MIRA INFORM REPORT

 

 

Report Date :

31.07.2014

 

IDENTIFICATION DETAILS

 

Name :

MISUMI CORPORATION

 

 

Registered Office :

2-4-43 Toyo Kotoku Tokyo 135-0016

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

April 2005

 

 

Com. Reg. No.:

030898

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, catalog sales of precision machinery parts

 

 

No. of Employees

425

 

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 – 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 and address

 

MISUMI CORPORATION

 

REGD NAME:    KK Misumi

MAIN OFFICE:  2-4-43 Toyo Kotoku Tokyo 135-0016 JAPAN

Tel: 03-3647-7111     Fax: 03-3647-7458

 

URL:                 http://www./misumi.ec.com

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Import, export, catalog sales of precision machinery parts

 

 

BRANCHES   

 

Kumamoto, Yokohama, other (Tot 15)

 

 

Headquarter

 

Lidabashi First Building, 5-1, Koraku 2-chome, Bunkyo-ku, Tokyo 112-0004

 

 

OVERSEAS   

 

USA, UK, Germany, China (2), Hong Kong, Korea, Taiwan, Thailand, Singapore,

India, Vietnam (--subsidiaries)

 

 

FACTORIES       

 

(Subcontracted - about 150 makers)

 

 

OFFICER(S)  

 

RYUSEI OHNO, PRES              

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 115,301 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 850 M

TREND UP                                WORTH            Yen 97,408 M

STARTED         2005                             EMPLOYES      425

 

 

COMMENT    

 

CATALOG SALES OF PRECISION MACHINEY PARTS, WHOLLY

OWNED BY MISUMI GROUP INC. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

 

The subject company was established originally in 1963 and was reorganized through merger of Misumi Corp and Suruga Seiki Co in Apr 2005, and formed a holding company, Misumi Group Inc (See REGISTRATION).  This is a mail-order house for precision machinery parts, particularly of standardized parts for FA equipment and metal molds.  Not involved in production.  Cooperative makers of about 150 both at home and abroad produce Misumi-brand products based on customer needs.  Goods are imported from subsidiary factories and purchasing offices overseas.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 115,301 million, a 6% up from Yen 108,814 million in the previous term.  Exports were robust to USA, Korea, China, other.  The recurring profit was posted at Yen 13,623 million and the net profit at Yen 8,692 million, respectively, compared with Yen 15,116 million recurring profit and Yen 8,620 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 14,000 million and the net profit at Yen 9,000 million, respectively, on a 5% rise in turnover, to Yen 121,000 million.  Business is seen expanding steadily. 

 

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

 

 

REGISTRATION

           

Date Registered:        Apr 2005

Regd No.:                 (Tokyo-Kotoku) 030898

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         68,000 shares

Issued:                17,000 shares

Sum:                   Yen 850 million

Major shareholders (%): Misumi Group Inc* (100)

 

*.. Holding company of Misumi group firms, founded 2005, listed Tokyo S/E, capital Yen 6,375 million, turnover Yen 173,905 million, operating profit Yen 18,989 million, recurring profit Yen 19,168 million, net profit Yen 11,678 million, total assets Yen 163,201 million, net worth Yen 115,965 million, employees 8,038, pres Ryusei Ohno, concurrently

 

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

 

 

OPERATION

 

Activities: Mail-Order House for distributing precision machinery parts by catalog and online: factory automation systems, die components, electronics products, optical equipment, other (--100%)): linear shafts, aluminum frames, filter units, screws, air cylinders processed urethane & rubber, anti-vibration & soundproof materials, insulator plates, switches, cutters, others;

(Overseas sales ratios 35%)

 

Clients: [Mfrs, wholesalers] Exports to: Misumi USA, Misumi S/E Asia, Misumi Korea, Misumi Precision Shanghai, Misumi Taiwan, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Suruga Seisan Platform, Suruga Seiki Co, AIO Precision, Yamada Kikai Kogyo, Morimoto Seimitsu Shaft, SP Parts, 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 (Kinshicho)

MUFG (Fukagawa)

Relations: Satisfactory


 

FINANCES

 

 (In Million Yen)

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

　

121,000

115,301

108,814

108,336

Recur. Profit

　

14,000

13,623

15,116

15,477

Net Profit

　

9,000

8,692

8,620

9,026

Total Assets

　

　

108,029

90,418

82,835

Current Assets

　

　

58,026

46,863

63,109

Current Liabs

　

　

18,404

17,324

16,279

Net Worth

　

　

77,408

71,351

65,329

Capital, Paid-Up

　

　

850

850

850

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

4.94

5.96

0.44

8.53

    Current Ratio

　

..

315.29

270.51

387.67

    N.Worth Ratio

　

..

71.65

78.91

78.87

    R.Profit/Sales

　

11.57

11.82

13.89

14.29

    N.Profit/Sales

　

7.44

7.54

7.92

8.33

    Return On Equity

　

..

11.23

12.08

13.82

 

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

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.15

UK Pound

1

Rs.101.92

Euro

1

Rs.80.64

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.