MIRA INFORM REPORT

 

 

Report No. :

345439

Report Date :

17.10.2015

 

IDENTIFICATION DETAILS

 

Name :

CHORI CO LTD

 

 

Registered Office :

1-7-3 Awajimachi Chuoku Osaka 543-8603

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

September 1948

 

 

Com. Reg. No.:

1200-01-077485 (Osaka-Chuoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Subject is Import, export, wholesale of textiles, chemicals

 

 

No. of Employee :

1,180

 

 

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 :

Good

 

 

Payment Behaviour :

Regular

 

 

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

 

CHORI CO LTD

 

REGD NAME:   Chori KK

 

 

Address

 

1-7-3 Awajimachi Chuoku Osaka 543-8603 JAPAN

Tel: 06-6226-5000     Fax: 06-6228-5640

 

*.. The firm is its Tokyo Head Office

 

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

E-Mail address: info@chori.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of textiles, chemicals, others

 

 

BRANCH (ES)

 

Tokyo, Osaka, Yokohama, Kanazawa, Ashikaga, Niigata, Okayama

 

 

OVERSEAS

 

China (15), Asia & Middle East (15), Europe (3), Russia, USA. (-subsidiaries/branch offices/representative offices)

 

 

CHIEF Executive

 

KAZUO SAKIHAMA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 248,396 M

PAYMENTS      REGULAR         CAPITAL           Yen 6,800 M

TREND UP                    WORTH            Yen 41,473 M

STARTED         1948                 EMPLOYES      1,180

 

 

COMMENT

 

MAJOR TEXTILE TRADING HOUSE, AFFILIATED TO TORAY INDUSTRIES. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR BUSINESS ENGAGEMENTS.

 

Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2016 fiscal term

 

 

HIGHLIGHTS

 

This is an old-established company dating back to 1861 starting as a raw silk wholesaler in Kyoto, the center of Japanese kimono makers.  In 1948 incorporated and moved the headquarters to Osaka in 1952.  In 1987, upgraded its Tokyo Branch to Tokyo Headquarters Office.  This is a trading company specializing in textiles and chemicals, two pillars of operations, after drastic reorganizations.  In 2003, the firm lodged huge losses amounting to Yen 4,927 million and received rescue fund from its major shareholders.  In restructuring and pushing for improvement of earnings base. The firm received financial support from Toray Industries Inc (See REGISTRATION) & Asahi Kasei after the end of the financial bubble in the 1990s.  Became a subsidiary of Toray in 2004.  Strong presence in China where operating six subsidiaries and seven offices.  The China business began in 1961, when the firm was designated a “friendly trading company” by the Chinese government.  From 1970 to mid-1980s, Chori exported chemical plant facilities, followed by establishing a series of JV factories for textiles.  In 2005, Chori (China) Co Ltd was established in Shanghai.  Also aims to further expand business in China.  The firm spun off the synthetic resin business, and specializing in textiles and chemicals. 

           

           

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 248,396 million, a 1.7% up from Yen 244,286 million in the previous term.  The recurring profit was posted at Yen 5,966 million and the net profit at Yen 4,153 million, respectively, compared with Yen 5,831 million recurring profit and Yen 3,715 million net profit, respectively, a year ago. 

 

(Apr/Jun/2015 results): Sales Yen 59,072 million (up 7.6%), operating profit Yen 887 million (up 21.8%), recurring profit Yen 1,099 million (up 51.8%), net profit Yen 828 million (down 29.6%).  (% compared with the corresponding period a year ago). 

           

For the current term ending Mar 2016 the recurring profit is projected at Yen 6,800 million and the net profit at Yen 4,400 million, on a 24.8% rise in turnover, to Yen 310,000 million.  Chemicals will remain favorable, backed by growing pharmaceuticals-related sales.  The textile business will also expand as a result of rising sales of functional materials and increased trilateral trading in S/E Asia.  Profit margin will gradually improve thanks to production streamlining.

 

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

 

 

REGISTRATION

 

Date Registered:                       Sept 1948

Regd No.:                                 1200-01-077485 (Osaka-Chuoku)

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                  550 million shares

Issued:                         25,303,478 shares

Sum:                            Yen 6,800 million

           

Major shareholders (%): Toray Industries Inc*(51.2), BBH Fidelity Intrinsic Opps. (4.9), Company’s Treasury Stock (3.1), Inter Trust K (Cayman) T of Japan (2.9), Wacoal Corp (2.1), BBH Fidelity Low Priced Stock F (1.9), Northern Trust (AVFC) Re Fidelity (0.9), Mellon Bank Treaty Cl. Omnibus (0.9), Master Trust Bank of Japan T (0.8), Japan Trustee Services T (0.8); foreign owners (21.2)

           

No. of shareholders: 4,984

 

* Largest mfr of synthetic fibers, Tokyo, founded 1925, listed Tokyo S/E, capital Yen 147,873 million, turnover Yen 2,010,734 million, operating profit Yen 123,481 million, recurring profit Yen 128,572 million, net profit Yen 71,021 million, total assets Yen 2,411,783 million, net worth Yen 994,713 million, employees 45,789, pres Akihiro Nikkaku

 

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

 

Managements: Kazuo Sakihama, pres; Masayuki Hatsuya, s/mgn dir; Toshihiko Ando, mgn dir; Nagao Iseda, mgn dir; Kunihisa Inoue, dir; Shigemasa Yabu, dir; Hiroyuki Watanabe, dir; Kazuhiko Shimokobe, dir

           

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

 

Related companies: Tokyo Kutsushita, Chori Gomu, Chori Imaging Corp, other.

 

 

OPERATION

           

Activities: A trading house for import, export and wholesale of textiles, chemicals, others:

 

(Sales Breakdown by Divisions):

 

Textile Division (47%): raw yarns made of chemical fibers, synthetic fibers, raw silk & other natural fibers, non-woven textiles, woven fabrics, knit fabrics, and other products made of chemical fibers, synthetic fibers, silk fibers & other natural fibers, industrial materials;

 

Chemicals Division (37%): organic & inorganic chemicals (monomer, synthetic fiber, polyurethane materials, fine chemicals (medical, agricultural & organic intermediaries), industrial chemicals (glass substrate materials used in flat-panel displays, inorganic fine chemicals), life science (protein- & sweetener-based food chemicals, additives, health foods, taurine, energy drink ingredients).

 

Machinery Division (16%): cars, motorcycles, specialized vehicles & parts thereof, membranes for caustic soda plants, packaging machines, solar battery components;

 

Overseas Sales Ratio (53%)

 

Clients: [Mfrs, wholesalers] Toray Ind, Aoyama Trading, Chori (China), Itokin, Ministry of Defense, Fukuvi Chemical Ind, Nippon Electric Glass, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Toray Ind, Mitsui Chemical, Tosoh Corp, Showa Denko, Asahi Kasei Chemicals, Shimada Trading, Nishikawa Keori KK, Takisada Nagoya, Takisada Osaka, Yoshida Fusa Orimono, other. .

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Osaka)

MUFG (Osaka)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

248,396

244,286

　

  Cost of Sales

226,239

222,755

　

      GROSS PROFIT

22,157

21,530

　

  Selling & Adm Costs

16,604

16,037

　

      OPERATING PROFIT

5,552

5,492

　

  Non-Operating P/L

414

339

　

      RECURRING PROFIT

5,966

5,831

　

      NET PROFIT

4,153

3,715

BALANCE SHEET

　

　

  Cash

　

7,732

5,821

　

  Receivables

43,897

42,328

　

  Inventory

11,338

10,378

　

  Securities, Marketable

　

　

　

  Other Current Assets

8,927

8,591

　

      TOTAL CURRENT ASSETS

71,894

67,118

　

  Property & Equipment

1,325

744

　

  Intangibles

723

857

　

  Investments, Other Fixed Assets

10,347

9,502

　

      TOTAL ASSETS

84,289

78,221

　

  Payables

33,165

32,324

　

  Short-Term Bank Loans

986

949

　

　

　

　

　

  Other Current Liabs

6,513

6,231

　

      TOTAL CURRENT LIABS

40,664

39,504

　

  Debentures

20

　

　

  Long-Term Bank Loans

22

52

　

  Reserve for Retirement Allw

2,018

2,076

　

  Other Debts

　

91

171

　

      TOTAL LIABILITIES

42,815

41,803

　

      MINORITY INTERESTS

　

　

Common stock

6,800

6,800

　

Additional paid-in capital

1,700

1,700

　

Retained earnings

30,759

27,671

　

Evaluation p/l on investments/securities

1,428

458

　

Others

1,568

568

　

Treasury stock, at cost

(782)

(780)

　

      TOTAL S/HOLDERS` EQUITY

41,473

36,417

　

      TOTAL EQUITIES

84,289

78,221

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

3,320

1,716

　

Cash Flows from Investment Activities

-813

-208

　

Cash Flows from Financing Activities

-840

-506

　

Cash, Bank Deposits at the Term End

　

11,584

1,481

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

41,473

36,417

　

Current Ratio (%)

176.80

169.90

　

Net Worth Ratio (%)

49.20

46.56

　

Recurring Profit Ratio (%)

2.40

2.39

　

Net Profit Ratio (%)

1.67

1.52

　

　

Return On Equity (%)

10.01

10.20

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.97

UK Pound

1

Rs.100.55

Euro

1

Rs.73.99

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.