MIRA INFORM REPORT

 

 

Report No. :

324946

Report Date :

29.05.2015

 

IDENTIFICATION DETAILS

 

Name :

DAIDO CORPORATION

 

 

Registered Office :

Itohpia Hashimoto Bldg 3F, 2-11-9 Iwamotocho Chiyodaku Tokyo 101-0032

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2014

 

 

Date of Incorporation :

August1949

 

 

Com. Reg. No.:

0100-01-049068

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, wholesale of vehicle components, hand tools, power tools, other

 

 

No of Employees :

26

 

 

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 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

 

DAIDO CORPORATION

 

 

REGD NAME 

 

Daido Tsusho KK

 

 

MAIN OFFICE

 

Itohpia Hashimoto Bldg 3F, 2-11-9 Iwamotocho Chiyodaku Tokyo 101-0032 JAPAN

Tel: 03-5835-2311      Fax: 03-5835-2320

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Import, export, wholesale of vehicle components, hand tools, power tools, other

 

 

BRANCHES   

 

Osaka, Nagoya, other (Tot 4)

 

 

OVERSEAS   

 

Taiwan, China, Vietnam, Germany, other

 

 

OFFICERS

 

KENJI MORI, PRES                               Kazunori Ogasawara, dir

Kazuyuki Ishikawa, dir                Masakazu Mizutani, dir

Wataru Uchimoto, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY          

 

FINANCES        FAIR                             A/SALES          Yen 3,924 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 240 M

TREND STEADY                       WORTH            Yen 774 M       

STARTED         1949                             EMPLOYES      26

 

 

COMMENT    

 

TRADING FIRM SPECIALIZING IN VEHICLECOMPONENTS, OTHER.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

            This a trading firm for import, export and wholesale of vehicle components, automation products, power transmission products, power tools, gardening tools, hand tools, other.  Has 6 overseas branches (subsidiaries). 

 

 

FINANCIAL INFORMATION

           

            The sales volume for Sept/2014 fiscal term amounted to Yen 3,924 million, a 5% up from

Yen 3,755 million in the previous term.  The recurring profit was posted at Yen 106 million and the net profit at Yen 71 million, respectively, compared with Yen 70 million recurring profit and Yen 40 million net profit, respectively, a year ago.

 

            For the current term ending Sept 2015 the recurring profit is projected at Yen 110 million and the net profit at Yen 75 million, respectively, on a 3% rise in turnover, to Yen 4,050 million. 

 

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

 

 

REGISTRATION

    

Date Registered:                                   Aug 1949

Regd No.:                                             0100-01-049068 (Tokyo-Chiyodaku)

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                                          1.92 shares

Issued:                                     480,000 shares

Sum:                                        Yen 240 million

Major shareholders (%):                       Tsukiboshi Mfg Co Ltd (37), Tokyo Small & Medium Business     Investment & Consultation Co Ltd (31), Yokogawa Electric Corp (18), Daido Kogyo Co Ltd (14)

No. of shareholders:                             4

 

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

 

 

OPERATION

           

Activities: Imports, exports and wholesales: vehicle components, automation products, power transmission products, power tools, gardening tools, hand tools, construction hardware, others (--100%)

 

Clients: [Mfrs, wholesalers] Advantec International USA (54%), Sankyo Corporation, Rex Nord, Daido Kogyo, Yamazen Corp, other 

No. of accounts: 300

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Tsukiboshi Mfg (35%), Daido Kogyo, KHS, Tamagawa Seiki Hambai, other

 

Payment record: No Complaints

 

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

 

Bank References:

                        MUFG (Yaesudori)

                        Hokkoku Bank (Tokyo)

                        Relations: Satisfactory

 

FINANCES (In Million Yen)

 

       Terms Ending:

30/09/2015

30/09/2014

30/09/2013

30/09/2012

Annual Sales

 

4,050

3,924

3,755

4,100

Recur. Profit

 

110

106

70

 

Net Profit

 

75

71

40

45

Total Assets

 

 

1,907

1,882

 

Current Assets

 

 

1,402

1,430

        N/A

Current Liabs

 

 

729

750

 

Net Worth

 

 

774

711

683

Capital, Paid-Up

 

 

240

20

240

Div.Ttl in Million (¥)

 

 

19.19

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

3.21

4.50

-8.41

2.50

    Current Ratio

 

..

192.32

190.67

..

    N.Worth Ratio

 

..

40.59

37.78

..

    R.Profit/Sales

 

2.72

2.70

1.86

..

    N.Profit/Sales

 

1.85

1.81

1.07

1.10

    Return On Equity

 

..

9.17

5.63

6.59

 

Notes: Forecast (or estimated) figures for the 30/09/2015 fiscal term.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 63.90

UK Pound

1

Rs. 98.16

Euro

1

Rs. 69.73

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

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.