MIRA INFORM REPORT

 

 

Report Date :

09.05.2014

 

IDENTIFICATION DETAILS

 

Name :

KONDOTEC INC

 

 

Registered Office :

2-2-90 Sakaigawa Nishiku Osaka 550-0024

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

January 1953

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures industrial materials (61%), steel structure materials (22%), electrical equipment mate

 

 

No. of Employees

695

 

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 – 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

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  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

 

KONDOTEC INC

REGD NAME:    Kondotec KK

MAIN OFFICE:  2-2-90 Sakaigawa Nishiku Osaka 550-0024 JAPAN

      Tel: 06-6582-8441     Fax: 06-6582-8410     -

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of construction-related hardware

 

 

BRANCHES   

 

Tokyo, Osaka, Sendai, Sapporo, Fukuoka, other (Tot 49)

 

 

OVERSEAS

 

China, other

 

 

FACTORIES

 

Shiga, Fukuoka, Ibaraki, Hokkaido

 

 

CHIEF EXEC 

 

KATSUHIKO KONDO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 


SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 41,153 M

PAYMENTS      No Complaints   CAPITAL           Yen 2,666 M

TREND             UP                    WORTH            Yen 16,990 M

STARTED         1953                 EMPLOYES      695

 

 

COMMENT    

 

MFR OF CONSTRUCTION-RELATED HARDWARE 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

35,548

1,376

834

(%)

14,381

(Consolidated)

31/03/2012

38,745

2,019

1,046

8.99

15,097

 

31/03/2013

41,153

2,754

1,605

6.21

16,990

 

31/03/2014

46,588

3,207

1,994

13.21

 

                        Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is the leading mfr and wholesaler of construction-related hardware.  Boasts high shares in turnbuckles and chains for scaffolding and crane shackles.  Purchased products and in-house products account for 80% and 20% of entire sales, respectively. The company will build three bases at the Kanto Plant Ibaraki to increase production capacity of seismic retrofitting materials.  The head office in Tokyo plans to increase new graduate hiring to strengthen sales activities.

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2013 fiscal term amounted to Yen 41,153 million, a 6.2% up from Yen 38,745 million in the previous term.   The recurring profit was posted at Yen 2,754 million and the net profit at Yen 1,605 million, respectively, compared with Yen 2,019 million recurring profit and Yen 1,046 million net profit, respectively, a year ago.

 

            (Apr/Dec/2013 results): Sales Yen 34,947 million (up 14.0%), operating profit Yen 2,453 million (up 22.7%), recurring profit Yen 2,520 million (up 22.4%), net profit Yen 1,494 million (up 23.0%).  (% compared with the corresponding period a year ago).

           

            For the term that ended Mar 2014 the recurring profit was projected at Yen 3,207 million and the net profit at Yen 1,994 million, on a 13.2% rise in turnover, to Yen 46,588 million.  Final results are yet to be released. 

 

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

 

 

REGISTRATION

           

Date Registered: Jan 1953

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       60 million shares

Issued:                28,757,000 shares

Sum:                   Yen 2,666 million

 

Major shareholders (%): Toa Kosan Corp (10.4), Japan Trustee Services T (6.6), BBH Fidelity LPSF (5.6), Employees S/Holding Assn (5.2), OSK Sm. & Med. Bus Inv & Cons (4.3), Company’s Treasury Stock (3.9), F Planning (3.1), Junmi Kondo (2.7), MUFG (2.6), Katsuhiko Kondo (2.6); foreign owners (9.1)

 

No. of shareholders: 2,776

 

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

 

Managements: Akira Sugawara, ch; Katsuhiko Kondo, pres; Tomoya Ando, s/mgn dir; Shigeru Hirata, mgn dir; Kanji Takimizu, mgn dir Kiyoshi Yamada, dir; Haruo Miya, dir; Msahiko Yano, dir; Masaru Tokuda, dir

 

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

 

 

OPERATION

           

Activities: Manufactures industrial materials (61%), steel structure materials (22%), electrical equipment materials (17%)

 

(Mfg products): wire ropes, fiber ropes, rope fittings, lifting equipment, shackles, turn buckles, chains, scaffolding materials, nets & sheets, stainless steel products, other

           

Clients: [Mfrs, wholesalers] Yamamoto Shokai Corp, Sumikin System Building Corp,

Komatsu House, Hikari Kogyo Co, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Marubeni Itochu Techno Steel, Marubeni Itochu Steel, other

 

Payment record: No Complaints

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

 

Bank References:

MUFG (Taishobashi)

Resona Bank (Taisho)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

 

41,153

38,745

 

  Cost of Sales

31,890

30,412

 

      GROSS PROFIT

9,262

8,333

 

  Selling & Adm Costs

6,597

6,406

 

      OPERATING PROFIT

2,664

1,926

 

  Non-Operating P/L

90

93

 

      RECURRING PROFIT

2,754

2,019

 

      NET PROFIT

1,605

1,046

BALANCE SHEET

 

 

 

 

  Cash

 

4,798

2,790

 

  Receivables

 

11,841

11,214

 

  Inventory

 

2,746

2,670

 

  Securities, Marketable

 

 

 

  Other Current Assets

1,925

1,854

 

      TOTAL CURRENT ASSETS

21,310

18,528

 

  Property & Equipment

8,636

8,425

 

  Intangibles

 

264

378

 

  Investments, Other Fixed Assets

982

1,072

 

      TOTAL ASSETS

31,192

28,403

 

  Payables

 

5,361

5,098

 

  Short-Term Bank Loans

800

700

 

 

 

 

 

 

  Other Current Liabs

6,301

5,753

 

      TOTAL CURRENT LIABS

12,462

11,551

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

207

207

 

  Reserve for Retirement Allw

1,177

1,197

 

  Other Debts

 

355

350

 

      TOTAL LIABILITIES

14,201

13,305

 

      MINORITY INTERESTS

 

 

 

Common stock

2,666

2,328

 

Additional paid-in capital

2,434

2,096

 

Retained earnings

13,593

12,326

 

Evaluation p/l on investments/securities

317

377

 

Others

 

(1,522)

(1,532)

 

Treasury stock, at cost

(498)

(498)

 

      TOTAL S/HOLDERS` EQUITY

16,990

15,097

 

      TOTAL EQUITIES

31,492

28,403

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

 

2,077

1,454

 

Cash Flows from Investment Activities

-494

-1,511

 

Cash Flows from Financing Activities

426

-550

 

Cash, Bank Deposits at the Term End

 

4,798

2,790

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

16,990

15,097

 

 

Current Ratio (%)

171.00

160.40

 

 

Net Worth Ratio (%)

53.95

53.15

 

 

Recurring Profit Ratio (%)

6.69

5.21

 

 

Net Profit Ratio (%)

3.90

2.70

 

 

Return On Equity (%)

9.45

6.93

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.99

UK Pound

1

Rs.101.75

Euro

1

Rs.83.48

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

PDT

 

               

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.