MIRA INFORM REPORT

 

 

Report Date :

01.08.2014

 

IDENTIFICATION DETAILS

 

Name :

KOMORI CORPORATION

 

 

Registered Office :

3-11-1 Azumabashi Sumidaku Tokyo 130-8666

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

December 1946

 

 

Com. Reg. No.:

010719

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of offset printing machines

 

 

No of Employees :

1,784

 

 

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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:

 

KOMORI CORPORATION

 

 

REGD NAME:

 

KK Komori Corporation

 

 

MAIN OFFICE:    

 

3-11-1 Azumabashi Sumidaku Tokyo 130-8666 JAPAN

Tel: 03-5608-7811     Fax: 03-3624-7160

 

URL:                 Error! Hyperlink reference not valid.

E-Mail address: info@komori.com

 

 

ACTIVITIES: 

 

Mfg of offset printing machines

 

 

BRANCHES:  

 

Osaka, Nagoya, Fukuoka, Shizuoka, Sendai, Hiroshima, other (Tot 15)

 

 

OVERSEAS:  

 

USA (2), Europe (9), China (3), Hong Kong, Taiwan, Singapore

 

 

FACTORIES: 

 

Tsukuba

 

 

CHIEF EXEC:

 

SATOSHI MOCHIDA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY:   

 

FINANCES        FAIR                             A/SALES          Yen 91,837 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 37,714 M

TREND STEADY                       WORTH            Yen 125,686 M

STARTED         1946                             EMPLOYES      1,784

 

 

COMMENT:   

 

MFR SPECIALIZING IN OFFSET PRINTING MACHINES.             

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

72,234

-4,853

-6,216

(%)

124,178

(Consolidated)

31/03/2012

72,297

-4,278

-6,292

0.09

115,012

 

31/03/2013

69,825

1,762

-1,899

-3.42

113,722

 

31/03/2014

91,837

10,098

13,657

31.52

125,686

 

31/03/2015

95,000

7,600

7,300

3.44

..

Notes: Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2015 fiscal term

 

 

HIGHLIGHTS:

           

This is the largest mfr of offset printing machines founded originally in 1923 as lithographic printing machinery mfr.  The only producer of printing equipment for domestic currency.  Overseas sales ratio is high with marketing-maintenance service subs in USA, Europe, Asia, etc.  Highly competitive in sheet-fed offset presses, computerized equipment and money printing machines.  Export ratio high.  Domestic clients include Ministry of Finance, printing houses, nationwide.

           

 

FINANCIAL INFORMATION:

 

The sales volume for Mar/2014 fiscal term amounted to Yen 91,837 million, a 31.5% up from Yen 69,825 million in the previous term.  Sales of printing machines rebounded more sharply than anticipated in the greater China, and went well in North America, thanks to replacement demand.  The recurring profit was posted at Yen 10,098 million and the net profit at Yen 13,657 million, respectively, compared with Yen 1,762 million recurring profit and Yen 1,899 million net losses, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 7,600 million and the net profit at Yen 7,300 million, respectively, on a 3.4% rise in turnover, to Yen 95,000 million.  Orders will rise steadily in North America and Japan.  Sales of security printing equipment will increase in newly emerging countries. 

 

Financial situation is considered FAIR and good for ORDINARY business engagements.    

 

 

REGISTRATION:

 

Date Registered:                      Dec 1946

Regd No.:                                 (Tokyo-Sumidaku) 010719

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  295.5 million shares

Issued:                         68,292,340 shares

Sum:                            Yen 37,714 million

           

Major shareholders (%): Company’s Treasury Stock (9.2), Master Trust Bank of Japan T (8.8), Japan Trustee Services Bank T (5.4), Komori Estate (3.0), Yoshimaro Komori (2.9), Meiji Yasuda Life Ins (2.7), Noriko Komori (2.7), Noriko Komori (2.7), CBNYDFA Int’l Cap Value P (2.1), Customers’ S/Holding Assn (1.9), Yoshiharu Komori (1.5); foreign owners (20.9)

           

No. of shareholders: 4,276

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Yoshiharu Komori, ch; Satoshi Mochida, pres; Kazunori Saitoh, mgn dir;  Makoto Kondo, mgn dir; Hideharu Kajita, dir; Koichi Matsuno, dir; Masamitsu Yoshikawa, dir; Harunobu Kameyama, dir

 

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

 

Related companies: Komori Machinery, Komori Electronics, others

           

 

OPERATION:

 

Activities: Manufactures offset printing machines (81%): commercial offset presses offset web presses, currency & securities offset presses, web offset packaging presses, printing equipment; maintenance & used machinery, others (19%).

Overseas sales ratio (62%)

 

Clients: [Printing houses, wholesalers] National Printing Center, Ministry of Finance,          Dainippon Printing, Toppan Printing, Kyodo Printing, Komori International Europe, Komori America, Tosho Printing, De La Rue plc, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Komori Machinery, Komori Electronics, Gunze, KK Stec,    Masusei Foundry, Kurikoma Denki Koji, Osaka Sanso Kogyo, Kyoni Corp, Eye Graphics  

Corp, Cosmotec Corp, other.

 

Payment record: No Complaints

 

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

 

Bank References:

                        Mizuho Bank (Ohtemachi)

                        MUFG (Ginza)

                        Relations: Satisfactory

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

　

　

  Annual Sales

　

91,837

69,825

　

  Cost of Sales

60,990

49,732

　

      GROSS PROFIT

30,847

20,093

　

  Selling & Adm Costs

22,374

19,504

　

      OPERATING PROFIT

8,473

589

　

  Non-Operating P/L

1,625

1,173

　

      RECURRING PROFIT

10,098

1,762

　

      NET PROFIT

13,657

-1,899

BALANCE SHEET

 

 

　

　

  Cash

　

43,973

39,328

　

  Receivables

 

24,730

22,118

　

  Inventory

 

25,896

25,397

　

  Securities, Marketable

22,013

4,748

　

  Other Current Assets

7,188

2,477

　

      TOTAL CURRENT ASSETS

123,800

94,068

　

  Property & Equipment

32,040

32,577

　

  Intangibles

 

2,290

2,571

　

  Investments, Other Fixed Assets

14,277

14,741

　

      TOTAL ASSETS

172,407

143,957

　

  Payables

 

11,994

9,122

　

  Short-Term Bank Loans

1,614

1,534

　

　

 

　

　

　

  Other Current Liabs

19,009

16,646

　

      TOTAL CURRENT LIABS

32,617

27,302

　

  Debentures

 

10,000

　

　

  Long-Term Bank Loans

　

411

　

  Reserve for Retirement Allw

2,500

815

　

  Other Debts

　

1,603

1,707

　

      TOTAL LIABILITIES

46,720

30,235

　

      MINORITY INTERESTS

 

　

　

Common stock

37,714

37,714

　

Additional paid-in capital

37,797

37,797

　

Retained earnings

55,305

42,267

　

Evaluation p/l on investments/securities

2,249

1,969

　

Others

 

(2,426)

(1,075)

　

Treasury stock, at cost

(4,953)

(4,950)

　

      TOTAL S/HOLDERS` EQUITY

125,686

113,722

　

      TOTAL EQUITIES

172,407

143,957

CONSOLIDATED CASH FLOWS

 

　

　

 

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

13,430

2,794

　

Cash Flows from Investment Activities

-7,086

2,759

　

Cash Flows from Financing Activities

8,820

-7,745

　

Cash, Bank Deposits at the Term End

　

54,392

38,054

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

 

Net Worth (S/Holders' Equity)

125,686

113,722

　

 

Current Ratio (%)

379.56

344.55

　

 

Net Worth Ratio (%)

72.90

79.00

　

 

Recurring Profit Ratio (%)

11.00

2.52

　

 

Net Profit Ratio (%)

14.87

-2.72

　

　

Return On Equity (%)

10.87

-1.67

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 60.24

UK Pound

1

Rs. 101.92

Euro

1

Rs. 80.69

 

 

INFORMATION DETAILS

 

Analysis Done by :

RSM

 

 

Report Prepared by :

DPT

 

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.