MIRA INFORM REPORT

 

 

Report Date :

30.07.2014

 

IDENTIFICATION DETAILS

 

Name :

KUROSE CHEMICAL EQUIPMENT CO LTD

 

 

Registered Office :

2-2-5 Takasago Takaishi City Osaka-Pref 592-0001

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

November 1935

 

 

Com. Reg. No.:

1201-01-024397

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures chemical equipment & instruments, other (--100%)

 

 

No. of Employees :

82

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. 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

 

KUROSE CHEMICAL EQUIPMENT CO LTD

 

 

REGD NAME

 

KK Kurose

 

 

MAIN OFFICE

 

2-2-5 Takasago Takaishi City Osaka-Pref 592-0001 JAPAN

Tel:  072-268-1371     

Fax: 072-268-1367

 

*.. The is its Tokyo Branch Office

 

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

E-Mail address: (thru the URL)

 

ACTIVITIES:     Mfg of heat exchangers, chemical equipment, other

BRANCHES:     Tokyo (as given), Osaka

 

 

FACTORIES

 

At the caption address

 

 

OFFICERS

 

TAKAYA KAWAMOTO, PRES                Masahiro Sakaguchi, dir

Shigeru Yamashita, dir                           Yuji Hatono, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                                         A/SALES                      Yen 1,561 M

PAYMENTS      SLOW BUT CORRECT               CAPITAL                       Yen 90 M

TREND             SLOW                                      WORTH                        Yen 2,574 M     

STARTED         1935                                         EMPLOYES                              82

 

COMMENT:       MFR OF CHEMICAL EQUIPMENT & INSTRUMENTS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company is an old-established company originally in 1925 and was incorporated in 1935.  This is a specialized mfr of heat exchangers, reactors, tower & tanks, other chemical equipment and instruments (See OPERATION).  Goods are exported.  Clients include major chemical engineering companies, makers, other, nationwide.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 1,561 million, a 36% sharp decline from Yen 2,435 million in the previous term.  Large-lot orders received in the last term were gone, with exports declined.  The operations plunged into the red to post Yen 6 million recurring loss and Yen 7 million net losses, respectively, compared with Yen 375 million recurring profit and Yen 220 million net profit, respectively, a year ago.

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 250 million and the net profit at Yen 150 million, respectively, on a 6% rise in turnover, to Yen 1,650 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 78.8 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:                      Nov 1935

Regd No.:                                 1201-01-024397 (Osaka-Takaishi)

Legal Status:                           Limited Company (Kabushiki Kaisha)

Authorized:                              7.2 million shares

Issued:                                     1.8 shares

Sum:                                        Yen 90 million

Major shareholders (%):           Masaki Kurose (40), Kurose Screen Industries (20), Toyo

                                                Engineering Corp (19), Alfa Laval Co (10), Shoko Chukin Bank (7)

 No. of shareholders:               29

 

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

 

 

 

 

OPERATION

           

Activities: Manufactures chemical equipment & instruments, other (--100%)

 

(Mfg items):

Spiral heat exchanger: advantage & basic structure, standard model spiral heat exchanger, miniature & mini spiral, special structure spiral heat exchanger;

Other chemical equipment: tubular heat exchanger, reactor, tower & tanks, solid-liquid connected extractor, mixer;

Application: waste water treatment sludge heat exchanger, fryer indirect heating system, heat exchanger for the distillation facility, slurry heat exchanger, heat exchanger for the connected sterilizer, heat exchanger for high viscosity, high-grade & anti-corrosive material equipment, other

 

 

Clients: [Mfrs, wholesalers] Osaka Titanium Technologies, Daido Chemical Engineering, Shin-Etsu Engineering, Hitachi Ltd, Nissin Foods, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Daiwa Special Steel, Mitsui & Co, NS Stainless, Nasu Trading, Iwatani Corp, Sun Steel Ind, Izawa Metal, other

 

Payment record: Slow but correct

 

Location: Business area in Takaishi City, Osaka.  Office premises at the caption address are owned and maintained satisfactory.

 

Bank References:

Shoko Chukin Bank (Umeda)

Ikeda Senshu Bank (Takaishi)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

　

1,650

1,561

2,435

2,220

Recur. Profit

　

250

-6

375

333

Net Profit

　

150

-7

220

187

Total Assets

　

　

3,145

3,409

3,487

Current Assets

　

　

1,808

2,070

2,298

Current Liabs

　

　

358

520

702

Net Worth

　

　

2,574

2,591

2,379

Capital, Paid-Up

　

　

90

90

90

Div.Ttl in Million (¥)

　

　

8.575

9

9

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

5.70

-35.89

9.68

-17.04

       Current Ratio

 

..

505.03

398.08

327.35

       N.Worth Ratio

..

81.84

76.00

68.22

       R.Profit/Sales

 

15.15

-0.38

15.40

15.00

       N.Profit/Sales

9.09

-0.45

9.03

8.42

       Return On Equity

..

-0.27

8.49

7.86

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.102.04

Euro

1

Rs.80.74

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

TPT

 

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.