MIRA INFORM REPORT

 

 

Report No. :

315808

Report Date :

21.04.2015

 

IDENTIFICATION DETAILS

 

Name :

PRESS KOGYO CO LTD

 

 

Registered Office :

1-1-1 Shiohama Kawasakiku Kawasaki City Kanagawa-Pref 210-0826

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

June 1934

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is Manufactures press parts: automotive-related (86%), construction machinery-related

 

 

No. of Employee :

6,171

 

 

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

 

Maximum Credit Limit :

YEN 5,848.5 MILLION

 

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. 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

 

PRESS KOGYO CO LTD

 

REGD NAME:   Press Kogyo KK

MAIN OFFICE:  1-1-1 Shiohama Kawasakiku Kawasaki City Kanagawa-Pref 210-0826 JAPAN

                                    Tel: 044-266-2581     Fax: 044-276-3934

 

                        *.. The given postal code No.is for its Onomichi Factory     -

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of automobile press parts

 

 

BRANCHES

 

Yokohama

 

 

OVERSEAS

 

USA, Sweden, Thailand, China, Indonesia

 

 

FACTORIES

 

At the caption address, Utsunomiya, Kawagoe, Fujisawa, Onomichi

 

 

CHIEF EXEC

 

HIROSHIGE KAKUDO, PRE

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 183,618 M

                                    PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 8,070 M

                                    TREND             UP                                WORTH             Yen 65,293 M

                                    STARTED         1934                             EMPLOYES      6,171

 

COMMENT

 

MFR OF PRESS PARTS FOR AUTOMOBILE 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

                       

                                    MAX CREDIT LIMIT: YEN 5,848.5 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 press parts for automobiles.  Has strength in press parts for trucks.  Top-ranked maker of chassis frames and seals.  Also assembles commercial vehicles for Mazda, and cabins for construction machinery.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 183,618 million, a 4.9% up from Yen 175,122 million in the previous term.  The recurring profit was posted at Yen 10,098 million and the net profit at Yen 6,270 million, respectively, compared with Yen 9,664 million recurring profit and Yen 5,588 million net profit, respectively, a year ago.

 

For the term that ended Mar 2015 the recurring profit was projected at Yen 8,500 million and the net profit at Yen 5,400 million, respectively, on a 2.0% fall in turnover, to Yen 180,000 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 5,848.5 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　Jun 1934

                        Legal Status:       Limited Company (Kabushiki Kaisha

                        Authorized:       240 million shares

                        Issued:                114,007,210 shares

                        Sum:                   Yen 8,070 million

 

Major shareholders (%): Isuzu Motors (8.9), Master Trust Bank of Japan T (5.3), JP Morgan Chase Bank (5.2), Northern Trust (4.7), Company’s Treasury Stock (4.7), others; foreign owners (27.2)

 

No. of shareholders: 5,885

 

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

 

Managements: Hiroshige Kakudo, pres; Masami Takahashi, v pres; Masato Saitoh, s/mgn dir; Hirohiko Ikeda, mgn dir; Tetsushi Yoshino, mgn dir; Satoshi Murayama, mgn dir; Tadahiko Harada, dir

 

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

 

                        Related companies: Kyowa Mfg Co, PK USA, TSP KK, other.

 

 

OPERATION

           

Activities: Manufactures press parts: automotive-related (86%), construction machinery-related (13%), others (1%)

Overseas Sales Ratio (36%)

           

Clients: [Mfrs, wholesalers] Isuzu Motor, Thai Summit KK, Mitsubishi Fuso Truck & Bus             Corp, Thai Summit PKK, other

            No. of accounts: 500

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsubishi Fuso Truck & Bus Corp, Isuzu Motor, Nippon Steel & Sumikin Bussan Corp, other

 

            Payment record: No Complaints

 

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

 

            Bank References:

                        SMBC (Tokyo)

                        MUFG (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

　

183,618

175,122

　

  Cost of Sales

162,126

154,264

　

      GROSS PROFIT

21,491

20,857

　

  Selling & Adm Costs

12,091

11,971

　

      OPERATING PROFIT

9,400

8,886

　

  Non-Operating P/L

698

778

　

      RECURRING PROFIT

10,098

9,664

　

      NET PROFIT

6,270

5,588

BALANCE SHEET

　

　

  Cash

　

12,367

12,178

　

  Receivables

28,534

26,344

　

  Inventory

14,720

9,981

　

  Securities, Marketable

　

　

　

  Other Current Assets

4,085

3,369

　

      TOTAL CURRENT ASSETS

59,706

51,872

　

  Property & Equipment

80,663

67,769

　

  Intangibles

1,344

301

　

  Investments, Other Fixed Assets

9,120

8,993

　

      TOTAL ASSETS

150,833

128,935

　

  Payables

21,519

20,300

　

  Short-Term Bank Loans

10,324

14,342

　

　

　

　

　

  Other Current Liabs

21,906

14,838

　

      TOTAL CURRENT LIABS

53,749

49,480

　

  Debentures

10,000

　

　

  Long-Term Bank Loans

8,882

7,626

　

  Reserve for Retirement Allw

427

336

　

  Other Debts

　

12,482

12,995

　

      TOTAL LIABILITIES

85,540

70,437

　

      MINORITY INTERESTS

　

　

Common stock

8,070

8,070

　

Additional paid-in capital

2,074

2,074

　

Retained earnings

33,842

28,604

　

Evaluation p/l on investments/securities

1,326

1,107

　

Others

21,173

19,830

　

Treasury stock, at cost

(1,192)

(1,187)

　

      TOTAL S/HOLDERS` EQUITY

65,293

58,498

　

      TOTAL EQUITIES

150,833

128,935

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

13,906

10,291

　

Cash Flows from Investment Activities

-18,599

-10,545

　

Cash Flows from Financing Activities

3,968

-4,041

　

Cash, Bank Deposits at the Term End

　

12,153

11,840

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

65,293

58,498

　

Current Ratio (%)

111.08

104.83

　

Net Worth Ratio (%)

43.29

45.37

　

Recurring Profit Ratio (%)

5.50

5.52

　

Net Profit Ratio (%)

3.41

3.19

　

　

Return On Equity (%)

9.60

9.55

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.56

UK Pound

1

Rs.93.56

Euro

1

Rs.67.49

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ASH

 

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.