MIRA
INFORM REPORT
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Report Date : |
09.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
KROSAKI INDUSTRY CORPORATION |
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Registered Office : |
12-15 Higashihamamachi Yahatanishiku Kitakyushu Fukuoka-Pref 806-0002 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
October 1972 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Wholesale of Refractory Materials, Fuel Oils, Packaging Materials,
Insurance Broking; Operation of Filling Stations |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
YEN 155.9 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name & address
KROSAKI INDUSTRY
CORPORATION
REGD NAME: Kurosaki Sangyo KK
MAIN OFFICE: 12-15 Higashihamamachi Yahatanishiku Kitakyushu
Fukuoka-Pref 806-0002 JAPAN
Tel:
093-642-3551 Fax: 093-642-3599
URL: http://www.krosaki.co.jp (Of the parent,
Krosaki Harima Corp)
E-mail: (thru the URL)
ACTIVITIES
Wholesale of refractory materials, fuel oils, packaging
materials, insurance broking; operation of filling stations
BRANCHES
Chiba (2), Takasago (Hyogo), Shizuoka, Tokai (Tot 7)
OVERSEAS
China
OFFICERS
YOSHIAKI KAWASE, PRES
Hidefumi Satoh, mgn dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 8,117 M
PAYMENTS REGULAR CAPITAL Yen 40 M
TREND STEADY WORTH Yen 593 M
STARTED 1972 EMPLOYES 70
COMMENT
TRADING FIRM, WHOLLY OWNED BY KROSAKI HARIMA CORP.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 155.9 MILLION, 30 DAYS NORMAL TERMS. .
HIGHLIGHTS
The subject company was established on the basis of a
trading division separated from Krosaki Refractories Corp (now Krosaki Harima
Corp), mfr of firebricks, at the caption address (See REGISTRATION). This is a trading firm specializing in
import, export and wholesale of refractory
materials (partially manufactured), fuel oils, packaging materials &
equipment, other. In 2003, merged with
two sister firms of the similar business line and renamed as captioned. Operates gas stations, garages with repair
facilities, too. Also acts as non-life
insurance broker. 75% of the products are shipped to the parent, Krosaki Harima
Corp.
FINANCIAL INFORMATION
The sales volume for Mar/2008 fiscal term amounted to Yen
8,117 million, an 8% up from Yen 7,550 million in the previous term. This is attributed to the robust demand for
work-use refractories at the parent, reporting about 4% increase from the
previous term. Rising oil prices/other
materials also contributed. The recurring
profit was posted at yen 132 million and the net profit at Yen 52 million, respectively,
compared with Yen 158 million recurring profit and Yen 92 million net losses,
respectively, a year ago. Profits tend
to deteriorate due to rising costs of materials and fuel oils, as adversely
affected & hurt profitability.
For the current term ending Mar 2009 the recurring profit is
projected at Yen 135 million and the net profit at Yen 53 million,
respectively, on a 2% rise in turnover, to Yen 8,300 million. Exports will grow on back of robust demand
overseas.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 155.9 million, on 30 days normal terms.
REGISTRATION
Date Registered: Oct 1972
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized: 176,000
shares
Issued:
44,000 shares
Sum: Yen 40 million
Major shareholders (%): Krosaki Harima Corp*(100)
*..Largest mfr of firebricks, established originally in 1918
as Krosaki Refractories & merged with Harima Ceramics in 2000 to rename as
captioned, listed Tokyo S/E, capital Yen 5,537 million, turnover Yen 95,376
million, operating profit Yen 4,994 million, recurring profit Yen 4,796
million, net profit Yen 3,233, total assets Yen 79,017 million, net worth Yen 32,141 million, employees
2,726, pres Hideki Furuno
Consolidated Financials are as attached (See SUPPLEMENTS)
Nothing detrimental is known as to the commercial morality
of executives.
OPERATION
Activities: Trading house for import, export and wholesale,
with mfg division; mfg (sub-contracted)
of refractory materials for supply to the parent; wholesale of fuel oils, packaging equipment & materials,
metal parts & equipment for supply to the parent, OA devices; operates gas
stations, garages with repairing facilities; non-life insurance broking, others
(--100%).
(Detailed breakdown unavailable).
Clients
[Mfrs, wholesalers]
Krosaki Harima Corp (75%), Krosaki Machine Ind, Mitsubishi Materials, Paloma
Ltd, Kyushu Rozai Sangyo, F Tech Inc, Nippon Steel Chemical, Sankyu Inc, Japan
Casting & Forging Corp, other.
No. of accounts: 600
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers]
Kyushu Oil, KK Shin-Idemitsu, Itochu Ceramic, Krosaki Harima Corp, F Tech Inc,
Noritake Company Ltd, JAL, West Japan Railway, Japan
Foundation China Center, other.
Payment
record: Regular
Location
Business area in Kitakyushu. Office premises at the caption address are owned by the parent
and maintained satisfactorily.
Bank References
Bank of Fukuoka (Kurosaki)
Nishinippon City Bank (Kurosaki)
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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8,300 |
8,117 |
7,550 |
6,423 |
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Recur.
Profit |
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135 |
132 |
158 |
204 |
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Net
Profit |
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53 |
52 |
92 |
116 |
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Total
Assets |
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2,317 |
2,855 |
2,181 |
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Current
Assets |
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1,881 |
2,372 |
1,623 |
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Current
Liabs |
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1,654 |
2,167 |
1,543 |
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Net
Worth |
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593 |
570 |
512 |
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Capital,
Paid-Up |
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40 |
40 |
40 |
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Div.P.Share(¥) |
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350.00 |
0.00 |
790.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
2.25 |
7.51 |
17.55 |
11.63 |
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Current Ratio |
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.. |
113.72 |
109.46 |
105.18 |
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N.Worth Ratio |
.. |
25.59 |
19.96 |
23.48 |
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R.Profit/Sales |
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1.63 |
1.63 |
2.09 |
3.18 |
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N.Profit/Sales |
0.64 |
0.64 |
1.22 |
1.81 |
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Return On Equity |
.. |
8.77 |
16.14 |
22.66 |
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Notes: Financials are disclosed in digested statements, as they are consolidated by the parent, Krosaki Harima Corp, of which consolidated financials are as attached as under.
Forecast (or estimated) for the 31/03/2009 fiscal term.
SUPPLEMENTS:
CONSOLIDATED
FINANCIALS OF THE PARENT, KROSAKI HARIMA CORP
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2008 |
31/03/2007 |
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INCOME STATEMENT |
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Annual Sales |
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95,376 |
91,543 |
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Cost of Sales |
77,229 |
73,155 |
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GROSS PROFIT |
18,146 |
18,388 |
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Selling & Adm Costs |
13,151 |
12,508 |
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OPERATING PROFIT |
4,994 |
5,880 |
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Non-Operating P/L |
-200 |
191 |
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RECURRING PROFIT |
4,796 |
6,071 |
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NET PROFIT |
3,233 |
3,889 |
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BALANCE SHEET |
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Cash |
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2,572 |
3,489 |
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Receivables |
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20,662 |
24,293 |
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Inventory |
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15,689 |
13,461 |
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Securities, Marketable |
209 |
70 |
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Other Current Assets |
2,597 |
2,213 |
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TOTAL CURRENT ASSETS |
41,729 |
43,526 |
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Property & Equipment |
30,299 |
29,162 |
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Intangibles |
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501 |
556 |
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Investments, Other Fixed Assets |
6,488 |
9,091 |
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TOTAL ASSETS |
79,017 |
82,335 |
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Payables |
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16,553 |
19,558 |
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Short-Term Bank Loans |
3,598 |
6,269 |
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Other Current Liabs |
7,518 |
8,391 |
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TOTAL CURRENT LIABS |
27,669 |
34,218 |
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Debentures |
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Long-Term Bank Loans |
8,830 |
4,467 |
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Reserve for Retirement Allw |
1,116 |
1,630 |
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Other Debts |
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8,157 |
9,146 |
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TOTAL LIABILITIES |
45,772 |
49,461 |
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MINORITY INTERESTS |
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Common
stock |
5,537 |
5,537 |
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Additional
paid-in capital |
5,138 |
3,521 |
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Retained
earnings |
20,423 |
17,615 |
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Evaluation
p/l on investments/securities |
1,273 |
2,883 |
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Others |
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1,576 |
3,437 |
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Treasury
stock, at cost |
(702) |
(119) |
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TOTAL S/HOLDERS` EQUITY |
33,245 |
32,874 |
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TOTAL EQUITIES |
79,017 |
82,335 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2008 |
31/03/2007 |
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Cash
Flows from Operating Activities |
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4,588 |
3,281 |
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Cash
Flows from Investment Activities |
-4,868 |
-2,065 |
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Cash Flows
from Financing Activities |
-508 |
-1,365 |
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Cash,
Bank Deposits at the Term End |
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2,766 |
3,540 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
33,245 |
32,874 |
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Current
Ratio (%) |
150.81 |
127.20 |
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Net
Worth Ratio (%) |
42.07 |
39.93 |
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Recurring
Profit Ratio (%) |
5.03 |
6.63 |
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Net
Profit Ratio (%) |
3.39 |
4.25 |
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Return
On Equity (%) |
9.72 |
11.83 |
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FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.26 |
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UK Pound |
1 |
Rs.79.00 |
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Euro |
1 |
Rs.63.53 |
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%)