MIRA INFORM REPORT

 

 

Report Date :

03.06.2013

 

IDENTIFICATION DETAILS

 

Name :

MORIMURA BROS INC

 

 

Registered Office :

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

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

October, 1876

 

 

Com. Reg. No.:

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

 

Maximum Credit Limit:

Yen 880.2 million

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. 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. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan 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 and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 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 2012. The new government will continue a longstanding debate 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

 

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 (4), 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                       

Ichiro Wakui, mgn dir                 Makoto Katagiri, mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 77,626 M

PAYMENTS      REGULAR         CAPITAL           Yen 180 M

TREND             SLOW               WORTH            Yen 4,335 M

STARTED         1876                 EMPLOYES      269

 

 

COMMENT

 

TRADING COMPANY SPECIALIZING IN METALS & INDUSTRIAL CHEMICALS. 

           

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 880.2 MILLION, 30 DAYS NORMAL TERMS

 

 

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/2012 fiscal term amounted to Yen 77,626 million, a shade down from Yen 77,837 million in the previous term.  High Yen hurt import/export earnings & profits in Yen terms.  The recurring profit was posted at 2,479 million and the net profit at Yen 1,098 million, respectively, compared with Yen 2,527 million recurring profit and Yen 4,312 million net losses, respectively, a year ago.

 

For the current term ending Dec 2013 the recurring profit is projected at Yen 2,500 million and the net profit at Yen 1,200 million, respectively, on a 5% rise in turnover, to Yen 81,500 million. .  Weaker Yen may contribute to raise earnings in Yen terms.

 

The financial situation is considered FAIR to GOOD and responsible for ORDINARY business engagements.  Max credit limit is estimated at Yen 880.2 million, on 30 days normal terms. 

 

 

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 (18.4), Shunsuke Morimura (12.2), Employees’ \s/Holding Assn (12.0), Yusuke Morimura (9.6), MUFG (5)

No. of shareholders:                 63

 

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 (40%): 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) (15%): alumina, silicon carbide, bauxite, magnesia clinker, alumina cement, kyanite, andalsite, other;

Others (8%): 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 (50%).

(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, Morimura Bros Co Shanghai, Morimura Bros Co Hong Kong, Morimura Bros Inc USA, Nippon Electric Glass Co, 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: Regular

 

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:

31/12/2013

31/12/2012

31/12/2011

31/12/2010

Annual Sales

 

81,500

77,626

77,837

73,873

Recur. Profit

 

2,500

2,479

2,527

1,283

Net Profit

 

1,200

1,098

-4,312

57

Total Assets

 

 

31,140

34,437

25,333

Current Assets

 

 

24,575

26,851

22,034

Current Liabs

 

 

22,484

26,105

16,447

Net Worth

 

 

4,335

3,037

7,351

Capital, Paid-Up

 

 

180

180

180

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.99

-0.27

5.37

16.43

    Current Ratio

 

..

109.30

102.86

133.97

    N.Worth Ratio

..

13.92

8.82

29.02

    R.Profit/Sales

 

3.07

3.19

3.25

1.74

    N.Profit/Sales

1.47

1.41

-5.54

0.08

    Return On Equity

..

25.33

-141.98

0.78

 

Notes: Forecast (or estimated) figures for the 31/12/2013 fiscal term. 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.56.49

UK Pound

1

Rs.86.81

Euro

1

Rs.73.68

 

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.