MIRA INFORM REPORT

 

 

Report No. :

329897

Report Date :

29.06.2015

 

IDENTIFICATION DETAILS

 

Name :

MURAKAMI CORPORATION

 

 

Registered Office :

11-5 Tanmacho Aioiku Shizuoka 420-0858

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

March 1948

 

 

Com. Reg. No.:

0800-01-005194

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of automobile rear-view mirror systems

 

 

No. of Employees :

922

 

 

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 – 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 Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

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 second-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

 

MURAKAMI CORPORATION

 

 

REGD NAME 

 

Murakami Kaimeido KK

 

 

MAIN OFFICE

 

11-5 Tanmacho Aioiku Shizuoka 420-0858 JAPAN

            Tel: 054-253-181                        Fax: 054-253-5236

 

*.. The is its Fujieda Factory     -

 

URL:                 http://www.murakami-kaimeido.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of automobile rear-view mirror systems

 

 

BRANCHES   

 

Shizuoka (2)

 

 

OVERSEAS

 

Thailand, China, Hong Kong, USA, Indonesia (--subsidiary office/factories)

 

 

FACTORIES  

 

Shizuoka (3), including the one which address as given; all above overseas

 

 

CHIEF EXEC

 

TARO MURAKAMI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 64,655 M

PAYMENTSREGULAR   CAPITAL           Yen 3,165 M

TREND UP                    WORTH            Yen 47272 M

STARTED         1948                 EMPLOYES      922

 

 

COMMENT    

 

MFG OF AUTOMOBILE REARVIEW MIRROR SYSTEMS

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

                        Unit: In Million Yen

Forecast figures for the 31/10/2016 fiscal term.

 

HIGHLIGHTS

 

This is the top-ranked mfr of automobile rearview mirror systems, with market share of 40%>  Strong in products for RV’s.  Supplying products to Toyota Motor, comprising 50% of sales, and Mitsubishi Motor & Honda Motor.  Eager for overseas production, having factories in 5 overseas countries (shown as above).  Strengthening optical filters for LCD projectors and medical equipment.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 64,655 million, a 4.1% up from Yen 62,108 million in the previous term.  The recurring profit was posted at Yen 6,748 million and the net profit at Yen 4,847 million, respectively, compared with Yen 5,509 million recurring profit and Yen 3,462 million net profit, respectively, a year ago.

 

            For the current term ending Mar 2016 the recurring profit is projected at Yen 5,800 million and the net profit at Yen 4,000 million, respectively, on a 2.1% rise in turnover, to Yen 66,000 million.  Sales in North America will continue growing.  Sales in Japan and Thailand will rise sluggishly. 

 

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

 

 

REGISTRATION

           

Date Registered:　                   Mar 1948

Regd No.:                                 0800-01-005194 (Shizuoka-Aioiku)

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              29.3 million shares

Issued:                         13.1 million shares

Sum:                            Yen 3,165 million

 

Major shareholders (%): Hoei Corp (9.3), Taro Murakami (7.9), Eiji Murakami (7.6), BBH Fidelity Low-Priced Stock F (6.3), Asahi Glass (5.6), MUFG (4,7), Shizuoka Najkajimaya Hotels (3,5), Shizuoka Bank (3,5), Meiji Yasuda Life Ins (3.4), Tachibana Securities (3.1); foreign owners (1.3)

 

No. of shareholders: 604

 

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

 

Managements: Taro Murakami, pres; Fumio Tomino, s/mgn dir; Katsuyuki Yoshimura, s/mgn dir; Masaharu Okuno, mgn dir; Eiji Murakami, advisor; Yoshihito Mochizuki, dir

 

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

 

Related companies: Murakami Mfg US, Murakami Ampas (Thailand), Murakami Mfg                                (Thailand), MIC, other.

 

 

OPERATION

           

Activities: Manufactures automobile rearview mirror systems: Japan (59%), Asia (27%), North America (14%)

 

Overseas Sales Ratio (43%)

           

Clients: [Mfrs, wholesalers] Toyota Motor Mitsubishi Motor, Honda Motor, Suzuki Motor,             Toyota Auto Body, Nissan Motor, Fuji Heavy Ind, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Koito Co, Mabuchi Motor, Asahi Glass, NOK, Okaya & Co, other

 

Payment record: Regular

 

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

 

Bank References:

                        MUFG (Shizuoka-Chuo)

                        Shizuoka Bank (H/O)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

64,655

62,108

　

  Cost of Sales

53,465

51,954

　

      GROSS PROFIT

11,190

10,153

　

  Selling & Adm Costs

5,342

5,122

　

      OPERATING PROFIT

5,847

5,031

　

  Non-Operating P/L

901

478

　

      RECURRING PROFIT

6,748

5,509

　

      NET PROFIT

4,847

3,462

BALANCE SHEET

　

　

  Cash

　

20,113

17,382

　

  Receivables

8,061

7,374

　

  Inventory

4,570

3,744

　

  Securities, Marketable

　

　

　

  Other Current Assets

2,888

2,535

　

      TOTAL CURRENT ASSETS

35,632

31,035

　

  Property & Equipment

22,530

20,890

　

  Intangibles

605

602

　

  Investments, Other Fixed Assets

6,897

5,723

　

      TOTAL ASSETS

65,664

58,250

　

  Payables

4,555

6,284

　

  Short-Term Bank Loans

2,100

3,978

　

　

　

　

　

  Other Current Liabs

6,645

4,848

　

      TOTAL CURRENT LIABS

13,300

15,110

　

  Debentures

　

　

　

  Long-Term Bank Loans

1,945

394

　

  Reserve for Retirement Allw

1,431

1,198

　

  Other Debts

　

1,715

1,224

　

      TOTAL LIABILITIES

18,391

17,926

　

      MINORITY INTERESTS

　

　

Common stock

3,165

3,165

　

Additional paid-in capital

3,528

3,528

　

Retained earnings

33,429

29,017

　

Evaluation p/l on investments/securities

1,970

1,272

　

Others

5,325

3,480

　

Treasury stock, at cost

(145)

(138)

　

      TOTAL S/HOLDERS` EQUITY

47,272

40,324

　

      TOTAL EQUITIES

65,664

58,250

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

6,098

5,671

　

Cash Flows from Investment Activities

-3,606

-1,765

　

Cash Flows from Financing Activities

-896

-262

　

Cash, Bank Deposits at the Term End

　

18,784

16,585

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

47,272

40,324

　

Current Ratio (%)

267.91

205.39

　

Net Worth Ratio (%)

71.99

69.23

　

Recurring Profit Ratio (%)

10.44

8.87

　

Net Profit Ratio (%)

7.50

5.57

　

　

Return On Equity (%)

10.25

8.59

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 63.60

UK Pound

1

Rs. 100.09

Euro

1

Rs. 71.23

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

DPT

 

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.