawa Corporation

4

Dynax Corporation

5

Other

Suppliers

1

Suzuki Kozai Co., Ltd.

2

Kanemitsu Corporation

3

Coil Center Kokko Co., Ltd.

4

Nippon Steel & Sumikin Bussan Corporation

5

Other

Branches

1

Hiroshima

2

Shizuoka

Factories

1

Hita (the same as caption office)

Overseas

1

None

HIGHLIGHT and COMMENT

The subject company was founded in 1944 as Kyushu Factroy of Chuo Spring Co., Ltd. In 1948, it separated from Chuo Spring Co., Ltd. and became independent as CHK Spring Industry Co., Ltd. It has six divisions; wire spring division, flat spring division, heat and surface treatment division, metal mold design and fabrication division, product engineering division and quality assurance division. Its spring materials include piano wire, oil tempered wire, stainless steel wire, phosphor bronze wire, brass wire. Flat spring matreials include cold-rolled steel strips, stainless steel strips, phosphor bronze and brass, other. Almost all products were developed in direct respose to client needs. Clients include in variety fields such as major automobile companies, heavy industries, electric industries, other.

FINANCIAL information

Finance partially disclosed

Any figures below for the fiscal term of 2014 are estimates.
 The sales volume for November/2014 fiscal term amounted to Yen 4,557 million, a 2% up from Yen 4,468 million in the previous term.  The net profit at Yen 136 million which is increased from Yen 133 million in the previous year.

For the current term ending November 2015, the net profit at Yen 138 is estimated based on 2% rise in turnover, to Yen 4,649 million. Final result are yet to be released.

 

The financial situation is considered Fair and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 27.1 million, on 30 days normal terms.

PLEASE ATTACH THE FINANCIALS BELOW.

Note: Forecast (or estimated) figures for the 30/11/2015 fiscal term

Terms Ending:

30/11/2015

30/11/2014

30/11/2013

30/11/2012

Annual Sales

4,649

4,557

4,468

4,228

Recur. Profit

..

..

..

..

Net Profit

138

136

133

127

Total Assets

 

 

 

 

Net Worth

 

 

 

 

Capital, Paid-Up

 

 

 

 

Div.P.Share(¥)

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

2.00

2.00

5.68

 

       Current Ratio

 

..

..

..

       N.Worth Ratio

 

..

..

..

       N.Profit/Sales

2.98

2.98

2.98

3.00

 

 

Filename (English Title)

 

 

 

 

Terms Ending:

30/11/2015

30/11/2014

30/11/2013

30/11/2012

30/11/2011

30/11/2010

Annual Sales

4,649

4,557

4,468

4,228

4,085

Recur. Profit

..

..

..

..

..

Net Profit

138

136

133

127

105

Total Assets

 

 

 

 

 

Net Worth

 

 

 

 

-396

-501

Capital, Paid-Up

 

 

 

 

 

Div.P.Share(¥)

 

0.00

0.00

0.00

 

<Analytical Data>

(%)

(%)

(%)

(%)

(%)

(%)

       S.Growth Rate

2.00

2.00

5.68

3.50

..

..

       Current Ratio

 

..

..

..

..

..

       N.Worth Ratio

 

..

..

..

..

..

       N.Profit/Sales

2.98

2.98

2.98

3.00

2.57

..

 

 

 

 

 

 

 

S/Hldrs' Equity

-136

-269

-396

-501

Div or Taxes

Offs' Bonus

Current Assets

Current Liabs

Credit Limit

27.1

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.56

UK Pound

1

Rs.93.56

Euro

1

Rs.67.49

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

TPT

 

               


 

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.