MIRA INFORM REPORT

 

 

Report No. :

326847

Report Date :

15.06.2015

 

IDENTIFICATION DETAILS

 

Name :

CHUKAN BUTSU LTD

 

 

Registered Office :

Shiono Nissei Bldg 7F, 2-6-6 Doshomachi Chuoku Osaka 541-0045

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

Feb., 1990

 

 

Com. Reg. No.:

1200-01-084395 (Osaka-Chuoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, Export and Wholesale of Industrial Chemicals.

 

 

No. of Employees :

27

 

 

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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 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. The government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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

 

CHUKAN BUTSU LTD

 

REGD NAME:               Chukan Butsu Shoji KK

 

MAIN OFFICE:              Shiono Nissei Bldg 7F, 2-6-6 Doshomachi Chuoku Osaka 541-0045 JAPAN

                                                Tel: 06-6231-5127     Fax: 06-6222-5126

 

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

E-Mail address:                        nishioka@chukan.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of industrial chemicals

 

 

BRANCHES

 

Tokyo, Hyogo (Distribution Center)

 

 

OVERSEAS

 

Nantong (China), Pune (India) (--rep offices)

 

 

OVERSEAS

 

Taizhou Yutai Intermediate Factory (JV with Taizhou Zhogjian Co Ltd, China)

 

 

OFFICER(S)  

 

SHINGO TSUKUDA, PRES       

Hiroki Kadota, dir

Takuya Nishioka, dir                  

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES                      Yen 2,477 M

PAYMENTSNO COMPLAINTS    CAPITAL                       Yen 20 M

TREND STEADY                       WORTH                        Yen 404 M

STARTED         1990                             EMPLOYES                  27

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN INDUSTRIAL CHEMICALS. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established in order to succeed business operations of the former E Horibata & Co Ltd, founded 1929, for importing intermediates for colorants, pharmaceuticals, pigments, dyestuffs, other intermediates from Germany.  Reorganized in 1990, the firm was renamed as captioned.  This is a specialized trading firm for import, export and wholesale of industrial chemicals: pharmaceuticals intermediates, pigments, dyestuffs, other industrial chemicals.  About 60% of the goods are imported from China and India. The firm offers technical transfer, outsourcing and OEM services, too. Founded Yashiro Distribution Center in 1994, authorized warehouse for medical supplies, dangerous & poisonous cargoes.  In 1995 formed Taizhou Yutai Intermediate Factory, Taizhou, Jiangu (China), JV with Taizhou Zhogjian Co Ltd, China. In 1996 opened Nantong Branch Office, China. In 2006 opened representative office in Pune, India. Clients are major specialized chemical mfrs nationwide.

 

           

FINANCIAL INFORMATION

 

The sales volume for Dec/2014 fiscal term amounted to Yen 2,477 million, a 15% steep up from Yen 2,148 million in the previous term.  Exports and imports from and into China & India increased.  The number of clients increased.  The recurring profit was posted at Yen 62 million and the net profit at Yen 40 million, respectively, compared with Yen 78 million recurring profit and Yen 44 million net profit, respectively, a year ago. 

 

For the current term ending Dec 2015 the recurring profit is projected at Yen 65 million and the net profit at Yen 45 million, on a 5% rise in turnover, to Yen 2,600 million.  Business is seen steadily expanding.

 

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

 

 

REGISTRATION

 

Date Registered:  Feb 1990

Regd No.:         1200-01-084395 (Osaka-Chuoku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         1,600 shares

Issued:                800 shares

Sum:                   Yen 20 million

Major shareholders (%): Chukan Butsu Butsuryu* (100)

                       * Subsidiary distribution company

           

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

 

 

OPERATION

 

Activities: Imports, exports and wholesales food additives, olive oils, other fine chemicals (--55%), intermediate for pharmaceuticals & agrochemicals, pigments, others (--20%), technical transfer, consulting, others (--25%).  (Breakdowns are all about)

 

Clients: [Chemical mfrs, wholesalers] Clariant (Japan) KK, Nippon Kayaku, Mikuni Pharmaceutical Ind, Nichijun Chemical, Sansui Shikiso Kogyo, Orient Chemical Ind, Kaneka Corp, Mitsubishi Tanabe Pharma Corp, Wako Pure Chemical Ind, Ono Pharmaceutical, T&K Tokyo, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Chemical mfrs] Clauson-Kaas (Denmark), Hovione (Portugal), Palident Ltd (Israel), Organica Feinchemie GmbH (Germany), RRJ Dyes & Intermediates, Balaji Amines Ltd (--India), Taizhou Yatai Intermediate Factory (China), Dalchem (Russia), other from Czech, Russia, Hungary, etc. 

Also supplied for exports from DIC, Sakai Chemical Ind, Kanto Chemical, other.

 

Payment record: No Complaints

 

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

 

Bank References:

            MUFG (Osaka-Chuo)

            Kinki Osaka Bank (Semba)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/12/2015

31/12/2014

31/03/2013

31/03/2012

Annual Sales

 

2,600

2,477

2,148

2,193

Recur. Profit

 

65

62

78

147

Net Profit

 

45

40

44

55

Total Assets

 

 

1,520

1,465

1,415

Current Assets

 

 

1,167

1,092

1,036

Current Liabs

 

 

673

264

683

Net Worth

 

 

404

365

323

Capital, Paid-Up

 

 

20

20

20

Div. Ttl in Million (¥)

 

 

2

2

2

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.97

15.32

-2.05

3.25

    Current Ratio

 

..

173.40

413.64

151.68

    N.Worth Ratio

 

..

26.58

24.91

22.83

    R.Profit/Sales

 

2.50

2.50

3.63

6.70

    N.Profit/Sales

 

1.73

1.61

2.05

2.51

    Return On Equity

 

..

9.90

12.05

17.03

 

Notes: Forecast (or estimated) figures for the 31/12/2015 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.03

UK Pound

1

Rs.99.27

Euro

1

Rs.71.90

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.