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Report No. : |
350189 |
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Report Date : |
20.11.2015 |
IDENTIFICATION DETAILS
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Name : |
KIRII CONSTRUCTION MATERIAL CO LTD |
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Registered Office : |
Imperial Hotel Tower 18F, 1-1-1 Uchisaiwaicho Chiyodaku Tokyo 100-0011 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
March, 1964 |
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Com. Reg. No.: |
0117-01-002505 (Tokyo-Edogawaku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Construction
Materials (Metals & Woods), Other. |
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No. of Employees : |
459 |
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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Maximum Credit Limit : |
Yen 2,645.8 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 |
KIRII CONSTRUCTION MATERIAL CO LTD
REGD NAME: KK
Kirii Seisakusho
MAIN OFFICE: Imperial
Hotel Tower 18F, 1-1-1 Uchisaiwaicho Chiyodaku Tokyo 100-0011
JAPAN
Tel: 03-3539-6000 Fax: 03-3539-6660
*.. Registered at: 1-10-10
Naka-Kasai Edogawaku Tokyo
E-Mail address: (thru
the URL)
Mfg of
construction materials (metals & woods), other
Sapporo,
Sendai, Nagoya, Osaka, other (Tot 40)
Hong
Kong, China (2) (--subsidiaries)
Sapporo,
Sendai, Ibaraki, Gunma, Yokohama, Fukuoka, other (Tot 10 including partnership
factories)
TAKASHI
KIRII, PRES Takeshi
Takahashi, mgn dir
Takayuki
Matsunaga, dir Narihira Furuya, dir
Toshio
Kobayashi, dir Hiroshi
Nakagami, dir
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen
88,349 M
PAYMENTSREGULAR CAPITAL Yen 100 M
TREND UP WORTH Yen
18,698 M
STARTED 1964 EMPLOYES 459
FR OF CONSTRUCTION MATERIALS
(METALS & WOODS).
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: ESTIMATED AT YEN 2,645.8 MILLION, ON 30 DAYS NORMAL TERMS.
The
subject company is a specialized mfr of construction materials (interior finishing):
lathing for ceiling, wall, floor, LED lights, other), wood materials, other. Has 10
factories including
partnership factories. Also mfg bases in China and Hong Kong (--subsidiaries). Clients
include construction firms, housing makers, other.
The
sales volume for Mar/2015 fiscal term amounted to Yen 88,349 million, a 13% up
from Yen 78,025 million in the previous term. The recurring profit was posted
at Yen 1,382 million and the net profit at Yen 1,123 million, respectively,
compared with Yen 2,041 million recurring profit and Yen 1,088 million net
profit, respectively, a year ago.
For
the current term ending Mar 2016 the recurring profit is projected at Yen 1,500
million and the net profit at Yen 1,300 million, respectively, on an 11% rise
in turnover, to Yen 98,000 million.
The
financial situation is considered FAIR and good for ORDINARY business
engagements. Max
credit limit is estimated at Yen 2,645.8 million, on 30 days normal terms.
Date Registered: Mar
1964
Regd No.: 0117-01-002505 (Tokyo-Edogawaku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
800,000 shares
Issued:
200,000 shares
Sum: Yen 100 million
Major shareholders (%): Junko Kirii (19.4), Takashi
Kirii (16.1), Suehiro Tekko (Iron Works) (9.1), Employees S/Holding Assn (8.1),
Metal System (6.1)
No. of shareholders: 26
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Manufactures construction materials:
metal lathe (50%), wood lathe, and others (50%), for ceiling, walls, floors,
LED lights, other.
Clients: Construction firms, housing makers,
interior workshops, other
No. of
accounts: 350
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Sadoshima Co,
Nippon Steel & Sumitomo Metal Corp, Itochu Construction Materials, other
Payment record: Regular
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactory.
Bank References:
MUFG (Kojimachi-Chuo)
SMBC (Akasaka)
Relations: Satisfactory
(In Million Yen)
|
Terms Ending: |
31/03/2016 |
31/03/2015 |
31/03/2014 |
31/03/2013 |
|
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Annual
Sales |
|
98,000 |
88,349 |
78,025 |
70,776 |
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Recur.
Profit |
|
1,500 |
1,382 |
2,041 |
2,797 |
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Net
Profit |
|
1,300 |
1,123 |
1,088 |
2,109 |
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Total
Assets |
|
|
51,062 |
48,137 |
42,960 |
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Current
Assets |
|
|
38,631 |
37,922 |
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Current
Liabs |
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|
22,836 |
22,689 |
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Net
Worth |
|
|
18,698 |
17,583 |
16,530 |
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Capital,
Paid-Up |
|
|
100 |
100 |
100 |
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Div.P.Share(¥) |
|
|
6.00 |
6.00 |
6.00 |
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<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
|
10.92 |
13.23 |
10.24 |
10.11 |
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Current Ratio |
|
.. |
169.17 |
167.14 |
.. |
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N.Worth Ratio |
|
.. |
36.62 |
36.53 |
38.48 |
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R.Profit/Sales |
|
1.53 |
1.56 |
2.62 |
3.95 |
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N.Profit/Sales |
|
1.33 |
1.27 |
1.39 |
2.98 |
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Return On Equity |
|
.. |
6.01 |
6.19 |
12.76 |
Notes: Forecast (or estimated)
figures for the 31/03/2016 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.11 |
|
|
1 |
Rs.101.03 |
|
Euro |
1 |
Rs.70.78 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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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.