MIRA INFORM REPORT

 

 

Report Date :

24.04.2014

 

IDENTIFICATION DETAILS

 

Name :

FURUKAWA AUTOMOTIVE SYSTEMS INC

 

 

Registered Office :

1000 Amago Kouracho Inukamigun Shiga-Pref 522-0242

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

November 1950

 

 

Com. Reg. No.:

1600-01-008106 (Shiga-Inukaigun)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of Wire Harnesses (Cable Assembly for Automobiles), Electronic Products and Other In-Car Functional Products as well as Vehicle Connectors

 

 

No of Employees :

1,570

 

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 :

Good

 

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

 

Source : CIA

 

 

 

 

 

 


 

Company name

 

FURUKAWA AUTOMOTIVE SYSTEMS INC

 

 

REGD NAME

 

Furukawa AS KK

 

 

MAIN OFFICE

 

1000 Amago Kouracho Inukamigun Shiga-Pref 522-0242 JAPAN

 

Tel: 0749-38-4150      Fax: 0749-38-4160

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Manufacturer of Wire Harnesses (Cable Assembly for Automobiles), Electronic Products and Other In-Car Functional Products as well as Vehicle Connectors

 

 

BRANCHES

 

Tokyo, Osaka, Hiratsuka, Hamamatsu, Toyota, Hiroshima, other (Tot 21)

 

 

OVERSEAS

           

UK, Czech, France, USA, Mexico, Korea, Philippines (3), Malaysia, Indonesia, Vietnam, Thailand, India, China (8)

 

FACTORIES

 

Mie, Shiga (3), Yamaguchi; China (4), Mexico, Taiwan, Philippines, India

 

OFFICERS

 

KATSUHIKO MUROTA, PRES    Takamitsu Kozuka, v pres

Koichiro Matsumoto, v pres         Katsumi Shibata, s/mgn dir

Michitoyo Kurokawa, dir             Tomokazu Takagi, dir    

           

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 101,588 M

PAYMENTS      REGULAR         CAPITAL           Yen 3,000 M

TREND             UP                    WORTH            Yen 8,778 M

STARTED         1950                 EMPLOYES      1,570

 

 

COMMENT

 

MFR OF AUTOMOTIVE HARNESSES.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established by Furukawa Electric Co Ltd (See REGISTRATION) as its associated plant in Shiga-Pref.  This is a specialized mfr of wire harnesses (cable assembly for automobiles) and related electronic products, others (See OPERATION).  Products are manufactured at its domestic plants as well as overseas plants.  Products are supplied to the parent and its group firms for delivery to car makers.  Purchased car connector business operations from Mitsubishi Electric Co and sales rose.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 101,588 million, a 27% up from Yen 80,289 million in the previous term.  This is thanks to the said purchase of car connector business operations and sales rose.  The recurring profit was posted at Yen 6,812 million and the net profit at Yen 4,206 million, respectively, compared with Yen 3,647 million recurring profit and Yen 2,387 million net profit, respectively, a year ago.

 

For the term that ended Mar 2014 the recurring profit was projected at Yen 7,000 million and the net profit at Yen 4,500 million, respectively, on a 5% rise in turnover, to Yen 106,500 million.  Final results are yet to be released.

 

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

 

REGISTRATION

 

Date Registered:  Nov 1950

Regd No.:         1600-01-008106 (Shiga-Inukaigun)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         44.4 million shares

Issued:             11,107,200 shares

Sum:                   Yen 3,000 million

 

Major shareholders (%): Furukawa Electric Co Ltd* (100)

 

*.. One of 3 largest mfrs of electric wires and cables, Tokyo, founded 1896, listed Tokyo S/E, capital Yen 69,395 million, sales Yen 924,717 million, operating profit Yen 17,763 million, recurring profit Yen 17,612 million, net profit Yen 3,576 million, total assets Yen 736,457 million, net worth Yen 184,804 million, employees 46,940, pres Mitsuyoshi Shibata

 

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

 

 

OPERATION

           

Activities: Manufactures wire harnesses (cable assembly for automobiles), electronic products and other in-car functional products as well as vehicle connectors (--100%)

 

(Mfg products):

 

(Harnesses): wire harnesses for EV/HEV, automotive aluminum wire harnesses, sliding door harnesses;

 

(Connectors): optical MOST connectors, smart connectors, steering roll connectors;

 

(Functional Components for Automobiles): junction boxes/relay boxes, metal core PCB, electronic control units (ECU), products utilizing flat cables, other

 

Clients: [Mfrs, wholesalers] Furukawa Electric Co, Toyota Motor, Daihatsu Motor, Honda Motor, Suzuki Motor, Isuzu Motor, Mazda Motor, Fuji Heavy Ind, Nissan Motor, Tokai Rika Co, Denso Corp, other 

            No. of accounts: 800

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Furukawa Electric Co, Sumitomo wiring Systems, Yazaki Corp, Tyco Electronics Japan, Furukawa Sangyo Kaisha, other

 

Payment record: Regular

 

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


 

Bank References:

Shiga Bank (Toyosato)

Shoko Chukin Bank (Hikone)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

106,500

101,588

80,289

78,556

Recur. Profit

 

7,000

6,812

3,647

5,086

Net Profit

 

4,500

4,206

2,387

2,527

Total Assets

 

 

54,173

44,606

33,772

Current Assets

 

 

37,895

32,666

24,956

Current Liabs

 

 

38,372

32,162

23,344

Net Worth

 

 

8,778

7,319

6,778

Capital, Paid-Up

 

 

3,000

3,000

3,000

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.84

26.53

2.21

11.50

    Current Ratio

 

..

98.76

101.57

106.91

    N.Worth Ratio

..

16.20

16.41

20.07

    R.Profit/Sales

 

6.57

6.71

4.54

6.47

    N.Profit/Sales

4.23

4.14

2.97

3.22

    Return On Equity

..

47.92

32.61

37.28

 

Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term.

 

 


 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.07

UK Pound

1

Rs.102.77

Euro

1

Rs.84.49

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.