MIRA INFORM REPORT

 

 

Report No. :

324930

Report Date :

29.05.2015

 

IDENTIFICATION DETAILS

 

Name :

KURITA WATER INDUSTRIES LTD

 

 

Registered Office :

Nakano Central Park East, 4-10-1 Nakano Nakanoku Tokyo 164-0001

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

July 1949

 

 

Com. Reg. No.:

0111-01-023170

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is manufactures of water treatment chemicals and water treatment systems

 

 

No. of Employee :

4,635

 

 

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 8,289.4 Million

 

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

 

KURITA WATER INDUSTRIES LTD

 

 

REGD NAME

 

Kurita Kogyo KK

 

 

MAIN OFFICE

 

Nakano Central Park East, 4-10-1 Nakano Nakanoku Tokyo 164-0001 JAPAN

Tel: 03-6743-5000          -

 

 

URL

 

http://www.kurita.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of water treatment equipment

 

 

BRANCHES

 

Osaka, Nagoya, Sapporo, Sendai, Hiroshima, other (Tot 52)

 

 

OVERSEAS

 

Asia, Europe, USA, Latin America, other (Tot 12, including representatives)

 

 

FACTORIES

 

Osaka, Nagoya, other (Tot 4)

 

 

CHIEF EXEC

 

TOSHIYUKI NAKAI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 189,398 M

PAYMENTSREGULAR   CAPITAL           Yen 13,450 M

TREND UP                    WORTH            Yen 223,478 M

STARTED         1949                 EMPLOYES      4,635

 

 

COMMENT

 

MFR OF WATER TREATMENT EQUIPMENT 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 8,289.4 MILLION, 30 DAYS NORMAL TERMS

 

Unit: In Million Yen

Forecast figures for the 3103/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is the top-ranked mfr of water treatment equipment.  Started out in 1945 making water treatment chemicals for boilers, and advanced into water treatment systems in 1954.  Business developing into pure-water mfg systems, environmental facilities and soil purification systems.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 189,398 million, a 6.3% up from Yen 178,137 million in the previous term.  Orders for maintenance works for water treatment systems from electronic and electric makers rebounded.  The recurring profit was posted at Yen 18,934 million and the net profit at Yen 10,434 million, respectively, compared with Yen 16,072 million recurring profit and Yen 9,352 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 20,000 million and the net profit at Yen 12,300 million, respectively, on a 14% rise in turnover, to Yen 216,000 million.  Demand for ultrapure water supply systems will remain strong.  Sales of chemicals will expand sluggishly in Japan, but will continue rising in overseas, contributed from the new subsidiary in Germany.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 8,289.4 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　    Jul 1949

Regd No.:                                 0111-01-023170 (Tokyo-Nakanoku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              531 million shares

Issued:                         119,164,594 shares

Sum:                            Yen 13,450 million

 

Major shareholders (%): Nippon Life Ins (5.1), Japan Trustee Services T (4.7), Goldman Sachs (Regular) Acct (3.8), Northern Trust (AVFC) Silchester (2.2), Master Trust Bank of Japan T (2.2), Northern Trust US Tax Ex-Pension F (2.1), Tokio Marine & Nichido Fire Ins (1.9), MUFG (1.7), RBC IST 15 PCT Lending (1.7), Northern Trust (AVFC) Re 15PCT T (1.5); foreign owners (48.8)

 

No. of shareholders: 29,153

 

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

 

Managements: Toshiyuki Nakai, pres; Kaoru Kajii, mgn dir; Koichi Iioka, mgn dir; Kiyoshi Ito, mgn dir; Ikuto Namura, dir; Yoichi Kurokawa, dir; Toshitaka Kodama, dir; Yoshio Yamada, dir; Michiya Kadota, dir; Seiji Nakamura, dir

 

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

 

Related companies: Kurita Engineering, Kuritech Service, other.

 

 

OPERATION

           

Activities: Manufactures water treatment chemicals (33%), water treatment systems (67%)

Overseas Sales Ratio (19%)

           

Clients: [Mfrs, wholesalers] Tohoku Electric Power, Tokyo Electric Power, Sharp Ltd, Toray Engineering, Kobe Steel, Chiyoda Corp, Screen Holdings Co, Samson Co, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Itochu Chemical Frontier, Kurita Chemical Mfg, Mitsubishi Rayon, Tosoh Corp, Nitto Denko Corp, other

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Tokyo)

Resona Bank (Shinjuku)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

189,398

178,137

　

  Cost of Sales

130,509

122,870

　

      GROSS PROFIT

58,889

55,267

　

  Selling & Adm Costs

39,454

40,380

　

      OPERATING PROFIT

19,435

14,886

　

  Non-Operating P/L

-501

1,186

　

      RECURRING PROFIT

18,934

16,072

　

      NET PROFIT

10,434

9,352

BALANCE SHEET

　

　

  Cash

　

52,497

47,336

　

  Receivables

59,810

50,503

　

  Inventory

8,853

5,811

　

  Securities, Marketable

14,999

47,999

　

  Other Current Assets

12,131

10,851

　

      TOTAL CURRENT ASSETS

148,290

162,500

　

  Property & Equipment

74,046

77,855

　

  Intangibles

27,332

1,578

　

  Investments, Other Fixed Assets

43,536

32,992

　

      TOTAL ASSETS

293,204

274,925

　

  Payables

19,169

17,027

　

  Short-Term Bank Loans

　

　

　

　

　

　

　

  Other Current Liabs

(1,408)

19,872

　

      TOTAL CURRENT LIABS

17,761

36,899

　

  Debentures

　

　

　

  Long-Term Bank Loans

　

　

　

  Reserve for Retirement Allw

13,785

11,363

　

  Other Debts

　

38,180

7,510

　

      TOTAL LIABILITIES

69,726

55,772

　

      MINORITY INTERESTS

　

　

Common stock

13,450

13,450

　

Additional paid-in capital

10,980

11,426

　

Retained earnings

189,693

185,159

　

Evaluation p/l on investments/securities

14,768

7,862

　

Others

2,292

1,258

　

Treasury stock, at cost

(7,705)

(2)

　

      TOTAL S/HOLDERS` EQUITY

223,478

219,153

　

      TOTAL EQUITIES

293,204

274,925

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

23,314

29,666

　

Cash Flows from Investment Activities

4,746

-16,676

　

Cash Flows from Financing Activities

-13,929

-5,957

　

Cash, Bank Deposits at the Term End

　

55,675

41,028

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

223,478

219,153

　

Current Ratio (%)

834.92

440.39

　

Net Worth Ratio (%)

76.22

79.71

　

Recurring Profit Ratio (%)

10.00

9.02

　

Net Profit Ratio (%)

5.51

5.25

　

　

Return On Equity (%)

4.67

4.27

 

 

           

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.90

UK Pound

1

Rs.98.16

Euro

1

Rs.69.74

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ASH

 

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.