MIRA INFORM REPORT

 

 

Report Date :

21.01.2014

 

IDENTIFICATION DETAILS

 

Name :

KEL CORPORATION

 

 

Registered Office :

6-17-7 Nagayama Tama City Tokyo-Metrop 206-0025

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

July 1962

 

 

Legal Form :

Limited Company (Kabushiki Kaisha

 

 

Line of Business :

Manufacturer of industrial-use connectors

 

 

No. of Employees :

291

 

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

 

Maximum Credit Limit :

Yen 415.8 Million

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

 

KEL CORPORATION

 

REGD NAME:    Kel KK

MAIN OFFICE:  6-17-7 Nagayama Tama City Tokyo-Metrop 206-0025 JAPAN

Tel: 042-374-5810          -

 

URL:                 http://www.kel.jp

E-Mail address: (thru the URL)

 

 

 

ACTIVITIES  

 

Mfg of industrial-use connectors

 

 

BRANCHES   

 

Utsunomiya, Mito, Nagoya, Osaka

 

 

OVERSEAS

 

USA, China (2)

 

 

FACTORIES

 

Yamanashi (2), Nagano

 

 

CHIEF EXEC 

 

KAZUYOSHI TAKAHASHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated


 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 9,697 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 1,617 M

TREND UP                                WORTH             Yen 9,382 M

STARTED         1962                             EMPLOYES      291

 

 

COMMENT    

 

MFR OF INDUSTRIAL-USE CONNECTORS 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 415.8 MILLION, 30 DAYS NORMAL TERMS

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

7,178

356

193

(%)

8,097

(Consolidated)

31/03/2011

8,698

728

430

21.18

8,437

 

31/03/2012

9,472

1,137

581

8.90

8,892

 

31/03/2013

9,697

1,134

684

2.38

9,382

 

31/03/2014

9,700

1,160

690

0.03

..

Unit: In Million Yen

Forecast figures for the 31/03/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is a specialized mfr of small, high-quality connectors for industrial equipment mainline.  One of leading makers of high-pitch connectors.  Also engaged in production of racks and IC sockets.  Operates subsidiaries in USA and Chine (2)..

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 9,697 million, a 2.4% up from Yen 9,472 million in the previous term.   The recurring profit was posted at Yen 1,134 million and the net profit at Yen 684 million, respectively, compared with Yen 1,137 million recurring profit and Yen 581 million net profit, respectively, a year ago. 

 

(Apr/Sept/2013 results): Sales Yen 4,547 million (down 10.7%), operating profit Yen 506 million (down 25.8%), recurring profit Yen 532 million (down 22.2%), net profit Yen 314 million (down 21.3%).  (% compared with the corresponding period a year ago).

           

For the current term ending Mar 2014 the recurring profit is projected at Yen 1,160 million and the net profit at Yen 690 million, on a similar turnover, at Yen 9,700 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 415.8 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered: Jul 1962

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       63 million shares

Issued:                15,486,000 shares

Sum:                   Yen 1,617 million

 

Major shareholders (%): Kikusui Electronics (6.6), MUFG (4.7), Company’s Treasury Stock (4.6), Hiroko Kobayashi (3.9), Mitsui Sumitomo Ins (2.9), Employees’ S/Holding Assn (2.8), Mizuho Bank (2.7), Nippon Life Ins (2.6), Yukio Hashimoto (2.0), Satoru Hashimoto (1.8)

 

No. of shareholders: 1,447

 

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

 

Managements: Kazuyoshi Takahashi, pres; Akira Shimada, mgn dir; Etsuro Doi, mgn dir; Masaru Shirakura, dir; Takeyuki Mikuni, dir

 

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

 

           

OPERATION

           

Activities: Manufactures industrial-use connectors for OA (80%), racks (9%), sockets (8%), others (3%)

Overseas Sales Ratio (18%)

           

Clients: [Mfrs, wholesalers] Sanwa Technos, Excel, Tomihisa Corp, NEC Embedded

Products, Sony MCS, Okamoto Electronics Corp, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Tohto Co-Op, Meito Co, Maruzen Corp, Tomiso Corp,

Sanno Co, other

 

Payment record: No complaints

 

Location: Business area in Tama City, Tokyo-Metrop.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:        MUFG (Gotanda)

                                    Mizuho Bank (Ebara)

                                    Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

 

9,697

9,472

 

  Cost of Sales

6,941

6,809

 

      GROSS PROFIT

2,756

2,663

 

  Selling & Adm Costs

1,605

1,533

 

      OPERATING PROFIT

1,150

1,129

 

  Non-Operating P/L

-16

8

 

      RECURRING PROFIT

1,134

1,137

 

      NET PROFIT

684

581

BALANCE SHEET

 

 

 

 

  Cash

 

2,352

1,651

 

  Receivables

 

3,506

4,113

 

  Inventory

 

1,139

912

 

  Securities, Marketable

 

 

 

  Other Current Assets

307

423

 

      TOTAL CURRENT ASSETS

7,304

7,099

 

  Property & Equipment

4,070

3,631

 

  Intangibles

 

57

58

 

  Investments, Other Fixed Assets

1,619

1,602

 

      TOTAL ASSETS

13,050

12,390

 

  Payables

 

1,374

1,459

 

  Short-Term Bank Loans

150

150

 

 

 

 

 

 

  Other Current Liabs

1,286

1,292

 

      TOTAL CURRENT LIABS

2,810

2,901

 

  Debentures

 

320

320

 

  Long-Term Bank Loans

240

 

 

  Reserve for Retirement Allw

257

240

 

  Other Debts

 

41

37

 

      TOTAL LIABILITIES

3,668

3,498

 

      MINORITY INTERESTS

 

 

 

Common stock

1,617

1,617

 

Additional paid-in capital

1,440

1,440

 

Retained earnings

6,401

5,938

 

Evaluation p/l on investments/securities

98

72

 

Others

 

(8)

(10)

 

Treasury stock, at cost

(166)

(165)

 

      TOTAL S/HOLDERS` EQUITY

9,382

8,892

 

      TOTAL EQUITIES

13,050

12,390

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

 

703

1,269

 

Cash Flows from Investment Activities

-636

-809

 

Cash Flows from Financing Activities

-237

-140

 

Cash, Bank Deposits at the Term End

 

1,651

1,823

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

9,382

8,892

 

 

Current Ratio (%)

259.93

244.71

 

 

Net Worth Ratio (%)

71.89

71.77

 

 

Recurring Profit Ratio (%)

11.69

12.00

 

 

Net Profit Ratio (%)

7.05

6.13

 

 

Return On Equity (%)

7.29

6.53

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.63

UK Pound

1

Rs.101.25

Euro

1

Rs.83.42

 

 

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.