MIRA INFORM REPORT

 

 

Report Date :

29.09.2007

 

IDENTIFICATION DETAILS

 

Name :

MORIRIN CO LTD

 

 

Registered Office :

4-22-10 Honmachi Ichinomiya Aichi-Pref 491-8610

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2007

 

 

Date of Incorporation :

Mar 1918

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of yarns, textiles, garments, interior fashions

 

 

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

 

Maximum Credit Limit :

Yen 2995 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

name

 

MORIRIN CO LTD

 

 

REGD NAME

 

Moririn KK

 

 

MAIN OFFICE

 

4-22-10 Honmachi Ichinomiya Aichi-Pref 491-8610 JAPAN

Tel        : 0586-25-2261 

Fax       : 0586-72-1113

URL      : http://www.moririn.co.jp/

E-Mail address: contact-us.jp@moririn.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of yarns, textiles, garments, interior fashions

 

 

BRANCHES

 

Tokyo (2), Osaka, Nagoya, Okayama, Sapporo, Niigata, Gifu, Fukuyama

 

 

FACTORY(IES)

 

(subcontracted) China (9) (subsidiaries), Niigata (subsidiary)

Tsukuba (Domestic distribution center)

 

           

OFFICER(S)

 

KATSUHIKO MORI, PRES & CEO          Akio Eguchi, mgn dir

Eizo Kobayashi, mgn dir                         Shinobu Mori, mgn dir

Koji Kihara, mgn dir                                Koji Nomura, mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 128,780 M

PAYMENTS      REGULAR                     CAPITAL           Yen 1,280 M

TREND             STEADY                       WORTH            Yen 19,013 M

STARTED         1918                             EMPLOYES      621

 

 

COMMENT

 

TRADING HOUSE SPECIALIZING IN TEXTILES & GARMENTS.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 2,995.0 MILLION, 30 DAYS NORMAL TERMS.

 

                                                            *.. Estimated figures for the 28/02/2008 fiscal term.

 

 

HIGHLIGHTS

 

This is an old established cotton textile dealer dating back to 1662 and was reactivated by Rin’yemon Mori (“Moririn” came from his name “Rin” & “Mori” reversed) as a textile merchant, on his account.  Incorporated in 1918 the firm has been succeeded by his descendants.  Originally started as a cotton yarn manufacturer having factories in Manchuria (now China) and Korea.  Lost the overseas assets and factories by the World War II, the firm had to close overseas factories.  War ended and in 1946 restarted production of cotton yarns in Japan, establishing Nagoya Office Building in 1960.  The firm has since diversified into various ranges of textiles, from yarns, fibers, to woven/knitted garments, apparel accessories, bedding & interior fashions, industrial materials, and sewing threads.  Apparel division has now grown to be the major operation.  Sole import agent of Lenzing, Austria for handling eco-friendly cellulosic fibers and textile products.  Operates 9 sewing factories in China.

           

 

FINANCIAL INFORMATION

 

The sales volume for Feb/2007 fiscal term amounted to Yen 128,780 million, a 14.2% hike from Yen 112,743 million in the previous term.  Newly added consolidated subsidiary, Iwaki Apparel’s division, contributed for the full term.  Dunlop Sports wear started steady growth.  Production in China increased.  As a result, the recurring profit was posted at Yen 1,674 million and the net profit at Yen 631 million, respectively, compared with Yen 1,001 million recurring profit and Yen 475 million net profit, respectively, a year ago. 

 

For the term just ended Feb 2008 the recurring profit is projected at Yen 1,700 million and the net profit at Yen 640 million, respectively, on a 4.8% rise in turnover, to Yen 135,000 million.  Rising material costs and operation costs in China remain as a concern to deteriorate profitability.

 

The financial situation is considered FAIR to GOOD and responsible for ORDINARY business engagements.  Max credit limit is estimated at Yen 2,995.0 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:            Mar 1918

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    4 million shares

Issued:                          1.96 million shares

Sum:                            Yen 980 million

Major shareholders (%): Tatsumi Shokusan*(7.1), Katsuhiko Mori (4.7), Kenkichi Mori (3.6), Moririn Kosan*(2.4),

                                     Shunji Mori (2.0), Akira Mori (1.6), other

*.. Both subsidiaries

No. of shareholders:       746

 

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

 

 

OPERATION

 

Activities: Trading house, with mfg division, for import, export and wholesale of:

 

Yarns/fibers (17.7%): knitting yarn, synthetic fiber yarn (polyester, acrylic, etc), bamboo fiber, dyed yarn, other;

Textiles/Materials (13.1%): textile materials, textile threads (cotton, wool, cashmere, silk, acryl,    polyester, etc);

Apparel (59.1%): garments for men, women and children, sports goods (sports wear, shirts, caps, socks, etc);

(Handling brands): Michiko London Jeans, Dunlop Motor Sports, Rutia, Juriae, Le Lionceau, Donnay, Sketchers, Captain Stag, Lyle & Scott, other.

Interior Goods, Industrial-use Materials, others (10.1%): rugs & carpets, cushions, mats, bedding, bed clothes, blanket, down quilt, pillows, industrial textile materials, construction & civil engineering materials, sandbags, scaffolding tarps, flexible containers, agricultural netting,    commercial fishing lines, cellulosic fibers (imports from Lenzing, Austria);

Imports & Exports (7.9%).

 

Clients: [Chain stores, department stores, specialty stores, supermarkets] Itokin Inc, Aeon Co & group stores, Ito-Yokado, Daiei, Uny, Sumitomo Rubber Ind, Mitsukoshi, Takashimaya, Shimamura, Mutow Co, Senshukai, Seiren Co, other.

 

No. of accounts: 2,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Toray Ind, Mitsubishi Rayon Textile, Mitsubishi Rayon, Toho Textile, Unitika Sakai, Marubeni Corp, Teijin Fiber, Fuji Spinning, Japan Wool Textile, other.

 

Payment record: Regular

 

Location: Business area in Ichinomiya City, adjacent to Nagoya City.  Office premises at the caption address are owned and maintained satisfactorily.

 

 

Bank References

 

MUFG (Ichinomiya)

SMBC (Nagoya)

 

Relations: Satisfactory

 

 

 

 

 

 

Finances

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

28/02/2007

28/02/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

128,780

112,743

 

  Cost of Sales

110,341

95,904

 

      GROSS PROFIT

18,438

16,839

 

  Selling & Adm Costs

17,134

16,159

 

      OPERATING PROFIT

1,303

680

 

  Non-Operating P/L

371

321

 

      RECURRING PROFIT

1,674

1,001

　

      NET PROFIT

631

475

BALANCE SHEET

 

 

 

 

  Cash

　

2,475

3,382

 

  Receivables

 

26,609

30,696

 

  Inventory

 

8,343

7,214

 

  Securities, Marketable

　

　

 

  Other Current Assets

2,507

658

 

      TOTAL CURRENT ASSETS

39,934

41,950

 

  Property & Equipment

7,138

7,564

 

  Intangibles

 

246

283

 

  Investments, Other Fixed Assets

11,054

12,184

 

      TOTAL ASSETS

58,372

61,981

 

  Payables

 

20,037

19,823

 

  Short-Term Bank Loans

8,274

11,800

 

　

 

　

　

 

  Other Current Liabs

1,858

3,555

 

      TOTAL CURRENT LIABS

30,169

35,178

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

4,887

2,974

 

  Reserve for Retirement Allw

1,032

1,249

 

  Other Debts

　

3,271

3,583

 

      TOTAL LIABILITIES

39,359

42,984

 

      MINORITY INTERESTS

 

342

 

Common stock

1,280

1,280

 

Additional paid-in capital

4

0

 

Retained earnings

13,898

13,291

 

Evaluation p/l on investments/securities

3,405

4,110

 

Others

 

450

2

 

Treasury stock, at cost

(24)

(29)

 

      TOTAL S/HOLDERS` EQUITY

19,013

18,654

　

      TOTAL EQUITIES

58,372

61,981

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

28/02/2007

28/02/2006

 

Cash Flows from Operating Activities

　

3,557

-236

 

Cash Flows from Investment Activities

-654

-263

 

Cash Flows from Financing Activities

-3,899

1,476

　

Cash, Bank Deposits at the Term End

　

2,473

3,380

ANALYTICAL RATIOS            Terms ending:

28/02/2007

28/02/2006

 

 

Net Worth (S/Holders' Equity)

19,013

18,654

 

 

Current Ratio (%)

132.37

119.25

 

 

Net Worth Ratio (%)

32.57

30.10

 

 

Recurring Profit Ratio (%)

1.30

0.89

 

 

Net Profit Ratio (%)

0.49

0.42

 

 

Return On Equity (%)

3.32

2.55

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. 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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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