MIRA INFORM REPORT
|
Report Date : |
23.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
KURABO INDUSTRIES LTD |
|
|
|
|
Registered Office : |
2-4-31 Kyutaromachi Chuoku Osaka 541-8581 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
March, 1888 |
|
|
|
|
Com. Reg. No.: |
2600-01-013120 (Okayama-Kurashiki) |
|
|
|
|
Legal Form : |
Limited Company (Kabushiki Kaisha |
|
|
|
|
Line of Business : |
Cotton Spinner |
|
|
|
|
No. of Employees : |
5,033 |
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 : |
Usually Correct |
|
|
|
|
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
KURABO INDUSTRIES LTD
REGD NAME
Kurashiki Boseki
KK
MAIN OFFICE
2-4-31
Kyutaromachi Chuoku Osaka 541-8581 JAPAN
Tel: 06-6266-5111
Fax: 06-6266-5614
*.. Registered at:
7-1 Honcho Kurashiki Okayama-Pref
E-Mail address: (thru the URL)
ACTIVITIES
Cotton spinner
BRANCHES
Tokyo
OVERSEAS
Hong Kong
FACTORIES
Marugame,
Matsuyama, Tokushima, Neyagawa, Shizuoka, other (Tot 9)
CHIEF EXEC
AKIHIRO INOUE,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 146,990 M
PAYMENTS USUALLY CORRECT CAPITAL Yen
22,040 M
TREND SLOW WORTH Yen 88,405 M
STARTED 1888 EMPLOYES 5,033
COMMENT
COTTON SPINNER
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast
figures for the 31/03/2014 fiscal term.
HIGHLIGHTS
The subject
company is a time-honored major cotton spinner, with emphasis put on downstream
operations, including production of textiles led by casual cloths. Also stresses on non-textiles, such as
information systems, electronic-applied equipment, car interiors, and chemical
products like polyurethane foams.
Earning ratio of real estate leasing is high. The Thailand subsidiary damaged in the floods
resumed operations as the end of Feb 2012.
The company acquired the filter-type nucleic acid isolation business
from Fuji Film at the end of 2011. The
company will collaborate with a clothing alteration firm to offset anti-virus
processing of clothing brought in by customers.
It plans to apply “Cleanse” technology to medical uniforms.
FINANCIAL INFORMATION
The sales volume
for Mar/2013 fiscal term amounted to Yen 146,990 million, a 7.6% down from Yen 159,081
million in the previous term. Real
estate business grew. But textile
earnings declined overseas due to disasters and soaring material prices. Domestic sales of uniforms also slumped. Sales declined in all segments, except Real
Estate. By Divisions; Textiles up down
9.0% to Yen 81,300 million; Chemicals down 8.3% to Yen 39,400 million; Real
Estate Utilization up 5.1% to Yen 6,200 million; Machine Tools down 4.6% to Yen
5,700 million; Electronics down 1.9% to Yen 4,100 million. The recurring profit was posted at Yen 2,257
million and the net profit at Yen 852 million, respectively, compared with Yen
4,052 million recurring profit and Yen 2,716 million net profit, respectively,
a year ago.
For the current
term ending Mar 2014 the recurring profit is projected at Yen 3,300 million and
the net profit at Yen 1,800 million, on a 4.1% rise in turnover, to Yen 153,000
million. Real estate business will
remain stable. Chemicals will benefit
from growth of super engineering plastics following startup of the new
plant. Textiles sales will recover
overseas, but domestic clothing sales will still suffer from the slump. Operating profit will rally slowly.
The financial
situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 5,039.9
million, on 30 days normal terms.
REGISTRATION
Date
Registered: Mar 1888
Regd No.: 2600-01-013120
(Okayama-Kurashiki)
Legal Status: Limited
Company (Kabushiki Kaisha
Authorized: 977,011,000 shares
Issued: 246,939,284
shares
Sum: Yen
22,040 million
Major
shareholders (%): Company’s Treasury Stock (6.5), Nippon Life Ins (4.6), SMBC (4.5),
Mizuho Corporate Bank (4.5), Japan Trustee Services T (4.4), Chugoku Bank
(2.9), Master Trust Bank of Japan T (2.7), CHNYDHA Int’l Cap Value P (2.3),
JTSB (CMTB Equity Investments) (1.6), Mitsui Sumitomo Ins (1.6); foreign owners
(13.3)
No. of shareholders: 15,361
Listed on the S/Exchange (s) of: Tokyo, Osaka
Managements: Akihiro Inoue,
pres; Shin’ichiro Tomofuchi, s/mgn dir; Norio Ito, s/mgn dir; Toshiaki Saitoh, mgn dir; Haruo Kitagawa, mgn
dir; Haruya Fujita, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Tomei Kasei Co, Kurashiki Textile Mfg,
Japan Jiffy Foods Inc,
Kurabo Engineering
Work, other.
OPERATION
Activities: Cotton spinner:
(Sales Breakdown by Divisions):
Textiles (56.2%): cotton, synthetic,
wool, yarns, fabrics, knits, non-woven textiles, reinforcement netting, dyeing,
treatment and finishing of cotton & synthetic and knitted fabrics;
Chemicals (27.1%): polyurethane
foam, synthetic woods, inorganic building materials, functional performance engineering
plastics, precision filtration equipment & systems;
Real Estate Utilization (3.7%): lease of real
estate, operation of parking lot, hotel and driving school;
Machine Tools (3.8%): machine tools,
industrial machines, others;
Electronics (2.7%): information
system & equipment for color control, production control, CAD systems;
Others (6.5%): supply of plants, equipments, and machines
for environmental production and industrial household waste recycling, other
Overseas Sales Ratio (27%)
Clients: [Mfrs, wholesalers]
Uniqlo Co, Kurabo International, Toray Ind, Itochu Corp, Mitsubishi Corp,
Marubeni Corp, Marubeni Corp, Estec Co, Kowa Co, other
No.
of accounts: 800
Domestic
areas of activities: Nationwide
Suppliers:
[Mfrs, wholesalers] Kowa Co, Matsuoka Corporation, Kurabo International,
Nagase & Co,
Toyoshima & Co, Toyota Tsusho Corp, Inabata & Co, Chugoku Kasei
Kogyo,
other
Payment record: Usually
Correct
Location: Business area in
Osaka. Office premises at the caption
address are owned and maintained
satisfactorily.
Bank References:
SMBC
(Osaka-Chuo)
Mizuho
Corporate Bank (Osaka)
Relations:
Satisfactory
FINANCES
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
|
|||||
|
|
|
Terms Ending: |
31/03/2013 |
31/03/2012 |
||
|
INCOME STATEMENT |
|
|
||||
|
|
Annual Sales |
|
146,990 |
159,081 |
||
|
|
Cost of Sales |
123,622 |
134,550 |
|||
|
|
GROSS PROFIT |
23,368 |
24,531 |
|||
|
|
Selling & Adm Costs |
20,696 |
20,542 |
|||
|
|
OPERATING PROFIT |
2,672 |
3,988 |
|||
|
|
Non-Operating P/L |
-415 |
64 |
|||
|
|
RECURRING PROFIT |
2,257 |
4,052 |
|||
|
|
NET PROFIT |
852 |
2,716 |
|||
|
BALANCE SHEET |
|
|
|
|||
|
|
Cash |
|
13,384 |
16,497 |
||
|
|
Receivables |
|
37,957 |
39,630 |
||
|
|
Inventory |
|
26,109 |
25,875 |
||
|
|
Securities, Marketable |
182 |
432 |
|||
|
|
Other Current Assets |
5,614 |
5,152 |
|||
|
|
TOTAL CURRENT ASSETS |
83,246 |
87,586 |
|||
|
|
Property & Equipment |
57,078 |
53,198 |
|||
|
|
Intangibles |
|
1,641 |
1,622 |
||
|
|
Investments, Other Fixed Assets |
38,740 |
32,934 |
|||
|
|
TOTAL ASSETS |
180,705 |
175,340 |
|||
|
|
Payables |
|
19,784 |
24,282 |
||
|
|
Short-Term Bank Loans |
26,661 |
26,382 |
|||
|
|
|
|
|
|
||
|
|
Other Current Liabs |
12,683 |
11,543 |
|||
|
|
TOTAL CURRENT LIABS |
59,128 |
62,207 |
|||
|
|
Debentures |
|
|
|
||
|
|
Long-Term Bank Loans |
3,403 |
2,179 |
|||
|
|
Reserve for Retirement Allw |
7,970 |
7,775 |
|||
|
|
Other Debts |
|
21,799 |
20,765 |
||
|
|
TOTAL LIABILITIES |
92,300 |
92,926 |
|||
|
|
MINORITY INTERESTS |
|
|
|||
|
|
Common
stock |
22,040 |
22,040 |
|||
|
|
Additional
paid-in capital |
18,207 |
18,207 |
|||
|
|
Retained
earnings |
48,187 |
48,488 |
|||
|
|
Evaluation
p/l on investments/securities |
8,549 |
4,203 |
|||
|
|
Others |
|
(5,613) |
(7,561) |
||
|
|
Treasury
stock, at cost |
(2,965) |
(2,963) |
|||
|
|
TOTAL S/HOLDERS` EQUITY |
88,405 |
82,414 |
|||
|
|
TOTAL EQUITIES |
180,705 |
175,340 |
|||
|
CONSOLIDATED CASH FLOWS |
|
|
||||
|
|
|
Terms ending: |
31/03/2013 |
31/03/2012 |
||
|
|
Cash
Flows from Operating Activities |
|
5,231 |
3,477 |
||
|
|
Cash
Flows from Investment Activities |
-6,485 |
-7,747 |
|||
|
|
Cash
Flows from Financing Activities |
-1,518 |
-355 |
|||
|
|
Cash,
Bank Deposits at the Term End |
|
12,815 |
15,304 |
||
|
ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
||||
|
|
|
Net
Worth (S/Holders' Equity) |
88,405 |
82,414 |
||
|
|
|
Current
Ratio (%) |
140.79 |
140.80 |
||
|
|
|
Net
Worth Ratio (%) |
48.92 |
47.00 |
||
|
|
|
Recurring
Profit Ratio (%) |
1.54 |
2.55 |
||
|
|
|
Net
Profit Ratio (%) |
0.58 |
1.71 |
||
|
|
|
Return
On Equity (%) |
0.96 |
3.30 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.52 |
|
|
1 |
Rs.84.09 |
|
Euro |
1 |
Rs.71.67 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.