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Report No. : |
349196 |
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Report Date : |
06.11.2015 |
IDENTIFICATION DETAILS
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Name : |
LIXIL CORPORATION |
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Registered Office : |
2-1-1 Ojima, Koto-Ku, Tokyo 136-8535 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
Oct., 2001 |
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Com. Reg. No.: |
0106-01-028126 (Tokyo-Kotoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Building Materials, Housing Equipment. |
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No. of Employees : |
14,382 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
LIXIL CORPORATION
REGD NAME: KK
LIXIL
MAIN OFFICE: Kasumigaseki
Bldg 36F, 3-2-5 Kasumigaseki Chiyodaku Tokyo 100-6036 JAPAN
Tel: 03-6273-3601 Fax: 03-6273-3759
*.. Registered at: 2-1-1 Ojima
Kotoku Tokyo, as given
E-Mail address: promotion@lixil.co.jp
Mfg of building materials,
housing equipment
Nationwide: 400
(offices/group firms, other)
China (8), Taiwan
(2), Korea (2), Thailand (2), Singapore, Vietnam (2), Malaysia, USA, UK, Italy,
other
40 factories
nationwide
China, Vietnam,
Thailand, & Korea (--factories)
YOSHIAKI FUJIMORI,
PRES Sachio Matsumoto, rep dir
Toshimasa Iue, dir Yosuke Yagi, dir
Haruo Shirai, dir
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 908,560 M
PAYMENTSSLOW BUT CORRECTCAPITAL Yen 34,600 M
TREND SLOW WORTH Yen 496,547 M
STARTED 2001 EMPLOYES 14,382
MFR OF HOUSING MATERIALS & EQUIPMENT.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
The subject
company was established by merger of five operating companies under the JS
Group Corp and launched LIXIL Group Corporation. This is a specialized mfr of building
materials and hosing equipment (See OPERATION).
With the
integration of the well-established networks of the five former companies, the
new corporation is able to supply a full range of building materials and
housing equipment while offering an extensive line-up of its own products. In Dec 2011 the firm acquired a curtain wall
maker in Italy. China production is
strengthening.
The sales volume for Mar/2015 fiscal term amounted to Yen 908,560
million, a 5% down from Yen 954,806
million in the previous term. The newbuilding
order was sluggish. The recurring profit was posted at Yen 30,998 million and the net
profit at Yen 9,436 million, respectively, compared with Yen 40,050 million
recurring profit and Yen 24,047 million net profit, respectively, a year ago.
For the current term ending Mar 2016 the recurring profit is projected
at Yen 40,000 million and the net profit at Yen 24,000 million, respectively,
on a 5% rise in turnover, to Yen 954,000 million. Reforming of old buildings is being active.
The financial situation is considered FAIR
and good for ORDINARY business engagements.
Date Registered: Oct 2001
Regd No.: 0106-01-028126 (Tokyo-Kotoku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 692,000 shares
Issued: 692,000 shares
Sum: Yen 34,600 million
Major
shareholders (%): LIXIL Group Corp* (100)
*.. Holding Company
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Manufactures housing
materials, building equipment, others (--100%).
(Mfg
Items): bathroom units, sanitary fixtures, kitchens, curtail walls, interior
furnishing materials, shutters, windows, entrance doors, exteriors, tiles,
steel doors, walls, tiles, roofs, fire protection units, other related products
Clients: House building,
construction firms, other
No. of accounts:
1,000 (approx)
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] Sun Wave Ind, Tostem
Tai, other
Imports from subsidiary mfrs: Thailand, China,
other
Payment record: Slow but correct
Location: Business area in Tokyo. Office premises at
the caption address are leased and maintained satisfactorily.
Bank
References:
MUFG (H/O)
SMBC (Tokyo-Chuo)
Relations: Satisfactory
(In Million Yen)
|
Terms Ending: |
31/03/2016 |
31/03/2015 |
31/03/2014 |
31/03/2013 |
|
|
Annual
Sales |
|
954,000 |
908,560 |
954,806 |
880,878 |
|
Recur.
Profit |
|
40,000 |
30,998 |
40,050 |
40,615 |
|
Net
Profit |
|
24,000 |
9,436 |
24,047 |
2,895 |
|
Total
Assets |
|
|
1,067,343 |
1,099,910 |
963,998 |
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Current
Assets |
|
|
384,297 |
425,604 |
415,711 |
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Current
Liabs |
|
|
385,301 |
396,910 |
408,139 |
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Net
Worth |
|
|
496,547 |
527,706 |
512,777 |
|
Capital,
Paid-Up |
|
|
34,600 |
34,600 |
34,600 |
|
Div.Ttl
in Million (¥) |
|
|
8,518 |
25,871 |
9,350 |
|
<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
5.00 |
-4.84 |
8.39 |
0.77 |
|
Current Ratio |
|
.. |
99.74 |
107.23 |
101.86 |
|
N.Worth Ratio |
|
.. |
46.52 |
47.98 |
53.19 |
|
R.Profit/Sales |
|
4.19 |
3.41 |
4.19 |
4.61 |
|
N.Profit/Sales |
|
2.52 |
1.04 |
2.52 |
0.33 |
|
Return On Equity |
|
.. |
1.90 |
4.56 |
0.56 |
Notes: Forecast
(or estimated) figures for the 31/03/2016 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.68 |
|
|
1 |
Rs.101.02 |
|
Euro |
1 |
Rs.71.35 |
INFORMATION DETAILS
|
Analysis Done by
: |
AMR |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.