MIRA INFORM REPORT

 

 

Report No. :

303421

Report Date :

27.01.2015

 

IDENTIFICATION DETAILS

 

Name :

HIKA & CO LTD

 

 

Registered Office :

530 Karatsuyamacho Shijo-dori Horikawa Nishi-iru Shimogyoku Kyoto 600-8499

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

September 1947

 

 

Com. Reg. No.:

1300-01-018527

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, wholesale of industrial chemicals

 

 

No. of Employees :

56

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limits :

Yen 167.1 Million

Status :

Moderate

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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

 

HIKA & CO LTD

 

REGD NAME:   Hika Sangyo KK

MAIN OFFICE:  530 Karatsuyamacho Shijo-dori Horikawa Nishi-iru Shimogyoku Kyoto

600-8499 JAPAN

                                    Tel: 075-801-6311     Fax: 075-812-3217

 

                        *.. The given postcode is of its Osaka Office

                       

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

E-Mail address: international-info@hika.co.jp

 

 

ACTIVITIES  

 

Import, export, wholesale of industrial chemicals

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya

 

 

FACTORIES  

 

Saitama, Osaka, Kyoto (--warehouses)

 

 

OFFICERS

 

KEN’ICHIRO HIKA, PRES          Masatsugu Hika, ch

Noboru Katayama, s/mgn dir     Masahiko Tsukamoto, mgn dir

Yasuhiko Oyama, dir                 Shin’ichiro Niibari, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 


 

SUMMARY    

 

FINANCES        FAIR                                         A/SALES          Yen 11,520 M

PAYMENTS      SLOW BUT CORRECT   CAPITAL           Yen 90 M

TREND             STEADY                       WORTH            Yen 875 M

STARTED         1947                                         EMPLOYES      56

 

 

COMMENT    

 

TRADING HOUSE SPECIALIZING IN INDUSTRIAL CHEMICALS. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDI-NARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 167.1 MILLION, 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

 

The subject company was established originally in 1887 by a certain Hika for selling dyestuffs & soaps, on his account.  Incorporated in 1947, the firm has been succeeded by his descendants.  Ken’ichiro took the pres office in Feb 2013.  This is a specialized trading firm of industrial chemicals, such as surfactant, synthetic resins, dyestuffs, pigments, intermediates, food additives, paints, ink, electronic chemicals, other (see OPERATION).  Goods are widely imported from and exported to Europe, S/E Asia, Oceania, USA, etc.  Focusing on environmental-related chemicals and food-related supplies.  Clients include chemical mfrs, paper mills, apparel mfrs, etc, nationwide. 

 

 

FINANCIAL INFORMATION

 

            The sales volume for Dec/2013 fiscal term amounted to Yen 11,520 million, an almost similar amount of Yen 11,431 million in the previous term.  The recurring profit was posted at Yen 109 million and the net profit at Yen 52 million, respectively, compared with Yen 130 million recurring profit and Yen 65 million net profit, respectively, a year ago. 

 

For the term that ended Dec 2014 the recurring profit was projected at Yen 120 million and the net profit at Yen 60 million, respectively, on a 5% rise in turnover, to Yen 12,050 million.  Final results are yet to be released.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 167.1 million, on 30 days normal terms.

 

 


 

REGISTRATION

 

Date Registered:           Sept 1947

Regd No.:           1300-01-018527 (Kyoto-Shimogyoku)

Legal Status:    Limited Company (Kabushiki Kaisha)

Authorized:      720,000 shares

Issued:             180,000 shares

Sum:                 Yen 90 million

Major shareholders (%): Masatsugu Hika (16), Noboru Katayama (5), Masahiko

Tsukamoto (5), Takahide Oyama (4), Tohru Araki (4)

No. of shareholders: 101

 

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

 

 

OPERATION

 

Activities: A trading firm for import, export and wholesale of industrial chemicals,           food additives, others (100%).

(Products handled):

Environmental-related: ozonolysis agents, waste ozone disposal facilities;

Surfactants for industries, such as: detergent, pulp/paper, textile processing, leather processing, pharmaceuticals & cosmetics, agriculture, food processing, pigments, paints & inks, adhesives, metals, rubber/plastics, information, other;

Fine chemicals: ink-jet chemicals, photo-copying chemicals, plasticizer, anti-oxidants, ultraviolet absorbent, antistatic agents, stabilizers, adhesives, corrosive proof agents, antiseptics, fungicides, antibacterial agents, flame retarders, enzymes, organic dyes, other;

Synthetic resins for application to: molding, impregnation, coating, packing, adhesives, civil engineering works, paintings, textile processing, silicon resins, films, others;

Textile processing chemicals: fabric softeners, polishing/cleaning agents, coloring agents, antistatic agents, soft finishing agents, flame retarding agents, anti corrosives, coatings, packing agents, others;

Pharmaceuticals/cosmetics: raw materials & intermediates, surfactants, glycerin, PG, PEG, fragrant materials, micro filters, others:

Inorganic chemicals: caustic soda, soda ashes, bicarbonate soda, phosphate, silicate, nitrate salt, hydrogen peroxide, sodium percarbonate, sulfuric acids, calcium hydroxide, other;

Dyestuffs/pigments/intermediates: fluorescent bleaching agents (for use in textiles, detergents, paper processing, plastics, etc), dyestuffs (for textile, paper, leather & plastics), pigments, intermediates, others;

Oil & fats/waxes/solvents: vegetable oils, animal oils, mineral oils, alcohols, glycerin, solid paraffin, waxes, poly-ethylene waxes, solvents, others;

Food additives: glucose, fluctose, sorbit, CMC, PG, fragrance, surfactants, organic acids, phosphate, other;

Others: Oxidants, reducing agents, detergents, dry-cleaning chemicals, semi-conductor-related chemicals, other.

Countries for imports/exports: China, Taiwan, Hong Kong, Korea, Malaysia, Singapore, BangladesPhilippines, India, Vietnam, UK, Germany, Italy, Switz, France, Austria, Netherlands, Norway, Spain Poland, Czech, Turkey, Australia, New Zealand, USA, other.

Clients: [Mfrs, wholesalers] Konica Minolta Holdings, Yokohama Oil & Fats Ind, Panahome Corp, Nippon Paper Ind, Tokyo Printing Ink Mfg, ST Chemical, Palace    Chemical, Chirika Co, Daiichi Kogyo Seiyaku, Konica-Minolta Holdings, Eagle Star,             CSC, Rakuna Co, Palace Chemical, Niitaka Co, Daimatsu Sangyou, other. 

Goods are also exported.

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Itochu Corp, BASF Japan, Clariant Japan, Konica             Minolta Holdings, Miyoshi Oil & Fat, Daiichi Kogyo Seiyaku, Chirika Co, Sanyo          Chemical Ind, Itochu Chemical Frontier, Sanyo Chemical Ind, Matsumoto

Yushi-Seiyaku, other. 

Goods are also imported.

 

Payment record slow but correct

 

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

 

Bank References:

                        Bank of Kyoto (Ohmiya)

                        MUFG (Kyoto-Chuo)

                        Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/12/2014

31/12/2013

31/12/2012

31/12/2011

Annual Sales

 

12,050

11,520

11,431

12,141

Recur. Profit

 

120

109

130

 

Net Profit

 

60

52

65

65

Total Assets

 

 

4,816

4,566

4,950

Current Assets

 

 

3,904

3,736

 

Current Liabs

 

 

3,479

3,202

 

Net Worth

 

 

875

837

780

Capital, Paid-Up

 

 

90

90

90

Div.Ttl in Million (¥)

 

 

13.5

9

9

<Analytical Data>

 

(%)

(%)

(%)

(%)

       S.Growth Rate

 

4.60

0.78

-5.85

-0.79

       Current Ratio

 

..

112.22

116.68

..

       N.Worth Ratio

 

..

18.17

18.33

15.76

       R.Profit/Sales

 

1.00

0.95

1.14

..

       N.Profit/Sales

 

0.50

0.45

0.57

0.54

       Return On Equity

 

..

5.94

7.77

8.33

 

Notes: Forecast (or estimated) figures for 31/12/2014 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.50

UK Pound

1

Rs.92.16

Euro

1

Rs.69.62

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIS

 

               

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.