MIRA INFORM REPORT
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Report Date : |
25.01.2014 |
IDENTIFICATION DETAILS
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Name : |
KAAZ CORPORATION |
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Registered Office : |
387-1 Saidaiji Gomyo Higashiku |
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Country : |
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Financials (as on) : |
30.06.2013 |
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Date of Incorporation : |
July, 1079 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of lawn mowers, grass cutters, blowers |
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No. of Employees : |
83 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
Yen (-) 18.8 million |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source
: CIA |
KAAZ CORPORATION
REGD NAME: Kaaz KK
MAIN OFFICE: 387-1 Saidaiji Gomyo Higashiku Okayama
704-8124 JAPAN
Tel:
086-942-1111
Fax: 086-942-1120
URL: http://www.kaaz.co.jp
E-Mail address: kaaz@kaaz.co.jp
Mfg of lawn mowers, grass cutters, blowers, other
Miyagi, Kumamoto
Taiwan
At the caption address
MASAKAZU KATSUYA, PRES Kazuo
Yokobori, dir
Hajime Tsurumoto, dir Yoshiaki
Narusaka, dir
In million Yen, unless otherwise stated
FINANCES R/WEAK A/SALES Yen 5,512 M
PAYMENTS SLOW CAPITAL Yen 100 M
TREND UP WORTH Yen (-) 335 M
STARTED 1979 EMPLOYES 83
MFR OF LAWN MOWERS, BLOWERS, OTHER.
FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR
MODERATE BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN (-) 18.8 MILLION, 30 DAYS NORMAL TERMS, NO CREDITS
ARE RECOMMENDED ON NEW TRANSACTIONS.
The subject company was established originally in 1922 by father of
Masakazu Katsuya in order to make most of his experience in the subject line of
business. This is a specialized mfr of
lawn movers, gardening tools, agricultural tools, other (See OPERATION). Products are actively exported.
The sales volume for Jun/2013 fiscal term amounted to Yen 5,512 million,
a 10% up from Yen 5,024 million in the previous term. Now is the tie for the company to shuffle
inventories, as they are built up from the time of bad market/economic
conditions. They are all manufactured
and invested at time of the good market at high prices. Thus the operations continued in the red to
post Yen 129 million recurring loss ad Yen 124 million net losses,
respectively, compared with Yen 265 million recurring loss and Yen 331 million
net losses, respectively, a year ago.
For the current term ending Jun 2014 the operations are projected to come
back to profitability to post Yen 150 million recurring profit and Yen 100
million net profit, respectively, on a 3% rise in turnover, to Yen 5,700
million.
The financial situation is considered RATHER WEAK but should be good for
MODERATE business engagements. Max
credit limit is estimated at Yen (-) 18.8 million, on 30 days normal terms, no
credits are recommended on new transactions, due to the negative net
worth.
Date Registered: Jul 1079
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
800,000 shares
Issued:
200,000 shares
Sum: Yen 100 million
Major shareholders
(%): Kaaz Corp (7), Masakazu Katsuya (3), HVC Future Investment (2)
No. of
shareholders: 21
Nothing detrimental is known as to the commercial morality of
executives.
Activities: Manufactures
grass trimmer, brush cutter, blower, hedge trimmer, lawn mower, power sprayer,
olive shaker, other (--100%9
Clients: [Mfrs,
wholesalers] Husqvarna Out Products, Husqvarna Forest Garden, Steel, Honda
Motor, Iseki & Co, Kubota Corp, other
No. of accounts: 300
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] MHI Engine Systems, Fine Steel Engineering, Honda Motor, Ryobi
Corp, other
Imports from Taiwan, other
Payment record: Slow
Location: Business area in
Okayama. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
Bank of
Hiroshima (Okayama)
Okayama
Shinkin Bank (H/O)
Relations:
Satisfactory
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Terms Ending: |
30/06/2014 |
30/06/2013 |
30/06/2012 |
30/06/2011 |
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Annual Sales |
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5,700 |
5,512 |
5,024 |
5,200 |
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Recur. Profit |
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150 |
-129 |
-265 |
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Net Profit |
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100 |
-124 |
-331 |
4 |
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Total Assets |
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7,560 |
8,918 |
9,821 |
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Current Assets |
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5,232 |
6,246 |
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Current Liabs |
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5,468 |
6,437 |
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Net Worth |
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-335 |
-278 |
64 |
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Capital, Paid-Up |
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100 |
100 |
100 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
3.41 |
9.71 |
-3.38 |
-35.64 |
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Current Ratio |
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.. |
95.68 |
97.03 |
.. |
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N.Worth Ratio |
.. |
-4.43 |
-3.12 |
0.65 |
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R.Profit/Sales |
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2.63 |
-2.34 |
-5.27 |
.. |
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N.Profit/Sales |
1.75 |
-2.25 |
-6.59 |
0.08 |
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Notes: Forecast (or estimated) figures for the 30/06/2014 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.18 |
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1 |
Rs.103.38 |
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Euro |
1 |
Rs.85.09 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.