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MIRA INFORM REPORT
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Report No. : |
490517 |
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Report Date : |
05.02.2018 |
IDENTIFICATION DETAILS
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Name : |
HIKA & CO LTD |
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Registered Office : |
530 Karatsuya-Cho Shijo-Dori Horikawa Nishi-Iru Shimogyoku Kyoto
600-8499 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
Sept., 1947 |
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Com. Reg. No.: |
1300-01-018527 (Kyoto-Shimogyoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export and wholesale of industrial
chemicals |
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No. of Employees : |
56 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II 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 have significantly eroded under the dual pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2017 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. For three postwar decades, overall real economic growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which entailed considerable 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.
Japan enjoyed an 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. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the necessity of addressing its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to another recession, so Prime Minister ABE has twice postponed the next increase, now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Japan was the second country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP on January 23, 2017, and as of April 2017 the agreement has not gone into effect.
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Source
: CIA |
Company
name and address
HIKA
& CO LTD
REGD
NAME: Hika Sangyo KK
MAIN
OFFICE: 530 Karatsuya-cho 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
SUMMARY
FINANCES FAIR A/SALES Yen 11,262 M
PAYMENTS NO
COMPLAINTS CAPITAL Yen 90 M
TREND STEADY WORTH Yen
1,029 M
STARTED 1947 EMPLOYES 56
COMMENT
TRADING HOUSE
SPECIALIZING IN INDUSTRIAL CHEMICALS.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS,
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. 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, etc, nationwide.
FINANCIAL
INFORMATION
The
sales volume for Dec/2016 fiscal term amounted to Yen 11,262 million, a 2% fall
from Yen 11,458 million in the previous term. The recurring profit was posted
at Yen 148 million and the net profit at Yen 63 million, respectively, compared
with Yen 145 million recurring profit and Yen 61 million net profit,
respectively, a year ago.
For the current term ending Dec 2017 the
recurring profit is projected at Yen 155 million and the net profit at Yen 70
million, respectively, on a 3% rise in turnover, to Yen 11,560 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, Konica Minolta, Japan Coasting, 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)
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Terms Ending: |
31/12/2017 |
31/12/2016 |
31/12/2015 |
31/12/2014 |
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Annual Sales |
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11,560
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11,262
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11,458
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11,594
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Recur. Profit |
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155 |
148 |
145 |
122 |
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Net Profit |
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70 |
63 |
61 |
56 |
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Total Assets |
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4,735 |
4,692 |
4,818 |
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Current Assets |
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2,839 |
3,863 |
4,060 |
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Current Liabs |
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2,959 |
3,015 |
3,156 |
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Net Worth |
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1,029 |
974 |
922 |
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Capital, Paid-Up |
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90 |
90 |
90 |
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Div.Ttl in Million (¥) |
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9 |
9 |
9 |
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<Analytical
Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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2.65 |
-1.71 |
-1.17 |
0.64 |
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Current Ratio |
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.. |
95.94 |
128.13
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128.64
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N.Worth Ratio |
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.. |
21.73 |
20.76 |
19.14 |
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R.Profit/Sales |
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1.34 |
1.31 |
1.27 |
1.05 |
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N.Profit/Sales |
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0.61 |
0.56 |
0.53 |
0.48 |
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Return On Equity |
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.. |
6.12 |
6.26 |
6.07 |
Notes: Forecast (or estimated) figures for
31/12/2017 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.08 |
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1 |
INR 91.34 |
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Euro |
1 |
INR 80.03 |
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Yen |
1 |
INR 0.58 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.