MIRA INFORM REPORT

 

 

Report Date :

12.05.2012

 

IDENTIFICATION DETAILS

 

Name :

KURABO INDUSTRIES Ltd

 

 

Registered Office :

2-4-31 Kyutaromachi Chuoku Osaka 541-8581

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

Mar 1888

 

 

Com. Reg. No.:

2600-01-013120 (Okayama-Kurashiki)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Cotton spinner

 

 

No. of Employees :

5,073

 

 

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

 

Status :

Good

Payment Behaviour :

No complaints

Litigation :

Clear

 

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 30, 2011

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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

 

KURABO INDUSTRIES Ltd

REGD NAME:    Kurashiki Boseki KK

MAIN OFFICE:  2-4-31 Kyutaromachi Chuoku Osaka 541-8581 JAPAN

Tel: 06-6266-5111     Fax: 06-6266-5614

 

*.. Registered at: 7-1 Honcho Kurashiki Okayama-Pref

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Cotton spinner

 

 

BRANCHES        

 

Tokyo

 

 

OVERSEAS   

 

Hong Kong

 

 

FACTORIES  

 

Marugame, Matsuyama, Tokushima, Neyagawa, Shizuoka, other (Tot 9)

 

 

CHIEF EXEC

 

AKIHIRO INOUE, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    


 

FINANCES        FAIR                 　A/SALES       Yen 159,081 M

PAYMENTS REGULAR  　CAPITAL        Yen 22,040 M

TREND             UP           WORTH         Yen 82,414 M

STARTED         1888                 　EMPLOYES   5,073

 

 

COMMENT    

 

COTTON SPINNER 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: JPY 2,000,000.00.

                       

 

Unit: In Million Yen

Forecast figures for the 31/03/2013 fiscal term.

 

 

HIGHLIGHTS

 

The subject company is a time-honored major cotton spinner, with emphasis put on downstream operations, including production of textiles led by casual cloths.  Also stresses on non-textiles, such as information systems, electronic-applied equipment, car interiors, and chemical products like polyurethane foams.  Earning ratio of real estate leasing is high.  The Thailand subsidiary damaged in the floods resumed operations as the end of Feb 2012.  The company acquired the filter-type nucleic acid isolation business from Fuji Film at the end of 2011.

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2012 fiscal term amounted to Yen 159,081 million, a 9.6% up from Yen 145,177 million in the previous term.  Textiles benefited from the growth of casual wear.  Machine tools also surpassed expectations, offsetting slow sales of chemicals.  Operations profits rose.  By Divisions; Textiles up 15.4% to Yen 89,400 million; Chemicals down 1.9% to Yen 43,000 million; Real Estate Utilization up 5.7% to Yen 5,900 million; Machine Tools up 41.3% to Yen 6,000 million; Electronics up 10.5% to Yen 4,200 million.  The recurring profit was posted at Yen 4,052 million and the net profit at Yen 2,716 million, respectively, compared with Yen 3,361 million recurring profit and Yen 4,897 million net profit, respectively, a year ago. 

           

            For the current term ending Mar 2013 the recurring profit is projected at Yen 5,000 million and the net profit at Yen 3,000 million, on a 1.3% fall in turnover, to Yen 157,000 million.  Textiles will perform well and chemicals will be on a recovery path. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  .  The proposed amount is considered well within the firm’s financial capacities.

 

 

REGISTRATION

           

Date Registered:　      Mar 1888

Regd No.:                                 2600-01-013120 (Okayama-Kurashiki)

Legal Status:               Limited Company (Kabushiki Kaisha

Authorized:                  977,011,000 shares

Issued:                          246,939,284 shares

Sum:                            Yen 22,040 million

 

Major shareholders (%): Company’s Treasury Stock (6.5), Nippon Life Ins (4.6), SMBC (4.5), Mizuho Corporate Bank (4.5), Japan Trustee Services T (4.4), Chugoku Bank (2.9), Master Trust Bank of Japan T (2.7), CHNYDHA Int’l Cap Value P (2.3), JTSB (CMTB Equity Investments) (1.6), Mitsui Sumitomo Ins (1.6); foreign owners (13.3)

 

No. of shareholders: 15,545

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

 

Managements: Akihiro Inoue, pres; Masayuki Fukui, s/mgn dir; Shin’ichiro Tomofuchi, s/mgn dir; Osamu Ueda, s/mgn dir; Norio Ito, mgn dir; Masaki Ishihara, mgn dir; Toshiaki Saitoh, mgn dir

 

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

 

Related companies: Tomei Kasei Co, Kurashiki Textile Mfg, Japan Jiffy Foods Inc,

Kurabo Engineering Work, other.

 

 

OPERATION

           

Activities: Cotton spinner:

 

(Sales Breakdown by Divisions):

Textiles (53%): cotton, synthetic, wool, yarns, fabrics, knits, non-woven textiles, reinforcement netting, dyeing, treatment and finishing of cotton & synthetic and knitted fabrics;

Chemicals (30%): polyurethane foam, synthetic woods, inorganic building materials, functional performance engineering plastics, precision filtration equipment & systems;

Real Estate Utilization (4%): lease of real estate, operation of parking lot, hotel and driving school;

Machine Tools (3%): machine tools, industrial machines, others;

Electronics (3%): information system & equipment for color control, production control, CAD systems;

Others (7%): supply of plants, equipments, and machines for environmental production and industrial household waste recycling, other

Overseas Sales Ratio (25.5%): Asia 20.0%, others 5.5%

 

Clients: [Mfrs, wholesalers] Uniqlo Co, Kurabo International, Toray Ind, Itochu Corp, Mitsubishi Corp, Marubeni Corp, Marubeni Corp, Estec Co, Kowa Co, other

No. of accounts: 800

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Kowa Co, Matsuoka Corporation, Kurabo International,

Nagase & Co, Toyoshima & Co, Toyota Tsusho Corp, Inabata & Co, Chugoku Kasei

Kogyo, other

 

Payment record: Regular

 

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

 

Bank References:

SMBC (Osaka-Chuo)

Mizuho Corporate Bank (Osaka)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

159,081

145,177

 

  Cost of Sales

134,550

121,520

 

      GROSS PROFIT

24,531

23,657

 

  Selling & Adm Costs

20,542

20,236

 

      OPERATING PROFIT

3,988

3,420

 

  Non-Operating P/L

64

-1,059

 

      RECURRING PROFIT

4,052

2,361

　

      NET PROFIT

2,716

4,897

BALANCE SHEET

 

 

 

 

  Cash

　

16,497

20,713

 

  Receivables

 

39,630

35,807

 

  Inventory

 

25,874

24,008

 

  Securities, Marketable

432

367

 

  Other Current Assets

5,153

4,246

 

      TOTAL CURRENT ASSETS

87,586

85,141

 

  Property & Equipment

53,198

52,648

 

  Intangibles

 

1,622

1,528

 

  Investments, Other Fixed Assets

32,934

31,898

 

      TOTAL ASSETS

175,340

171,215

 

  Payables

 

24,282

23,496

 

  Short-Term Bank Loans

26,382

23,550

 

　

 

　

　

 

  Other Current Liabs

11,543

10,080

 

      TOTAL CURRENT LIABS

62,207

57,126

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

2,179

3,422

 

  Reserve for Retirement Allw

7,775

7,665

 

  Other Debts

　

20,765

22,036

 

      TOTAL LIABILITIES

92,926

90,249

 

      MINORITY INTERESTS

 

 

 

Common stock

22,040

22,040

 

Additional paid-in capital

18,207

18,207

 

Retained earnings

48,488

46,941

 

Evaluation p/l on investments/securities

4,203

2,913

 

Others

 

(7,561)

(5,877)

 

Treasury stock, at cost

(2,963)

(3,259)

 

      TOTAL S/HOLDERS` EQUITY

82,414

80,965

　

      TOTAL EQUITIES

175,340

171,215

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

3,477

7,741

 

Cash Flows from Investment Activities

-7,747

-4,167

 

Cash Flows from Financing Activities

-355

-2,926

　

Cash, Bank Deposits at the Term End

　

15,304

12,661

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

82,414

80,965

 

 

Current Ratio (%)

140.80

149.04

 

 

Net Worth Ratio (%)

47.00

47.29

 

 

Recurring Profit Ratio (%)

2.55

1.63

 

 

Net Profit Ratio (%)

1.71

3.37

 

 

Return On Equity (%)

3.30

6.05

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.64

UK Pound

1

Rs.86.42

Euro

1

Rs.69.28

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.