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Report No. : |
323894 |
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Report Date : |
22.05.2015 |
IDENTIFICATION DETAILS
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Name : |
HIGUCHI INC |
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Registered Office : |
Taiyo Seimei Shinagawa Bldg 10F, 2-16-2 Konan Minatoku Tokyo 108-0075 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
December 1927 |
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Com. Reg. No.: |
0104-01-025124 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, wholesale of chemicals, medical machinery/equipment, halogen lamps |
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No of Employees : |
69 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
Yen 60.8 Million |
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Status : |
Moderate |
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Payment Behaviour : |
Slow But Correct |
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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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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.
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Source
: CIA |
HIGUCHI
INC
KK Higuchi Shokai
Taiyo Seimei Shinagawa Bldg 10F, 2-16-2
Konan Minatoku Tokyo 108-0075 JAPAN
Tel:
03-5479-5533 Fax: 03-5479-5674
URL: http://www.higuchi-inc.co.jp
E-Mail address: (thru the URL)
Import, wholesale of chemicals, medical
machinery/equipment, halogen lamps
Osaka, Otaku (workshop)
USA, Hong Kong, China (2)
YASUNORI OHAMA, PRESTetsushi Kawamura, mgn
dir
Masahiko Oikawa, mgn dir Makoto Teraoka, dir
Shinsuke Togawa, dir
Yen Amount: In
million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 8,625 M
PAYMENTSSLOW BUT CORRECT CAPITAL Yen
75 M
TREND SLOW WORTH Yen 599 M
STARTED 1927 EMPLOYES 69
TRADING FIRM
SPECIALIZING IN MEDICAL EQUIPMENT, CHEMICALS, HALLOGEN LAMPS, OTHER
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT: ESTIMATED AT YEN 60.8 MILLION,
ON 30 DAYS NORMAL TERMS.
The subject company was established
by Yujiro Higuchi for importing petroleum and products, and in 1958 started to
import medical equipment & supplies from Germany (now Evonik Industries
AG). This is a trading firm specializing
pharmaceutical additives, lubricant additives, biochemical products, halogen
lamps, other (See OPERATION). Goods are imported from USA, Germany, China,
other. Clients include pharmaceutical
makers, oil refineries, other.
The sales volume for Mar/2014 fiscal
term amounted to Yen 8,625 million, a 17% down from Yen 10,422 million in the
previous term. This is referred to the
transfer of engineering operations to a subsidiary. The recurring profit was posted at Yen 591
million, while posted net losses of Yen 1,165 million, compared with Yen 325
million recurring profit and Yen 20 million net profit, respectively, a year
ago. The net losses are referred to the
extraordinary losses coming from damage liability costs.
For the term that ended Mar 2015 the
recurring profit was projected at Yen 350 million and the net profit at Yen 100
million, respectively, on a 6% rise in turnover, to Yen 9,150 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 60.8 million, on the normal 30 days
terms.
Date
Registered: Dec
1927
Regd
No.: 0104-01-025124
(Tokyo-Minatoku)
Legal
Status: Limited
Company (Kabushiki Kaisha)
Authorized: 600,000 shares
Issued:
150,000 shares
Sum:
Yen
75 million
Major shareholders
(%): Sachiko Higuchi (17), Yasunori Ohama (11), other
No. of
shareholders: 17
Nothing detrimental is known as to the
commercial morality of executives.
Activities: Trading firm for
import, export & wholesale of: pharmaceutical additives, lubricant
additives, petrochemical industrial products, biochemical products, food ingredients,
food additives, health foods, pharmaceutical machinery & equipment,
analytical testing machines, LED lamps, halogen lamps, ultra-violet lamps,
other (--100%)
Clients: [Mfrs, wholesalers]
Takeda Chemical Ind, Astellas Pharma Inc, Idemitsu Kosan, JX Nippon Oil &
Energy Corp, Kyowa Hakko Kirin Co, other
No. of accounts: 500
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Ohly GmbH, Evonik Japan, I Holland Inc, Suheung Japan, Meggle
Japan, other
Payment
record: Slow But Correct
Location: Business area in Tokyo. Office premises at the caption address are
leased and maintained satisfactorily.
Bank
References:
MUFG
(Marunouchi)
SMBC
(Marunouchi)
Relations:
Satisfactory
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Terms Ending: |
31/03/2015 |
31/03/2014 |
31/03/2013 |
31/03/2012 |
|
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Annual Sales |
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9,150 |
8,625 |
10,422 |
11,083 |
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Recur. Profit |
|
350 |
591 |
325 |
262 |
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Net Profit |
|
100 |
-1,165 |
20 |
31 |
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Total Assets |
|
|
6,221 |
5,046 |
6,714 |
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Current Assets |
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5,438 |
4,262 |
5,869 |
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Current Liabs |
|
|
781 |
783 |
4,507 |
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Net Worth |
|
|
599 |
1,790 |
1,933 |
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Capital, Paid-Up |
|
|
75 |
75 |
75 |
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Div.Ttl in Million (¥) |
|
|
16.4 |
21.6 |
22.5 |
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<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
|
6.09 |
-17.24 |
-5.96 |
43.28 |
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Current Ratio |
|
.. |
696.29 |
544.32 |
130.22 |
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N.Worth Ratio |
|
.. |
9.63 |
35.47 |
28.79 |
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R.Profit/Sales |
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3.83 |
6.85 |
3.12 |
2.36 |
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N.Profit/Sales |
|
1.09 |
-13.51 |
0.19 |
0.28 |
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Return On Equity |
|
.. |
-194.49 |
1.12 |
1.60 |
Notes: Forecast (or estimated) figures for
the 31/03/2015 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 63.70 |
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|
1 |
Rs. 98.91 |
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Euro |
1 |
Rs. 70.66 |
INFORMATION DETAILS
|
Analysis Done by
: |
SAN |
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Report Prepared
by : |
DPT |
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.