MIRA INFORM REPORT

 

 

Report No. :

309209

Report Date :

20.02.2015

 

IDENTIFICATION DETAILS

 

Name :

KOTEC CORPORATION

 

 

Registered Office :

3-21-15 Chayamadai Sakai Osaka-Pref 590-0115

 

 

Country :

Japan

 

 

Financials (as on) :

30.06.2015 (Estimated)

 

 

Date of Incorporation :

July 1982

 

 

Com. Reg. No.:

1201-01-002259 (Sakai-Minamiku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Engaged as manufacturer and exporter of polycarbonate & PPs resins used as Materials for Engineering Plastics

 

 

No of Employees :

49

 

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 :

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. 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

 

KOTEC CORPORATION

 

 

REGD NAME

 

KK Kotec

 

 

MAIN OFFICE

 

3-21-15 Chayamadai Sakai Osaka-Pref 590-0115 JAPAN

           

Tel: 072-294-8711     Fax: 072-294-8533

 

URL:                             http://www.kotec-corp.co.jp/

E-Mail address:                        info@kotec-corp.co.jp

 

 

ACTIVITIES

 

Engaged as manufacturer and exporter of polycarbonate & PPs resins used as Materials for Engineering Plastics

 

BRANCHES   

 

Tokyo, Wakayama

 

 

OVERSEAS

 

Hong Kong, China, Los Angeles, Europe

 

 

FACTORIES

 

Kinokawa (Wakayama), China (JV)


OFFICER(S)

 

TETSUO OGAWA, PRES           Kazuo Masunaga, mgn dir

Ryoko Ogawa, dir                      Atsuko Ogawa, dir

Hitoshi Ogawa, dir                      Hajime Ogawa, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                                         A/SALES                      Yen 2,359 M

PAYMENTS      No Complaints                      CAPITAL                       Yen 98 M

TREND             STEADY                       WORTH                        Yen 1,197 M

STARTED         1982                                         EMPLOYES                  49

                       

 

COMMENT    

 

MFR SPECIALIZING IN POLYCARBONATE RESINS. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established originally in 1969 by Tetsuo Ogawa in order to make most of his experience in the subject line of business, on his account.  Incorporated in 1982, the subject firm concentrated in mfg synthetic resins.  The firm is wholly owned and managed by the Ogawa family.  Specializes in mfg polycarbonate & PPS resins used as materials for engineering plastics.  Tied with Kotec Corp, Europe, in the way of mfg and marketing.  Products are widely exported to Asia, Europe, USA, Canada, Australia, Mid/Near East, S Africa, other. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Jun/2014 fiscal term amounted to Yen 2,359 million, a 21% up from Yen 1,947 million in the previous term, boosted by the robust exports to worldwide destinations.  The recurring profit was posted at Yen 432 million and the net profit at Yen 228 million, respectively, compared with Yen 286 million recurring profit and Yen 162 million net profit, respectively, a year ago.

 

For the current term ending Jun 2015 the recurring profit is projected at Yen 460 million and the net profit at Yen 240 million, respectively, on a 5% rise in turnover, to Yen 2,470 million.  Demand for the product continues on the rise.

 

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

REGISTRATION

 

Date Registered:  Jul 1982

Regd No.:         1201-01-002259 (Sakai-Minamiku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         784,000 shares

Issued:                196,000 shares

Sum:                   Yen 98 million

Major shareholders (%): Tetsuo Ogawa (50), Ryoko Ogawa (30), Hitoshi Ogawa (10),       Hajime Ogawa (10)

No. of shareholders: 4

 

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

 

 

OPERATION

 

Activities: Engaged as manufacturer and exporter of polycarbonate & PPS resins used as Materials for Engineering Plastics (100%)

 

Goods are exported to Asia, Europe, USA, Mid East, S Africa, other.

 

Clients: [Mfrs, wholesalers] Exports to Asia, Europe, USA, Canada, South Africa, Australia, Russia, Mid/Near East, other. 

 

Also supplied to Mitsui & Co, Sumitomo Dow, Jepco Inc, Kotec Ltd, other.

 

No. of accounts: 300

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsubishi Engineering Plastics, Idemitsu Kosan,    Sumitomo Dow, Mitsubishi Gas Chemical, Nippon A&L Inc, Panasonic Corp, other

 

Payment record: No Complaints 

 

Location: Business area in Sakai City, adjacent to Osaka City.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

MUFG (Sakai)

Kiyo Bank (Sakai)

Relations: Satisfactory

 


FINANCEs

(In Million Yen)

 

       Terms Ending:

30/06/2015

30/06/2014

30/06/2013

30/06/2012

Annual Sales

 

2,470

2,359

1,947

1,735

Recur. Profit

 

460

432

286

236

Net Profit

 

240

228

162

128

Total Assets

 

 

2,360

2,243

2,537

Current Assets

 

 

1,284

1,063

1,262

Current Liabs

 

 

270

238

405

Net Worth

 

 

1,197

970

808

Capital, Paid-Up

 

 

98

98

98

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.71

21.16

12.22

-22.54

    Current Ratio

 

..

475.56

446.64

311.60

    N.Worth Ratio

 

..

50.72

43.25

31.85

    R.Profit/Sales

 

18.62

18.31

14.69

13.60

    N.Profit/Sales

 

9.72

9.67

8.32

7.38

    Return On Equity

 

..

19.05

16.70

15.84

 

Notes: Forecast (or estimated) figures for 30/06/2015 fiscal term.

 

           

 

 

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.25

UK Pound

1

Rs.95.57

Euro

1

Rs.71.01

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

MNL

 

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%)

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