MIRA INFORM REPORT

 

 

Report Date :

19.07.2014

 

IDENTIFICATION DETAILS

 

Name :

MITO KOGYO CO LTD

 

 

Registered Office :

Mito Bldg, 6 Kanda Kita-Norimonocho Chiyodaku Tokyo 101-0036

 

 

Country :

Japan

 

 

Financials (as on) :

30.04.2013

 

 

Date of Incorporation :

November 1957

 

 

Com. Reg. No.:

030387

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturing of metal working tools, metal cutting machine tools

 

 

No. of Employees

290

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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

 

MITO KOGYO CO LTD

 

REGD NAME:    Mito Kogyo KK

MAIN OFFICE:  Mito Bldg, 6 Kanda Kita-Norimonocho Chiyodaku Tokyo 101-0036 JAPAN

Tel: 03-3252-1211     Fax: 03-5298-6590

 

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

E-mail:             info@mitokogyo.co.jp    

 

 

ACTIVITIES

 

Mfg of metal working tools, metal cutting machine tools

 

 

BRANCHES

 

Kyoto, Oyama, Hitachi, Kobe, Koshigaya, Gunma, Nagoya, other (Tot 20)

 

 

FACTORIES

 

Mito (Ibaraki-Pref); China, Taiwan, Korea (--subcontracted)

 

 

OFFICER(S)

 

HIROSHI MARUYAMA, PRE      Masahiro Osawa, rep dir

Kazuo Suzuki, dir                      Hisayoshi Shinohara, dir            

Kaisuke Hisamoto, dir                Masaru Yamamoto, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 14,457 M

PAYMENTSSLOW BUT CORRECT         CAPITAL           Yen 48 M

TREND SLOW                          WORTH            Yen 3,559 M

STARTED         1957                             EMPLOYES      290

 

COMMENT

 

MFR OF MACHINE TOOLS. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

 

HIGHLIGHTS

           

The subject company was established by Shigeyuki Narita in order to make most of his experience in the subject line of business, and has been succeeded by the present executives.  Hiroshi Maruyama took the post of presidency in Dec 2009.  This is a specialized mfr of machine tools: metal cutting machine tools, metal working tools, jig, other.  Goods are subcontracted mfg to factories in China, Taiwan and Korea, in addition to its own factory in Mito (Ibaraki-Pref).  Clients include Defense Agency, and such mfrs as automobile, industrial machinery, construction, aerospace, shipbuilding industries, other.

 

 

FINANCIAL INFORMATION

 

The sales volume for Apr/2013 fiscal term amounted to Yen 14,457 million, a 7% down from Yen 15,549 million in the previous term.  The operations plunged into the red to post Yen 5 million recurring loss and Yen 11 million net losses, respectively, compared with Yen 108 million recurring profit and Yen 48 million net profit, respectively, a year ago.    .

 

For the term that ended Apr 2014 the recurring profit was projected at Yen 100 million and the net profit at Yen 50 million, respectively, on a 5% rise in turnover, to Yen 15,150 million.  Final results are yet to be released.

 

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

 

 

REGISTRATION

 

Date Registered:       Nov 1957

Regd No.:                  (Tokyo-Chiyodaku) 030387

Legal Status:   　Limited Company (Kabushiki Kaisha)

Authorized:      　384,000 shares

Issued:             　95,000 shares

Sum:                　Yen 48 million

Major shareholders (%): Mito Shoji* (53.5), Yoriko Narita (19.7), Shigeyuki Narita (13.3)

No. of shareholders: 10

*.. Holding company owned by the Narita family.

 

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

 

 

OPERATION

 

Activities: Manufactures machine tools: metal working tools, metal cutting machine tools; automotive parts (batteries, solax, other), measuring instruments, other (--100%).

 

Goods are mostly manufactured in China, Korea and Taiwan and imported.

 

Clients: [Government agencies, heavy machinery mfrs, wholesalers] Defense Agency, Mitsubishi Heavy Ind, Mitsubishi Motors, Kawasaki Heavy Ind, Komatsu Ltd, Yamaha Motor, Hitachi Ltd, Suzuki Motor, Isuzu Motor, other.

No. of accounts: 800

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsubishi Material, Kyocera Corp, Tohnicha Mfg, OSG Corp, Kyocera Corp, Riken Kiki, Lincoln Ind, Yamaco Co, other.

Imports from China, Taiwan, Korea, other.

 

Payment record: Slow but correct

 

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

 

Bank References:

Mizuho Bank (Kanda-Ekimae)

MUFG (Kanda-Ekimae)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

       Terms Ending:

30/04/2014

30/04/2013

30/04/2012

30/04/2011

Annual Sales

　

15,150

14,457

15,549

14,011

Recur. Profit

　

100

-5

108

187

Net Profit

　

50

-11

48

143

Total Assets

　

　

8,292

9,536

9,339

Current Assets

　

　

6,125

7,464

7,229

Current Liabs

　

　

4,275

5,639

5,335

Net Worth

　

　

3,559

3,571

3,525

Capital, Paid-Up

　

　

48

48

48

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.79

-7.02

10.98

21.93

    Current Ratio

 

..

143.27

132.36

135.50

    N.Worth Ratio

..

42.92

37.45

37.74

    R.Profit/Sales

 

0.66

-0.03

0.69

1.33

    N.Profit/Sales

0.33

-0.08

0.31

1.02

    Return On Equity

..

-0.31

1.34

4.06

 

Notes: Forecast (or estimated) figures for the 30/04/2014 fiscal term. 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.33

UK Pound

1

Rs.103.18

Euro

1

Rs.81.58

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.