MIRA INFORM REPORT

 

 

Report Date :           

14.11.2011

 

IDENTIFICATION DETAILS

 

Name :

MORI SEIKI CO Ltd

 

 

Registered Office :

2-35-16 Meieki Nakamuraku Nagoya 450-0002

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

October 1948

 

 

Com. Reg. No.:

(Nara-Koriyama) 006212

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of machine tools

 

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 3,735.9 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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

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

 

MORI SEIKI CO Ltd

 

 

REGD NAME 

 

KK Mori Seiki Seisakusho

 

 

MAIN OFFICE

 

2-35-16 Meieki Nakamuraku Nagoya 450-0002 JAPAN

Tel: 052-587-1811

 

*.. Registered at: 106 Kita-Koriyama Koriyama Yamato Nara-Pref, as given-

 

URL:                             http://www.moriseiki.com

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Mfg of machine tools

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya, other

 

 

OVERSEAS   

 

USA, Europe (6), Singapore, China, Taiwan, Brazil, Mexico, Korea, Indonesia, Australia, Thailand, Malaysia, Canada (--subsidiaries)

 

 

FACTORIES  

 

Nara (2), Iga, Chiba; Overseas: Switz, France

 

CHIEF EXEC 

 

MASAHIKO MORI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 　A/SALES       Yen 120,428 M

PAYMENTS                  REGULAR         　CAPITAL        Yen 41,132 M

TREND             SLOW              　WORTH         Yen 95,328 M

STARTED                     1948                 　EMPLOYES   4,107

 

 

COMMENT

 

MFR OF MACHINE TOOLS 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 3,735.9 MILLION, 30 DAYS NORMAL TERMS

 

 

                        Forecast figures for the 31/03/2012 fiscal term.

 

 

HIGHLIGHTS

 

This is the top-class mfr of NC lathes & Mc’s.  Originally started as a textile machine maker but in 1958 advanced into machine tools, achieving high growth following marketing of NC lathes in 1968.  Overseas sales ratio high backed by global network for marketing and mfg services conducted by overseas subsidiaries.  Has capital and business alliance with Gildermeister of Germany.  Gildermeister bought the company’s shares additionally and became the largest shareholder with 51% stake.  The company intends to set up a sales JV in Switzerland.  It will introduce a line production system to its Iga plant to enhance production efficiency.

 

(Flood damage in Thailand):  The firm reports sunken machines approx 500 units (total approx 4,000 machines installed.)  Both Japanese expats and local employees are sale.  Temporary workspace is set up in Bangna office (near Suvarnabhumi Airport).  Restoration support; planned to send 50 Japanese capitalisms from December, after rainy season ends in Thailand.  The firm decided to establish a North American  plant in California, USA, and are planning to start manufacturing operations in July 2012. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2011 fiscal term amounted to Yen 120,428 million, an 81.4% up from Yen 66,402 million in the previous term.  For this fiscal year the machine tool industry saw a steady recovery in enquiries and orders, buoyed by strong demand from overseas, particularly Asia, Europe and the US.  According to the Japan Machine Tool Builders’ Assn, total machine tool orders for FY 2010 almost doubled from the previous year.  The recurring profit was posted at Yen 566 million and the net profit at Yen 1,307 million, respectively, compared with Yen 26,599 million recurring loss and Yen 34,693 million net losses, respectively, a year ago.

 

(Apr/Sep/2011 results): Sales Yen 71,812 million (up 54.1%), operating profits Yen 2,328 million (previously Yen 5,740 million loss), recurring profit Yen 1,075 million (previously Yen 6,305 million loss), net profit Yen 1,225 million (previously Yen 6,108 million loss).  (% & figures compared with the corresponding period a year ago).

 

For the current term ending Mar 2012 the recurring profit is projected at Yen 4,100 million and the net profit at Yen 3,900 million, on a 26.2% rise in turnover, to Yen 152,000 million.  MC processing machines and horizontal machining centers are enjoying strong demand from the aircraft and energy industries in the US and Europe.  Production will recover in the second half.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 3,735.9 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:　Oct 1948

Regd No.:         (Nara-Koriyama) 006212

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       200 million shares

Issued:                116,475,312 shares

Sum:                   Yen 41,132 million

 

Major shareholders (%): Company’s Treasury Stock (6.6), Masahiko Mori (3.8), Gildemeister (3.7), Bank of New York Jasdec Treaty (3.6), Japan Trustee Services T (3.2), Master Trust Bank of Japan T (3.2), Nomura Trust Inv T (2.5), Zenkyoren (2.4), Morgan Stanley & Co (2.0), Chieko Mori (1.9); foreign owners (22.4)

 

No. of shareholders: 47,516

 

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

 

Managements: Masahiko Mori, pres; Tatsuo Kondo, v pres; Kazuyuki Hiramoto, v pres; Hiroaki Tamai, s/mgn dir; Naoshi Takayama, mgn dir; Hisao Sato, dir

 

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

Related companies: Mori Seiki USA, Mori Seiki GmbH, other.

 

 

OPERATION

           

Activities: Manufactures machine tools: machining centers (38.3%), CNC lathes (27.3%), multi-axis machines (14.2%), grinding machines (1.8%), parts & components (11.4%), others (7.0%), others (7.0%)

Overseas Sales Ratio (71.3%): USA (26.2%), Europe (31.0%), Asia/Oceania (14.1%)

           

Clients: [Mfrs, wholesalers] Mori Seiki International SA DIXI, Mori Seiki USA, INAC, Mori Seiki GmbH, Yuasa Trading Co, Yamazen Corp, other

            No. of accounts: 800

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mori Seiki Trading Co, Mitsubishi Electric, Fanuc Corp, Ryowa Corp, Watanabe Seikosyo, other

 

 

Payment record: Regular

 

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

 

Bank References:

·         SMBC (Nara)

·         Nanto Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

120,428

66,402

 

  Cost of Sales

80,863

55,204

 

      GROSS PROFIT

39,564

11,198

 

  Selling & Adm Costs

39,244

38,131

 

      OPERATING PROFIT

320

-26,933

 

  Non-Operating P/L

246

-334

 

      RECURRING PROFIT

566

-26,599

　

      NET PROFIT

1,307

-34,693

BALANCE SHEET

 

 

 

 

  Cash

　

7,418

7,516

 

  Receivables

 

32,085

16,665

 

  Inventory

 

39,136

33,059

 

  Securities, Marketable

101

　

 

  Other Current Assets

7,437

5,493

 

      TOTAL CURRENT ASSETS

86,177

62,733

 

  Property & Equipment

54,421

57,657

 

  Intangibles

 

6,256

7,757

 

  Investments, Other Fixed Assets

25,095

16,019

 

      TOTAL ASSETS

171,949

144,166

 

  Payables

 

11,451

6,087

 

  Short-Term Bank Loans

45,172

18,550

 

　

 

　

　

 

  Other Current Liabs

9,680

10,346

 

      TOTAL CURRENT LIABS

66,303

34,983

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

309

312

 

  Other Debts

　

10,009

10,154

 

      TOTAL LIABILITIES

76,621

45,449

 

      MINORITY INTERESTS

 

 

 

Common stock

41,132

41,132

 

Additional paid-in capital

53,863

53,863

 

Retained earnings

11,910

12,820

 

Evaluation p/l on investments/securities

1,463

1,750

 

Others

 

(23,585)

(21,392)

 

Treasury stock, at cost

10,545

10,544

 

      TOTAL S/HOLDERS` EQUITY

95,328

98,717

　

      TOTAL EQUITIES

171,949

144,166

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

-10,240

-15,995

 

Cash Flows from Investment Activities

-14,054

-12,894

 

Cash Flows from Financing Activities

24,107

21,477

　

Cash, Bank Deposits at the Term End

　

7,414

7,255

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

95,328

98,717

 

 

Current Ratio (%)

129.97

179.32

 

 

Net Worth Ratio (%)

55.44

68.47

 

 

Recurring Profit Ratio (%)

0.47

-40.06

 

 

Net Profit Ratio (%)

1.09

-52.25

 

 

Return On Equity (%)

1.37

-35.14

 

           


FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.50.28

UK Pound

1

Rs.80.08

Euro

1

Rs.68.45

 

 

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

----

NB

New Business

----

 

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.