MIRA INFORM REPORT

 

 

Report No. :

319461

Report Date :

25.04.2015

 

IDENTIFICATION DETAILS

 

Name :

KOITO MFG CO LTD

 

 

Registered Office :

4-8-3 Takanawa Minatoku Tokyo 108-0074

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

April, 1936

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Automotive Lighting Equipment.

 

 

No. of Employees :

19,920

 

 

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

 

 

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

 

KOITO MFG CO LTD

 

REGD NAME:               KK Koito Seisakusho

 

MAIN OFFICE:              4-8-3 Takanawa Minatoku Tokyo 108-0074 JAPAN

                                                Tel: 03-3443-7111     Fax: 03-3447-1520

 

                                    *.. The is its Shizuoka Plant   

 

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

E-Mail address:            (Thru the URL)

 

 

ACTIVITIES

 

Mfg of automotive lighting equipment

 

 

BRANCHES

 

Osaka, Toyoda, Utsunomiya, Yokohama, Hiroshima, other (Tot 19)

 

 

OVERSEAS

 

USA (2)

 

 

FACTORIES

 

Shizuoka (4)

 

 

CHIEF EXEC

 

MASAHIRO OHTAKE, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

           

FINANCES        FAIR                 A/SALES                      Yen 706,470 M

PAYMENTSREGULAR   CAPITAL                       Yen 14,270 M

TREND UP                    WORTH                        Yen 316,826 M

STARTED         1936                 EMPLOYES                 19,920

 

 

COMMENT    

 

MFR OF AUTOMOTIVE LIGHTING EQUIPMENT 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

Unit: In Million Yen

Forecast figures for the 31/03/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is the largest mfr of automotive lighting equipment. Closely associated with Toyota Motor. Sales to Toyota about 30% of total. In good financial standing. Expanding aircraft parts based on electronization. Subsidiary KI Holdings engaged in producing aircraft seats. Spurring overseas production.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 706,470 million, an 18.2% up from Yen 597,502 million in the previous term.  The recurring profit was posted at Yen 66,880 million and the net profit at Yen 36,060 million, respectively, compared with Yen 51,895 million recurring profit and Yen 21,378 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 69,000 million and the net profit at Yen 38,000 million, respectively, on a 10.4% rise in turnover, to Yen 780,000 million.  Sales of mainline automotive lamps will surge in the US and China.

 

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

 

 

REGISTRATION

           

Date Registered:　          Apr 1936

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              320 million shares

Issued:                         160,789,436 shares

Sum:                            Yen 14,270 million

 

Major shareholders (%): Toyota Motor (20.0), JP Morgan Chase Bank (5.1), Master Trust Bank of Japan T (4.3), Master Trust Bank of Japan T (4.3) Japan Trustee Services T (3.5), SMBC (3.3), other; foreign owners (29.2)

 

No. of shareholders: 4,382

 

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

 

Managements: Takashi Ohtake, ch; Masahiro Ohtake, pres; Yuji Yokoya, v pres; Koichi Sakakibara, v pres; Hiroshi Mihara, v pres; Kazuo Ueki, s/mgn dir; Kenji Arima, s/mgn dir; Yohei Kawaguchi, s/mgn dir; Masami Uchiyama, mgn dir; Katsuyuki Kusakawa, mgn dir

 

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

 

Related companies: North American Lighting, Koito Shanghai, other.

 

 

OPERATION

           

Activities: Manufactures automotive lighting equipment & accessories: Japan (46%), North America (16%), China (25%), Asia (10%), Europe (3%)

Overseas Sales Ratio (53%)

           

Clients: [Mfrs, wholesalers] Toyota Motor, Fuji Heavy Ind, Suzuki Motor, Mazda Motor,    Isuzu Motor, Nissan Motor, other

No. of accounts: 300

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Koito Kyushu, Toyota Tsusho Corp, SABIC Innovative Plastics Japan, Okaya &  Co, Aoi Total Engineering Consultants, Nichia Corp, other

 

Payment record: Regular

 

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

 

Bank References:

            MUFG (Kyobashi)

            Mizuho Bank (Tokyo)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

706,470

597,502

　

  Cost of Sales

596,460

504,321

　

      GROSS PROFIT

110,010

93,180

　

  Selling & Adm Costs

45,855

43,674

　

      OPERATING PROFIT

64,155

49,506

　

  Non-Operating P/L

2,725

2,389

　

      RECURRING PROFIT

66,880

51,895

　

      NET PROFIT

36,060

21,378

BALANCE SHEET

　

　

  Cash

　

125,691

95,018

　

  Receivables

120,467

105,236

　

  Inventory

60,790

52,046

　

  Securities, Marketable

　

　

　

  Other Current Assets

47,852

41,578

　

      TOTAL CURRENT ASSETS

354,800

293,878

　

  Property & Equipment

140,859

114,080

　

  Intangibles

2,754

1,039

　

  Investments, Other Fixed Assets

76,855

74,096

　

      TOTAL ASSETS

575,268

483,093

　

  Payables

122,929

105,326

　

  Short-Term Bank Loans

37,702

38,269

　

　

　

　

　

  Other Current Liabs

49,374

41,733

　

      TOTAL CURRENT LIABS

210,005

185,328

　

  Debentures

　

　

　

  Long-Term Bank Loans

3,798

5,241

　

  Reserve for Retirement Allw

24,862

26,141

　

  Other Debts

　

19,777

10,310

　

      TOTAL LIABILITIES

258,442

227,020

　

      MINORITY INTERESTS

　

　

Common stock

14,270

14,270

　

Additional paid-in capital

17,108

17,108

　

Retained earnings

188,935

158,109

　

Evaluation p/l on investments/securities

27,922

18,532

　

Others

68,676

48,137

　

Treasury stock, at cost

(85)

(84)

　

      TOTAL S/HOLDERS` EQUITY

316,826

256,072

　

      TOTAL EQUITIES

575,268

483,093

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

73,289

35,572

　

Cash Flows from Investment Activities

-55,526

-36,030

　

Cash Flows from Financing Activities

-14,376

5,377

　

Cash, Bank Deposits at the Term End

　

33,082

27,750

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

316,826

256,072

　

Current Ratio (%)

168.95

158.57

　

Net Worth Ratio (%)

55.07

53.01

　

Recurring Profit Ratio (%)

9.47

8.69

　

Net Profit Ratio (%)

5.10

3.58

　

　

Return On Equity (%)

11.38

8.35

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.40

UK Pound

1

Rs.95.42

Euro

1

Rs.68.49

 

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.