MIRA INFORM REPORT
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Report No. : |
331623 |
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Report Date : |
09.07.2015 |
IDENTIFICATION DETAILS
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Name : |
DAIICHISEIKA COLOR & CHEMICALS MFG CO
LTD |
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Registered Office : |
1-7-6 Nihombashi-Bakurocho Chuoku Tokyo 103-8383 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
December 1939 |
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Legal Form : |
Limited Company |
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Line of Business : |
Subject is manufactures chemical products (pigments), coloring agents,
high-polymer products, printing inks |
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No. of Employee : |
3,722 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 second-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.
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Source
: CIA |
Company
name
DAIICHISEIKA
COLOR & CHEMICALS MFG CO LTD
REGD
NAME
Dainichi Seika
Kogyo KK
MAIN
OFFICE
1-7-6
Nihombashi-Bakurocho Chuoku Tokyo 103-8383, JAPAN
Tel:
03-3662-7111 Fax: 03-3669-3924-
URL
http://www.daicolor.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Mfg of pigments,
coloring agents
BRANCHES
Sapporo, Sendai,
Saitama, Shizuoka, Nagoya, Kyoto, Osaka, other (Tot 15)
OVERSEAS
USA, China (7),
Hong Kong, Taiwan, Korea, Spain, Brazil, Italy, Netherlands,
Germany,
Indonesia, Philippines, Thailand, Malaysia, Vietnam, India
(--subsidiaries/JVs)
FACTORIES
(Domestic) Sapporo, Saitama, Tokyo (2),
Chiba, Shizuoka, Nagoya, Osaka, other
(Tot 15),
(Overseas) China (6), Indonesia, Hong Kong,
Taiwan, Thailand, India, USA, and Brazil
CHIEF
EXEC
KOJI TAKAHASHI,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 162,999 M
PAYMENTS REGULAR CAPITAL Yen 10,039 M
TREND STEADY WORTH Yen
77,184 M
STARTED 1939 EMPLOYES 3,722
COMMENT
MFR OF PIGMENTS & COLORING AGENTS.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast (or estimated) figures for the 31/03/2016 fiscal
term.
HIGHLIGHTS
This is a to-ranked producer of pigments & coloring agents for
synthetic resins & fibers. Also
third-ranked producer of pigments and top-ranked in sales to other firms. Depends heavily on automobile and household
electric appliance industries. Engaged
in production of data recording materials.
FINANCIAL INFORMATION
The sales volume for Mar 2015 fiscal term amounted to Yen 162,999
million, a 1.9% up from Yen 159,899 million in the previous term. Sales of high value-added products rose
steadily. The recurring profit was
posted at Yen 10,017 million and the net profit at Yen 5,662 million,
respectively, compared with Yen 9,404 million recurring profit and Yen 6,015
million net profit, respectively, a year ago.
For the current term ending Mar 2016 the recurring profit is projected
at Yen 10,300 million and the net profit at Yen 6,700 million, on a 3.1% rise
in turnover, to Yen 168,000 million.
Sales of pigments for use in LCD color films, and sales of colorants for
application in automobile production will continue growing.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 4,958.2 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Dec 1939
Legal
Status: Limited Company (Kabushiki Kaisha
Authorized:
250 million shares
Issued: 93,065,554shares
Sum: 10,039 million
Major
shareholders (%): SMBC (4.7), Mitsui Life Ins (3.5), MUFG (3.2), Mizuho Bank (3.1), Japan
Trustee Services T (3.0), Mizuho Trust & Banking (2.9), Employees’
S/Holding Assn (2.7), Sompo Japan Nipponkoa Ins (1.9), Master Trust Bank of
Japan T (1.9), Osamu Takahashi (1.9); foreign owners (11.0)
No. of shareholders: 3,204
Listed
on the S/Exchange (s) of: Tokyo
Managements: Koji Takahashi,
pres; Kazuo Nakamura, s/mgn dir; Kengo Nakajo, mgn dir; Akio Yoshida, mgn dir;
Kazuyuki Hanada, dir; Takanori Sannan, dir; Hiroshi Hattori, dir; Toshiya
Sakakibara, dir; Osamu Saito, dir
Nothing detrimental
is known as to the commercial morality of executives.
Related companies: Hi-Tech Chemie, Dainichi Color (Thailand),
Ukima Gosei, other
OPERATION
Activities: Manufactures:
chemical products (pigments) (15%), coloring agents (55%), high-polymer products
(11%), printing inks (18%), others (1%).
Overseas
Sales Ratio (32%)
(Mfg
items): Pigments (organic/inorganic/prepared pigments); Prepared colors &
chemicals (plastic colorant); Polymers; Printing ink (offset/gravure inks); Specialties
(chitosan, functional coating materials, bio-chemicals, composite chemical
deodorizer, color matching system, chemical blowing agents, electronics
relative products, others)
Clients: [Mfrs,
wholesalers] Poly-Plastics, Prime Polymer, Mitsui Chemical, LG Chemical,
The Ink-Tec, T&K TOKA, Mitsubishi
Chemical, Sumitomo Electric Ind, Japan Polypropylene, DSF, other
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] Ukima Gosei,
Hitec-Chemie, Poly-Plastics, Japan
Polypropylene,
Prime Polymer, Nagase & Co, Mitsui Chemical, Sojitz Corp, Shoei
Chemical,
Mitsubishi Chemical, other
Payment
record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
Mizuho Bank (H/O)
SMBC (H/O)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2015 |
31/03/2014 |
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INCOME STATEMENT |
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Annual Sales |
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162,999 |
159,899 |
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Cost of Sales |
136,796 |
134,547 |
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GROSS PROFIT |
26,202 |
25,352 |
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Selling & Adm Costs |
16,937 |
16,666 |
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OPERATING PROFIT |
9,265 |
8,686 |
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Non-Operating P/L |
752 |
718 |
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RECURRING PROFIT |
10,017 |
9,404 |
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NET PROFIT |
5,662 |
6,015 |
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BALANCE SHEET |
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Cash |
|
26,694 |
27,215 |
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Receivables |
47,840 |
46,171 |
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Inventory |
26,138 |
23,435 |
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Securities, Marketable |
|
182 |
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Other Current Assets |
2,728 |
2,384 |
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TOTAL CURRENT ASSETS |
103,400 |
99,387 |
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Property & Equipment |
44,746 |
42,920 |
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Intangibles |
1,325 |
1,182 |
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Investments, Other Fixed Assets |
27,987 |
21,555 |
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TOTAL ASSETS |
177,458 |
165,044 |
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Payables |
27,108 |
27,616 |
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Short-Term Bank Loans |
19,188 |
20,829 |
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Other Current Liabs |
18,808 |
17,328 |
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TOTAL CURRENT LIABS |
65,104 |
65,773 |
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Debentures |
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Long-Term Bank Loans |
21,349 |
21,525 |
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Reserve for Retirement Allw |
8,730 |
7,942 |
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Other Debts |
|
5,090 |
3,026 |
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TOTAL LIABILITIES |
100,273 |
98,266 |
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MINORITY INTERESTS |
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Common
stock |
10,039 |
10,039 |
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Additional
paid-in capital |
9,193 |
9,193 |
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Retained
earnings |
48,097 |
43,573 |
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Evaluation
p/l on investments/securities |
6,188 |
3,107 |
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Others |
3,766 |
958 |
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Treasury
stock, at cost |
(99) |
(93) |
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TOTAL S/HOLDERS` EQUITY |
77,184 |
66,777 |
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TOTAL EQUITIES |
177,458 |
165,044 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2015 |
31/03/2014 |
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Cash
Flows from Operating Activities |
|
5,673 |
7,176 |
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Cash
Flows from Investment Activities |
-2,555 |
-6,243 |
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Cash
Flows from Financing Activities |
-3,937 |
-3,357 |
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Cash,
Bank Deposits at the Term End |
|
26,181 |
26,180 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
77,184 |
66,777 |
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Current
Ratio (%) |
158.82 |
151.11 |
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Net
Worth Ratio (%) |
43.49 |
40.46 |
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Recurring
Profit Ratio (%) |
6.15 |
5.88 |
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Net
Profit Ratio (%) |
3.47 |
3.76 |
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Return
On Equity (%) |
7.34 |
9.01 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.63.57 |
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UK Pound |
1 |
Rs.98.22 |
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Euro |
1 |
Rs.69.93 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
ASH |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.