MIRA INFORM REPORT

 

 

 

Report Date :

28.06.2013

 

IDENTIFICATION DETAILS

 

Name :

FUKUDA CORPORATION

 

 

Registered Office :

11-2 Akashicho Chuoku Tokyo 104-0044

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

July 1950

 

 

Com. Reg. No.:

0100-01-055557 (Tokyo-Chuoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, wholesale of bearings, spindles, other machinery parts

 

 

No. of Employees :

114

 

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 372.0 Million

 

 

Status :

Satisfactory 

 

 

Payment Behaviour :

No  Complaints

 

 

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

 

FUKUDA CORPORATION

 

 

REGD NAME

 

Fukuda Koeki KK

 

 

MAIN OFFICE

 

11-2 Akashicho Chuoku Tokyo 104-0044 JAPAN

Tel: 03-5565-6811     Fax: 03-5565-6816

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

E-Mail address:            intl-sales@fukudaco.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of bearings, spindles, other machinery parts

 

 

BRANCHES

 

Osaka, Nagoya, Hiroshima, Atsugi, Kanazawa, Fukuoka

 

 

FACTORIES

 

Urayasu (Chiba) (Inventory control center)

 

 

OFFICER(S)

 

RYOZO FUKUDA, PRES            Hiroshi Kirita, s/mgn dir

Ikuko Tsuchiya, dir                     Takayuki Fukuda, dir

 

Yen Amount:     In million Yen, unless otherwise stated


 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 8,709 M

PAYMENTS      No  Complaints         CAPITAL           Yen 360 M

TREND STEADY                       WORTH            Yen 7,372 M

STARTED         1950                             EMPLOYES      114

 

 

COMMENT    

 

IMPORTER AND WHOLESALER SPECIALIZING IN BEARINGS. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 372.0 MILLION, NORMAL 30 DAYS TERMS

 

 

HIGHLIGHTS

 

The subject company was established originally in 1940 by Rakuo Fukuda for importing bearings, auto/aircrafts parts, working tools, etc, on his account.  Incorporated in 1950 the firm has been succeeded by his descendants.  This is a trading house for import, export and wholesale of bearings as a mainline.  Clients are such industries as, machine tools, printing machines, robots, carmakers, chemical plants, can mfg, molding machines. Electronics (LCD’s), construction machines, steel works, other.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 8,709 million, a 16% up from Yen 7,506 million in the previous term.  The recurring profit was posted at Yen 1,914 million and the net profit at Yen 563 million, respectively, compared with Yen 1,238 million recurring profit and Yen 673 million net profit, respectively, a year ago.

 

For the term that ended Mar 2013 the recurring profit was projected at Yen 1,850 million and the net profit at Yen 575 million respectively, on a 3% rise in turnover, to Yen 8,970 million.  Final results are yet to be released.

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 372.0 million, on normal 30 days terms.

 

REGISTRATION

 

Date Registered:              Jul 1950

Regd No.:             0100-01-055557 (Tokyo-Chuoku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         31.6 million shares

Issued:                 7.9 million shares

Sum:                   Yen 360 million

 

Major shareholders (%): RFC Co (37.7), Company’s Treasury Stock (23.6), Employees’ S/Holding Assn (9.5), Takayuki Fukuda (7.6), Yusuke Asakawa (4.1)

 

No. of shareholders: 17

 

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

 

 

OPERATION

 

Activities: Manufactures, imports and wholesales bearings (39%): inner/outer rings for deep groove ball bearings, angular contact ball bearings, tapered roll bearings, turning rings for bearings: spindles (27%), seals (11%), locknuts (8%), cutting tools, working tools, material handlings (--15%), others (15%).

 

Clients: [Mfrs, wholesalers] Tsugami Corp, Komatsu NTC, Makino Milling Machine, Dainippon Screen Mfg Co, Taiyo Koki Co, Toyo Advanced Technologies Co, other

            No. of accounts: 500

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Scaeffler Japan Co, TIMKEN, Kimura Corp, GMN SYCOTEC OTT-Japan, Nachi Tohoku Corp, other

.

Payment record: No  Complaints 

 

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

 

Bank References:

MUFG (Tsukiji)

Mizuho Bank (Tsukiji)

Relations: Satisfactory

 


FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

8,970

8,709

7,506

4,499

Recur. Profit

 

1,850

1,814

1,238

434

Net Profit

 

575

563

672

77

Total Assets

 

 

10,368

10,090

9,147

Current Assets

 

 

6,839

6,813

 

Current Liabs

 

 

1,812

2,012

 

Net Worth

 

 

7,372

6,876

6,266

Capital, Paid-Up

 

 

360

360

360

Div.P.Share(¥)

 

 

10.00

10.00

7.50

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.00

16.03

66.84

-46.34

    Current Ratio

 

..

377.43

338.62

..

    N.Worth Ratio

..

71.10

68.15

68.50

    R.Profit/Sales

 

20.62

20.83

16.49

9.65

    N.Profit/Sales

6.41

6.46

8.95

1.71

    Return On Equity

..

7.64

9.77

1.23

 

Notes: Forecast (or estimated) figures for the 31/03/2013 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.59

UK Pound

1

Rs.92.92

Euro

1

Rs.78.94

 

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.