MIRA
INFORM REPORT
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Report Date : |
08.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
KOWA CORPORATION |
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Registered Office : |
Kowa Bldg, 1-3-31 Nishikujo Konohanaku Osaka 554-0012 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
February 1960 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Lubrication System, Artificial Fishing Reef,
Underwater Research Robots, Other |
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 63.0 Million |
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Status : |
Small Company |
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Payment Behaviour : |
Regular |
NAME & ADDRESS
KOWA CORPORATION
REGD NAME: Kowa KK
MAIN OFFICE: Kowa Bldg, 1-3-31 Nishikujo Konohanaku Osaka
554-0012 JAPAN
Tel:
06-6462-7155 Fax: 06-6468-3298
E-Mail address: (thru
the URL)
ACTIVITIES
Mfg of lubrication system, artificial fishing reef,
underwater research robots, other
BRANCHES
Tokyo, Hiroshima, Sapporo, Iwate, Aomori, Nagasaki,
Kumamoto, other (Tot 10)
FACTORY(IES)
Ichikawa (Hyogo), Hirokawa (Wakayama)
OFFICER(S)
MASAMI HIROYASU, PRES
Hitoshi Nishimoto, mgn dir
Yoshio Nakamura, dir
Katsuki Fujimoto, dir
Kenji Segawa, dir
Yen
Amount: In million Yen,
unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 4,219 M
PAYMENTS REGULAR CAPITAL Yen
95 M
TREND STEADY WORTH Yen
783 M
STARTED 1960 EMPLOYES 88
COMMENT
MFR OF MARINE EQUIPMENT, LUBOIL SUPPLY MACHINES, OTHER.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 63.0 MILLION, 30 DAYS NORMAL TERMS
HIGHLIGHTS
The
subject company was established by Masami Hiroyasu in order to make most of his
experience in the subject line of business.
This is a manufacturer with five segments: Machinery (lubrication/oil
supply systems); Reef (artificial fish breeding reef); Marine Equipment
(underwater research robots); Foods (pouch-packed, retorted foods; and mattress
cleaning equipment. In Mar 2008,
withdrew from loss-making apparel business.
Domestic clients include major heavy machinery mfrs.
FINANCIAL INFORMATION
The
sales volume for Mar/2008 fiscal term amounted to Yen 4,219 million, a 7% up
from Yen 3,943 million in the previous term.
Luboil supply units and artificial fishing reefs were in robust demand. The recurring profit was posted at Yen 334
million and the net profit at Yen 210 million, respectively, compared with Yen
200 million recurring profit and Yen 123 million net profit, respectively, a
year ago. .
For the
current term ending Mar 2009 the recurring profit is projected at Yen 280
million and the net profit at Yen 170 million, respectively, on a 17% fall in
turnover, to Yen 3,500 million. The
fall is referred to the said withdrawal from unprofitable apparel
business. Demand for oil supply units
and fishing reefs remain steady and will likely grow further.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 63.0 million, on 30 days normal terms.
REGISTRATION
Date Registered: Feb
1960
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 760,000
shares
Issued: 190,000
shares
Sum: Yen
95 million
Major shareholders (%)
Masami Hiroyasu (28), Sbic West
Japan (21), Misao Hiroyasu (14), Hitoshi Nishimoto (4)
No. of
shareholders: 51
Nothing detrimental is known as to the commercial morality
of executives.
OPERATION
Activities:
Manufactures:
Centralized Lubrication System (52%): Lubrication/oil
supply systems (single line systems & dual line systems), their
accessories;
Reefs (20%): fish breeding reefs (hybrid type,
pyramid type, crystal type), alga reef, other;
Marine Systems (8%): underwater TV (research) robots,
underwater cameras, sonar, underwater lamps, actuators, other;
Foods (12%): retorted (pouch-packed) Japanese foods
(fish, shellfish, cooked rice, etc);
Others (8%): mattress cleaning (washing) equipment,
other.
Exports (2%)
Clients
[Mfrs, wholesalers] Mitsubishi Heavy Ind, Kobe Steel, Moriya Corp,
Seika Corp, Eiwa Corp, Rix Corp, Kawajyu Shoji, Marukome Co, other.
No. of accounts: 500
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Kawajyu Shoji, Moriya Corp, Eiwa Corp, Kokusai
Kogyo, Inasaka Gear Mfg, other.
Payment
record: Regular
Location: Business
area in Osaka. Office premises at the
caption address are owned and maintained satisfactorily.
Bank References
Mizuho Bank (Nishinoda)
Resona Bank (Noda)
Relations: Satisfactory
FINANCES: (In Million Yen)
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Terms Ending: |
31/03/2009 |
31/03/2008 |
31/03/2007 |
31/03/2006 |
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Annual
Sales |
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3,500 |
4,219 |
3,943 |
3,667 |
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Recur.
Profit |
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280 |
334 |
200 |
126 |
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Net
Profit |
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170 |
210 |
123 |
86 |
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Total
Assets |
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2,692 |
2,773 |
2,560 |
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Current
Assets |
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1,918 |
1,986 |
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Current
Liabs |
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1,605 |
1,666 |
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Net
Worth |
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783 |
582 |
468 |
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Capital,
Paid-Up |
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95 |
95 |
95 |
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Div.P.Share(¥) |
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50.00 |
50.00 |
50.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
-17.04 |
7.00 |
7.53 |
3.27 |
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Current Ratio |
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.. |
119.50 |
119.21 |
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N.Worth Ratio |
.. |
29.09 |
20.99 |
18.28 |
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R.Profit/Sales |
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8.00 |
7.92 |
5.07 |
3.44 |
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N.Profit/Sales |
4.86 |
4.98 |
3.12 |
2.35 |
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Return On Equity |
.. |
26.82 |
21.13 |
18.38 |
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Notes: Forecast (or estimated) figures for the 31/03/2009
fiscal term.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.47.76 |
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UK Pound |
1 |
Rs.74.87 |
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Euro |
1 |
Rs.60.81 |
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%)