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Report No. : |
347000 |
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Report Date : |
27.10.2015 |
IDENTIFICATION DETAILS
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Name : |
HIKA & CO LTD |
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Registered Office : |
530 Karatsuyamacho Shijo-dori Horikawa Nishi-iru Shimogyoku Kyoto
600-8499 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
September 1947 |
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Com. Reg. No.: |
1300-01-018527 |
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Legal Form : |
Limited Company |
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Line of Business : |
A trading firm for import, export and wholesale of industrial chemicals, food additives, others (100%). |
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No. of Employees : |
54 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 |
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Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
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
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
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.
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.
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.
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.
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
(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 |
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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 |
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N.Worth Ratio |
|
.. |
19.14 |
18.17 |
18.33 |
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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 |
|
|
1 |
Rs.99.55 |
|
Euro |
1 |
Rs.71.64 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.
S