MIRA INFORM REPORT

 

 

Report Date :

23.12.2008

 

IDENTIFICATION DETAILS

 

Name :

KOA REFRACTORIES CO LTD

 

 

Registered Office :

3904-7 Honami Bizen Okayama-Pref 705-0033

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

April 1987

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Refractory Materials

 

 

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 221.0 Million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

name & address

 

KOA REFRACTORIES CO LTD

REGD NAME:   Koa Taika Kogyo KK

MAIN OFFICE:  3904-7 Honami Bizen Okayama-Pref 705-0033 JAPAN

                        Tel: 0869-67-0231     Fax: 0869-67-3312

 

*.. The given address is its Tokyo Branch at: Uchida Bldg 4F, 1-8  Nihombashi-Hakozakicho Chuoku Tokyo 103-0015. Tel: 03-3639-0007, as given.

                       

URL:                 http://www.optic.or.jp/koua/koua.html

E-Mail address: okayama@koa-ref.co.jp

 

 

ACTIVITIES  

 

Mfg of refractory materials

 

 

BRANCHES

 

Tokyo (as given)

 

 

FACTORY(IES)   

 

At the caption address

 

 

OFFICERS

 

MINORU O’I, PRES                              

Tsutomu Watanabe, s/mgn dir

Manabu Kanai, dir                                 

Toshio Korenobu, dir

 

Yen Amount:    In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 6,473 M

PAYMENTS      REGULAR                     CAPITAL           Yen 92 M

TREND             STEADY                       WORTH            Yen 2,522 M

STARTED         1948                             EMPLOYES      72

 

COMMENT

 

MFR SPECIALIZING IN FIREPROOFING PRODUCTS. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 221.0 MILLION, 30 DAYS NORMAL TERMS

 

 

 

HIGHLIGHTS

           

The subject company was established by Masahio Takada in order to make most of his experience in manufacturing silica bricks originally and has since expanded its handling items to cover a wide range of fire-proofing products and materials.  Major products are fireproof products for electric & steel mfg furnaces, including magnesia carbon bricks, base bricks, high alumina bricks, special clay bricks, etc.  Handles block materials, repair materials for these furnaces, too.  The factory is equipped with high-pressure mold oil press for mfg.  Thanks to the robust demand for steel products, particularly spurred by rising economic activities in China and other S/E Asian countries, the products have been very much in demand.  Global economic & financial crisis, however, have started to affect negatively.  Yen’s surge also hinders exports.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2008 fiscal term amounted to Yen 6,473 million, a 13% up from Yen 5,717 million in the previous term.  Products were in robust demand in China and other S/E Asian countries.  The recurring profit was posted at Yen 311 million and the net profit at Yen 138 million, respectively, compared with Yen 363 million recurring profit and Yen 168 million net profit, respectively, a year ago.  Hike in fuel oil prices and materials costs ate into profitability.

 

For the current term ending Mar 2009 the recurring profit is projected at Yen 300 million and the net profit at Yen 130 million, respectively, on a 3% fall in turnover, to Yen 6,300 million.  Global economic crisis will hurt demand at home & abroad.  Major clients of steel mills, auto makers, etc have already started restructuring to tide over the crisis.  Toyota Motor plans to postpone large projects in Japan & overseas.  Toyota Motor will sink into the red this fiscal term.

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 221.0 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered: Apr 1987

Legal Status:     Limited Company (Kabushiki Kaisha)

Authorized:        739,000 shares

Issued:              184.800 shares

Sum:                 Yen 92.4 million

           


 

Major shareholders (%)

 

Masahiko Takada, Shigeo Okusawa, Minoru O’I, Tsutomu Watanabe, Manabu Kanai, Hiroyoshi Iwaya, other (Breakdown unavailable)

No. of shareholders: 87

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

 

 

OPERATION

           

Activities: Manufactures fireproofing products & materials for electric furnaces used in steel mfg, such as pre-cast blocks for roof, wall bricks, ramming materials for bottom, pre-cast tapping sprout, bottom electrode, gunning materials, etc; refractories for special refining ladle, such as various bricks, ramming materials, other; magnesia carbon bricks, base bricks, high alumina bricks, special clay bricks, etc (--100%).

 

 

 

Clients

 

 [Steel mfrs, other mfrs] Tokyo Steel Mfg (8%), Daido Special Metal (8%), Hitachi Metal (8%), Godo Steel (4%), Topy Ind (4%), other. 

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

 

Suppliers

 

[Mfrs, wholesalers] Sojitz Corp (5%), Fuji Kozai (2%), Ohara Kako (2%), Sumitomo Corp, other.

 

Payment record: Regular

 

Location: Light industrial area in Bizen City, Okayama-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

           

Bank References

           

Chugoku Bank (Katagami)

Shoko Chukin Bank (Okayama)

Relations: Satisfactory


 

 

FINANCES: (In Million Yen)

 

       Terms Ending:

31/03/2009

31/03/2008

31/03/2007

31/03/2006

Annual Sales

　

6,300

6,473

5,717

5,015

Recur. Profit

　

300

311

363

133

Net Profit

　

130

138

168

28

Total Assets

　

　

4,988

4,737

4,035

Current Assets

　

　

3,709

3,575

2,929

Current Liabs

　

　

1,738

1,693

1,243

Net Worth

　

　

2,522

2,394

2,240

Capital, Paid-Up

　

　

92

92

92

Div.P.Share(¥)

　

　

10.00

12.00

8.00

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

-2.67

13.22

14.00

0.12

       Current Ratio

 

..

213.41

211.16

235.64

       N.Worth Ratio

..

50.56

50.54

55.51

       R.Profit/Sales

 

4.76

4.80

6.35

2.65

       N.Profit/Sales

2.06

2.13

2.94

0.56

      Return On Equity

..

5.47

7.02

1.25

 

Note: Forecast (or estimated) for the 31/03/2009 fiscal term.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.48.49

UK Pound

1

Rs.71.89

Euro

1

Rs.67.86

 

 

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