MIRA INFORM REPORT

 

 

Report No. :

350749

Report Date :

23.11.2015

 

IDENTIFICATION DETAILS

 

Name :

SHIRAISHI CALCIUM KAISHA LTD

 

 

Registered Office :

2-10-5 Doshin Kitaku Osaka 530-0035

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

November 1937

 

 

Com. Reg. No.:

2200-01-059647

 

 

Legal Form :

Limited Company

 

 

Line of Business :

A trading house for import, export and wholesale of calcium carbonate (15%), reinforcing agents & fillers (23%), synthetic rubber & resin (15%), rubber chemicals & plastic additives (29%), food additives, agriculture & livestock breeding materials (15%), industrial textile materials, others (3%), covering 58 countries worldwide. 

 

 

No. of Employees :

200

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA


Company name

 

SHIRAISHI CALCIUM KAISHA LTD

 

REGD NAME:   Shiraishi Calcium KK

MAIN OFFICE:  2-10-5 Doshin Kitaku Osaka 530-0035 JAPAN

                                    Tel: 06-6358-1181     Fax: 06-5358-9036

                       

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

E-Mail address: international@shiraishi.co.jp

 

ACTIVITIES:     Import, export, wholesale of industrial chemicals

BRANCHES:     Tokyo, Sapporo, Sendai, Shizuoka, Nagoya, Hiroshima, Kumamoto

OVERSEAS:      16 overseas affiliates & group companies in: China (4), Korea, Thailand, Malaysia, Singapore, Taiwan, Hong Kong, Philippines, Vietnam, Indonesia, and India

                         (Sales agents): covering 58 countries worldwide

 

OFFICER(S):     TSUNEHIRO SHIRAISHI, PRES  Noriaki Kitagawa, v pres

Hisaya Ito, s/mgn dir                Takeshi Tanaka, s/mgn dir

Hirokazu Itakura, mgn dir                      Kazuyoshi Sato, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 70,619 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 231 M

TREND STEADY                       WORTH            Yen 12,563 M

STARTED         1937                             EMPLOYES      200

 

COMMENT:      TRADING HOUSE SPECIALIZING IN INDUSTRIAL CHEMICALS.  FINANCIAL SITUATION CONSIDERED FAIR TO GOOD AND RESPONSIBLE FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established as a trading division by Shiraishi Kogyo KK (see REGISTRATION), in order to export calcium carbonate, manufactured by the parent, for supply to rubber industries.  The firm has since expanded handling items for supply to such industries as: rubber, plastics, sealants & adhesives, paper, paints & coatings, industrial textiles, food & pharmaceuticals, agriculture & stockbreeding, with recent expansion into optical lenses and cosmetic industries.  Calcium carbonate & carbon black are the major items.  Present executives are the founder’s descendants.  Operations cover 58 countries worldwide through 11 overseas affiliates and group firms in China, Singapore, Thailand, India, other.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 70,619 million, a 2% up from Yen 69,095 million in the previous term.  The recurring profit was posted at Yen 943 million and the net profit at Yen 499 million, respectively, compared with Yen 1,060 million recurring profit and Yen 561 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 950 million and the net profit at Yen 550 million, respectively, on a 3% rise in turnover, to Yen 72,730 million.  The weaker Yen will contribute to sales growth in Yen terms.

 

The financial situation is considered FAIR to GOOD and responsible for ORDINARY business engagements. 

 

 

REGISTRATION

           

Date Registered:                                   Nov 1937

Regd No.:                                 2200-01-059647 (Osaka-Kitaku)

Legal Status:                           Limited Company (Kabushiki Kaisha)

Authorized:                                         18.48 million shares

Issued:                                    4.62 million shares

Sum:                                        Yen 231 million

Major shareholders (%):                       Shiraishi Kogyo Kaisha Ltd*(88.2)

No. of shareholders: 58

 

*.. Mfr of calcium carbonate, Hyogo-Pref, founded 1919, capital Yen 550 million, turnover            Yen 18,274 million, operating profit Yen 166 million, recurring profit Yen 170 million, net profit Yen 622 million, employees 175, pres Tsunehiro Shiraishi, concurrently.

 

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

 

 

OPERATION

 

Activities: A trading house for import, export and wholesale of calcium carbonate (15%),            reinforcing agents & fillers (23%), synthetic rubber & resin (15%), rubber chemicals & plastic additives (29%), food additives, agriculture & livestock breeding materials (15%), industrial textile materials, others (3%), covering 58 countries worldwide. 

 

(Import 50%, export 50%)

 

Clients: [Mfrs, wholesalers] Oji Paper, Daio Paper, Chuetsu Pulp & Paper, Toyoda Gosei, Hoya Corp, Tokai Rubber Ind, Hokuetsu Kishu Paper, Elastomix Co, Toray Dow Corning, Asahi Carbon, Tajima Inc, Nishikawa Rubber Ind, Tokai Kogyo, Marusumi Paper, other

No. of accounts: 800

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Tosoh Corp, Asahi Carbon, Shiraishi Kogyo KK, Tokuyama Corp, Bihoku Funka Kogyo, JSR, Tosoh Corp, Elastomix, Shipro Kasei, Ohmi Chemical Ind, Mitsui Chemical, other

 

Payment record: No Complaints

 

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

 

Bank References:

Mizuho Bank (Namba)

MUFG (Umeda)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

Terms Ending:

31/03/2016

31/03/2015

31/03/2014

31/03/2013

Annual Sales

 

72,730

70,619

69,095

63,440

Recur. Profit

 

950

943

1,060

1,039

Net Profit

 

550

499

561

575

Total Assets

 

 

29,214

28,289

28,604

Current Assets

 

 

24,610

24,112

24,359

Current Liabs

 

 

16,028

16,062

16,802

Net Worth

 

 

12,563

11,875

11,287

Capital, Paid-Up

 

 

231

231

231

Div.P.Share(¥)

 

 

20.00

20.00

20.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

2.99

2.21

8.91

-1.36

    Current Ratio

 

..

153.54

150.12

144.98

    N.Worth Ratio

 

..

43.00

41.98

39.46

    R.Profit/Sales

 

1.31

1.34

1.53

1.64

    N.Profit/Sales

 

0.76

0.71

0.81

0.91

    Return On Equity

 

..

3.97

4.72

5.09

 

Notes: Forecast (or estimated) for the 31/03/2016 fiscal term

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.09

UK Pound

1

Rs.101.04

Euro

1

Rs.70.85

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

               

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.