MIRA INFORM REPORT

 

 

Report No. :

333664

Report Date :

24.07.2015

 

IDENTIFICATION DETAILS

 

Name :

WELCON INC

 

 

Registered Office :

15-1 Yashiroda Akihaku Niigata 950-0113

 

 

Country :

Japan

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

July, 2006

 

 

Com. Reg. No.:

1100-01-009175 (Niigata-Akihaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Chemical Machinery, Chemical Reactor/Facilities, Heat-Exchanger, Other.

 

 

No. of Employees :

18

 

 

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

 

 

Maximum Credit Limit :

Yen 5.5 Million

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 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.

 

Source : CIA

 

 

Company Name and address

 

WELCON INC

 

REGD NAME:               KK Welcon

 

MAIN OFFICE:              15-1 Yashiroda Akihaku Niigata 950-0113 JAPAN

                                                Tel: 0250-38-1900      Fax: 0250-38-1901

 

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

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES

 

Mfg of chemical machinery, chemical reactor/facilities, heat-exchanger, other

 

 

BRANCHES

 

Nil

 

 

OVERSEAS

 

China (Business partner)

 

 

FACTORIES

 

At the caption address (2)

 

 

OFFICERS

 

YUTAKA SUZUKI, PRES           Takeshi Taoka, mgn dir

Nagato Tsujihira, dir                   Takuji Kobayashi, dir

                       

Yen Amount:                 In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES                      Yen 325 M

PAYMENTSNO COMPLAINTS    CAPITAL                       Yen 97 M

TREND STEADY                       WORTH                        Yen 142 M       

STARTED         2006                             EMPLOYES                  18

 

 

COMMENT

 

MFR OF CHEMICAL MACHINERY.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: ESTIMATED AT YEN 5.5 MILLION, ON 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company specializes in mfg chemical machinery: chemical reactors, heat exchangers, diffusion bonding, other. Clients include electronic mfrs, car makers, printing houses, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Jun/2014 fiscal term amounted to Yen 325 million, a 7% up from Yen 305 million in the previous term. The recurring profit was posted at Yen 5 million and the net profit at Yen 11 million, respectively, compared with Yen 5 million recurring profit and Yen 3 million net profit, respectively, a year ago.

 

For the term that ended Jun 2015 the recurring profit was projected at Yen 20 million and the net profit at Yen 15 million, respectively, on a 5% rise in turnover, to Yen 340 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 5.5 million, on 30 days normal terms.

 

 

REGISTRATION

    

Date Registered:                       Jul 2006

Regd No.:                    1100-01-009175 (Niigata-Akihaku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  7,800 shares

Issued:                         1,950 shares

Sum:                            Yen 97.5 million

Major shareholders (%):           Yutaka Suzuki (37.1), Takeshi Taoka (20.8), Shigeaki Yachida (12.7), MUFG (5.4)

No. of shareholders:                 15

 

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

 

 

OPERATION

           

Activities: Manufactures chemical machinery: chemical reactors, heat exchangers, diffusion bonding, other (--100%)

 

Clients: [Mfrs, wholesalers] Mitsubishi Electric, Kishu Giken Kogyo, Hirai Seimitsu Kogyo, Tokyo Electron, Yamato Weighing & Information Technology, Shimadzu Corp, other 

No. of accounts: 350

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Hirai Seimitsu Kogyo, Kobun Kogyo, Ogata Kogyo, other

 

Payment record: No Complaints

 

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

 

Bank References:

            Daishi Bank (Kamo)

            Hokuetsu Bank (Kamo)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

30/06/2015

30/06/2014

30/06/2013

Annual Sales

 

340

325

305

Recur. Profit

 

20

5

5

Net Profit

 

15

11

3

Total Assets

 

 

538

426

Current Assets

 

 

343

262

Current Liabs

 

 

122

101

Net Worth

 

 

142

130

Capital, Paid-Up

 

 

97

97

Div.P.Share(¥)

 

 

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

    S.Growth Rate

 

4.62

6.56

-0.97

    Current Ratio

 

..

281.15

259.41

    N.Worth Ratio

 

..

26.39

30.52

    R.Profit/Sales

 

5.88

1.54

1.64

    N.Profit/Sales

 

4.41

3.38

0.98

    Return On Equity

 

..

7.75

2.31

 

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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.71

UK Pound

1

Rs.99.57

Euro

1

Rs.69.63

 

INFORMATION DETAILS

 

Analysis Done by :

TRI 

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.