MIRA INFORM REPORT

 

 

Report No. :

347000

Report Date :

27.10.2015

 

IDENTIFICATION DETAILS

 

Name :

HIKA & CO LTD

 

 

Registered Office :

530 Karatsuyamacho Shijo-dori Horikawa Nishi-iru Shimogyoku Kyoto 600-8499

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

September 1947

 

 

Com. Reg. No.:

1300-01-018527

 

 

Legal Form :

Limited Company

 

 

Line of Business :

A trading firm for import, export and wholesale of industrial chemicals, food additives, others (100%).

 

 

No. of Employees :

54

 

 

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

 

HIKA & CO LTD

 

REGD NAME:   Hika Sangyo KK

MAIN OFFICE:  530 Karatsuyamacho Shijo-dori Horikawa Nishi-iru Shimogyoku Kyoto

600-8499 JAPAN

                                    Tel: 075-801-6311     Fax: 075-812-3217

 

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

E-Mail address: international-info@hika.co.jp

 

ACTIVITIES:     Import, export, wholesale of industrial chemicals

 

BRANCHES:     Tokyo, Osaka, Nagoya, other (Tot 6)

FACTORIES:    Saitama, Osaka, Kyoto (--warehouses)

 

OFFICERS:       KEN’ICHIRO HIKA, PRES          Masatsugu Hika, ch

                                    Masahiko Tsukamoto, mgn dir    Yasuhiko Oyama, dir    

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 11,594 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 90 M

TREND STEADY                       WORTH            Yen 922 M

STARTED         1947                             EMPLOYES      54

 

COMMENT:      TRADING HOUSE SPECIALIZING IN INDUSTRIAL CHEMICALS.   FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDI- NARY BUSINESS ENGAGEMENTS, AND GOOD FOR CREDIT  ENGAGEMENTS: US$800,000 / O/A 60 DAYS TERMS.

 

 

HIGHLIGHTS

 

The subject company was established originally in 1887 by a certain Hika for selling dyestuffs & soaps, on his account.  Incorporated in 1947, the firm has been succeeded by his descendants.  Ken’ichiro took the pres office in Feb 2013.  This is a specialized trading firm of industrial chemicals, such as surfactant, synthetic resins, dyestuffs, pigments, intermediates, food additives, paints, ink, electronic chemicals, other (see OPERATION).  Goods are widely imported from and exported to Europe, S/E Asia, Oceania, Americas, etc.  Focusing on environmental-related chemicals and food-related supplies.  Clients include chemical mfrs, paper mills, apparel mfrs, nationwide. 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2014 fiscal term amounted to Yen 11,594 million, a shade up from Yen 11,520 million in the previous term.  The recurring profit was posted at Yen 122 million and the net profit at Yen 56 million, respectively, compared with Yen 109 million recurring profit and Yen 52 million net profit, respectively, a year ago. 

 

For the current term ending Dec 2015 the recurring profit is projected at Yen 130 million and the net profit at Yen 60 million, respectively, on a 5% rise in turnover, to Yen 12,200 million. 

 

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

 

 

REGISTRATION

 

Date Registered:                                   Sept 1947

Regd No.:                                 1300-01-018527 (Kyoto-Shimogyoku)

Legal Status:                           Limited Company (Kabushiki Kaisha)

Authorized:                             720,000 shares

Issued:                                    180,000 shares

Sum:                                        Yen 90 million

Major shareholders (%):                       Masatsugu Hika (16), Noboru Katayama (5), Masahiko

Tsukamoto (5), Takahide Oyama (4), Tohru Araki (4)

No. of shareholders:                 101

 

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

 

 

OPERATION

 

Activities: A trading firm for import, export and wholesale of industrial chemicals, food additives, others (100%).

 

(Products handled):

 

Environmental-related: ozonolysis agents, waste ozone disposal facilities;

 

Surfactants for industries, such as: detergent, pulp/paper, textile processing, leather processing, pharmaceuticals & cosmetics, agriculture, food processing, pigments, paints & inks, adhesives, metals, rubber/plastics, information, other;

 

Fine chemicals: ink-jet chemicals, photo-copying chemicals, plasticizer, anti-oxidants, ultraviolet absorbent, antistatic agents, stabilizers, adhesives, corrosive proof agents, antiseptics, fungicides, antibacterial agents, flame retarders, enzymes, organic dyes, other;

 

Synthetic resins for application to: molding, impregnation, coating, packing, adhesives, civil engineering works, paintings, textile processing, silicon resins, films, others;

 

Textile processing chemicals: fabric softeners, polishing/cleaning agents, coloring agents, antistatic agents, soft finishing agents, flame retarding agents, anti-corrosives, coatings, packing agents, others;

 

Pharmaceuticals/cosmetics: raw materials & intermediates, surfactants, glycerin, PG, PEG, fragrant materials, micro filters, others:

 

Inorganic chemicals: caustic soda, soda ashes, bicarbonate soda, phosphate, silicate, nitrate salt, hydrogen peroxide, sodium percarbonate, sulfuric acids, calcium hydroxide, other;

 

Dyestuffs/pigments/intermediates: fluorescent bleaching agents (for use in textiles, detergents, paper processing, plastics, etc), dyestuffs (for textile, paper, leather & plastics), pigments, intermediates, others;

 

Oil & fats/waxes/solvents: vegetable oils, animal oils, mineral oils, alcohols, glycerin, solid paraffin, waxes, poly-ethylene waxes, solvents, others;

 

Food additives: glucose, fluctose, sorbit, CMC, PG, fragrance, surfactants, organic acids, phosphate, other;

 

Others: Oxidants, reducing agents, detergents, dry-cleaning chemicals, semi-conductor-related chemicals, other.

 

Countries for imports/exports: China, Taiwan, Hong Kong, Korea, Malaysia, Singapore, Bangladesh, Philippines, India, Vietnam, UK, Germany, Italy, Switz, France, Austria, Netherlands, Norway, Spain Poland, Czech, Turkey, Australia, New Zealand, USA, other.

 

Clients: [Mfrs, wholesalers] Niitaka Co, Churika Co, Palace Chemical, DSK Co, Sanyo     Medical, Matsumoto-Yushi Seiyaku Co, ST Corp, Daiichi Kogyo Seiyaku, other. 

Goods are also exported.

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Itochu Corp, BASF Japan, Clariant Japan, Konica             Minolta Holdings, Miyoshi Oil & Fat, Daiichi Kogyo Seiyaku, Chirika Co, Sanyo          Chemical Ind, Itochu Chemical Frontier, Sanyo Chemical Ind, Global Amins Japan, Matsumoto Yushi-Seiyaku, Maruzen Chemicals, other. 

Goods are also imported.

 

Payment record: No Complaints

 

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

 

Bank References:

Bank of Kyoto (Omiya)

MUFG (Kyoto-Chuo)

Relations: Satisfactory


FINANCES

 

(In Million Yen)

Terms Ending:

31/12/2015

31/12/2014

31/12/2013

31/12/2012

Annual Sales

 

12,200

11,594

11,520

11,431

Recur. Profit

 

130

122

109

130

Net Profit

 

60

56

52

65

Total Assets

 

 

4,818

4,816

4,566

Current Assets

 

 

4,060

3,904

3,736

Current Liabs

 

 

3,156

3,479

3,202

Net Worth

 

 

922

875

837

Capital, Paid-Up

 

 

90

90

90

Div.Ttl in Million (¥)

 

 

9

13.5

9

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.23

0.64

0.78

-5.85

    Current Ratio

 

..

128.64

112.22

116.68

    N.Worth Ratio

 

..

19.14

18.17

18.33

    R.Profit/Sales

 

1.07

1.05

0.95

1.14

    N.Profit/Sales

 

0.49

0.48

0.45

0.57

    Return On Equity

 

..

6.07

5.94

7.77

 

Notes: Forecast (or estimated) figures for 31/12/2015 fiscal term.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.96

UK Pound

1

Rs.99.55

Euro

1

Rs.71.64

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.

 
 


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