MIRA INFORM REPORT

 

 

Report Date :

13.04.2013

 

IDENTIFICATION DETAILS

 

Name :

MARUKA MACHINERY CO LTD

 

 

Registered Office :

2-28 Itsukaichi Midorimachi Ibaraki Osaka-Pref 567-8520

 

 

Country :

Japan

 

 

Financials (as on) :

30.11.2012

 

 

Date of Incorporation :

December, 1946

 

 

Com. Reg. No.:

1209-01-002091

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, wholesale of industrial/construction machinery

 

 

No. of Employees :

412

 

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 :

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

 

MARUKA MACHINERY CO LTD

 

 

REGD NAME 

 

Maruka Kikai KK

 

 

MAIN OFFICE

 

2-28 Itsukaichi Midorimachi Ibaraki Osaka-Pref 567-8520 JAPAN

Tel: 072-625-6551    

Fax: 072-625-7781     -

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Import, export, wholesale of industrial/construction machinery

 

 

BRANCHES

 

Tokyo, Nagoya, Sendai, Okayama, Fukuoka

 

 

OVERSEAS   

 

USA, Mexico, China, Taiwan, Thailand, Indonesia, Malaysia, Philippines, Vietnam, India

 

 

CHIEF EXEC

 

TOSHIAKI TAKESHITA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                 A/SALES          Yen 41,968 M

PAYMENTS      REGULAR         CAPITAL           Yen 1,414 M

TREND             UP                    WORTH            Yen 13,866 M

STARTED                     1946                 EMPLOYES      412

 

 

COMMENT    

 

TRADING FIRM OF INDUSTRIAL/CONSTRUCTION MACHINERY 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

                        Unit: In Million Yen

Forecast figures for the 30/11/2013 fiscal term.

 

 

HIGHLIGHTS

 

This is a midsize independent trading company dealing in industrial/construction machinery.  30% of products sold to carmakers.  Looking to go into environmental field.  Has strong competitive edge based on direct sales to users.  Global network comprised more than 10 sales offices in the US and Asia.  The company acquired an engineering firm of the US in Oct 2012, and aims to reinforce capacities to meet the needs of local consumers.  It won a long-term order from a Japanese firm slated to enter Malaysia, including for post-entry supply of consumables.

 

 

FINANCIAL INFORMATION

 

The sales volume for Nov/2012 fiscal term amounted to Yen 41,968 million, a 29% up from Yen 32,432 million in the previous term.   The acquired US firm contributed for one month.  The recurring profit was posted at Yen 2,495 million and the net profit at Yen 1,366 million, respectively, compared with Yen 1,229 million recurring profit and Yen 679 million net profit, respectively, a year ago. 

 

(Dec/2012-Feb/2013 results): Sales 10,205 million (up 8.2%), operating profit Yen 409 million (down 22.5%), recurring profit Yen 526 million (down 10.7%), net profit Yen 255 million (down 11.1%).  (% compared with the corresponding period a year ago).

           

For the current term ending Nov 2013 the recurring profit is projected at Yen 2,550 million and the net profit at Yen 1,350 million, on a 5% rise in turnover, to Yen 44,000 million.  Sales of aircraft in North America, and automobile-related in Asia will continue growth.  The Mexico production base supplying Japanese automakers will also contribute.  Construction machinery will benefit from an upturn in crane sales, backed by the restoration reconstruction demand. 

 

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

 

 

REGISTRATION

           

Date Registered:　      Dec 1946

Regd No.:                      1209-01-002091 (Osaka-Ibaraki)

Legal Status:               Limited Company (Kabushiki Kaisha

Authorized:                  33.8 million shares

Issued:                         9,327,700 shares

Sum:                            Yen 1,414 million

 

Major shareholders (%): Kobelco Cranes Co (6.3), Nachi-Fujikoshi (6.1), Aioi Nissay Dowa Ins (5.8), Japan Trustee Services T (4.5), Resona Bank (4.2), Mizuho Bank (3.9), Employees’ S/Holding Assn (3.7), MUFG (3.0), Company’s Treasury Stock (2.8), Takayoshi Inui (2.8); foreign owners (4.4)

 

No. of shareholders: 6,050

 

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

 

Managements: Shinji Kamae, ch; Toshiaki Takeshita, pres; Yasuaki Mori, dir; Satoshi Manabe, dir; Shuichi Morotomi, dir; Takehisa Namba, dir; Hiroyuki Kogi, dir; Minoru Tsukahara, dir

 

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

 

Related companies: Sonoruka Engineering Co Ltd, Maruka USA Inc, Japan Rental Co Ltd, other.

 

 

OPERATION

           

Activities: Imports, exports and wholesales industrial machinery (81%), construction machinery (18%)

Overseas Sales Ratio (53%)

 

(Handling Items):

Industrial Machine Division: machine tools, forming machinery, injection molding, machinery, production machinery, bearings hydraulic, industrial robots, environmental equipment, water chiller, temperature controller, other;

Construction Machinery Division: construction machinery, other

           

Clients: [Mfrs, wholesalers] Maruka USA, Tokyo Century Lease, Showa Lease, Mitsui Sumitomo Finance, NSK, Daihatsu Motor Co, other

            No. of accounts: 800

            Domestic areas of activities: Nationwide

Suppliers: [Mfr] Toyo Machinery & Metal Co, Kobelco Crane, Nachi-Fujikoshi Corp, Mori Seiki Co, Sonoruka Engineering, Nachi Sanyo, Komatsu Ind Corp, Toyo-Seiki Seisakusho, other

 

Payment record: Regular

 

Location: Business area in Ibaraki City, Osaka-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Resona Bank (Osaka)

Mizuho Bank (Semba)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

30/11/2012

30/11/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

41,968

32,432

 

  Cost of Sales

35,900

27,985

 

      GROSS PROFIT

6,068

4,447

 

  Selling & Adm Costs

3,756

3,392

 

      OPERATING PROFIT

2,311

1,055

 

  Non-Operating P/L

184

174

 

      RECURRING PROFIT

2,495

1,229

　

      NET PROFIT

1,366

679

BALANCE SHEET

 

 

 

 

  Cash

　

7,544

5,913

 

  Receivables

 

8,049

7,143

 

  Inventory

 

1,581

1,274

 

  Securities, Marketable

94

　

 

  Other Current Assets

4,297

3,469

 

      TOTAL CURRENT ASSETS

21,565

17,799

 

  Property & Equipment

4,182

3,773

 

  Intangibles

 

430

86

 

  Investments, Other Fixed Assets

1,997

1,990

 

      TOTAL ASSETS

28,174

23,648

 

  Payables

 

9,453

8,397

 

  Short-Term Bank Loans

790

80

 

　

 

　

　

 

  Other Current Liabs

3,456

2,159

 

      TOTAL CURRENT LIABS

13,699

10,636

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

31

31

 

  Reserve for Retirement Allw

41

58

 

  Other Debts

　

537

373

 

      TOTAL LIABILITIES

14,308

11,098

 

      MINORITY INTERESTS

 

 

 

Common stock

1,414

1,414

 

Additional paid-in capital

1,300

1,300

 

Retained earnings

11,204

9,999

 

Evaluation p/l on investments/securities

79

78

 

Others

 

479

371

 

Treasury stock, at cost

(610)

(613)

 

      TOTAL S/HOLDERS` EQUITY

13,866

12,549

　

      TOTAL EQUITIES

28,174

23,648

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

30/11/2012

30/11/2011

 

Cash Flows from Operating Activities

　

2,377

690

 

Cash Flows from Investment Activities

-885

-240

 

Cash Flows from Financing Activities

63

-126

　

Cash, Bank Deposits at the Term End

　

7,598

6,003

ANALYTICAL RATIOS            Terms ending:

30/11/2012

30/11/2011

 

 

Net Worth (S/Holders' Equity)

13,866

12,549

 

 

Current Ratio (%)

157.42

167.35

 

 

Net Worth Ratio (%)

49.22

53.07

 

 

Recurring Profit Ratio (%)

5.95

3.79

 

 

Net Profit Ratio (%)

3.25

2.09

 

 

Return On Equity (%)

9.85

5.41

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.44

UK Pound

1

Rs.83.77

Euro

1

Rs.71.33

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.