MIRA INFORM REPORT

 

 

Report Date :

06.02.2014

 

IDENTIFICATION DETAILS

 

Name :

FREUND CORPORATION

 

 

Registered Office :

Shinjuku TX Bldg 4F. 1-3-21 Okubo Shinjukuku Tokyo169-0072

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2013

 

 

Date of Incorporation :

April 1964

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of coating machinery, chemical/pharmaceutical products

 

 

No. of Employees :

172

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 and address

 

FREUND CORPORATION

 

REGD NAME:    Freund Sangyo KK

MAIN OFFICE:  Shinjuku TX Bldg 4F. 1-3-21 Okubo Shinjukuku Tokyo169-0072 JAPAN

                        Tel: 03-5292-0240     Fax: 03-5292-0290     -

 

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

E-Mail address: (thru the UEL)

 

 

ACTIVITIES

 

Mfg of coating machinery, chemical/pharmaceutical products

 

 

BRANCHES   

 

Osaka, Nagoya, Hamamatsu

 

 

FACTORIES

 

Hamamatsu (subcontracted)

 

 

CHIEF EXEC

 

IWAO FUSEJIMA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 16,396 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 1,035 M

TREND             UP                                WORTH            Yen 9,315 M

STARTED                     1964                             EMPLOYES      172


 

COMMENT

 

MFR OF DIVERSE LINE OF MACHINERY 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

28/02/2010

12,943

951

563

(%)

7,939

(Consolidated)

28/02/2011

13,257

998

516

2.43

8,071

 

29/02/2012

16,236

1,123

608

22.47

8,489

 

28/02/2013

16,396

1,618

765

0.99

9,315

 

28/02/2014

18,500

1,760

950

12.83

..

Unit: In Million Yen

Forecast figures for the 28/02/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is diverse line of machinery maker, with coating machinery and chemical products as 2 main lines.  Customers are mainly food industry & pharmaceutical businesses.  Relies over half of production upon outside firms..

 

 

FINANCIAL INFORMATION

 

The sales volume for Feb/2013 fiscal term amounted to Yen 16,396 million, a 1%up from Yen 16,236 million in the previous term.   The recurring profit was posted at Yen 1,618 million and the net profit at Yen 765 million, respectively, compared with Yen 1,123 million recurring profit and Yen 608 million net profit, respectively, a year ago. 

           

For the current term ending Feb 2014 the recurring profit is projected at Yen 1,760 million and the net profit at Yen 950 million, on a 13% rise in turnover, to Yen 18,500 million. 

 

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

 

REGISTRATION

           

Date Registered:       Apr 1964

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                  80 million shares

Issued:                         9200,000

Sum:                             Yen 1,035 million

 

Major shareholders (%): Yasutoyo Fusejima (10.3), FIL Co (8.9), Company’s Treasury Stock (6.2), MUFG (4.6), Master Trust of Japan T (4.1), SMBC (4.0), Okawara Mfg (3.6), Japan Trustee Services T (3.3), Employees’ S/Holding Assn (2.7), Nomura Trust Inv T (2.0); foreign owners (5.5)

 

No. of shareholders: 2,786

 

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

 

Managements: Yasutoyo Fusejima, ch; Iwao Fusejima, pres; Osamoto Nishimura mgn dir; Takashi Gushiken, dir; Ryujiro Fusejima, dir; Norio Shiratori, dir

 

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

 

           

OPERATION

           

Activities: Manufactures coating/other machinery (60%), chemials40%)

 

Overseas Sales Ratio (22%)

 

Clients: [Mfrs, wholesalers] Lion Corp, JGC Corp, other

No. of accounts: 300

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] NRL Pharma, Freund Chemical, Freund Turbo, other

 

Payment record: No complaints

 

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

 

Bank References:

MUFG (Takadanobaba)

MUFG (Takadanobaba)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

28/02/2013

29/02/2012

INCOME STATEMENT

 

 

 

  Annual Sales

 

16,396

16,236

 

  Cost of Sales

11,313

10,624

 

      GROSS PROFIT

5,083

4,612

 

  Selling & Adm Costs

3,612

3,546

 

      OPERATING PROFIT

1,470

1,065

 

  Non-Operating P/L

148

58

 

      RECURRING PROFIT

1,618

1,123

 

      NET PROFIT

765

608

BALANCE SHEET

 

 

 

 

  Cash

 

3,617

3,035

 

  Receivables

 

4,764

4,954

 

  Inventory

 

2,101

1,873

 

  Securities, Marketable

 

 

 

  Other Current Assets

606

692

 

      TOTAL CURRENT ASSETS

11,088

10,554

 

  Property & Equipment

2,910

2,861

 

  Intangibles

 

29

26

 

  Investments, Other Fixed Assets

944

901

 

      TOTAL ASSETS

14,971

14,342

 

  Payables

 

2,478

2,810

 

  Short-Term Bank Loans

 

 

 

 

 

 

 

 

  Other Current Liabs

2,537

2,394

 

      TOTAL CURRENT LIABS

5,015

5,204

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

 

 

 

  Reserve for Retirement Allw

165

168

 

  Other Debts

 

475

480

 

      TOTAL LIABILITIES

5,655

5,852

 

      MINORITY INTERESTS

 

 

 

Common stock

1,035

1,035

 

Additional paid-in capital

1,282

1,282

 

Retained earnings

7,720

7,084

 

Evaluation p/l on investments/securities

14

3

 

Others

 

(535)

(714)

 

Treasury stock, at cost

(201)

(201)

 

      TOTAL S/HOLDERS` EQUITY

9,315

8,489

 

      TOTAL EQUITIES

14,971

14,342

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

28/02/2013

29/02/2012

 

Cash Flows from Operating Activities

 

740

1,219

 

Cash Flows from Investment Activities

-332

-154

 

Cash Flows from Financing Activities

-164

-134

 

Cash, Bank Deposits at the Term End

 

3,387

3,035

ANALYTICAL RATIOS            Terms ending:

28/02/2013

29/02/2012

 

 

Net Worth (S/Holders' Equity)

9,315

8,489

 

 

Current Ratio (%)

221.10

202.81

 

 

Net Worth Ratio (%)

62.22

59.19

 

 

Recurring Profit Ratio (%)

9.87

6.92

 

 

Net Profit Ratio (%)

4.67

3.74

 

 

Return On Equity (%)

8.21

7.16

 

 

           

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.45

UK Pound

1

Rs.102.01

Euro

1

Rs.84.35

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.