MIRA INFORM REPORT

 

 

Report No. :

317752

Report Date :

22.04.2015

 

IDENTIFICATION DETAILS

 

Name :

KOMATSU INDUSTRIES CORP.

 

 

Registered Office :

1-1 Onomachi-Shinmachi, Kanazawa city, Ishikawa, 920-0225

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Year of Incorporation :

1994

 

 

Legal Form :

Not Available

 

 

Line of Business :

Mfg/Selling/Service of presses and sheet-metal machines, other.

 

 

No. of Employees :

449

 

 

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 257.7 Million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

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

 

ENGLISH COMPANY NAME

KOMATSU INDUSTRIES CORP.

Japanese company name

KOMATSU SANKI KK (Kabushiki kaisha)

Registered Office

1. Street Number and District

1-1 Onomachi-Shinmachi

2. City and Perefecture

Kanazawa city, Ishikawa

3. ZIP Code

920-0225

4. Country

JAPAN

TEL

076-293-4201

FAX

076-293-4351

URL

www.komatsusanki.co.jp/

Email Address

thru the URL

 

 

Activities (Services & Products)

 

Mfg/Selling/Service of presses and sheet-metal machines, other.

 

 

SUMMARY OF REPORT

 

Annual Sales (MM YEN)

44,172

Capital Amount (MM YEN)

990

Net Worth (MM YEN)

Unavailable

FINANCES

FAIR

TREND

SLOW

EMPLOYEES

449

CREDIT LIMIT PROPOSED(MM YEN)

257.7

 

 

OTHER INFORMATION FOLLOWS:

 

Year Started

1994

Month and Year Registered

May. 1994

Regd No.

2200-01-013703

Major Shareholders

1

Komatsu Ltd. (100%)

Number of Shareholders

1

Authorized Shares

79,200

Issued Shares

19,800

Executives

PRESIDENT

NOBUAKI KAWANISHI

Vice President

Keiji Nishida

Mgn Director

Hidemi Moriyama

Director

Yuki Nagata

Director

Nobutaka Matsuda

Director

Yoshisada Takahashi

Director

Shuji Yamashita

Director

Katsushi Momoi

Main Banks

1

SMBC (Tokyo main office)

Relations

Satisfactory

Clients

1

Auto manufacturers

2

Electrical manufacturers

3

Other

Suppliers

1

Komatsu Ltd.

2

Komatsu NTC Ltd.

3

Suzuki Engineering

4

Tagami EX Co., Ltd.

5

Other

Branches

1

Sapporo

2

Sendai

3

Nagano

4

Shizuoka

5

Other (total 13)

Factories

1

None

Overseas

1

U.S.A

2

China

3

Other (total 12)

 

 

HIGHLIGHT and COMMENT

 

The subject company was founded in 1994 with drawing on the long experience, know-how and technology of the Large Press Business Division of Komatsu Ltd. which is a manufacturer of construction machnery.  It developments, manufactures, sales and after-sales seivice of sheet metal machinery, press machinery, peropheral equipment, other.  It operates over 20 branches both in Japan and worldwide. Clients include automobile manufactures, electrical manufactures, other.

 

 

FINANCIAL information

 

The sales volume for March/2014 fiscal term amounted to Yen 44,172 million, a 15% dowm from Yen 51,878 million in the previous term.  The net profit at Yen 999 million which is decreased from Yen 2,417 million in the previous year.

 

 For the current term ending March 2015, the net profit at Yen 999 is estimated based on similar level of turnover, to Yen 44,172 million. Final result are yet to be released.

 

The financial situation is considered Fair and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 257.7 million, on 30 days normal terms.

 

 

Financial

 

PLEASE ATTACH THE FINANCIALS BELOW.

 

Note: Forecast (or estimated) figures for the 31/03/2015 fiscal term

 

Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

44,172

44,172

51,878

40,157

Recur. Profit

..

..

..

..

Net Profit

999

999

2,417

-137

Total Assets

 

 

 

 

Net Worth

 

 

 

 

Capital, Paid-Up

 

 

 

 

Div.P.Share(¥)

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

0.00

-14.85

29.19

 

       Current Ratio

 

..

..

..

       N.Worth Ratio

 

..

..

..

       N.Profit/Sales

2.26

2.26

4.66

-0.34

 

 

Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

44,172

44,172

51,878

40,157

27,277

23,945

Recur. Profit

..

..

..

..

..

Net Profit

999

999

2,417

-137

-1,970

-1,667

Total Assets

 

 

 

 

 

Net Worth

 

 

 

 

-3,279

-1,309

Capital, Paid-Up

 

 

 

 

 

Div.P.Share(¥)

 

0.00

0.00

0.00

 

<Analytical Data>

(%)

(%)

(%)

(%)

(%)

(%)

       S.Growth Rate

0.00

-14.85

29.19

47.22

13.92

..

       Current Ratio

 

..

..

..

..

..

       N.Worth Ratio

 

..

..

..

..

..

       N.Profit/Sales

2.26

2.26

4.66

-0.34

-7.22

-6.96

 

 

 

 

 

 

S/Hldrs' Equity

-999

-3,416

-3,279

-1,309

Div or Taxes

Offs' Bonus

Current Assets

Current Liabs

Credit Limit

257.7

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.92

UK Pound

1

Rs.93.57

Euro

1

Rs.67.34

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

VNT

 

               

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.