MIRA INFORM REPORT
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Report Date : |
17.05.2013 |
IDENTIFICATION DETAILS
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Name : |
Fukoku Co Ltd |
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Registered Office : |
3-105 Sega Ageo City Saitama-Pref 671-0224 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
December, 1953 |
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Com. Reg. No.: |
0300-01-044311 (Saitama-Ageo) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufactures of Rubber Products for Automobiles. |
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No. of Employees : |
3,674 |
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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Maximum Credit Limit : |
YEN 2,025.4 MILLION |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – March 31st, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 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
FUKOKU CO LTD
REGD NAME
KK Fukoku
MAIN OFFICE
3-105 Sega Ageo
City Saitama-Pref 671-0224 JAPAN
Tel:
048-600-1700 Fax: 048-773-0711 -
URL: http://www.fukoku-rubber.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Mfg of
rubber products for automobiles
BRANCHES
Osaka,
Fujisawa
OVERSEAS
USA,
Korea, Thailand, China (4), Indonesia, Vietnam
FACTORIES
At the
caption address, Gunma (2), Aichi
OVERSEAS
USA,
China, Thailand
CHIEF EXEC
JIRO
KAWAMOTO, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 56,906 M
PAYMENTSNO
COMPLAINTS CAPITAL Yen 1,395 M
TREND UP WORTH Yen 26,117 M
STARTED 1953 EMPLOYES 3,674
COMMENT
MFR OF RUBBER PRODUCTS FOR AUTOMOBILES
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 2,025.4 MILLION, 30 DAYS NORMAL TERMS
Unit:
In Million Yen
Forecast figures for the
31/03/2014 fiscal term.
HIGHLIGHTS
This
is the independent major mfr of rubber products for automobiles. Maintains strong market share in many
products including wiper blades. Boasts strengths in products for trucks and
also supplies products to construction machinery mfrs. Bolstering production bases in US, China
& Thailand. In overseas business,
the company will promote the production capacity enhancement in S/E Asia from
the March 2014 term. In Korea, it will
concentrate production bases to thorough nationalization. Expansion into Latin America will continue to
be considered.
FINANCIAL INFORMATION
The
sales volume for Mar/2013 fiscal term amounted to Yen 56,906 million, a 4.5% up
from Yen 54,469 million in the previous term.
In mainstay rubber parts sales, negative impacts from production cut in
China in the second half hurt more than expected. But weaker Yen assisted to raise the sales in
Yen terms. The recurring profit was
posted at Yen 3,072 million and the net profit at Yen 1,898 million,
respectively, compared with Yen 3,267 million recurring profit and Yen 2.323
million net profit, respectively, a year ago.
For
the current term ending Mar 2014 the recurring profit is projected at Yen 3,100
million and the net profit at Yen 2,100 million, on a 7.2% rise in turnover, to
Yen 61,000 million. Sales of rubber
parts will extend, backed by production hike of Japanese cars, whose demand in
North America and S/E Asia is growing.
Increase in start-up costs of overseas bases will be absorbed, and
operating profit will rebound.
The
financial situation is considered FAIR and good for ORDINARY business
engagements. Max credit limit is
estimated at Yen 2,025.4 million, on 30 days normal terms.
REGISTRATION
Date Registered: Dec 1953
Regd No.: 0300-01-044311
(Saitama-Ageo)
Legal Status: Limited Company (Kabushiki Kaisha
Authorized: 70
million shares
Issued: 17,609,130
Sum: Yen 1,395 million
Major shareholders (%): Shizue Kawamoto (12.4), Taro
Kawamoto (12.1), Jiro Kawamoto (12.1), Customers’ S/Holding Assn (5.0), Mari
Watanabe (4.0), Employees’ S/Holding Assn (3.3), Japan Trustee Services T
(3.1), Eiichi Kawamoto (3.0), Company’s Treasury Stock (2.1), Mizuho Bank
(1.7); foreign owners (3.6)
No. of shareholders: 14,837
Listed on the S/Exchange (s) of:
Tokyo
Managements: Taro Kawamoto, ch; Jiro Kawamoto,
pres; Akira Ihara, dir; Akira Nakazawa, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Toyo
Rubber Ind, Sueyoshi Kogyo Co, Polymer Giken Co, other.
OPERATION
Activities: Manufactures functional rubber
(47%), vibration isolation (39%), metal processing (9%), others (5%)
(Mfg
Items): Wiper
blade rubber, seals (protecting against gas & liquid leaks), anti-vibration
products, ultrasonic motor, bio related
parts, other
Clients: [Mfrs, wholesalers]
Isuzu Motor, Nippon Wiper Blade, ASMO Co, UD Trucks, Denso Corp, Hitachi
Automotive, other
No. of
accounts: 500
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Asahi Carbon, Kosuge Corp,
Tanaka Iron Works, Marubeni Itochu
Special Steel Corp, other
Payment record: No Complaints
Location: Business area in Ageo City,
Saitama-Pref. Office premises at the
caption address are owned and
maintained satisfactorily.
Bank References:
Mizuho Bank
(Omiya)
MUFG (Omiya)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
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56,906 |
54,469 |
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Cost of Sales |
46,571 |
44,010 |
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GROSS PROFIT |
10,334 |
10,458 |
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Selling & Adm Costs |
7,670 |
7,285 |
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OPERATING PROFIT |
2,664 |
3,173 |
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Non-Operating P/L |
308 |
94 |
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RECURRING PROFIT |
3,072 |
3,267 |
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NET PROFIT |
1,898 |
2,323 |
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BALANCE SHEET |
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Cash |
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7,376 |
8,262 |
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Receivables |
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14,608 |
15,328 |
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Inventory |
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3,825 |
3,536 |
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Securities, Marketable |
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Other Current Assets |
1,153 |
1,184 |
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TOTAL CURRENT ASSETS |
26,962 |
28,310 |
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Property & Equipment |
21,604 |
18,396 |
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Intangibles |
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433 |
232 |
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Investments, Other Fixed Assets |
1,045 |
793 |
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TOTAL ASSETS |
50,044 |
47,731 |
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Payables |
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8,873 |
10,135 |
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Short-Term Bank Loans |
2,834 |
2,746 |
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Other Current Liabs |
7,234 |
6,637 |
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TOTAL CURRENT LIABS |
18,941 |
19,518 |
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Debentures |
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Long-Term Bank Loans |
2,580 |
3,230 |
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Reserve for Retirement Allw |
1,212 |
869 |
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Other Debts |
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1,193 |
812 |
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TOTAL LIABILITIES |
23,926 |
24,429 |
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MINORITY INTERESTS |
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Common
stock |
1,395 |
1,395 |
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Additional
paid-in capital |
1,565 |
1,563 |
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Retained
earnings |
22,954 |
21,398 |
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Evaluation
p/l on investments/securities |
89 |
64 |
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Others |
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332 |
(882) |
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Treasury
stock, at cost |
(218) |
(236) |
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TOTAL S/HOLDERS` EQUITY |
26,117 |
23,302 |
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TOTAL EQUITIES |
50,044 |
47,731 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2013 |
31/03/2012 |
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Cash
Flows from Operating Activities |
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4,490 |
5,220 |
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Cash
Flows from Investment Activities |
-3,798 |
-3,699 |
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Cash Flows
from Financing Activities |
-1,888 |
-1,334 |
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Cash,
Bank Deposits at the Term End |
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7,024 |
7,947 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
26,117 |
23,302 |
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Current
Ratio (%) |
142.35 |
145.05 |
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Net
Worth Ratio (%) |
52.19 |
48.82 |
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Recurring
Profit Ratio (%) |
5.40 |
6.00 |
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Net
Profit Ratio (%) |
3.34 |
4.26 |
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Return
On Equity (%) |
7.27 |
9.97 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.54.77 |
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|
1 |
Rs.83.31 |
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Euro |
1 |
Rs.70.46 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.