MIRA INFORM REPORT

 

 

Report No. :

357119

Report Date :

24.12.2015

 

IDENTIFICATION DETAILS

 

Name :

CHIYODA GRAVURE CORPORATION

 

 

Registered Office :

1-18-16 Osaki Shinagawaku Tokyo 141-0032

 

 

Country :

Japan

 

 

Financials (as on) :

31.08.2015

 

 

Date of Incorporation :

Dec., 1948

 

 

Com. Reg. No.:

0107-01-006054 (Tokyo-Shinagawaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Printing House

 

 

No. of Employees :

340

 

 

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 :

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA


Company Name and Address

 

CHIYODA GRAVURE CORPORATION

 

REGD NAME:               KK Chiyoda Gravure

 

MAIN OFFICE:              1-18-16 Osaki Shinagawaku Tokyo 141-0032 JAPAN

                                                Tel: 03-3492-5311      Fax: 03-3492-5314

 

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

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES

 

Printing house

 

 

BRANCHES

 

Osaka, Shizuoka

 

 

OVERSEAS   

 

India, China, Korea, Taiwan, Australia, New Zealand, South Africa, Europe, USA (2), Mexico, Columbia

 

 

FACTORIES

 

At the caption address, Ibaraki (3), Saitama

 

 

OFFICERS

 

HIROYOSHI SATO, PRES         

Hisayoshi Sato, ch

Kunihiro Mutata, dir                  

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES                      Yen 9,957 M

PAYMENTSSLOW BUT CORRECT CAPITAL                   Yen 100 M

TREND SLOW                           WORTH                        Yen 2,670 M

STARTED         1948                             EMPLOYES                  340

 

 

COMMENT

 

PRINTING HOUSE.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established by Hiroo Sato as a printing house and has been succeeded by his descendants.  This is a specialized printing house offering gravure printing as a mainline.  First successful color gravure printing in the industry in 1950.  Has four printing operation divisions: newspaper, magazines & catalogs; industrial materials; packaging materials and House decorative materials (See OPERATION). The newspaper, magazine and catalogs Division was transferred in 2010 to a subsidiary, Chiyoda Print Media Corp. Clients include printing firms, food makers, building firms, other, nationwide.

 

 

FINANCIAL INFORMATION

           

The sales volume for Aug/2015 fiscal term amounted to Yen 9,957 million, a 6% down from Yen 10,576 million in the previous term.  The recurring profit was posted at Yen 50 million and the net profit at Yen 82 million, respectively, compared with Yen 261 million recurring profit and Yen 246 million net profit, respectively, a year ago.

 

For the current term ending Aug 2016 the recurring profit is projected at Yen 260 million and the net profit at Yen 240 million, respectively, on a 5% rise in turnover, to Yen 10,450 million.

 

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

 

 

REGISTRATION

 

            Date Registered:  Dec 1948

            Regd No.:         0107-01-006054 (Tokyo-Shinagawaku)

            Legal Status:       Limited Company (Kabushiki Kaisha)

            Authorized:         20 million shares

            Issued:                5 million shares

            Sum:                   Yen 100 million

Major shareholders (%): Prime Solution (47.5), Hiroyoshi Sato (19), other

            No. of shareholders: 12

 

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

 

 

OPERATION

           

Activities: Printing house offering color gravure printing in four business divisions (--100%).

 

(Business Divisions):

Industrial Materials: in-mold transfer foil, transfer foil for daily commodities and writing tools, various panels for electric home appliances and electronic instruments, interior decorative materials for automobiles, synthetic leather transfer molding, in-mold transfer printing, hydro pressure transfer printing, design and sales of transferring & processing systems, various industrial materials, transfer foil for cosmetics packages, toys and transfer foils for vacuum & press molding;

Packaging Materials: soft packaging materials for foods, square bottom bags, medical & agricultural packing materials, various shrink labels and other light packing materials;

House Decorative Materials: melamine, decorative paper for polyester boards, printing for various decorative plywood, decorative coated paper sheet, decorative plastic sheet, interior and exterior materials for floors, walls and ceiling, furniture, fixture, standing finish fixture, melamine/DAP resin impregnated coating, development and engraving of project design;

Books & Magazine Printing (Chiyoda Print Media Corporation): color gravure, offset magazines, fine art gravure printing, general magazines, books, color gravure newspaper printing, bookbinding, cover processing, etc.

 

Clients: [Mfrs, wholesalers] Ito En (16%), Marubeni Building materials, Tajima Inc, Chiyoda Print Media, Toppan Printing, Chuo Kagaku Co, Navitas Inmolding Solutions, Pilot Ink, Daiso Corp, Osaka Sofa, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Toyo Ink Mfg, Itochu Plastics, Dainichiseika Color & Chemicals Mfg, DIC Corp, Mitsubishi Shoji Packaging Corp, other

 

Payment record: Slow but correct

 

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

 

 

Bank References:

            SMBC (Shinjuku-Nishiguchi)

            Mizuho Bank (Gotanda)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/08/2016

31/08/2015

31/08/2014

31/08/2013

Annual Sales

 

10,450

9,957

10,576

9,877

Recur. Profit

 

260

50

261

225

Net Profit

 

240

82

246

202

Total Assets

 

 

9,179

10,450

10,480

Current Assets

 

 

4,519

5,136

4,767

Current Liabs

 

 

2,754

4,065

4,328

Net Worth

 

 

2,670

2,590

2,346

Capital, Paid-Up

 

 

100

100

100

Div.Ttl in Million (¥)

 

 

2.59

2.59

2.59

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.95

-5.85

7.08

1.77

    Current Ratio

 

..

164.09

126.35

110.14

    N.Worth Ratio

 

..

29.09

24.78

22.39

    R.Profit/Sales

 

2.49

0.50

2.47

2.28

    N.Profit/Sales

 

2.30

0.82

2.33

2.05

    Return On Equity

 

..

3.07

9.50

8.61

 

Notes: Forecast (or estimated) figures for the 31/08/2016 fiscal term.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.20

UK Pound

1

Rs.98.30

Euro

1

Rs.72.41

YEN

1

Rs.0.55

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

HEE

 

 

Report Prepared by :

NIT

 

               

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.