MIRA INFORM REPORT

 

 

Report No. :

321356

Report Date :

06.05.2015

 

IDENTIFICATION DETAILS

 

Name :

DAIW ASSET MANAGEMENT CO LTD

 

 

Registered Office :

Grand Tokyo North Tower, 1-9-1 Marunouchi Chiyodaku Tokyo 100-0005

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

December 1959

 

 

Com. Reg. No.:

0100-01-049257

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Asset management business

 

 

No of Employees :

588

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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 Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

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

 

DAIW ASSET MANAGEMENT CO LTD

 

 

REGD NAME 

 

Daiwa Shoken Toshi Shintaku Itaku KK

 

 

MAIN OFFICE

 

Grand Tokyo North Tower, 1-9-1 Marunouchi Chiyodaku Tokyo 100-0005 JAPAN

Tel: 03-5695-2111

 

URL:                 http://www.daiwa-am.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Asset management business

 

 

BRANCHES   

 

Nil

 

 

OVERSEAS   

 

USA, UK, Hong Kong, Shanghai, Singapore, India (--subsidiaries)

 

 

OFFICERS

 

MAKOTO SHIRAKAWA, PRES   Osamu Abiru, v pres

Toshinao Matsushima, v pres     Yosuke Sakai, v pres

Ikuo Shoda, s/mgn dir               Toshimasa Kuwano, s/mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 85,560 M

PAYMENTSREGULAR   CAPITAL           Yen 15,174 M

TREND UP                    WORTH            Yen 38,360 M

STARTED         1959                 EMPLOYES      588

 

 

COMMENT    

 

ASSET MANAGEMENT COMPANY, OWNED BY DAIWA SECURITIES GROUP INC.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established by Daiwa Securities Group Inc (See REGISTRATION) as its asset management company.   This is an asset management company of assets under management of publicly offered investment assets.  Total assets under management: Yen 1,223,400 million as at Mar 30, 2014. 

 

 

FINANCIAL INFORMATION

           

            The revenues for Mar/2014 fiscal term amounted to Yen 85,560 million, a 16% up from Yen 74,025 million in the previous term.  The recurring profit was posted at Yen 11,503 million and the net profit at Yen 10,126 million, respectively, compared with Yen 12,394 million recurring profit and Yen 7,029 million net profit, respectively, a year ago.

 

            For the term that ended Mar 2015 the recurring profit was projected at Yen 17,500 million and the net profit at Yen 11,000 million, respectively, on a 6% rise in turnover, to Yen 90,500 million.  Final results are yet to be released. 

 

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

 

 

REGISTRATION

 

Date Registered:                                   Dec 1959         

Regd No.:                                             0100-01-049257 (Tokyo-Chuoku)

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              2,608,525 shares

Issued:                                     2,608,525 shares

Sum:                                        Yen 15,174 million

Major shareholders (%):                       Daiwa Securities Group Inc* (100)

           

*.. One of Big 3 securities firms, Tokyo, founded 1943, listed Tokyo, Nagoya S/E’s,        capital Yen 247,397 million, sales Yen 642,829 million, operating profit Yen 284,593           million, recurring profit Yen 197,045 million, net profit Yen 169,457 million, total assets       Yen 23,583,808 million, net worth Yen 1,196,309 million, employees 13,570, pres Takashi             Hibino 

 

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

 

 

OPERATION

           

Activities:                     Asset management company, with total assets (--100%)

 

Clients:                        Securities firms, banks, Pension Funds, other 

                                    No. of accounts: Unavailable

                                    Domestic areas of activities: Nationwide

 

Payment record:           Regular

 

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

 

Bank References:

                                    SMBC (H/O)

                                    MUFG (H/O)

                                    Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

90,500

85,560

74,025

73,332

Recur. Profit

 

17,500

16,503

12,394

12,333

Net Profit

 

11,000

10,126

7,029

7,023

Total Assets

 

 

57,727

50,834

51,157

Current Assets

 

 

39,406

32,272

30,908

Current Liabs

 

 

15,534

11,855

12,789

Net Worth

 

 

38,360

35,231

34,847

Capital, Paid-Up

 

 

15,174

15,174

15,174

Div.P.Share(¥)

 

 

3,882.00

2,694.00

2,692.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.77

15.58

0.95

0.94

    Current Ratio

 

..

253.68

272.22

241.68

    N.Worth Ratio

 

..

66.45

69.31

68.12

    R.Profit/Sales

 

19.34

19.29

16.74

16.82

    N.Profit/Sales

 

12.15

11.83

9.50

9.58

    Return On Equity

 

..

26.40

19.95

20.15

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 63.51

UK Pound

1

Rs. 95.95

Euro

1

Rs. 70.53

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

Report Prepared by :

DPT

 

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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