MIRA INFORM REPORT

 

 

Report No. :

335831

Report Date :

10.08.2015

 

IDENTIFICATION DETAILS

 

Name :

MISUMI CORPORATION

 

 

Registered Office :

Iidabashi First Bldg, 2-5-1 Koraku Bunkyoku Tokyo 112-0004

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

April, 2005

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, Export, Catalog Sales of Precision Machinery Parts.

 

 

No. of Employees :

530

 

 

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 :

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

 

Company Name and address

 

MISUMI CORPORATION

 

REGD NAME:               KK Misumi

 

MAIN OFFICE:              Iidabashi First Bldg, 2-5-1 Koraku Bunkyoku Tokyo 112-0004 JAPAN

                                                Tel: 03-5805-7050     Fax: 03-5805-7458

 

                                                *.. Moved to the caption address from the one as given

 

URL:                             http://www./misumi.ec.com

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES

 

Import, export, catalog sales of precision machinery parts

 

 

BRANCHES

 

Kumamoto, Yokohama, other (Tot 15)

 

 

OVERSEAS

 

USA, UK, Germany, China (2), Hong Kong, Korea, Taiwan, Thailand, Singapore, India, Vietnam  (--subsidiaries)

 

 

FACTORIES

 

(Subcontracted - about 150 makers)

 

 

OFFICER(S)

 

RYUSEI OHNO, PRES              

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES                      Yen 133,668 M

PAYMENTSREGULAR   CAPITAL                       Yen 850 M

TREND UP                    WORTH                        Yen 83,150 M

STARTED         2005                 EMPLOYES                  530

 

 

COMMENT

 

CATALOG SALES OF PRECISION MACHINEY PARTS, WHOLLY OWNED BY MISUMI GROUP INC. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: US$500,000 / O/A 90 DAYS TERMS.

 

 

HIGHLIGHTS

 

The subject company was established originally in 1963 and was reorganized through merger of Misumi Corp and Suruga Seiki Co in Apr 2005, and formed a holding company, Misumi Group Inc (See REGISTRATION). This is a mail-order house for precision machinery parts, particularly of standardized parts for FA equipment and metal molds. Not involved in production. Cooperative makers of about 150 both at home and abroad produce Misumi-brand products based on customer needs. Goods are imported from subsidiary factories and purchasing offices overseas.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 133,668 million, a 16% up from Yen 115,301 million in the previous term.  Exports were robust to USA, Korea, China, other.  The recurring profit was posted at Yen 14,117 million and the net profit at Yen 9,097 million, respectively, compared with Yen 13,623 million recurring profit and Yen 8,692 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 15,000 million and the net profit at Yen 9,500 million, respectively, on a 5% rise in turnover, to Yen 140,500 million.  Business is seen expanding steadily. 

 

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

 

 

REGISTRATION

           

            Date Registered:  Apr 2005

            Legal Status:       Limited Company (Kabushiki Kaisha)

            Authorized:         68,000 shares

            Issued:                17,000 shares

            Sum:                   Yen 850 million

            Major shareholders (%): Misumi Group Inc* (100)

 

*.. Holding company of Misumi group firms, founded 2005, listed Tokyo S/E, capital Yen 6,840 million, turnover Yen 208,562 million, operating profit Yen 23,759 million, recurring profit Yen 14,291 million, net profit Yen 14,291 million, total assets Yen 184,784 million, net worth Yen 132,138 million, employees 8,876, pres Ryusei Ohno, concurrently

           

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

 

 

OPERATION

 

Activities: Mail-Order House for distributing precision machinery parts by catalog and online: factory automation systems, die components, electronics products, optical equipment, other (--100%)): linear shafts, aluminum frames, filter units, screws, air cylinders processed urethane & rubber, anti-vibration & soundproof materials, insulator plates, switches, cutters, others;

(Overseas sales ratios 40%)

 

Clients: [Mfrs, wholesalers] Exports to: Misumi USA, Misumi S/E Asia, Misumi Korea, Misumi Precision Shanghai, Misumi Taiwan, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Suruga Seisan Platform, Suruga Seiki Co, AIO Precision, Yamada Kikai Kogyo, Morimoto Seimitsu Shaft, SP Parts, other.

 

Payment record: Regular

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

 

 

Bank References:

            Mizuho Bank (Kinshicho)

MUFG (Fukagawa)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2016

31/03/2015

31/03/2014

31/03/2013

Annual Sales

 

140,500

133,668

115,301

108,814

Recur. Profit

 

15,000

14,117

13,623

15,116

Net Profit

 

9,500

9,097

8,692

8,620

Total Assets

 

 

116,476

108,029

90,418

Current Assets

 

 

60,563

58,026

46,863

Current Liabs

 

 

19,071

18,404

17,324

Net Worth

 

 

83,150

77,408

71,351

Capital, Paid-Up

 

 

850

850

850

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.11

15.93

5.96

0.44

    Current Ratio

 

..

317.57

315.29

270.51

    N.Worth Ratio

 

..

71.39

71.65

78.91

    R.Profit/Sales

 

10.68

10.56

11.82

13.89

    N.Profit/Sales

 

6.76

6.81

7.54

7.92

    Return On Equity

 

..

10.94

11.23

12.08

 

Notes: Forecast (or estimated) figures for the 31/03/2016 fiscal term. 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.81

UK Pound

1

Rs.98.93

Euro

1

Rs.69.66

 

 

 

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.