MIRA INFORM REPORT

 

 

Report No. :

309730

Report Date :

24.02.2015

 

IDENTIFICATION DETAILS

 

Name :

RISO KAGAKU CORPORATION

 

 

Registered Office :

Tamachi Center Bldg, 5-34-7 Shiba Minatoku Tokyo 108-8385

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

Jan., 1955

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Ink Jet Printers.

 

 

No. of Employees :

3,609

 

 

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 and address

 

RISO KAGAKU CORPORATION

 

REGD NAME:               Riso Kagaku Kogyo KK

 

MAIN OFFICE:              Tamachi Center Bldg, 5-34-7 Shiba Minatoku Tokyo 108-8385 JAPAN

                                                Tel: 03-5441-6611     Fax: 03-5441-6612   

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Mfg of ink jet printers

 

 

BRANCHES

 

Sapporo, Sendai, Saitama, Nagoya, Osaka, Hiroshima, other (Tot 47)

 

 

OVERSEAS

 

USA (2), Canada, Brazil, UK, Germany, France, Spain, Italy, Russia, China (3),

Kazakhstan, South Africa, Hong Kong (2), Thailand (2), India, Korea

 

 

FACTORIES

 

Ibaraki (2), Yamaguchi

 

 

CHIEF EXEC

 

AKIRA HAYAMA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES                      Yen 83,938 M

PAYMENTSNO COMPLAINTS    CAPITAL                       Yen 14,114 M

TREND UP                                WORTH                        Yen 64,804 M

STARTED         1955                             EMPLOYES                  3,609

 

 

COMMENT

 

MFR OF INK JET PRINTERS 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Unit: In Million Yen

Forecast figures for the 31/03/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is a developer/mfr/marketer of stencil printing “RISO-Graph” machines and its supplies, with domestic market share of over 60%. Also major maker of ink jet printers.  Well-known for small home-use printer “Print Gocco” lithograph printer. With many business footholds in developed countries, especially in Europe. Stressing local subs in emerging countries. Subsidiaries overseas total 24 countries. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 83,938 million, an 11.2% up from Yen 75,455 million in the previous term.   Sales of inkjet printers expanded in Europe and the US.  The recurring profit was posted at Yen 7,192 million and the net profit at Yen 4,578 million, respectively, compared with Yen 5,512 million recurring profit and Yen 4,827 million net profit, respectively, a year ago. 

 

(Apr/Dec/2014 results): Sales Yen 60,952 million (up 3.2%), operating profit Yen 4,270 million (up 32.6%), recurring profit Yen 4,635 million (up 21.7%), net profit Yen 3,110 million (up 33.7%).  (% as compared with the corresponding period a year ago)

           

For the current term ending Mar 2015 the recurring profit was projected at Yen 6,900 million and the net profit at Yen 4,700 million, on a 2.5% rise in turnover, to Yen 86,000 million.  New orders perform well in China and S/E Asia.

 

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

 

 

REGISTRATION

           

Date Registered:　                Jan 1955

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              67,840,000 shares

Issued:                          25,703,166 shares

Sum:                            Yen 14,114 million

 

Major shareholders (%): Company’s Treasury Stock (11.7), Riso Co (10.4), RISO Educational Foundation (5.6), Employees’ S/Holding Assn (4.1), TCSB (Tokyo Tomin Bank) (3.3), Akita Hayama (2.5), Osamu Hayama (2.5), Takashi Hayama (2.4), Mariko Ito (2.4), Akatsuki Kosan (2.4); foreign owners (12.2)

 

No. of shareholders: 2,606

 

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

 

Managements: Akira Hayama, pres; Yasuhiro Takahashi, mgn dir; Kihachiro Endo, mgn dir; Ysunobu Takahashi, dir; Shoichi Ikehima, dir; Yoshiomi Narumiya, dir; Masahiro Ueda, dir; Soichiro Hashimoto, dir; Naoki Ujiie, dir; Toshiaki Kano, dir; Kyoshi Hayashi, dir; Soichiro Oku, dir

 

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

 

Related companies: Riso Ink, RISO China, other.

 

 

OPERATION

           

Activities: Manufactures stencil printing machines #RISO-Graph”, full color inkjet printers, digital duplicators, digital screen markets, and supplies (98%), real estate & others (2%).

Overseas Sales Ratio (40%)

           

Clients: [Mfrs, wholesalers] Kobo Co, DDK Ltd, Raymay Fujii Co, Riso France, Riso

Latin America, Riso China, other

No. of accounts: 300

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sun Trading, NP Trading, Toshiba Tech, RISO Hong Kong, Nippon Papylia Co, Fuji Xerox Advantest Technology, Nippon Paper, other

 

Payment record: No Complaints

 

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

 

Bank References:

            Tokyo Tomin Bank (H/O)

            SMBC (Ginza)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

　

　

  Annual Sales

　

83,938

75,455

　

  Cost of Sales

36,181

33,286

　

      GROSS PROFIT

47,756

42,168

　

  Selling & Adm Costs

41,168

37,258

　

      OPERATING PROFIT

6,588

4,910

　

  Non-Operating P/L

604

602

　

      RECURRING PROFIT

7,192

5,512

　

      NET PROFIT

4,578

4,827

BALANCE SHEET

 

 

　

　

  Cash

　

12,899

13,901

　

  Receivables

 

15,596

14,936

　

  Inventory

 

12,633

12,211

　

  Securities, Marketable

2,876

8,987

　

  Other Current Assets

3,776

3,394

　

      TOTAL CURRENT ASSETS

47,780

53,429

　

  Property & Equipment

32,742

30,323

　

  Intangibles

 

4,586

5,636

　

  Investments, Other Fixed Assets

6,632

6,064

　

      TOTAL ASSETS

91,740

95,452

　

  Payables

 

9,560

11,149

　

  Short-Term Bank Loans

2,615

2,839

　

　

 

　

　

　

  Other Current Liabs

9,644

10,981

　

      TOTAL CURRENT LIABS

21,819

24,969

　

  Debentures

 

　

　

　

  Long-Term Bank Loans

33

35

　

  Reserve for Retirement Allw

4,589

3,807

　

  Other Debts

　

495

607

　

      TOTAL LIABILITIES

26,936

29,418

　

      MINORITY INTERESTS

 

　

　

Common stock

14,114

14,114

　

Additional paid-in capital

14,779

14,779

　

Retained earnings

42,467

39,159

　

Evaluation p/l on investments/securities

343

249

　

Others

 

(964)

(1,333)

　

Treasury stock, at cost

(5,935)

(935)

　

      TOTAL S/HOLDERS` EQUITY

64,804

66,033

　

      TOTAL EQUITIES

91,740

95,452

CONSOLIDATED CASH FLOWS

 

　

　

 

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

4,393

7,287

　

Cash Flows from Investment Activities

-5,212

-5,174

　

Cash Flows from Financing Activities

-6,814

-2,246

　

Cash, Bank Deposits at the Term End

　

14,580

21,612

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

 

Net Worth (S/Holders' Equity)

64,804

66,033

　

 

Current Ratio (%)

218.98

213.98

　

 

Net Worth Ratio (%)

70.64

69.18

　

 

Recurring Profit Ratio (%)

8.57

7.31

　

 

Net Profit Ratio (%)

5.45

6.40

　

　

Return On Equity (%)

7.06

7.31

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.18

UK Pound

1

Rs.95.71

Euro

1

Rs.70.76

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.