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Report Date : |
01.08.2014 |
IDENTIFICATION DETAILS
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Name : |
KURARAY CO LTD |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
June 1926 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturer of synthetic fiber |
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No of Employees : |
7,550 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
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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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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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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 |
KURARAY
CO LTD
Kuraray KK
Ote
Center Bldg, 1-1-3 Ohtemachi Chiyodaku Tokyo 100-8115 JAPAN
Tel:
03-6701-1000 Fax: 03-6701-1005
URL: http://www.kuraray.co.jp/
E-Mail address: info@kuraray.co.jp
Mfg of synthetic fiber
Osaka
China, USA , Taiwan, Germany, Singapore, other
Okayama (3), Ehime, Niigata,
Ibaraki (--all attached with laboratories)
FUMIO ITOH, PRES
Yen Amount: In million Yen, unless otherwise stated
FINANCES EXCLNT A/SALES Yen 413,485 M
PAYMENTSNO COMPLAINTS CAPITAL Yen
88,955 M
TREND STEADY WORTH Yen 452,459 M
STARTED 1926 EMPLOYES 7,550
LEADING
MFR OF SYNTHETIC FIBER.
FINANCIAL SITUATION COSIDERED EXCELLENT AND GOOD FOR
ORDINARY BUSINESS ENGAGEMENTS.
|
Business |
Terms Ending |
Annual Sales* |
R.Profit* |
N.Profit* |
S.Growth |
Net Worth* |
|
Results: |
31/03/2011 |
363,191 |
51,062 |
28,742 |
(%) |
346,825 |
|
(Consolidated) |
31/03/2012 |
368,975 |
53,940 |
31,469 |
1.59 |
366,314 |
|
|
31/03/2013 |
369,431 |
48,590 |
28,798 |
0.12 |
401,307 |
|
|
31/03/2014 |
413,485 |
49,343 |
9,390 |
11.92 |
452,459 |
|
|
31/12/2014 |
385,000 |
43,000 |
26,000 |
-6.89 |
.. |
Unit: In Million Yen
Forecast
(or estimated) figures for 31/12/2014 fiscal term
This is a leading mfr of synthetic fiber, known for synthetic fiber “Vinylon” commercialized for first time in Japan and man-made leather “Clarino”. Also maker non-textiles including man-made leather, medical products like dialyzers, dental-care products, and plastics such as PVA film and EVOH resin and film.
The sales volume for Mar/2014 fiscal term amounted to Yen 413,485 million, an 11.9% up from Yen 369,431 million in the previous term. Sales of EVOH resins in the US and Asia, and sales of GENESTAR resins for LEDs and automobile grew. The recurring profit was posted at Yen 49,343 million and the net profit at Yen 29,390 million, respectively, compared with Yen 48,590 million recurring profit and Yen 28,798 million net profit, respectively, a year ago.
For the current term ending Dec 2014 the recurring profit is projected at Yen 43,000 million and the net profit at Yen 26,000 million, on a 6.9% fall in turnover, to Yen 385,000 million. The change of account settlement date to Jan/Dec from Apr/Mar will result in a 9-month irregular account settlement.
The financial situation is considered maintained EXCELLENT and good for ORDINARY business engagements.
Date Registered:
Jun 1926
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 1,000
million shares
Issued: 382,863,603
shares
Sum: Yen
88,955 million
Major
shareholders (%): Company’s Treasury Stock (8.5), Master Trust Bank of Japan
T (5.7), Nippon Life Ins (3.0), Zenkyoren (2.8), Meiji Yasuda Life Ins (1.5),
Northern Trust (AVFC) (1.4), BBH Boston Cust. (1.4), Bank of New York Mellon
SANV10 (1.3), Trust & Custody Services Inv T (1.1); foreign owners (34.2).
No. of shareholders: 48,794
Listed on the S/Exchange (s) of: Tokyo
Managements:
Fumio Itoh, pres; Setsuo Yamashita, s/mgn dir; Keiji Murakami, s/mgn dir;
Kazuhiro Tenkumo, mgn dir; Yuichi Kawarasaki, mgn dir; Kunio Yukiyoshi, mgn
dir; Nobuo Fujiii, mgn dir; Sadaaki Matsuyama, mgn dir; Kazuhiko Kugawa, mgn
dir; Masaaki Ito, mgn dir; Takafusa Shioya, dir; Tomokazu Hamaguchi, dir
Nothing detrimental is known as
to the commercial morality of executives.
Related companies:
Kuraray Trading, Kuraray America, other
Activities:
Manufactures synthetic fiber, resins, man-made leather, other: Sales breakdown:
vinyl acetate (38%), isoprene (8%), functional materials (8%), textiles (9%),
Trading (26%), others (12%)
Overseas Sales Ratio (55%)
Clients:
[Mfrs, wholesalers] Kuraray Trading, Nitto Denko Corp, Inabata & Co, Self
Defense Ministry, Kuraray Europe, Sanritz Corp, Shimada & Co, Kanamori
Industries, other.
No. of accounts: 1,000
Domestic areas of activities:
Nationwide
Suppliers:
[Mfrs, wholesalers] Mitsubishi Chemical, Mitsui & Co, Showa Denko,
Mitsubishi Gas Chemical, Japan Saudi Arabia Methanol, Sanyo Electric Ind,
other..
Payment record: No Complaints
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactorily.
Bank References:
Mizuho
Bank (Tokyo)
SMBC
(Bingomachi)
Relations:
Satisfactory
FINANCES (In
Million Yen)
|
FINANCES: (Consolidated
in million yen) |
|
|||
|
|
|
Terms Ending: |
31/03/2014 |
31/03/2013 |
|
INCOME STATEMENT |
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||
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Annual Sales |
|
413,485 |
369,431 |
|
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Cost of Sales |
286,179 |
249,485 |
|
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GROSS PROFIT |
127,306 |
119,946 |
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Selling & Adm Costs |
77,760 |
70,748 |
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OPERATING PROFIT |
49,545 |
49,197 |
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Non-Operating P/L |
-202 |
-607 |
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RECURRING PROFIT |
49,343 |
48,590 |
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NET PROFIT |
9,390 |
28,798 |
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BALANCE SHEET |
|
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Cash |
|
49,746 |
46,151 |
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Receivables |
|
91,119 |
83,843 |
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Inventory |
|
88,634 |
31,202 |
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Securities, Marketable |
58,301 |
31,696 |
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Other Current Assets |
14,602 |
64,320 |
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|
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TOTAL CURRENT ASSETS |
302,402 |
257,212 |
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|
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Property & Equipment |
222,219 |
181,274 |
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Intangibles |
|
57,198 |
51,324 |
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Investments, Other Fixed Assets |
52,433 |
97,444 |
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|
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TOTAL ASSETS |
634,252 |
587,254 |
|
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Payables |
|
35,393 |
37,048 |
|
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Short-Term Bank Loans |
13,143 |
30,918 |
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|
|
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|
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|
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Other Current Liabs |
40,609 |
43,483 |
|
|
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TOTAL CURRENT LIABS |
89,145 |
111,449 |
|
|
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Debentures |
|
10,000 |
10,000 |
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Long-Term Bank Loans |
12,187 |
28,171 |
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Reserve for Retirement Allw |
5,448 |
6,665 |
|
|
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Other Debts |
|
65,013 |
29,662 |
|
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TOTAL LIABILITIES |
181,793 |
185,947 |
|
|
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MINORITY INTERESTS |
|
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|
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Common
stock |
88,955 |
88,955 |
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Additional
paid-in capital |
87,147 |
87,147 |
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Retained
earnings |
279,616 |
263,362 |
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Evaluation
p/l on investments/securities |
6,944 |
6,076 |
|
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Others |
|
28,222 |
(4,064) |
|
|
Treasury
stock, at cost |
(38,425) |
(40,169) |
|
|
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TOTAL S/HOLDERS` EQUITY |
452,459 |
401,307 |
|
|
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TOTAL EQUITIES |
634,252 |
587,254 |
|
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CONSOLIDATED CASH FLOWS |
|
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||
|
|
|
Terms ending: |
31/03/2014 |
31/03/2013 |
|
|
Cash
Flows from Operating Activities |
|
61,175 |
66,911 |
|
|
Cash
Flows from Investment Activities |
22,293 |
-63,622 |
|
|
|
Cash
Flows from Financing Activities |
-15,427 |
-10,239 |
|
|
|
Cash,
Bank Deposits at the Term End |
|
100,642 |
29,885 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
|
|
Net
Worth (S/Holders' Equity) |
452,459 |
401,307 |
|
|
|
Current
Ratio (%) |
339.22 |
230.79 |
|
|
|
Net
Worth Ratio (%) |
71.34 |
68.34 |
|
|
|
Recurring
Profit Ratio (%) |
11.93 |
13.15 |
|
|
|
Net
Profit Ratio (%) |
2.27 |
7.80 |
|
|
|
Return
On Equity (%) |
2.08 |
7.18 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 60.24 |
|
|
1 |
Rs. 101.92 |
|
Euro |
1 |
Rs. 80.69 |
INFORMATION DETAILS
|
Analysis Done by
: |
SMT |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.