MIRA INFORM REPORT

 

 

Report No. :

342817.2

Report Date :

08.10.2015

 

IDENTIFICATION DETAILS

 

Name :

EMORI & CO LTD

 

 

Registered Office :

1-6-23 Keya Fukui 918-8003

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

April 2013

 

 

Com. Reg. No.:

2100-01-015150 (Fukui-Fukui)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Subject is engaged in Import, export, wholesale of chemicals, electronic materials, dyes & textile

 

 

No. of Employee :

241

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

 

 

Payment Behaviour :

Slow and Delayed

 

 

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 

 

EMORI & CO LTD

 

REGD NAME:   Emori Shoji KK

 

 

Address

 

1-6-23 Keya Fukui 918-8003 JAPAN

Tel: 0776-36-1133      Fax: 0776-36-4002

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Import, export, wholesale of chemicals, electronic materials, dyes & textile

 

 

BRANCHES   

 

Tokyo, Osaka, Nagoya, Kanazawa, Tsuruga, Utsunomiya (Tot 7)

 

 

OVERSEAS

 

Warsaw, Dusseldorf, Ho Chi Ming

 

 

OFFICERS

 

TETSUO ICHIKAWA, PRES        Toru Watanabe, mgn dir

Hiroaki Shimizu, mgn dir            Yoshihide Chikugo, mgn dir

Noboru Yamamoto, mgn dir       Takeyoshi Nakayama, mgn dir

                       

Yen Amount:                             In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 54,153 M

PAYMENTSSLOW AND DELAYED CAPITAL      Yen 450 M

      TREND       UP                                WORTH            Yen 578 M       

STARTED         2013                             EMPLOYES      241

 

                                               

COMMENT

 

TRADING FIRM, OWNED BY EMORI CORPORATION.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS, AND GOOD FOR CREDIT ENGAGEMENTS: US$300,000 / 90 DAYS TERMS.

 

 

HIGHLIGHTS

           

The subject company was established originally in 1957 and was incorporated in 2013 by the caption name, and subsequently in 2014 reorganized when the firm went into the equity-owned company of Emori Group Holdings Co Ltd (Now renamed Emori Corporation).  This is a trading firm specializing in import, export and wholesale of chemicals, electronic products, synthetic resins, dyes & textile chemicals, other.  Has overseas offices in Russia, Vietnam and Germany.  Goods are imported from and exported to worldwide destinations.  Domestic clients include chemical makers, wholesalers, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for the Mar/2015 fiscal term (reorganized & renewed firm’s initial accounting term) amounted to Yen 54,153 million.  The recurring profit was posted at Yen 164 million, while the net losses at Yen 3,730 million, respectively, for the term.

 

(Apr/Jun/2015 results): sales Yen 11,200 million, recurring profit Yen 110 million, net profit Yen 3,800 million.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 300 million and the net profit at Yen 6,000 million, on a 5% rise in turnover, to Yen 56,800 million.  Due to the weaker Yen sales may rise further in Yen terms,

 

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

 

 


REGISTRATION

 

Date Registered:                                   Apr 2013

Regd No.:                                             2100-01-015150 (Fukui-Fukui)

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              3.6 million shares

Issued:                                     900,000 shares

Sum:                                        Yen 450 million

Major shareholders (%):                       Emori Corporation* (100)

                                                  *.. Holding company, newly founded in Apr 2015 by Kowa & JWP

 

**.. Emori Group Holdings was bankrupted in Apr 2015 with liabilities at Yen 71,100 million, due to delayed earnings payments from clients in China (as reported), and asked for protection under the Civil Rehabilitation Law on 30/Apr/2015 and accepted on the same      date, and commenced proceeding under the Law on 04/Jun/2015.  The firm delisted from the Tokyo S/E on 31/May/2015.  (In Mar 2015, the firm was reported that: bad debts emerged successively in China, the main markets.)

 

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

 

 

OPERATION

           

Activities: Trading firm for import, export and wholesale of chemicals, electronic-related materials, synthetic resins, dyes & textile chemicals, Information-related products, system development, information service, other (--100%)

 

Clients: [Mfrs, wholesalers] Emori Co (China), Panasonic Corp, Sharp Corp, Sanyo Chemical Ind, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Toa Gosei Co, Renesas Electronics, Panasonic Corp, NTT Data, Sanken Electric, other

 

Payment record: Slow and Delayed

 

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

 

Bank References:

Fukui Bank (H/O)

Mizuho Bank (Toyama)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2016

31/03/2015

Annual Sales

 

56,860

54,153

Recur. Profit

 

300

164

Net Profit

 

6,000

-3,730

Total Assets

 

 

18,529

Current Assets

 

 

17,906

Current Liabs

 

 

17,501

Net Worth

 

 

578

Capital, Paid-Up

 

 

450

Div.P.Share(₯)

 

 

0.00

<Analytical Data>

 

(%)

(%)

    S.Growth Rate

 

5.00

 - - -

    Current Ratio

 

..

102.31

    N.Worth Ratio

 

..

3.12

    R.Profit/Sales

 

0.53

0.30

    N.Profit/Sales

 

10.55

-6.89

    Return On Equity

 

..

-645.33

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.26

UK Pound

1

Rs.99.53

Euro

1

Rs.73.47

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

 

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.