MIRA INFORM REPORT

 

 

Report Date :

26.10.2012

 

IDENTIFICATION DETAILS

 

Name :

MORIMURA BROS INC

 

 

Registered Office :

 

Morimura Bldg, 1-3-1 Toranomon Minatoku Tokyo 105-8451

 

 

 

 

Country :

Japan

 

 

 

 

Financials (as on) :

31.12.2011

 

 

 

 

Date of Incorporation :

October  1876  

 

 

 

 

Com. Reg. No.:

(Tokyo-Minatoku) 029693

 

 

 

 

Legal Form :

Limited Company

 

 

 

 

Line of Business :

Import, export, wholesale of metals, chemicals, electronics, other.

 

 

 

 

No. of Employees :

269

 

 

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 :

Slow but correct

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

(31.03.2011)

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 and address

 

MORIMURA BROS INC

REGD NAME:    Morimura Shoji KK

MAIN OFFICE:  Morimura Bldg, 1-3-1 Toranomon Minatoku Tokyo 105-8451 JAPAN

                                    Tel: 03-3502-6431     Fax: 03-3503-2002

 

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

E-Mail address: sales-hq@morimura.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of metals, chemicals, electronics, other

 

BRANCHES

 

Osaka, Nagoya, Okayama, Kitakyushu

 

OVERSEAS

 

USA (2), Netherlands, Hong Kong (3), China (3), Singapore, India (Chennai)

(Subsidiaries): Chettinad MB-F Hi Silica Pvt Ltd (India); Morimura Bros (HK) Ltd   (Hong Kong); New Leo Electronics (Shenzhen) Ltd (China).

 

 

OFFICER(S)  

 

YUSUKE MORIMURA, PRES     Shunsuke Morimura, ch             

Yoshihiro Ueda, S/mgn dir                      Shunji Akieda, s/mgn dir            

Teruo Kise, dir                           Noboru Akabane, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 677,837 M

PAYMENTS                  SLOW BUT CORRECT   CAPITAL           Yen 180 M

TREND             UP                                WORTH            Yen 3,037 M

STARTED                     1876                             EMPLOYES      269

 

COMMENT

 

TRADING COMPANY SPECIALIZING IN METALS & INDUSTRIAL CHEMICALS. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

HIGHLIGHTS

 

This an old-established trading firm dating back to 1876 when Ichitaro Morimura and his brother Toyo founded a trading firm named “Morimura Gumi”, and has been succeeded by their descendants.  The firm has played major role in establishing a number of major ceramic-related companies, such as Toto Ltd, NGK Insulators Ltd, NGK Spark Plug Co Ltd, Noritake Co Ltd, etc.  In1993 Shunsuke Morimura, now ch, was appointed as pres, and in 2002 the current pres Yusuke Morimura was appointed to the pres office.  This is a trading company now handling a wide range of materials from ceramics, industrial chemical materials to foods, household items (see OPERATION).  Overseas trading ratio is very high.

    .

            Sole agent for: Norsk Hydro ASA (Norway); Magnesium Electron Ltd (UK).

            Marketing rights from: Alcoa Inc (USA); Titanium Metals Corp (USA), Valtimet

 

 

FINANCIAL INFORMATION

 

            The sales volume for Dec/2011 fiscal term amounted to Yen 77,837 million, a 5% up from Yen 73,873 million in the previous term.  Exports & imports increased.  However, the firm had extraordinary losses coming from the foreign currency exchange losses.  The recurring profit was posted at 2,527 million, but the bottom line ended at Yen 4,312 net losses for the term, compared with Yen 1,283 million recurring profit and Yen 57 million net profits, respectively, a year ago.

 

For the current term ending Dec 2012 the recurring profit is projected at Yen 2,600 million and the net profit at Yen500 million, respectively, on a 3% rise in turnover, to Yen 80,000 million.  .  Export revenues may still hurt by the high Yen, reducing earnings & profits in Yen terms.

 

The financial situation is considered FAIR to GOOD and responsible for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:          Oct 1876

Regd No.:        (Tokyo-Minatoku) 029693

Legal Status:     Limited Company (Kabushiki Kaisha)

Authorized:        6 million shares

Issued:               1.8 million shares

Sum:                  Yen 180 million

Major shareholders (%): Morimura Homeikai Foundation (12.3), Shunsuke Morimura (12.2), Yusuke Morimura (9.6), Employees’ S/Holding Assn (8.9)

No. of shareholders: 71

 

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

 

OPERATION

 

Activities: Imports, exports and wholesales (sales breakdown by items):

 

Metals, light metals (25%): magnesium ingots, magnesium rolled products, aluminum/magnesium die-cast products, magnesium alloy recycling, aluminum primary & secondary products, stainless steel products, aluminum master alloy & grain refiner, aluminum metal products, special magnesium alloy ingots, prototyping of magnesium casting, titanium products;

Chemical materials & products (41%): organic & inorganic chemicals used as engineering plastics, color additives for printing ink, metal surface treatments, and various treatments for printed circuit boards, plating materials, catalysts, other;

Electronic materials & products (12%): quartz, silica powder, fused silica, feldspar & powder, quartz materials & components, electronic parts, fine chemical products, Chin-hae (Korea) silica stone, fusing quartz, cristobalite, electronic parts key materials, optical fiber cable connecting parts, other;

Ceramics & minerals (for refractories) (16%): alumina, silicon carbide, bauxite, magnesia clinker, alumina cement, kyanite, andalsite, other;

Others (6%): Industrial machinery (automotive parts, construction machines, emission gas analyzers, cutting tools, hydraulic fitting products), aromatics & foodstuffs (oils & fats, spirits, aroma chemical, frozen foods, functional food materials), household products (rubber boots & sandals, shoes, model trains, gardening materials, wiper blades, other).

Imports & exports (51%).

(Breakdowns are all about)

 

Clients: [Mfrs, wholesalers] Kawasaki Heavy Ind, Fuji Heavy Ind, Krosaki Harima Corp, NGK Insulators, Toyama Murata Mfg, Denki Kagaku Kogyo, Hitachi Zosen, Toyo Ink Mfg, Almatis Ltd, Sumitomo Corp, other.

No. of accounts: 2,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Alcoa Japan Ltd, Morimura Chemical Ltd, Showa    Denko, Toto Ltd, Tosoh Ltd, Morimura Bros (HK), Alcoa Inc (USA), Hydro Magnesium X’ian Co Ltd (China), Almatis Ltd, Sumitomo Bakelite, Sumitomo Chemical, other.

 

Payment record: Slow but correct

 

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

 

Bank References:

MUFG (Toranomon)

Mizuho Bank (Toranomon)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/12/2012

31/12/2011

31/12/2010

31/12/2009

Annual Sales

　

80,000

77,837

73,873

63,447

Recur. Profit

　

2,600

2,527

1,283

235

Net Profit

　

500

-4,312

57

218

Total Assets

　

　

34,437

25,333

22,745

Current Assets

　

　

26,851

22,034

17,965

Current Liabs

　

　

26,105

16,447

13,752

Net Worth

　

　

3,037

7,351

7,329

Capital, Paid-Up

　

　

180

180

180

Div.Ttl in Million (¥)

　

　

0.00

36.00

54.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.78

5.37

16.43

-28.51

    Current Ratio

 

..

102.86

133.97

130.64

    N.Worth Ratio

..

8.82

29.02

32.22

    R.Profit/Sales

 

3.25

3.25

1.74

0.37

    N.Profit/Sales

0.63

-5.54

0.08

0.34

    Return On Equity

..

-141.98

0.78

2.97

 

Notes: Forecast (or estimated) figures for the 31/12/2012 fiscal term. 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.63

UK Pound

1

Rs.86.17

Euro

1

Rs.69.74

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.