MIRA
INFORM REPORT
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Report Date : |
16.02.2013 |
IDENTIFICATION DETAILS
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Name : |
KUROTANI CORPORATION |
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Registered Office : |
12-2 Nagonoe Imizu City Toyama-Pref 934-0031 |
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Country : |
Japan |
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Financials (as on) : |
31.08.2012 |
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Date of Incorporation : |
September 1985 |
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Com. Reg. No.: |
2300-01-012407 (Toyama-Imizu) |
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Legal Form : |
Limited Company (Kabushiki Kaisha |
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Line of Business : |
Manufactures and sales copper ingots |
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No. of Employees : |
126 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaint’s |
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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
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source : CIA |
Company name
KUROTANI CORPORATION
REGD NAME: KK
Kurotani
MAIN OFFICE: 12-2
Nagonoe Imizu City Toyama-Pref 934-0031 JAPAN
Tel:
0766-84-0001 Fax: 0766-84-2000 -
URL: http://www.kurotani.co.jp
E-Mail address: info@kurotani.co.jp
ACTIVITIES
Mfg of
non-ferrous casting metals, recycled metals, Buddhist statues
BRANCHES
Tokyo,
Niigata
OVERSEAS
USA
FACTORIES
At the
caption address
CHIEF EXEC
SUMIHISA
KUROTANI, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 48,605 M
PAYMENTS REGULAR CAPITAL Yen
593 M
TREND SLOW WORTH Yen
6,900 M
STARTED 1985 EMPLOYES 126
COMMENT
MFR OF NON-FERROUS CASTING METALS
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast figures for the 31/08/2013 fiscal term.
HIGHLIGHTS
The
subject company was established by Toshio Kurotani in order to make most of his
experience in the subject line of business.
This is a specialized mfr of recycled copper scraps and ingots of screws
for ships. Has the recycling plant
system at the headquarters in Toyama-Pref.
From recovery to selling, mainly customers are Japanese refining firms. Aggressively expanding customers in
Asia. Also engaged in casting art
objects. Listed on the Tokyo S/E (second
section) in Jun 2011. The company plans
to start hedging 20% to 40% of sales volume from copper market risk from the
current term, resulting in a diminished profit from volatility and a minor downturn
in profit level. It is considering
tie-ups with local firms to advance into Asia.
FINANCIAL INFORMATION
The sales
volume for Aug/2012 fiscal term amounted to Yen 48,605 million, a 9.5% down
from Yen 53,683 million in the previous term.
Earnings were squeezed by a greater than anticipated downturn in copper
prices. Copper scrap recovery and sales,
including waste electric cables and semiconductor boards stagnated. The recurring profit was posted at Yen 59 million
and the net losses at Yen 37 million, respectively, compared with Yen 2,248
million recurring profit and Yen 1,251 million net profit, respectively, a year
ago.
(Sept/Nov
2012 results): Sales Yen 12,616 million (up 17.4%), operating profit Yen 373
million (previously Yen 453 million losses), recurring profit Yen 318 million
(previously Yen 470 million losses), net profit Yen 144 million (previously Yen
305 million losses). (% and figures
compared with the corresponding period a year ago).
For the
current term ending Aug 2013 the recurring profit is projected at Yen 744 million
and the net profit at Yen 423 million, on a 3.1% rise in turnover, to Yen
50,100 million. The new US subsidiary is
engaged mainly in procurement, making a little profit contribution. Ship screw materials sales will remain flat,
due to the shipbuilding slump. But
recovery and sales of copper scrap, including scrap electric cables and
semiconductor substrates, will benefit from sales volume recovery. The copper market will improve to show a
slight uptrend after slumping in the preceding term, and operating profit will
grow.
The
financial situation is considered FAIR and good for ORDINARY business
engagements.
REGISTRATION
Date Registered: Sept
1985
Regd No.: 2300-01-012407
(Toyama-Imizu)
Legal Status: Limited
Company (Kabushiki Kaisha
Authorized: 28 million shares
Issued:
1,168,000
Sum: Yen 593
million
Major shareholders (%): Sumihisa Kurotani (39.8), KH
Premium Ltd (24.3), MK Corp (2.7), Satoru Kurotani (1.3), Masateru Kurotani
(1.3), Hokkoku Bank (0.9), Japan Trustee Services T (0.9), Hokuriku Bank (0.8),
Harumi Kurotani (0.8), Employees’ S/Holding Assn (0.7)
No. of shareholders: 2,626
Listed on the S/Exchange (s) of:
Tokyo (Second section)
Managements: Sumihisa Kurotani, pres; roach Inoue,
v pres; Jihei Yamazaki, dir; Kiyotaka Kaji, dir; Minoru Ikeda, dir; Ikuko
Urata, dir
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Manufactures and sales copper ingots (41%),
copper alloy scraps (58%), others (1%).
Export (25%).
(Mfg Items): non-ferrous metals & copper &
copper alloy fabricated products, copper alloy & aluminum alloy ingots,
casting of works of fine arts, Buddhist statues, ritual articles & large
metal structures, other.
Clients: [Mfrs, wholesalers] Mitsubishi
Materials, Nakashima Propeller, Furukawa Electric Ind, Toto Ltd, Mitsubishi
Heavy Machinery Ind, Sumitomo Light Metal Ind, Chuetsu Casting Metals, San-Etsu
Metals, other.
No. of
accounts: 500
Domestic
areas of activities: Nationwide
Suppliers:
[Mfrs, wholesalers] Mitsubishi Materials, Toyota Tsusho Corp, other
Payment record:
Regular
Location:
Business area in Imizu City, Toyama-Pref.
Office premises at the caption address are owned and maintained
satisfactorily.
Bank References:
Hokuriku
Bank (Takaoka)
Hokkoku
Bank (Takaoka)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/08/2012 |
31/08/2011 |
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INCOME STATEMENT |
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Annual Sales |
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48,605 |
53,683 |
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Cost of Sales |
47,261 |
50,054 |
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GROSS PROFIT |
1,344 |
3,629 |
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Selling & Adm Costs |
1,224 |
1,198 |
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OPERATING PROFIT |
120 |
2,430 |
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Non-Operating P/L |
-61 |
-182 |
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RECURRING PROFIT |
59 |
2,248 |
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NET PROFIT |
-37 |
1,251 |
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BALANCE SHEET |
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Cash |
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2,263 |
2,125 |
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Receivables |
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3,507 |
4,209 |
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Inventory |
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1,489 |
3,092 |
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Securities, Marketable |
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Other Current Assets |
3,355 |
3,834 |
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TOTAL CURRENT ASSETS |
10,614 |
13,260 |
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Property & Equipment |
2,343 |
2,464 |
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Intangibles |
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44 |
64 |
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Investments, Other Fixed Assets |
652 |
666 |
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TOTAL ASSETS |
13,653 |
16,454 |
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Payables |
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864 |
839 |
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Short-Term Bank Loans |
2,735 |
2,898 |
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Other Current Liabs |
1,567 |
3,573 |
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TOTAL CURRENT LIABS |
5,166 |
7,310 |
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Debentures |
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45 |
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Long-Term Bank Loans |
1,518 |
1,836 |
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Reserve for Retirement Allw |
68 |
65 |
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Other Debts |
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1 |
1 |
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TOTAL LIABILITIES |
6,753 |
9,257 |
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MINORITY INTERESTS |
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Common
stock |
593 |
593 |
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Additional
paid-in capital |
1,092 |
1,092 |
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Retained
earnings |
5,262 |
5,550 |
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Evaluation
p/l on investments/securities |
(47) |
(39) |
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Others |
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0 |
0 |
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Treasury
stock, at cost |
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TOTAL S/HOLDERS` EQUITY |
6,900 |
7,196 |
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TOTAL EQUITIES |
13,653 |
16,454 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/08/2012 |
31/08/2011 |
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Cash
Flows from Operating Activities |
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2,377 |
-1,042 |
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Cash
Flows from Investment Activities |
-285 |
-50 |
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Cash
Flows from Financing Activities |
-1,911 |
403 |
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Cash,
Bank Deposits at the Term End |
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1,562 |
1,426 |
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ANALYTICAL RATIOS Terms ending: |
31/08/2012 |
31/08/2011 |
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Net
Worth (S/Holders' Equity) |
6,900 |
7,196 |
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Current
Ratio (%) |
205.46 |
181.40 |
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Net Worth
Ratio (%) |
50.54 |
43.73 |
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Recurring
Profit Ratio (%) |
0.12 |
4.19 |
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Net
Profit Ratio (%) |
-0.08 |
2.33 |
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Return
On Equity (%) |
-0.54 |
17.38 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.53.98 |
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1 |
Rs.83.72 |
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Euro |
1 |
Rs.72.08 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.