MIRA INFORM REPORT

 

 

Report Date :

21.08.2014              

 

IDENTIFICATION DETAILS

 

Name :

DRESSER JAPAN LTD

 

 

Registered Office :

Harumi Island Litton Square Office Tower 23F, 1-8-10 Harumi Chuoku Tokyo

104-0053

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

September 1977

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures auto-adjustable valves, air blowers, compressors, measuring instruments, gasoline feeders targeting to filling stations, other related products mainly to oil industries (--100%).

 

 

No. of Employees :

300

 

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 and address

 

DRESSER JAPAN LTD

REGD NAME:    Dresser Japan KK

MAIN OFFICE:  Harumi Island Litton Square Office Tower 23F, 1-8-10 Harumi Chuoku Tokyo

                                    104-0053 JAPAN

Tel: 03-6871-9007     Fax: 03-6890-4620

 

                        *.. The is its subsidiary, Niigata Masoneilan Co Ltd

 

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

E-Mail address: info@dresserjapan.co.jp

 

 

ACTIVITIES  

 

Mfg of industrial valves, air blowers, gasoline feeders, measuring instruments

 

 

BRANCHES

 

Nagasaki, Hiroshima, Fukuoka, Niigata, Mie, Osaka

 

 

FACTORIES  

 

Niigata (as given)

 

 

OFFICER(S)  

 

AKIHISA KIKUCHI, PRES           Takashi Imura, dir

Tametsune Tashiro, dir   Yosuke Watanabe, dir

Hideki Hoshi, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 10,950 M*

PAYMENTS      No complaints   CAPITAL           Yen 495 M

TREND UP                    WORTH            Yen 3,076 M

STARTED         1977                 EMPLOYES      300

 

*.. Figures are estimated only as not precisely disclosed for the term

 

 

COMMENT    

 

MFR OF INDUSTRIAL VALVES, OWNED BY DRESSER INC, USA. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

                       

HIGHLIGHTS

 

The subject company was established by Dresser Inc, USA as its MFG & marketing base in Japan.  This is a trading house specializing in oil-related valves, compressors, air blowers, measuring instruments, gasoline feeders, etc, products of the US parent and its group firms.  Aiming to grab a 5% share in gasoline feeder sales market following the deregulated rule for opening self-service filling stations in Japan.  Goods are both imported and exported.  In 2000, the firm absorbed Niigata Masoneilan Co Ltd and made it a wholly owned subsidiary.  Domestic clients include heavy machinery mfrs, electric powers, engineering firms, other, nationwide.

 

 

FINANCIAL INFORMATION

 

            The sales volume for Dec/2013 fiscal term is estimated amounted to Yen 10,950 million, a 10% up from Yen 9,952 million in the previous term.  The sales figures are not precisely disclosed.  The net profit was posted at Yen 649 million, compared with Yen 178 million a year ago.

 

For the current term ending Dec 2014 the net profit is projected at Yen 750 million, on a 5% rise in turnover, to Yen 11,500 million

.

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

 

 

REGISTRATION

 

Date Registered:             Sept 1977

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         3.96 million shares

Issued:                990,000 shares

Sum:                   Yen495 million

Major shareholders (%): Dresser International Inc (100)

           

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

 

 

OPERATION

 

Activities: Manufactures auto-adjustable valves, air blowers, compressors, measuring         instruments, gasoline feeders targeting to filling stations, other related products mainly to oil industries (--100%).    

 

Clients: [Mfrs] Mitsubishi Heavy Ind, Toshiba Corp, Sumitomo Heavy Ins, IHI Corp, JGC Corp, Toyo Engineering, Asahi Glass, Chiyoda Crop, Tokyo Electric Power, Chubu Electric Power, Hitachi Ltd, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] UEX, Mitsui Meehanite Metal, Yokogawa Electric, other.

 

Payment record: No Complaints

 

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

 

Bank References:

SMBC (Marunouchi)

MUFG (Funabashi)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

Terms Ending:

　

31/12/2013

31/12/2012

31/12/2011

31/12/2010

Annual Sales

　

10,950

9,952

10,532

10,613

Recur. Profit

　

..

..

..

..

Net Profit

　

649

178

278

166

Total Assets

　

6,327

5,522

7,109

N/A

Net Worth

　

3,086

2,436

3,279

　

Capital, Paid-Up

　

495

495

495

195

Div.P.Share(¥)

　

　

0.00

0.00

1.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

10.03

-5.51

-0.76

-11.08

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

44.11

46.12

..

    N.Profit/Sales

5.93

1.79

2.64

1.56

 

 Notes: Financials are only partially disclosed.  Sales for the 31/12/2013 fiscal term is estimated

 as not precisely disclosed.

Estimated sales figures for the 31/12/2014 fiscal term.

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.66

UK Pound

1

Rs.100.80

Euro

1

Rs.80.72

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

PDT

 

               

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.