MIRA INFORM REPORT

 

 

Report No. :

308393

Report Date :

25.02.2015

 

IDENTIFICATION DETAILS

 

Name :

MORIMATSU INDUSTRY CO LTD

 

 

Registered Office :

1430-8 Minobe Motosu City Gifu-Pref 501-0413

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

May, 1964

 

 

Com. Reg. No.:

2000-01-010256 (Gifu-Minobe)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Stainless Tanks

 

 

No. of Employees :

590

 

 

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 Limits :

YEN 316.5 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. Japan's industrial sector is 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 three 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. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. 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 2013 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 new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which is exceeding 230% 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 the year 2015. 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

 

MORIMATSU INDUSTRY CO LTD

 

REGD NAME:               Morimatsu Kogyo KK

 

MAIN OFFICE:              1430-8 Minobe Motosu City Gifu-Pref 501-0413 JAPAN

                                                Tel: 058-323-0333      Fax: 058-323-4969

 

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

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES

 

Mfg of stainless tanks

 

 

BRANCHES

 

Tokyo, Nagoya, Osaka, Fukuoka, Sendai, Hiroshima, other (Tot15)

 

 

OVERSEAS

 

China, Hong Kong, USA, & Sweden

 

 

FACTORIES

 

At the caption address, Gifu (2), Ibaraki, Sapporo

 

 

OFFICERS

 

TERUMOTO MATSUHISA, PRES

Nobuo Matsuhisa, ch                 Kunihiko Katsuno, v ch

Eizo Matsuhisa, s/mgn dir          Hiroyuki Matsuhisa, mgn dir

                       

Yen Amount:                 In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES                      Yen 4,476 M*

PAYMENTSNO COMPLAINTS    CAPITAL                       Yen 280 M

TREND UP                                WORTH                        Yen 11,551 M   

STARTED         1947                             EMPLOYES                  590

 

*.. For 4 months only due to change in accounting term

 

 

COMMENT

 

MFR OF STAINLESS TANKS.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: ESTIMATED AT YEN 316.5 MILLION, ON 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company was established by Tatsuo Matsuhisa in order to make most of his experience in the subject line of business.  Nobuo is his son, and Terumoto his grandson, who took the pres office in Aug 2013.  This is a specialized mfr of stainless tanks for building-use, industrial-use and plants (See OPERATION). Top-ranked maker in Japan in this line of business.  Goods are widely exported.  Clients include machinery mfrs, wholesalers, other, nationwide

 

 

FINANCIAL INFORMATION

           

The sales volume for Dec/2013 fiscal term for 4 months due to change in accounting term to Jan/Dec from the previous Sept/Aug amounted to Yen 4,476 million, a 4% down as adjusted on a 12-month basis Yen 14,006 million in the previous term on a 12-month basis.  The recurring profit was posted at Yen 257 million and the net profit at Yen 54 million, respectively, compared with Yen 2,353 million recurring profit and Yen 1,508 million net profit, respectively, a year ago.

 

For the term that ended Dec/ 2014 the recurring profit was projected at Yen 2,400 million and the net profit at Yen 1,600 million, respectively, on a 5% rise in turnover, to Yen 14,700 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 316.5 million, on 30 days normal terms.

 

 

REGISTRATION

    

            Date Registered:   May 1964

            Regd No.:         2000-01-010256 (Gifu-Minobe)

            Legal Status:       Limited Company (Kabushiki Kaisha)

            Authorized:         2.2 million shares

            Issued:                560,000 shares

            Sum:                   Yen 280 million

  Major shareholders (%): Nobuo Matsuhisa (37), Employees’ S/Holding Assn (29), Eizo   Matsuhisa (8), Terumoto Matsuhisa (7), Nagoya Small & Medium Business Promotion &     Investment (6)

  No. of shareholders: 11

 

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

 

OPERATION

           

Activities: Mfg of building equipment (stainless tanks), water supply equipment, plant equipment (--100%)

(Mfg products):

Building Equipment: stainless-steel panel water tanks, stainless-steel hot water supply tanks, heat exchangers (tubular or late method), pressure vessels, oil tanks, other;

Water Supply Equipment: stainless-steel distribution reservoirs (mopit-X, XT, YZ, WP);

Plant Equipment: a wide variety of tanks for plants

 

 

Clients: [Mfrs, wholesalers] Sanki Engineering, Dai-Dan Co, Asahi Kiki, Watanabe Pipe, Takasago Thermal Engineering, Yuasa Trading, Kawasaki Setsubi Kogyo, Shin-Nippon Air Technologies, Taikisha Ltd, Asahi Kogyosha, other 

No. of accounts: 350

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Nippon Steel & Sumikin Stainless, Nippon Yakin Kogyo, POSCO, JFE Steel, Mori Industries Inc, Alfa Laval, UEX Co, Rintatsu Co, Nippon Metal Ind, Mizushima Metal Ind, other

 

Payment record: No Complaints

 

Location: Business area in Motosu City, Gifu-Pref.  Office premises at the caption address are owned and maintained satisfactory.

 

Bank References:

            Juroku Bank (H/O)

            Ogaki Kyoritsu Bank (Gifu)

            Relations: Satisfactory

 

 


FINANCES

(In Million Yen)

 

       Terms Ending:

31/12/2014

31/12/2013

31/08/2013

31/08/2012

Annual Sales

 

14,090

4,476

14,006

11,930

Recur. Profit

 

2,400

157

2,353

 

Net Profit

 

1,600

54

1,508

1,040

Total Assets

 

 

33,330

29,567

26,242

Current Assets

 

 

11,699

8,734

 

Current Liabs

 

 

11,383

8,401

 

Net Worth

 

 

11,551

12,277

10,696

Capital, Paid-Up

 

 

280

280

280

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.92

-4.12

17.40

7.09

    Current Ratio

 

..

102.78

103.96

..

    N.Worth Ratio

 

..

34.66

41.52

40.76

    R.Profit/Sales

 

17.03

3.51

16.80

..

    N.Profit/Sales

 

11.36

1.21

10.77

8.72

    Return On Equity

 

..

0.47

12.28

9.72

 

Notes: The 31/12/2013 fiscal term is for 4 months only due to change in accounting term to Jan/Dec from the  previous Sept/Aug term.  Growth rates are adjusted on a 12-month basis.

 

Forecast (or estimated) figures for the 31/12/2014 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.28

UK Pound

1

Rs.96.21

Euro

1

Rs.70.60

 

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.