MIRA INFORM REPORT

 

 

Report Date :

22.10.2014

 

IDENTIFICATION DETAILS

 

Name :

KURITA WATER INDUSTRIES LTD

 

 

Registered Office :

Nakano Central Park East, 4-10-1 Nakano Nakanoku Tokyo 164-0001

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

July, 1949

 

 

Com. Reg. No.:

0111-01-023170 (Tokyo-Nakanoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Water Treatment Equipment

 

 

No. of Employees :

4,786

 

 

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

 

KURITA WATER INDUSTRIES LTD

 

REGD NAME:               Kurita Kogyo KK

 

MAIN OFFICE:              Nakano Central Park East, 4-10-1 Nakano Nakanoku Tokyo 164-0001 JAPAN

                                                Tel: 03-6743-5000

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Mfg of water treatment equipment

 

 

BRANCHES

 

Osaka, Nagoya, Sapporo, Sendai, Hiroshima, other (Tot 52)

 

 

OVERSEAS

 

Asia, Europe, USA, other

 

 

FACTORIES

 

Osaka, Nagoya, other

 

 

CHIEF EXEC

 

TOSHIYUKI NAKAI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 178,137 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 13,450 M

TREND UP                                WORTH            Yen 219,153 M

STARTED         1949                             EMPLOYES      4,786

 

 

COMMENT

 

MFR OF WATER TREATMENT EQUIPMENT 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Unit: In Million Yen

Forecast figures for the 3103/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is the top-ranked mfr of water treatment equipment.  Started out in 1945 making water treatment chemicals for boilers, and advanced into water treatment systems in 1954. Business developing into pure-water mfg systems, environmental facilities and soil purification systems.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 178,137 million, a 1.1% down from Yen 180,143 million in the previous term.  The recurring profit was posted at Yen 16,072 million and the net profit at Yen 9,352 million, respectively, compared with Yen 22,046 million recurring profit and Yen 11,476 million net profit, respectively, a year ago.

 

(Apr/Jun/2014 results): Sales Yen 38,851 million (up 6.3%), operating profit Yen 3,020 million (up 17.6%), recurring profit Yen 3,237 million (up 12.8%), net profit Yen 2,135 million (up 18.4%).  (% as compared with the corresponding period a year ago).

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 17,800 million and the net profit at Yen 11,000 million, respectively, on a 3.9% rise in turnover, to Yen 185,000 million.  Sales of chemicals will perk up.  Orders will rebound in the overseas markets.

 

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

 

 

REGISTRATION

           

Date Registered:　                   Jul 1949

Regd No.:                                 0111-01-023170 (Tokyo-Nakanoku)

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              531 million shares

Issued:                         119,184,594 shares

Sum:                            Yen 13,450 million

 

Major shareholders (%): Nippon Life Ins (5.2), Japan Trustee Services T (4.4), Goldman Sachs (Regular) Acct (3.7), Zenkyoren (2.4), Northern Trust VFC Re Sil. Inv (2.1), Tokio Marine & Nichido Fire Ins (2.0), Northern Trust (AVFC) SPCT (1.8), RBC IST 15 PCT Lending (1.7); foreign owners (47.5)

 

No. of shareholders: 31,889

 

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

 

Managements: Toshiyuki Nakai, pres; Kaoru Kajii, mgn dir; Koichi Iioka, mgn dir; Kiyoshi Ito, mgn dir; Ikuto Namura, dir; Yoichi Kurokawa, dir; Toshitaka Kodama, dir; Yoshio Yamada, dir; Michiya Kadota, dir; Seiji Nakamura, dir

 

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

 

Related companies: Kurita Engineering, Kuritech Service, other.

 

 

OPERATION

           

Activities: Manufactures water treatment chemicals (33%), water treatment systems (67%)

Overseas Sales Ratio (19%)

           

Clients: [Mfrs, wholesalers] Tohoku Electric Power, Tokyo Electric power, Sharp Ltd, Toray Engineering, Kobe Steel, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Itochu Chemical Frontier, Kurita Chemical, Mitsubishi Rayon, Tosoh, other

 

Payment record: No Complaints

 

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

 

Bank References:

            MUFG (Tokyo)

            Resona Bank (Shinjuku)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

　

　

  Annual Sales

　

178,137

180,143

　

  Cost of Sales

122,870

121,047

　

      GROSS PROFIT

55,267

59,096

　

  Selling & Adm Costs

40,380

38,106

　

      OPERATING PROFIT

14,886

20,989

　

  Non-Operating P/L

1,186

1,057

　

      RECURRING PROFIT

16,072

22,046

　

      NET PROFIT

9,352

11,176

BALANCE SHEET

　

　

  Cash

　

47,336

43,039

　

  Receivables

50,503

55,279

　

  Inventory

5,811

4,874

　

  Securities, Marketable

47,999

34,000

　

  Other Current Assets

10,851

9,682

　

      TOTAL CURRENT ASSETS

162,500

146,874

　

  Property & Equipment

77,855

86,820

　

  Intangibles

1,578

1,619

　

  Investments, Other Fixed Assets

32,992

28,267

　

      TOTAL ASSETS

274,925

263,580

　

  Payables

17,027

16,522

　

  Short-Term Bank Loans

　

　

　

　

　

　

　

  Other Current Liabs

19,872

18,893

　

      TOTAL CURRENT LIABS

36,899

35,415

　

  Debentures

　

　

　

  Long-Term Bank Loans

　

　

　

  Reserve for Retirement Allw

11,363

10,835

　

  Other Debts

　

7,510

8,212

　

      TOTAL LIABILITIES

55,772

54,462

　

      MINORITY INTERESTS

　

　

Common stock

13,450

13,450

　

Additional paid-in capital

11,426

11,426

　

Retained earnings

185,159

202,807

　

Evaluation p/l on investments/securities

7,862

4,079

　

Others

1,258

(785)

　

Treasury stock, at cost

(2)

(21,859)

　

      TOTAL S/HOLDERS` EQUITY

219,153

209,118

　

      TOTAL EQUITIES

274,925

263,580

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

29,666

27,276

　

Cash Flows from Investment Activities

-16,676

4,268

　

Cash Flows from Financing Activities

-5,957

-18,561

　

Cash, Bank Deposits at the Term End

　

41,028

33,313

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

219,153

209,118

　

Current Ratio (%)

440.39

414.72

　

Net Worth Ratio (%)

79.71

79.34

　

Recurring Profit Ratio (%)

9.02

12.24

　

Net Profit Ratio (%)

5.25

6.20

　

　

Return On Equity (%)

4.27

5.34

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.30

UK Pound

1

Rs.99.16

Euro

1

Rs.78.59

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

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.