MIRA INFORM REPORT

 

 

Report No. :

347587

Report Date :

28.10.2015

 

IDENTIFICATION DETAILS

 

Name :

FRP SERVICE & COMPANY

 

 

Registered Office :

FRP Service Bldg, 1-15-9 Awaza Nishiku Osaka 550-0011

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

October 1972

 

 

Com. Reg. No.:

1200-01-042822 (Osaka-Nishiku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of FRP (fiber-reinforced plastics) materials & intermediates

 

 

No. of Employee :

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

 

FRP SERVICE & COMPANY

 

REGD NAME:   FRP Service KK

 

 

Address

 

FRP Service Bldg, 1-15-9 Awaza Nishiku Osaka 550-0011 JAPAN

Tel:                   06-6535-1933    

Fax:                  06-6535-1674

URL:                 http://www.frpservices.com

E-Mail address: info@frpservices.com

 

 

ACTIVITIES

 

Import, export, wholesale of FRP (fiber-reinforced plastics) materials & intermediates

 

 

BRANCHES

 

Tokyo, Yokohama, Hamamatsu, other (Tot 11)

 

 

OVERSEAS

 

Taipei, Hanoi, Ukraine, Mumbai, Moscow, Karachi, Sri Lanka, Australia

USA, Singapore, Shanghai, UAE, France, other (--subsidiaries)

 

 

OFFICERS

 

TSUNEAKI YANAGIDA, PRES   Hiroshi Shinohara, dir                                                   

Johan K Cooke, dir                                Kenta Yanagida, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 12,532 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 144 M

TREND STEADY                       WORTH            Yen 729 M

STARTED         1972                             EMPLOYES      54

 

 

COMMENT

 

TRADER SPECIALIZING IN FRP AND OTHER INDUSTRIAL CHEMICALS. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established by Tsuneaki Yanagida in order to make most of    his experience in the subject line of business.  This is a trading house specializing in FRP (fiber-reinforced plastics) materials & intermediates, used as parts for aircrafts, space shuttles, artificial satellites, etc.  CFRP (carbonic fiber-reinforced plastics) and BFRP (boric fiber-reinforced plastics) materials have recently become core of its business transactions.  Also handles synthetic resins and other industrial chemicals.  Goods are widely imported and exported through its overseas subsidiaries and rep offices worldwide. Clients include such industries as aircraft, aerospace, and related. 

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2015 fiscal term amounted to Yen 12,532 million, a 6% up from Yen 11,876 in the previous term.  Imports & exports rose.  The weaker Yen contributed to earnings growth in Yen terms.  The recurring profit was posted at Yen 232 million and the net profit at Yen 148 million, respectively, compared with Yen195 million recurring profit and Yen 96 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 240 million and the net profit at Yen 160 million, respectively, on a 5% rise in turnover, to Yen 13,160 million.  Business is seen expanding steadily.

 

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

 

 

REGISTRATION

 

Date Registered:                       Oct 1972

Regd No.:                     1200-01-042822 (Osaka-Nishiku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  1 million shares

Issued:                         288,000 shares

Sum:                            Yen 144 million

Major shareholders (%):           Tsuneaki Yanagida (23.5), Employees’ S/Holding Assn (14.5), Mitsuo Iwamoto (12.5), Hiroshi Shinohara (6.0)

No. of shareholders:                 58

           

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

 

 

OPERATION

 

Activities: Imports, exports and wholesales FRP materials & intermediates (--70%), resins, other industrial  chemicals, textiles, other (--30%).

 

Exports (70%)

(Handling items by divisions):

FRP Div: Glass fiber, Alkali Resistant products, glass flake, carbon fiber, core material,   polyesterresin, Chemicals for FRP, polyester color paste, mold release, filters &      admixtures, tools & equipment;

 

Engineering plastics: ABS resin, PA (polyamide), PBT pure resin, PBT compound, PC (polycarbonate), POM (polyacetal), PP, PET, other;

 

Chemicals Div: organic/inorganic chemicals, intermediates & APIs, polymers & resins;

 

Textile Div: Apparels for men/women/juniors/babies; home textiles (bedding, blanket, curtains,  patchwork quilt, throw, towel, shower curtains); fabrics; yarns (cotton, nylon, polyester, acrylic, rayon, blended); non-woven yarns; accessories (zippers, buttons, ribbons, buckles, interlining, etc).

 

Clients: [Mfrs, wholesalers] FRP Services America, FRP Services Europe, FRP

Services Asia, Farassan Mfg, Chem Search Corp, Amiantit Fiberglass, Planet, Success Kansai, other.  

No. of accounts: 500 (Domestic)

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Singapore Highpolymer, BFG Philippines, Laurenthal                                Enterprises, FRP Services America, FRP Composite, Japan Composite, BASF Inoac                          Polyuretan, other. 

Domestically, Showa Highpolymer, Tokuyama Corp, Mitsui Chemical, Nippon Light Metal, Nippon Electric Glass, other.

 

Payment record: No complaints

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

 

Bank References:

MUFG (Osaka-Nishi)

SMBC (Semba)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2016

31/03/2015

31/03/2014

31/03/2013

Annual Sales

 

13,160

12,532

11,876

9,730

Recur. Profit

 

240

232

195

 

Net Profit

 

160

148

96

-67

Total Assets

 

 

4,026

3,774

3,740

Current Assets

 

 

2,822

2,533

 

Current Liabs

 

 

2,168

2,052

 

Net Worth

 

 

729

639

542

Capital, Paid-Up

 

 

144

144

144

Div.Ttl in Million (¥)

 

 

8.64

0.00

3.6

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.01

5.52

22.06

99.22

    Current Ratio

 

..

130.17

123.44

..

    N.Worth Ratio

 

..

18.11

16.93

14.49

    R.Profit/Sales

 

1.82

1.85

1.64

..

    N.Profit/Sales

 

1.22

1.18

0.81

-0.69

    Return On Equity

 

..

20.30

15.02

-12.36

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.96

UK Pound

1

Rs.99.73

Euro

1

Rs.71.84

 

INFORMATION DETAILS

 

Analysis Done by :

HEE

 

 

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.