MIRA INFORM REPORT

 

 

Report No. :

315790

Report Date :

20.04.2015

 

IDENTIFICATION DETAILS

 

Name :

MITSUBA CORPORATION

 

 

Registered Office :

1-2681 Hirosawacho Kiryu City Gunma-Pref376-8555

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

 

 

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Transportation Equipment.

 

 

No. of Employees :

21,221

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

Maximum Credit Limit :

Yen 5,082.2  Million

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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

 

MITSUBA CORPORATION

 

REGD NAME:               Mitsuba KK

 

MAIN OFFICE:              1-2681 Hirosawacho Kiryu City Gunma-Pref376-8555 JAPAN

                                                Tel: 0277-52-0111     Fax: 0277-52-5191     -

 

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

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES

 

Mfg of transportation equipment

 

 

BRANCHES

 

Toyonaka, Nagoya, Utsunomiya, Mie, Shizuoka, Yokohama, other (Tot10) 47 subsidiaries (21 Japan, 5  Americas, 5 Europe, 10 Asia, 6 China)

 

 

OVERSEAS   

 

USA, Brazil, Mexico, Italy, Hungary, France, UK, Thailand, Philippines, India, Vietnam, Indonesia, China,  Hong Kong

 

 

FACTORIES

 

Gunma (5), Fukushima, Niigata

 

 

CHIEF EXEC

 

YUICHI NAGASE

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES                      Yen 272,543 M

PAYMENTSREGULAR   CAPITAL                       Yen 9,885 M

TREND UP                    WORTH                        Yen 68,011 M

STARTED         1946                 EMPLOYES                 21,221

 

 

COMMENT

 

MFR OF TRANSPORTATION EQUIPMENT 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 5,082.2 MILLION, 30 DAYS NORMAL TERMS

 

Unit: In Million Yen

Forecast figures for the 31/03/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is the leading mfr of transportation equipment, with wiper motors for vehicles as mainline. Sales in Honda Motor account for around 50%. Originally maker of generator lamps for bicycles. Merged with sub Jidosha Denki Kogyo, sub of Nissan Motor, in 2007.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 272,543 million, a 20.8% up from Yen 225,605 million in the previous term.  The recurring profit was posted at Yen 20,441 million and the net profit at Yen 7,028 million, respectively, compared with Yen 12,169 million recurring profit and Yen 6,473 million net profit, respectively, a year ago.

 

For the term that ended Mar 2015 the recurring profit was projected at Yen 18,000 million and the net profit at Yen 9,000 million, respectively, on a 2.7% rise in turnover, to Yen 280,000 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 5,082.2 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　          Mar 1946

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              150 million shares

Issued:                         45,581,809 shares

Sum:                            Yen 9,885 million

 

Major shareholders (%): Bank of Yokohama (4.8), Master Trust Bank of Japan T (4.4), Nissan Motor (3.8), Customers’ S/Holding Assn (3.7), Hitachi Automotive Systems (3.7), other; foreign owners (10.0)

 

No. of shareholders: 3,267

 

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

 

Managements: Noboru Hino, ch; Yuichi Nagase, pres; Katsuo Takahara, v pres; Noboru Abe, s/mgn dir; Yoshikazu Takahashi, s/mgn dir; Ken’ichi Mita, s/mgn dir; Mitsuhiro Hara, dir

 

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

 

Related companies: Ryomo Systems Corp, AMC, Tatsumi, Sanyu, other.

 

 

OPERATION

           

Activities: Manufactures transportation equipment: transportation equipment-related (96%), Information processing services (3%), others (1%)

Overseas Sales Ratio (62%)

           

Clients: [Mfrs, wholesalers] American Mitsuba Corp, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Shin-Etsu Chemical Ind, Mitsuba Philippines Corp, PT Mitsuba Indonesia, other

 

Payment record: Regular

 

Location: Business area in Kiryu City, Gumma-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

            Bank of Yokohama (Kiryu)

            Mizuho Bank (H/O)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

　

　

  Annual Sales

　

272,543

225,605

　

  Cost of Sales

231,518

195,633

　

      GROSS PROFIT

41,024

29,971

　

  Selling & Adm Costs

23,969

20,938

　

      OPERATING PROFIT

17,054

9,032

　

  Non-Operating P/L

3,387

3,137

　

      RECURRING PROFIT

20,441

12,169

　

      NET PROFIT

7,028

6,473

BALANCE SHEET

　

　

  Cash

　

43,523

32,365

　

  Receivables

45,679

38,296

　

  Inventory

29,798

30,361

　

  Securities, Marketable

505

105

　

  Other Current Assets

29,097

17,507

　

      TOTAL CURRENT ASSETS

148,602

118,634

　

  Property & Equipment

68,260

58,100

　

  Intangibles

4,932

2,735

　

  Investments, Other Fixed Assets

36,392

28,065

　

      TOTAL ASSETS

258,186

207,534

　

  Payables

28,231

20,934

　

  Short-Term Bank Loans

47,140

69,472

　

　

　

　

　

  Other Current Liabs

37,277

29,798

　

      TOTAL CURRENT LIABS

112,648

120,204

　

  Debentures

84

212

　

  Long-Term Bank Loans

60,834

26,941

　

  Reserve for Retirement Allw

1,009

782

　

  Other Debts

　

15,599

6,818

　

      TOTAL LIABILITIES

190,174

154,957

　

      MINORITY INTERESTS

　

　

Common stock

9,885

9,885

　

Additional paid-in capital

15,719

15,718

　

Retained earnings

28,888

22,061

　

Evaluation p/l on investments/securities

2,869

5,247

　

Others

11,246

217

　

Treasury stock, at cost

(596)

(552)

　

      TOTAL S/HOLDERS` EQUITY

68,011

52,576

　

      TOTAL EQUITIES

258,186

207,534

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

20,588

16,075

　

Cash Flows from Investment Activities

-15,343

-15,495

　

Cash Flows from Financing Activities

3,395

-1,831

　

Cash, Bank Deposits at the Term End

　

42,158

30,964

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

68,011

52,576

　

Current Ratio (%)

131.92

98.69

　

Net Worth Ratio (%)

26.34

25.33

　

Recurring Profit Ratio (%)

7.50

5.39

　

Net Profit Ratio (%)

2.58

2.87

　

　

Return On Equity (%)

10.33

12.31

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.35

UK Pound

1

Rs.93.10

Euro

1

Rs.67.13

 

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.