MIRA INFORM REPORT

 

 

Report Date :

19.10.2012

 

IDENTIFICATION DETAILS

 

Name :

KOA CORPORATION

 

 

Registered Office :

14016-193 Naka-Minoa Minoamachi Kamimagun Nagano-Pref 399-4697

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

May 1947

 

 

Com. Reg. No.:

1000-01-020696 (Nagano-Ina)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of electronic components, resisters, sensors

 

 

No. of Employees :

4,001 employees

 

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 :

Satisfactory

Payment Behaviour :

Regular

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

japan - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

 

Source : CIA

 

Company name

 

KOA CORPORATION

 

 

REGD NAME

 

Koa KK

 

 

MAIN OFFICE

 

14016-193 Naka-Minoa Minoamachi Kamimagun Nagano-Pref 399-4697 JAPAN

     Tel: 0265-70-7171     Fax: 0265-78-5266     -

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Mfg of electronic components, resisters, sensors, other

 

 

BRANCHES   

 

Tokyo, Sendai, Tokyo, Fuchu, Shizuoka, Osaka, Nagoya, other (Tot12)

 

 

OVERSEAS

 

USA, Germany, Thailand, Malaysia, China (4), Taiwan (2), Singapore, USA

 

 

FACTORIES

 

At the caption address, Ina (2)

 

 

CHIEF EXEC

 

KOICHI MUKAIYAMA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 　A/SALES       Yen 40,542 M

PAYMENTSREGULAR   　CAPITAL        Yen 6,033 M

TREND SLOW               　WORTH         Yen 45,604 M

STARTED         1947                 　EMPLOYES   4,001

 

 

COMMENT

 

MFR OF RESISTERS 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

                        Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is the specialist mfr of resistors, and world’s top-class producer of fixed resistors.  Domestic output high at around 80%, and entire domestic production done at factory in Nagano-Pref.  Well-known for aggressive management policy.  Strengthening car-mounted resistors.  In good financial position.  Tama Electric Co, a production subsidiary for resistors, established a new plant in Oct 2012.  Koa will combine two obsolete plants into a new plant.  In favorable car-mounted resistors, it will accelerate R&D of products for EVs & HVs.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 40,542 million, a 7.1% down from Yen 43,637 million in the previous term.   Sales of resistors for air-conditioners and flat-screen TVs allowed further than expected in the second half.  Profits plunged.  The recurring profit was posted at Yen 2,743 million and the net profit at Yen 1,651 million, respectively, compared with Yen 4,270 million recurring profit and Yen 2,661 million net profit, respectively, a year ago. 

 

(Apr/Jun/2012 results): Sales Yen 9,812 million (down 8.8%), operating profit Yen 389 million (down 61.3%), recurring profit Yen 415 million (down 58.7%), net profit Yen 247 million (down 59.2%).  (% compared with the corresponding period a year ago).

           

For the current term ending Mar 2013 the recurring profit is projected at Yen 2,100 million and the net profit at Yen 1,000 million, on a 1.3% fall in turnover, to Yen 40,000 million.  Sales volume of fixed resistors for cars will expand further.  But demand for those for home appliances, such as air-conditioners, and industrial equipment will decrease.  Recovery in the second half will be slower than expected, with sales in China losing steam.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.

 

 

REGISTRATION

 

Date Registered:　May 1947

Regd No.:         1000-01-020696 (Nagano-Ina)

Legal Status:       Limited Company (Kabushiki Kaisha

Authorized:       150 million shares

Issued:                40,479,724 shares

Sum:                   Yen 6,033 million

 

Major shareholders (%): Credit Suisse (11.7), Company’s Treasury Stock (9.3), Nippon Life Ins (5.5), Japan Trustee Services T (5.4), Hachijuni Bank (4.5), Master Trust Bank of Japan T (4.1), Nipponkoa Ins (3.5), MUFG (2.4), UBS AG (Hong Kong) (2.2), CBSG Bank Julius Bear Singapore (2.1); foreign owners (24.8)

 

No. of shareholders: 7,057

 

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

 

Managements: Koichi Mukaiyama, pres; Kayoko Fukano, mgn dir; Noriaki Nakada, dir; Takuo Hayashi, dir; Tadao Hanagata, dir; Katsuhiko Momose, dir; Akira Nonomura, dir; Etsuji Yamaoka, dir

 

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

 

Related companies: Koa Electronics, other.

 

 

OPERATION

           

Activities: Manufactures electronic components: SMD type resistors, lead type resistors, network resistors, thermisters, thermal sensors, other (--83%), inductors, fuses, varisters, surge absorbers, LTCC substrate, hybrid IC, check terminals, other (17%),

 

Overseas Sales Ratio (52%)

           

Clients: [Mfrs, wholesalers] Koa Hambai, KD Electronics, Nippon Parts, Koa Speer Electronics Inc, Koa Europe GmbH, Hitachi Automotive Systems, other

            No. of accounts: 500

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Koa Electronics, Kyocera Corp, Sumitomo 3M, NCC, other

 

Payment record: Regular

 

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

 

Bank References:

Hachijuni Bank (Ina)

MUFG (Fuchu-Ekimae)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

40,542

43,637

 

  Cost of Sales

30,276

31,237

 

      GROSS PROFIT

10,266

12,400

 

  Selling & Adm Costs

7,725

7,868

 

      OPERATING PROFIT

2,541

4,532

 

  Non-Operating P/L

202

-262

 

      RECURRING PROFIT

2,743

4,270

　

      NET PROFIT

1,651

2,661

BALANCE SHEET

 

 

 

 

  Cash

　

15,789

16,662

 

  Receivables

 

11,535

12,172

 

  Inventory

 

4,928

7,630

 

  Securities, Marketable

1,304

966

 

  Other Current Assets

416

(1,643)

 

      TOTAL CURRENT ASSETS

33,972

35,787

 

  Property & Equipment

17,233

16,791

 

  Intangibles

 

336

328

 

  Investments, Other Fixed Assets

5,663

5,857

 

      TOTAL ASSETS

57,204

58,763

 

  Payables

 

3,706

4,497

 

  Short-Term Bank Loans

586

157

 

　

 

　

　

 

  Other Current Liabs

3,459

4,929

 

      TOTAL CURRENT LIABS

7,751

9,583

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

223

800

 

  Reserve for Retirement Allw

1,184

1,077

 

  Other Debts

　

2,442

2,488

 

      TOTAL LIABILITIES

11,600

13,948

 

      MINORITY INTERESTS

 

 

 

Common stock

6,033

6,033

 

Additional paid-in capital

9,012

9,012

 

Retained earnings

36,574

35,655

 

Evaluation p/l on investments/securities

361

313

 

Others

 

(3,722)

(3,545)

 

Treasury stock, at cost

(2,654)

(2,654)

 

      TOTAL S/HOLDERS` EQUITY

45,604

44,814

　

      TOTAL EQUITIES

57,204

58,763

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

3,206

4,521

 

Cash Flows from Investment Activities

-2,186

-2,619

 

Cash Flows from Financing Activities

-850

-593

　

Cash, Bank Deposits at the Term End

　

14,937

14,868

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

45,604

44,814

 

 

Current Ratio (%)

438.29

373.44

 

 

Net Worth Ratio (%)

79.72

76.26

 

 

Recurring Profit Ratio (%)

6.77

9.79

 

 

Net Profit Ratio (%)

4.07

6.10

 

 

Return On Equity (%)

3.62

5.94


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.52.96

UK Pound

1

Rs.85.45

Euro

1

Rs.69.46

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.