MIRA INFORM REPORT

 

 

Report No. :

307335

Report Date :

10.02.2015

 

IDENTIFICATION DETAILS

 

Name :

AKI SHOKAI KK

 

 

Registered Office :

#205 Freedio-Shibakoen, 2-8-11 Shibadaimon Minatoku Tokyo 105-0012

 

 

Country :

Japan

 

 

Date of Incorporation :

April 1991

 

 

Com. Reg. No.:

(Tokyo-Minatoku) 001100

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Export of industrial chemicals & intermediates.

 

 

No. of Employee :

4

 

 

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 – 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. 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

 

AKI SHOKAI CO LTD

 

REGD NAME:   Aki Shokai KK

MAIN OFFICE:  #205 Freedio-Shibakoen, 2-8-11 Shibadaimon Minatoku Tokyo 105-0012 JAPAN

                        Tel: 03-5425-6822     Fax: 03-5425-6833

 

URL:                 N/A

E-mail address: akicoltd@s6.dion.ne.jp  

 

ACTIVITIES:     Export of industrial chemicals & intermediates

BRANCHES:     Nil

 

OFFICER(S):     SHIGEAKI MORI, PRES

                        Junko Mori, dir

                        Ken’ichi Mori, dir

                       

Yen Amount:    In million Yen, unless otherwise stated

 

SUMMARY:      FINANCES        FAIR                                         A/SALES                      Yen 1,800 M

                        PAYMENTS      SLOW BUT CORRECT   CAPITAL                       Yen 10 M

                        TREND UP                                            WORTH                        Yen 252 M

                        STARTED         1991                                         EMPLOYES                  4

 

COMMENT:      TRADING FIRM SPECIALIZING IN EXPORTING INDUSTRIAL CHEMICALS.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established by Shigeaki Mori in order to make most of his experience in the subject line of business.  This is a small-sized trading house, owned and managed by the Mori family, specializing in exporting industrial chemicals, their intermediates & ingredients.  Destinations are centered in Asia-Pacific region: India, Pakistan, Thailand, Singapore, Korea, Hong Kong, Australia, China, etc.  70% of the products are exported to India.  Goods are supplied from domestic major industrial chemical mfrs.  Also imports chemicals from India, other.

 

 

FINANCIAL INFORMATION

 

The sales volume for May/2014 fiscal term amounted to Yen 1,800 million, a 21% up from Yen 1,488 million in the previous term.  Export volumes were increased to Asian countries.  The recurring profit was posted at Yen 87 million and the net profit at Yen 54 million, respectively, compared with Yen 76 million recurring profit and Yen 46 million net profit, respectively, a year ago.

 

For the current term ending May 2015 the recurring profit is projected at Yen 90 million and the net profit at Yen 60 million, respectively, on a 3% rise in turnover, to Yen 1,850 million. 

 

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

 

 

REGISTRATION

 

Date Registered:           Apr 1991

Regd No.:                     (Tokyo-Minatoku) 001100

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  800 shares

Issued:                         200 shares

Sum:                            Yen 10 million

Major shareholders (%): Shigeaki Mori (99), Junko Mori (1)

No. of Shareholders:    2

 

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

 

 

OPERATION

 

Activities: A trading house specializing in exporting industrial chemicals, intermediates & ingredients (--100%). 

 

Exports to: India, Thailand, Hong Kong, Australia, Pakistan, Korea, Singapore, China, and other S/E Asian countries.

 

Clients: [Chemical mfrs, wholesalers] Exports to India (70%), China (20%), Thailand, Pakistan, Australia, Singapore, Hong Kong, Korea, other. 

Also shipped to domestic chemical mfrs (1%).

No. of accounts: 100 (Domestic clients only)

Domestic areas of activities: Centered in greater-Tokyo

 

Suppliers: [Mfrs, wholesalers] Daicel Chemical Ind, Mitsui Chemicals, Sumitomo Seika    Chemicals, Air Water Inc, Nippon Carbide Ind, Kuraray, other.

Also imports from India,

 

Payment record: Slow but correct

 

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

 

Bank References:

MUFG (Azabu)

Mizuho Bank (Hamamatsucho)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

       Terms Ending:

31/05/2015

31/05/2014

31/05/2013

31/05/2012

Annual Sales

　

1,850

1,800

1,488

1,638

Recur. Profit

　

90

87

76

36

Net Profit

　

60

54

46

20

Total Assets

　

　

721

641

382

Current Assets

　

　

283

383

267

Current Liabs

　

　

149

223

111

Net Worth

　

　

252

197

150

Capital, Paid-Up

　

　

10

10

10

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

2.78

20.97

-9.16

4.53

    Current Ratio

　

..

189.93

171.75

240.54

    N.Worth Ratio

　

..

34.95

30.73

39.27

    R.Profit/Sales

　

4.86

4.83

5.11

2.20

    N.Profit/Sales

　

3.24

3.00

3.09

1.22

    Return On Equity

　

..

21.43

23.35

13.33

 

Notes: Forecast (or estimated) figures for the 31/05/2015 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.14

UK Pound

1

Rs.94.79

Euro

1

Rs.70.38

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ANK

 

 

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.