MIRA INFORM REPORT

 

 

Report Date :

29.06.2013

 

IDENTIFICATION DETAILS

 

Name :

MORIMOTO MFG CO LTD

 

 

Registered Office :

180 Suna Shijonawate Osaka-Pref 575-0001

 

 

Country :

Japan

 

 

Financials (as on) :

31.07.2012

 

 

Date of Incorporation :

August 1958

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of industrial sewing machines

 

 

No. of Employees :

136

 

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 :

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

 

MORIMOTO MFG CO LTD

 

 

REGD NAME

 

Morimoto Seisakusho KK

 

 

MAIN OFFICE

 

180 Suna Shijonawate Osaka-Pref 575-0001 JAPAN

Tel: 072-878-1177      Fax: 072-878-9649

 

URL:                 http://www.kansai-special.com

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Mfg of industrial sewing machines

 

 

BRANCHES   

 

Osaka (warehouse)

 

 

OVERSEAS

           

USA, Germany, Hong Kong, Singapore, Bangladesh, India, China (--subsidiaries)

 

 

FACTORIES

 

At the caption address, Osaka, Kyoto

 

 

OFFICERS

 

TSUTOMU MORIMOTO, PRES

Yoshihide Morimoto, dir           

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 2,016 M

PAYMENTSNo  Complaints  CAPITAL           Yen 55 M

TREND SLOW                           WORTH            Yen 410 M

STARTED         1958                             EMPLOYES      136

 

 

COMMENT

 

MFR OF INDUSTRIAL SEWING MACHINES.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established by Narajiro Morimoto (father of Chikara Morimoto) originally in 1927 for making drinking water making machines, on his account.  Incorporated in 1958 the firm has been succeeded by his descendants.  This is a family-based mfr specializing in industrial sewing machines, their components, parts, other (See OPERATION).  Operates 7 overseas subsidiaries as above.  Products are exported to over 80 countries in USA, Europe, China, Singapore, other. 

 

 

FINANCIAL INFORMATION

           

Financials are only partially disclosed.

 

The sales volume for Jul/2012 fiscal term amounted to Yen 2,016 million, a 28% down from Yen 2,783 million in the previous term.  High Yen hurt exports, reducing earnings substantially in Yen terms.  The net profit was posted at Yen 25 million, compared with Yen 10 million a year ago.

 

For the current term ending Jul 2013 the net profit is projected at Yen 30 million, on a 4% rise in turnover, to Yen 2,100 million.  Weaker Yen may contribute to increase export earnings in Yen terms. 

 

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

 

 


REGISTRATION

 

Date Registered:       Aug 1958

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         440,000 shares

Issued:                110,000 shares

Sum:                   Yen 55 million

 

Major shareholders (%): M T Co (30), Yoshihide Morimoto (19), Osaka Small & Medium Business Promotion and Investment Assn (18), other

 

No. of shareholders: 5

 

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

 

 

OPERATION

           

Activities: Manufactures industrial sewing machines, their components, parts, other (--100%)

 

(Mfg Items): double chain stitch machine, multi needle, double chain stitch machine, cover stitch machine, double chain stitch decorative machine, overlock, interlock machines, corrugated cardboard closing machines, their parts, other

 

Clients: [Mfrs, wholesalers] Exports to over 80 countries in USA, Europe, China, Singapore, other 

            No. of accounts: Unavailable

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Inoue Metal Working Ind, Sanpo Metal Sales Co, Dinintec Co, Kaneka Form Plastics, Tochidensha Inc, other

 

Payment record: No  Complaints 

 

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

 

Bank References:

MUFG (Kadoma)

Kinki Osaka Bank (Shijonawate)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

 

 

31/07/2013

31/07/2012

31/07/2011

31/07/2010

Annual Sales

 

2,100

2,016

2,783

2,289

Recur. Profit

 

 

 

 

 

Net Profit

 

30

25

10

-160

Total Assets

 

 

N/A

N/A

N/A

Net Worth

 

 

410

393

383

Capital, Paid-Up

 

 

55

55

55

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.17

-27.56

21.58

5.05

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

..

..

..

    N.Profit/Sales

1.43

1.24

0.36

-6.99

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/07/2013 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.70

UK Pound

1

Rs.91.14

Euro

1

Rs.77.98

 

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%)

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.