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MIRA INFORM REPORT

 

 

Report Date :            

12.04.2011

 

IDENTIFICATION DETAILS

 

Name :

KOMATSU LTD

 

 

Registered Office :

2-3-6 Akasaka Minatoku Tokyo 107-8414

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

May 1921

 

 

Com. Reg. No.:

(Tokyo-Minatoku) 010455

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of construction & mining equipment, forest machines, industrial machinery

 

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 41,084.7 Million

Status :

Satisfactory

Payment Behaviour :

Regular

Litigation :

----

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – December 31, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Company name

 

KOMATSU Ltd

 

 

REGD NAME

 

Komatsu Seisakusho KK

 

 

MAIN OFFICE

 

2-3-6 Akasaka Minatoku Tokyo 107-8414 JAPAN

Tel: 03-5561-2616     Fax: 033505-9662-

URL:                             http://www.komatsu.co.jp

E-Mail address:                        info@komatsu.co.jp

 

 

ACTIVITIES  

 

Mfg of construction & mining equipment, forest machines, industrial machinery

 

 

BRANCHES   

 

Komatsu, Osaka, other

 

 

FACTORIES  

 

Japan (8), America (12), Europe (5), Asia (7), other

 

 

CHIEF EXEC

 

KUNIO NOJI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                 　A/SALES       Yen 1,431,564 M

PAYMENTS      REGULAR         　CAPITAL        Yen 67,870 M

TREND             SLOW               　WORTH         Yen 876,799 M

STARTED         1921                 　EMPLOYES   15,977

 

 

COMMENT    

 

LARGEST MFR OF CONSTRUCTION MACHINERY & EQUIPMENT 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 41,084.7 MILLION, 30 DAYS NORMAL TERMS

 

 

 

                        Forecast figures for the 31/03/2011 fiscal term.

 

 

HIGHLIGHTS

 

This is the leading mfr of construction machinery, including hydraulic power shovels.  Top-ranked in Asia including China.  Also produces semiconductor-making machines and other industrial machinery such as automobile-related presses, diesel power generators, and press brakes.  Aggressively involved in global operations, focusing on China, Europe & America, with 25 factories in 10 countries.  The firm plans 30% boost of engine reconditioning capacity at its plant in Indonesia to accelerate engine supply in Indonesia and other foreign countries.   In Apr 2011 two subsidiaries, including Komatsu Utility Co Ltd, as given.  Six factories in the northern Japan were damaged by the recent Earthquake but resumed operations, as reported.

 

(Komatsu Utility Co Ltd): Established 1948 on the basis of forklift mfg division separated from Komatsu Ltd, capital yen 13,033 million, sales Yen 48,197 million, net losses Yen 5.8 million, employees 1,117, pres Susumu Isoda. (All figures as of Mar/2011 fiscal term)  The firm’s factory in Oyama, Tochigi-Pref was damaged by the Earthquake but resumed operations.

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 1,431,564 million, a 29.2% down from Yen 2,021,743 million in the previous term, as affected by the global economic downturn.  Global demand did not come back to the level of the pre-financial meltdown and the Japan Yen’s hike against major currencies consolidated net sales decline.  By Divisions, Construction machinery & vehicles down 27.3% to Yen 1,268,575 million: Industrial Machinery down 41.2% to Yen 162,989 million.  The recurring profit was posted at Yen 64,979 million and the net profit at Yen 33,559 million, respectively, compared with Yen 128,782 million recurring profit and Yen 78,797 million net profit, respectively, a year ago.　.

 

(Apr/Dec/2010 results): Sales Yen 1,301,973 million (up 19.7%), operating profit Yen 162,747 million (up 350.9%), recurring profit Yen 158,903 million (up 358.1%), net profit Yen 100,622 million (up 448.2%).  (% compares with the corresponding period a year go)

 

For the term that ended Mar 2011 the recurring profit was projected at Yen 225,000 million and the net profit at Yen 140,000 million, respectively, on a 26.8% rise in turnover, to Yen 1,815,000 million.  The firm reports that: the impact of the Earthquake disaster on its earning for the current year ending Mar/2011 will be “minor”.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 41,047.7 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　May 1921

Regd No.:            (Tokyo-Minatoku) 010455

Legal Status:       Limited Company (Kabushiki Kaisha

Authorized:        3.955 million shares

Issued:               998,744,060shares

Sum:                   Yen 67,870 million

 

Major shareholders (%): Japan Trustee Services T (5.2), Master Trust Bank of Japan T (4.8), Taiyo Life Ins (4.2), Nippon Life Ins (3.3), Company’s Treasury Stock (3.0), JP Morgan Chase Bank 380055 (2.7), State Street Bank & Trust (2.5), SMBC (1.7), BONY Mellon for Depositary RH (1.7), SSBT 0005 Omnibus Acct Treaty Cl (1.5); foreign owners (36.5)

 

No. of shareholders: 241,930

 

Listed on the S/Exchange (s) of: Tokyo, Osaka

 

Managements: Masahiro Sakane, ch; Kunio Noji, pres; Yoshinori Komamura, v pres; Yasuo Suzuki, s/mgn dir; Kenji Kinoshita, s/mgn dir; Masao Fuchigami, s/mgn dir; Tetsuji Ohashi, s/mgn dir

 

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

 

Related companies: Komatsu America, other.

 

 

OPERATION

           

Activities: Manufactures construction machinery:

 

(Sales Breakdown by Divisions): construction & mining machinery, vehicles (89%), Industrial machinery & others (11%).

 

Overseas Sales Ratio (77.4%): Americas 22.7%, Europe/CIS 8.9%, Asia, others 45.8%

           

Clients: [Mfrs, wholesalers] Sumitomo Corp, United Tractors, Komatsu group firms, other

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Komatsu group firms

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

SMBC (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

1,431,564

2,021,743

 

  Cost of Sales

1,101,559

1,510,408

 

      GROSS PROFIT

330,005

511,335

 

  Selling & Adm Costs

262,970

359,387

 

      OPERATING PROFIT

67,035

151,948

 

  Non-Operating P/L

-2,056

-23,166

 

      RECURRING PROFIT

64,979

128,782

　

      NET PROFIT

33,559

78,797

BALANCE SHEET

 

 

 

 

  Cash

　

82,429

90,563

 

  Receivables

 

447,693

373,901

 

  Inventory

 

396,416

507,357

 

  Securities, Marketable

　

　

 

  Other Current Assets

113,583

131,418

 

      TOTAL CURRENT ASSETS

1,040,121

1,103,239

 

  Property & Equipment

525,100

525,462

 

  Intangibles

 

91,299

89,007

 

  Investments, Other Fixed Assets

302,535

251,351

 

      TOTAL ASSETS

1,959,055

1,969,059

 

  Payables

 

207,024

214,375

 

  Short-Term Bank Loans

123,438

220,087

 

　

 

　

　

 

  Other Current Liabs

311,284

297,825

 

      TOTAL CURRENT LIABS

641,746

732,287

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

356,985

292,106

 

  Reserve for Retirement Allw

46,354

53,822

 

  Other Debts

　

37,171

42,510

 

      TOTAL LIABILITIES

1,082,256

1,120,725

 

      MINORITY INTERESTS

 

 

 

Common stock

67,870

67,870

 

Additional paid-in capital

140,421

140,092

 

Retained earnings

756,073

747,694

 

Evaluation p/l on investments/securities

　

　

 

Others

 

(52,810)

(72,351)

 

Treasury stock, at cost

(34,755)

(34,971)

 

      TOTAL S/HOLDERS` EQUITY

876,799

848,334

　

      TOTAL EQUITIES

1,959,055

1,969,059

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

182,161

78,775

 

Cash Flows from Investment Activities

-72,967

-145,368

 

Cash Flows from Financing Activities

-116,363

57,219

　

Cash, Bank Deposits at the Term End

　

82,429

90,563

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

876,799

848,334

 

 

Current Ratio (%)

162.08

150.66

 

 

Net Worth Ratio (%)

44.76

43.08

 

 

Recurring Profit Ratio (%)

4.54

6.37

 

 

Net Profit Ratio (%)

2.34

3.90

 

 

Return On Equity (%)

3.83

9.29

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.22

UK Pound

1

Rs.72.26

Euro

1

Rs.63.90

 

 

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

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

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.