MIRA INFORM REPORT

 

 

Report No. :

323707

Report Date :

22.05.2015

 

IDENTIFICATION DETAILS

 

Name :

IHARA CHEMICAL INDUSTRY CO LTD

 

 

Registered Office :

Kumiai Kagaku Kogyo Bldg 4F, 1-4-26 Ikenohata Taitoku Tokyo 110-0008

 

 

Country :

Japan

 

 

Financials (as on) :

31.10.2014

 

 

Date of Incorporation :

November 1965

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufactures pharmaceutical & chemical intermediates: agriculture, chemicals

 

 

No. of Employee :

620

 

 

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

 

IHARA CHEMICAL INDUSTRY CO LTD

 

REGD NAME:               Ihara Chemical Kogyo KK

MAIN OFFICE:              Kumiai Kagaku Kogyo Bldg 4F, 1-4-26 Ikenohata Taitoku Tokyo 110-0008 JAPAN

                                                Tel: 03-3822-5223     Fax: 03-3828-9887     -

 

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

E-Mail address:             (thru the URL)

 

 

ACTIVITIES

 

Mfg of pharmaceutical & chemical intermediates

 

 

BRANCHES

 

Shizuoka

 

 

OVERSEAS

 

China

 

 

FACTORIES

 

Shizuoka

 

 

CHIEF EXEC

 

MASASHI MOCHIZUKI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

           

FINANCES        FAIR                             A/SALES          Yen 36,735 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 2,764 M

TREND UP                                WORTH            Yen 44,029 M

STARTED         1965                             EMPLOYES      620

 

 

COMMENT

 

MFR OF PHARMACEUTICAL & CHEMICAL INTERMEDIATES

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

                       

Unit: In Million Yen

Forecast figures for the 31/10/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is a medium-scale producer of pharmaceutical & chemical intermediates.  Also engaged in supplying agrochemical raw materials to Kumiai Chemical.  Originally JV by Kumiai Chemical and Nippon Soda.  Top-ranked maker of amin-based curing agents.  

 

 

FINANCIAL INFORMATION

 

The sales volume for Oct/2014 fiscal term amounted to Yen 36,735 million, a 21.1% up from Yen 30,334 million in the previous term.  The recurring profit was posted at Yen 4,094 million and the net profit at Yen 2,460 million, respectively, compared with Yen 2,855 million recurring profit and Yen 1,762 million net profit, respectively, a year ago.

 

(Nov/2014-Jan/2015 results): Sales Yen 11,966 million (up 17.5%), operating profit Yen 1,830 million (up 59.8%), recurring profit Yen 2,072 million (up 56.3%), net profit Yen 1,897 million (up 124.6%).  (% as compared with the corresponding period a year ago).

 

For the current term ending Oct 2015 the recurring profit is projected at Yen 4,500 million and the net profit at Yen 4,500 million, respectively, on a 14.3% rise in turnover, to Yen 42,000 million.  Exports of herbicides for farming fields will continue growing and exports of wet paddy-use herbicides will remain in a firm tone. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,799.9 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　                   Nov 1965

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              99.5 million shares

Issued:                         51,849,917 shares

Sum:                            Yen 2,764 million

 

Major shareholders (%): Kumiai Chemical Industry (15.1), CGMLPR Client Acc. Collateral (11.8), Company’s Treasury Stock (11.0), Japan Trustee Services T (8.9), Norin Chukin Bank (4.3), Kyoei Fire & Marine Insurance (4.1), Suruga Bank (2.2), Nippon Printing Ind (1.8), Nippon Soda (1.4), Dai-ichi Life Insurance (1.2); foreign owners (16.2)

 

No. of shareholders: 3,224

 

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

 

Managements: Masashi Mochizuki, pres; Masato Hayakawa, s/mgn dir; Hajime Takahashi, mgn dir; Takashi Ando, mgn dir; Fumitaka Yoshida, dir; Teruhiko Ikawa, dir; Yutaka Oishi, dir; Katsuyuki Matsunaga, dir; Issei Ueda, dir; Eisuke Ishihara, dir

 

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

 

Related companies: Ihara Nikkei Chemical Ind, KI Chemical Ind, Nep Co, other.

 

 

OPERATION

           

Activities: Manufactures pharmaceutical & chemical intermediates: agriculture (62%), chemicals (34%), others (4%).

Overseas Sales Ratio (64%)

           

Clients: [Mfrs, wholesalers] Kumiai Chemical Ind, PI Industries, Kissei Pharmaceutical      Co, Syngenta Asia Pacific, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Ihara Nikkei Chemical Ind, KI Chemical Ind, Nep Co, PI Industries, Yanai Chemical Ind, Chiyoda Kosho, other

 

 

Payment record: No Complaints

 

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

 

Bank References:

Norin Chukin Bank (H/O)

Mizuho Bank (Kyobashi)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/10/2014

31/10/2013

INCOME STATEMENT

　

　

  Annual Sales

　

36,735

30,334

　

  Cost of Sales

28,244

23,668

　

      GROSS PROFIT

8,491

6,665

　

  Selling & Adm Costs

5,047

4,547

　

      OPERATING PROFIT

3,443

2,118

　

  Non-Operating P/L

651

737

　

      RECURRING PROFIT

4,094

2,855

　

      NET PROFIT

2,460

1,762

BALANCE SHEET

　

　

  Cash

　

8,713

　

　

  Receivables

9,781

8,616

　

  Inventory

11,547

10,833

　

  Securities, Marketable

494

496

　

  Other Current Assets

781

7,979

　

      TOTAL CURRENT ASSETS

31,316

27,924

　

  Property & Equipment

10,301

9,812

　

  Intangibles

94

98

　

  Investments, Other Fixed Assets

15,865

13,094

　

      TOTAL ASSETS

57,576

50,928

　

  Payables

3,891

3,548

　

  Short-Term Bank Loans

620

400

　

　

　

　

　

  Other Current Liabs

4,540

3,990

　

      TOTAL CURRENT LIABS

9,051

7,938

　

  Debentures

　

　

　

  Long-Term Bank Loans

227

　

　

  Reserve for Retirement Allw

1,545

1,381

　

  Other Debts

　

2,724

2,112

　

      TOTAL LIABILITIES

13,547

11,431

　

      MINORITY INTERESTS

　

　

Common stock

2,764

2,764

　

Additional paid-in capital

6,833

5,148

　

Retained earnings

28,402

26,167

　

Evaluation p/l on investments/securities

4,798

3,763

　

Others

2,778

3,355

　

Treasury stock, at cost

(1,546)

(1,701)

　

      TOTAL S/HOLDERS` EQUITY

44,029

39,496

　

      TOTAL EQUITIES

57,576

50,928

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/10/2014

31/10/2013

　

Cash Flows from Operating Activities

　

2,805

-172

　

Cash Flows from Investment Activities

-1,184

-1,282

　

Cash Flows from Financing Activities

1,043

-566

　

Cash, Bank Deposits at the Term End

　

8,747

6,077

ANALYTICAL RATIOS            Terms ending:

31/10/2014

31/10/2013

　

Net Worth (S/Holders' Equity)

44,029

39,496

　

Current Ratio (%)

345.99

351.78

　

Net Worth Ratio (%)

76.47

77.55

　

Recurring Profit Ratio (%)

11.14

9.41

　

Net Profit Ratio (%)

6.70

5.81

　

　

Return On Equity (%)

5.59

4.46

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.70

UK Pound

1

Rs.98.92

Euro

1

Rs.70.67

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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%)

 

 

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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.