MIRA
INFORM REPORT
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Report Date : |
16.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
MITSUI GRINDING WHEEL CO LTD |
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Registered Office : |
11-10 Sayamagahara Iruma City Saitama-Pref 358-0032 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
March 1974 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of Grinding Wheels & Stones |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Maximum Credit Limit : |
YEN 102.0 Million |
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Status : |
Small Company |
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Payment Behaviour : |
Regular |
name & address
MITSUI GRINDING WHEEL CO LTD
REGD NAME: Mitsui Kensaku Toishi
KK
MAIN OFFICE: 11-10 Sayamagahara
Iruma City Saitama-Pref 358-0032 JAPAN
Tel:
04-2934-5261 Fax: 04-2934-6074
URL: http://www.mitsui-kensaku.com/
E-Mail address: info@mks-tokyo.co.jp
ACTIVITIES
Mfg of grinding wheels & stones
BRANCHES
Tokyo, Yamato (Kanagawa), Osaka, Hiroshima, Nagoya, Sendai
FACTORY(IES)
At the caption address
Overseas
Mitsui Grinding Technology (Thailand) Co Ltd (subsidiary)
OFFICER(S)
MASAO OOMURA, PRES
Akira Sakai, v pres
Izumi Hayakawa, dir
Hiroe Suzuki, dir
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 3,380 M
PAYMENTS REGULAR CAPITAL Yen 400 M
TREND STEADY WORTH Yen 2,380 M
STARTED 1974 EMPLOYES 115
COMMENT
MFR OF GRINDING WHEELS, WHOLLY OWNED BY MITSUI MINING &
SMELTING CO LTD.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 102.0 MILLION, 30 DAYS NORMAL TERMS
HIGHLIGHTS
The subject company dates back to 1917 when Mitsui Mining Co Ltd (now Mitsui Mining & Smelting Co Ltd) succeeded the business of abrasive division from Kagoshima Electric Co Ltd, which started mfg of artificial abrasives for the first time in Japan. In 1974, the abrasive mfg division spun off from Mitsui Mining & Smelting Co and became independent company. In 1976, started marketing CBN wheel & diamond wheels. In 1990, signed technology transfer contract with Dongil Co Ltd, Korea. In 1994, founded Mitsui Grinding Technology (Thailand) Co Ltd for mfg grinding wheels and marketing them in ASEAN countries. Clients include major automakers, steel mills, other nationwide.
FINANCIAL INFORMATION
Financials are only partially disclosed as they are consolidated by the parent, Mitsui Mining & Smelting Co Ltd (The consolidated financials are as attached)
The sales volume for Mar/2007 fiscal term amounted to Yen 3,380 million, a 0.3% up from Yen 3,371 million in the previous term. The net profit was posted at Yen 200 million, compared with Yen 199 million a year ago. Demand from automobile industry remained steady.
For the current term ending Mar 2008 the net profit is projected at Yen 210 million, on a 4% rise in turnover, to Yen 3,500 million. Demand from auto industry will continue expanding.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max credit limit is estimated at Yen
102.0 million, on 30 days normal terms.
REGISTRATION
Date Registered: Mar 1974
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 3.2
million shares
Issued: 800,000
shares
Sum: Yen
400 million
Major shareholders (%)
Mitsui Mining & Smelting Co
Ltd*(100)
* Leading nonferrous metal mfr, Tokyo, founded 1950, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 42,129 million, turnover Yen 591,198 million, operating profit Yen 38,865 million, recurring profit Yen 56,585 million, net profit Yen 31,370 million, total assets Yen 483,397 million, net worth Yen 185,512 million, employees 10,403, pres Yoshihiro Takebayashi
Consolidated Financials are as attached (See SUPPLEMENTS)
Nothing detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Manufactures grinding stones & wheels
(precision grinding stones, super-abrasive wheels,
etc) (--100%).
Customers
by industry: Automobile (32%), tools & parts (12%), bearings (16%),
electric machinery
(10%), machinery & equipment (4%), ceramics, etc (13%), others (13%).
Clients
[Auto makers, steel mills, other mfrs] Toyota Motor, Isuzu Motor, Hino Diesel, Nissan Motors, Nippon Steel, Posh Co, other.
No. of accounts
500
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Mitsui Grinding Technology (Thailand), Showa Denko, Sumitomo
Bakelite, Nagase & Co, other.
Payment record
Regular
Location
Business area in Iruma City, Saitama-Pref. Office premises at the caption address are owned and maintained satisfactorily.
Bank References
SMBC (Tokorozawa)
Chuo Mitsui Trust Bank (Tokorozawa)
Relations: Satisfactory
FINANCES: (In Million Yen)
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Terms Ending: |
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31/03/2008 |
31/03/2007 |
31/03/2006 |
31/03/2005 |
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Annual
Sales |
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3,500 |
3,380 |
3,371 |
3,032 |
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Recur.
Profit |
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Net
Profit |
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210 |
200 |
199 |
136 |
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Total
Assets |
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N/A |
N/A |
N/A |
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Net
Worth |
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2,380 |
2,180 |
1,981 |
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Capital,
Paid-Up |
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400 |
400 |
400 |
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Div.P.Share(¥) |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
3.55 |
0.27 |
11.18 |
6.13 |
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Current Ratio |
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.. |
.. |
.. |
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N.Worth Ratio |
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.. |
.. |
.. |
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N.Profit/Sales |
6.00 |
5.92 |
5.90 |
4.49 |
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Notes: Financials are only partially disclosed.
Forecast (or estimated) figures for the 31/03/2008 fiscal
ter
SUPPLEMENTS:
CONSOLIDATED FINANCIALS OF THE PARENT, MITSUI MINING &
SMELTING CO LTD.
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2007 |
31/03/2006 |
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INCOME STATEMENT |
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Annual Sales |
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591,518 |
503,370 |
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Cost of Sales |
500,734 |
412,003 |
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GROSS PROFIT |
90,784 |
91,366 |
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Selling & Adm Costs |
51,918 |
46,314 |
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OPERATING PROFIT |
38,865 |
45,052 |
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Non-Operating P/L |
17,720 |
5,435 |
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RECURRING PROFIT |
56,585 |
50,487 |
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NET PROFIT |
31,370 |
23,374 |
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BALANCE SHEET |
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Cash |
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17,306 |
16,944 |
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Receivables |
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92,828 |
83,496 |
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Inventory |
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88,560 |
79,165 |
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Securities, Marketable |
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Other Current Assets |
19,742 |
29,149 |
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TOTAL CURRENT ASSETS |
218,436 |
208,754 |
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Property & Equipment |
195,604 |
203,906 |
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Intangibles |
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2,222 |
2,194 |
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Investments, Other Fixed Assets |
67,135 |
45,371 |
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TOTAL ASSETS |
483,397 |
460,225 |
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Payables |
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48,064 |
46,896 |
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Short-Term Bank Loans |
58,843 |
63,623 |
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Other Current Liabs |
53,940 |
51,651 |
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TOTAL CURRENT LIABS |
160,847 |
162,170 |
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Debentures |
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40,000 |
31,000 |
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Long-Term Bank Loans |
43,376 |
57,210 |
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Reserve for Retirement Allw |
31,068 |
29,382 |
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Other Debts |
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10,215 |
8,967 |
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TOTAL LIABILITIES |
285,506 |
288,729 |
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MINORITY INTERESTS |
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11,724 |
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Common
stock |
42,129 |
42,129 |
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Additional
paid-in capital |
22,557 |
22,557 |
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Retained
earnings |
117,181 |
91,275 |
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Evaluation
p/l on investments/securities |
5,081 |
5,914 |
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Others |
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11,058 |
(2,010) |
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Treasury
stock, at cost |
(116) |
(93) |
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TOTAL S/HOLDERS` EQUITY |
197,890 |
159,772 |
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TOTAL EQUITIES |
483,397 |
460,225 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2007 |
31/03/2006 |
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Cash
Flows from Operating Activities |
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34,077 |
44,800 |
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Cash
Flows from Investment Activities |
-30,021 |
-43,039 |
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Cash
Flows from Financing Activities |
-4,744 |
-1,278 |
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Cash,
Bank Deposits at the Term End |
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17,304 |
16,944 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
197,890 |
159,772 |
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Current
Ratio (%) |
135.80 |
128.73 |
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Net
Worth Ratio (%) |
40.94 |
34.72 |
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Recurring
Profit Ratio (%) |
9.57 |
10.03 |
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Net
Profit Ratio (%) |
5.30 |
4.64 |
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Return
On Equity (%) |
15.85 |
14.63 |
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RATING EXPLANATIONS
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)