MIRA INFORM REPORT

 

 

Report No. :

313740

Report Date :

02.04.2015

 

IDENTIFICATION DETAILS

 

Name :

DMW CORPORATION

 

 

Registered Office :

1-5-1 Omori-Kita Otaku Tokyo 143-0016

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

March 1955

 

 

Com. Reg. No.:

Not Available

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures industrial pumps (63%), blowers (28%), valves (2%), water treatment systems, underwater dredging robots, remote control systems, others (--7%)

 

 

No. of Employees :

602

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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

 

DMW CORPORATION

 

 

REGD NAME

 

KK Dengyosha Kikai Seisakusho

 

 

MAIN OFFICE

 

1-5-1 Omori-Kita Otaku Tokyo 143-0016 JAPAN

Tel: 03-3298-5115     Fax: 03-3298-5149-

 

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

E-Mail address: (thru the URL)

 

ACTIVITIES:     Mfg of pumps, valves, blowers

BRANCHES:      Saitama, Shizuoka, Osaka, Nagoya, Mishima, Sendai, Hiroshima, Fukuoka, other (Tot 13)

OVERSEAS:     Houston, Mumbai, Amsterdam, Dalian, Singapore

FACTORIES:    Mishima

 

CHIEF EXEC:   TADAHIRO TSUCHIYA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                           A/SALES          Yen 18,617 M

PAYMENTSNO COMPLAINTS          CAPITAL    Yen 810 M

TREND SLOW                         WORTH            Yen 15,452 M

STARTED         1955                           EMPLOYES      602

 

COMMENT:      MFG OF PUMPS  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

18,834

883

441

(%)

14,344

(Consolidated)

31/03/2012

16,276

426

172

-13.58

14,109

31/03/2013

19,371

856

501

19.02

14,537

31/03/2014

18,617

1,354

791

-3.89

15,452

31/03/2015

18,600

1,110

710

-0.09

16,162

Unit: In Million Yen

Forecast figures for the 2015 fiscal term.

 

HIGHLIGHTS

 

This is one of 5 largest pump manufacturers.  Strong in public sector including local governments.  Also makes blowers for steel, chemicals and cement makers.  Other products include valves, water-treatment systems, underwater dredging robots, remote control systems, other.  The company aims to boost sales circulating water pumps to one billion Yen in five years through a tie-up with a firm in India.  It will enhance price competitiveness in the overseas markets by improvement of products and cost reduction. In 2014, its subsidiary company, DWN India was founded.

 

 

FINANCIAL INFORMATION

 

The sales volume for March /2014 fiscal term amounted to Yen 18,617 million, a 4% down from Yen 19,371 million in the previous term.  The recurring profit was posted at Yen 1,354 million and the net profit at Yen 791 million, respectively, compared with Yen 856 million recurring profit and Yen 501 million net profit, respectively, a year ago.

 

For the current term ending March 2015 the recurring profit is projected at Yen 1,110 million and the net profit at Yen 710 million, respectively, on a 0.1% fall in turnover, to Yen 18,600 million.  Final results are yet to be released.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 777.8 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:                    March 1955

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              19,107,600 shares

Issued:                         4,776,900

Sum:                            Yen 810 million

 

Major shareholders (%): GM Investment Co (11.47), Mitsui Sumitomo Ins (4.58), Meiji Yasuda Lif Ins(3.6), Custmers’ S/Holding Assn(4.31), Tsurumi Mfg(2.95), Meidaisha Corp(2.88), Seisan Gijutsu Kenkyu Shori(2.71), Employees’ S/Holding Assn(2.66), MUFG(2.36), Nippon Life Ins(1.88)

 

No. of shareholders: 2,540

 

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

 

Managements: TADAHIRO TSUCHIYA, PRS; Noboru Yamamoto, mgn/dir; Yukio Asami, mgn/dir; Norio Hikosaka, mgn/dir; Hiroshi Sugiyama, dir; Hideaki Murabayashi, dir

 

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

 

Related companies: Dengyosya Koji, Eco Advance, other

 

OPERATION:

           

Activities: Manufactures industrial pumps (63%), blowers (28%), valves (2%), water treatment systems, underwater dredging robots, remote control systems, others (--7%)

 

Overseas Sales Ratio (26%)

           

Clients: [Electric powers, steel makers, governments, local governments] Toshiba Corp, Chiyoda Corp, Moriya Corp, Tokyo Metropolitan Government, Kobe City, Mizota Corp, Sanwa Machinery Trading Corp, Ministry of Land, Marubeni Corp, other.

Exports to: USA, UK, Italy, Korea, Malaysia, Thailand, Spain, Egypt, India, Kuwait, Qatar, Saudi Arabia, other

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

 

Suppliers: [mfrs, wholesalers] Moriya Corp, Iwaki Moritani Electric Ind, Nisshin Engineering Corp, Yanmar Energy System, Kaisaka Industry Corp, Chiyoda Kohan Corp , other

 

Payment record: No Complaints

 

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

 

Bank References:

MUFG (Yotsuya)

SMBC (Omori)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

  Annual Sales

18,617

19,371

 

  Cost of Sales

14,301

15,566

 

      GROSS PROFIT

4,316

3,805

 

  Selling & Adm Costs

3,055

3,031

 

      OPERATING PROFIT

1,261

774

 

  Non-Operating P/L

93

82

 

      RECURRING PROFIT

1,354

856

 

      NET PROFIT

791

501

BALANCE SHEET

 

 

  Cash

 

2,564

2,172

 

  Receivables

11,205

13,528

 

  Inventory

 

 

 

  Securities, Marketable

3,020

112

 

  Other Current Assets

1,940

2,126

 

      TOTAL CURRENT ASSETS

18,730

17,939

 

  Property & Equipment

2,685

2,737

 

  Intangibles

165

203

 

  Investments, Other Fixed Assets

2,097

2,472

 

      TOTAL ASSETS

23,677

23,350

 

  Payables

4,805

5,462

 

  Short-Term Bank Loans

 

 

 

 

 

 

 

  Other Current Liabs

2,889

2,784

 

      TOTAL CURRENT LIABS

7,694

8,246

 

  Debentures

 

 

 

  Long-Term Bank Loans

 

 

 

  Reserve for Retirement Allw

16,146

13,709

 

  Other Debts

(15,615)

(13,143)

 

      TOTAL LIABILITIES

8,225

8,813

 

      MINORITY INTERESTS

 

 

Common stock

810

810

 

Additional paid-in capital

111

111

 

Retained earnings

14,461

13,847

 

Evaluation p/l on investments/securities

 

 

 

Others

627

327

 

Treasury stock, at cost

(557)

(557)

 

      TOTAL S/HOLDERS` EQUITY

15,452

14,537

 

      TOTAL EQUITIES

23,677

23,350

CONSOLIDATED CASH FLOWS

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

 

3,250

553

 

Cash Flows from Investment Activities

-666

628

 

Cash Flows from Financing Activities

-191

-191

 

Cash, Bank Deposits at the Term End

 

4,565

2,172

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

Net Worth (S/Holders' Equity)

15,452

14,537

 

Current Ratio (%)

243.44

217.54

 

Net Worth Ratio (%)

65.26

62.26

 

Recurring Profit Ratio (%)

7.27

4.42

 

Net Profit Ratio (%)

4.25

2.59

 

 

Return On Equity (%)

5.12

3.45

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.59

UK Pound

1

Rs.92.45

Euro

1

Rs.67.51

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.