MIRA INFORM REPORT

 

 

Report No. :

311463

Report Date :

16.03.2015

 

IDENTIFICATION DETAILS

 

Name :

CHORI CO LTD

 

 

Registered Office :

9F-11F, 1-7-3 Awaji-mahi, Chuo-ku Osaka City Osaka 541-0047

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

September 1948

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Trading company specializing in textiles, Chemicals and Machinery.

 

 

No. of Employee :

1,292 (consolidated basis)

 

 

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

 

CHORI CO LTD

 

REGD NAME:   Chori KK

MAIN OFFICE:  9F-11F, 1-7-3 Awaji-mahi, Chuo-ku Osaka City

Osaka , 541-0047 JAPAN

                        Tel: 06-6228-5000

 

*Office address given in the order form is that of Tokyo Office.

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Trading company of Textiles, Chemicals and Machinery.

 

 

BRANCHES

 

Tokyo, Kanazawa, Okayama

 

 

OVERSEAS

 

China, Taiwan, Bangladesh, Korea, Philippines, Singapore

 

 

FACTORIES

 

None

 

 

CHIEF EXEC

 

Kazuo Sakihama, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

       FINANCES FAIR                             A/SALES          Yen 244,286,000 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 6,800,000 M

TREND UP                                WORTH            Yen 36,417 M

STARTED         1961                             EMPLOYES      1,292 (consolidated basis)

 

 

COMMENT

 

TRADING COMPANY OF TETILES, CHEMICALS AND MACHINERY.

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY

 BUSINESS ENGAGEMENTS.

 

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

31/03/2011

222,074

5,343

5,372

(%)

25,826

31/03/2012

217,825

6,118

3,497

-1.91

28,698

31/03/2013

221,847

5,466

2,944

1.85

31,385

31/03/2014

244,286

5,831

3,715

10.11

36,417

31/03/2015

260,000

6,200

4,000

6.43

40,417

            Forecast (or estimated) figures for 2015 term

     *..Unit: Million Yen

 

 

HIGHLIGHTS

 

The Chori group has established a solid position for itself as a trading company specializing in textiles, chemicals and machinery. Its strategies are “strengthening the consolidated management structure”, “enhancing the personnel structure2, and “pursuit of new development and M&A”. In 2006, it became a subsidiary of Toray.

 

 

FINANCIAL INFORMATION

 

The sales volume for March 2014 fiscal term amounted to Yen 244,286 million, a 10% up from Yen 221,847 million in the previous term.  The recurring profit was posted at Yen 5,831 million and the net profit at Yen 3,715 million, respectively, compared with Yen 5,466 million recurring profit and Yen 2,944 million net profit, respectively, a year ago.

 

For the current term ending March 2015 the recurring profit is projected at Yen 6,200 million and the net profit at Yen 4,000 million, respectively, on a 6.5% rise in turnover, to Yen 260,000 million.  Final results are yet to be released.

 

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

 

 

REGISTRATION

           

Date Registered:                    September 1948

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              55,000,000 shares

Issued:                         25,303,478 shares

Sum:                            Yen 6,800,000 million

 

Major shareholders (%): Toray(51.2%), BBH Fidelity(4%)

 

No. of shareholders: 8,082

 

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

 

Managements: KAZUO SAKIHAMA, PRES;  Masayuki Hatsuya, sr/mgn/dir; Jun Kobayashi, mgn/dir; Nagao Iseda, mgn/dir, Kunihisa Inoue, dir;

 

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

 

Related companies: Chori Moda, PIT Japan, Tokyo Shirayurikai and others

 

 

OPERATION

           

Activities: Trading company specializing in textiles (47%), Chemicals(36%) and Machinery (17%)

Overseas Sales Ratio: 51%

Clients: [Mfrs, wholesalers] Aoyama Shoji, Itokin, Ministry of Defense and others

No. of accounts: Unavailable

Domestic areas of activities: Tokyo, Osaka, Kanzawa, Okayama

Suppliers: [Mfrs, wholesalers] Mitsui Chemical, Toray, Showa Denko and others

 

Payment record: No Complaints

 

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

 

Bank References:

Mizuho Bank (Osaka Hojin)

MUFG Bank (Osaka Eigyobu)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

  Annual Sales

244,286

221,847

 

  Cost of Sales

222,755

202,076

 

      GROSS PROFIT

21,531

19,771

 

  Selling & Adm Costs

16,037

14,665

 

      OPERATING PROFIT

5,494

5,106

 

  Non-Operating P/L

337

360

 

      RECURRING PROFIT

5,831

5,466

 

      NET PROFIT

3,715

2,944

BALANCE SHEET

 

 

  Cash

 

5,821

6,350

 

  Receivables

42,328

38,875

 

  Inventory

10,222

9,968

 

  Securities, Marketable

0

0

 

  Other Current Assets

8,747

6,503

 

      TOTAL CURRENT ASSETS

67,118

61,696

 

  Property & Equipment

744

723

 

  Intangibles

857

965

 

  Investments, Other Fixed Assets

9,502

8,467

 

      TOTAL ASSETS

78,221

71,851

 

  Payables

32,324

30,876

 

  Short-Term Bank Loans

949

774

 

 

 

 

 

  Other Current Liabs

6,231

6,850

 

      TOTAL CURRENT LIABS

39,504

38,500

 

  Debentures

 

 

 

  Long-Term Bank Loans

52

84

 

  Reserve for Retirement Allw

2,076

1,605

 

  Other Debts

171

277

 

      TOTAL LIABILITIES

41,803

40,466

 

      MINORITY INTERESTS

 

 

Common stock

6,800

6,800

 

Additional paid-in capital

1,700

1,700

 

Retained earnings

27,671

24,563

 

Evaluation p/l on investments/securities

458

177

 

Others

(212)

(1,855)

 

Treasury stock, at cost

 

 

 

      TOTAL S/HOLDERS` EQUITY

36,417

31,385

 

      TOTAL EQUITIES

78,220

71,851

CONSOLIDATED CASH FLOWS

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

 

1,716

5,792

 

Cash Flows from Investment Activities

-208

-2,980

 

Cash Flows from Financing Activities

-506

-1,641

 

Cash, Bank Deposits at the Term End

 

9,638

8,198

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

Net Worth (S/Holders' Equity)

36,417

31,385

 

Current Ratio (%)

169.90

160.25

 

Net Worth Ratio (%)

46.56

43.68

 

Recurring Profit Ratio (%)

2.39

2.46

 

Net Profit Ratio (%)

1.52

1.33

 

 

Return On Equity (%)

10.20

9.38

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.67

UK Pound

1

Rs.93.106

Euro

1

Rs.66.42

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ANK

 


 

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.