MIRA INFORM REPORT

 

 

Report No. :

351981

Report Date :

25.11.2015

 

IDENTIFICATION DETAILS

 

Name :

MORIMURA BROS INC

 

 

Registered Office :

Morimura Bldg, 1-3-1 Toranomon Minatoku Tokyo 105-8451

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

October 1876

 

 

Com. Reg. No.:

0104-01-029693 (Tokyo-Minatoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Imports, exports and wholesales (sales breakdown by items) (--100%).

 

 

No. of Employee :

257

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

Yen 1,755.3 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 – 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

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 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

 

 

Company name and address

 

MORIMURA BROS INC

 

REGD NAME:               Morimura Shoji KK

MAIN OFFICE:              Morimura Bldg, 1-3-1 Toranomon Minatoku Tokyo 105-8451 JAPAN

                                                Tel: 03-3502-6431     Fax: 03-3503-2002

 

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

E-Mail address:             sales-hq@morimura.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of metals, chemicals, electronics, other

 

 

BRANCHES

 

Osaka, Nagoya, Okayama, Kitakyushu

 

 

OVERSEAS

 

USA (2), Netherlands, Hong Kong (3), China (4), Singapore, India (Chennai)

(Subsidiaries): Chettinad MB-F Hi Silica Pvt Ltd (India); Morimura Bros (HK) Ltd   (Hong Kong); New Leo Electronics (Shenzhen) Ltd (China).

 

 

OFFICER(S)

 

YUSUKE MORIMURA, PRES     Yoshihiro Ueda, S/mgn dir        

Shunji Akieda, s/mgn dir                        Makoto Katagiri, mgn dir           

Hajime Morohishi, mgn dir         Takuya Kawasaki, mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 90,999 M

PAYMENTS      REGULAR         CAPITAL           Yen 180 M

TREND UP                    WORTH            Yen 8,331 M

STARTED         1876                 EMPLOYES      25

 

 

COMMENT

 

TRADING COMPANY SPECIALIZING IN METALS & INDUSTRIAL CHEMICALS. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 MAX CREDIT LIMIT: YEN 1,755.3 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

 

This an old-established trading firm dating back to 1876 when Ichitaro Morimura and his brother Toyo founded a trading firm named “Morimura Gumi”, and has been succeeded by their descendants.  The firm has played major role in establishing a number of major ceramic-related companies, such as Toto Ltd, NGK Insulators Ltd, NGK Spark Plug Co Ltd, Noritake Co Ltd, etc.  Yusuke Morimura took the pres office in Apr 2002.  This is a trading company handling a wide range of materials from ceramics, industrial chemical materials to foods, household items (See OPERATION).  Overseas trading ratio is very high.

    .

Sole agent for: Norsk Hydro ASA (Norway); Magnesium Electron Ltd (UK).

Marketing rights from: Alcoa Inc (USA); Titanium Metals Corp (USA), Valtimet

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2014 fiscal term amounted to Yen 90,999 million, an 8% up from Yen 84,163 million in the previous term.  Resins and metal demand rose.  The recurring profit was posted at 1,973 million and the net profit at Yen 1,376 million, respectively, compared with Yen 2,482 million recurring profit and Yen 2,160 million net profit, respectively, a year ago.

 

For the current term ending Dec 2015 the recurring profit is projected at Yen 2,100 million and the net profit at Yen 1,450 million, respectively, on a 5% rise in turnover, to Yen 95,550 million. .  The weaker Yen may contribute to raise earnings in Yen terms.

 

The financial situation is considered FAIR to GOOD and responsible for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,755.3 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:                       Oct 1876

Regd No.:                     0104-01-029693 (Tokyo-Minatoku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              6 million shares

Issued:                         1.8 million shares

Sum:                            Yen 180 million

 

Major shareholders (%): Morimura Homeikai Foundation (12.3), Shunsuke Morimura (12.2), Employees’ \s/Holding Assn (12.0), Yusuke Morimura (9.6), MUFG (5)

No. of shareholders: 62

 

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

 

 

OPERATION

 

Activities: Imports, exports and wholesales (sales breakdown by items) (--100%):

 

Metals, light metals: magnesium ingots, magnesium rolled products, aluminum/magnesium die-cast products, magnesium alloy recycling, aluminum primary & secondary products, stainless steel products, aluminum master alloy & grain refiner, aluminum metal products, special magnesium alloy ingots, prototyping of magnesium casting, titanium products;

 

Chemical materials & products: organic & inorganic chemicals used as engineering plastics, color additives for printing ink, metal surface treatments, and various treatments for printed circuit boards, plating materials, catalysts, other;

 

Electronic materials & products: quartz, silica powder, fused silica, feldspar & powder, quartz materials & components, electronic parts, fine chemical products, Chin-hae (Korea) silica stone, fusing quartz, cristobalite, electronic parts key materials, optical fiber cable connecting parts, other;

 

Ceramics & minerals (for refractories): alumina, silicon carbide, bauxite, magnesia clinker, alumina cement, kyanite, andalsite, other;

 

Others: Industrial machinery (automotive parts, construction machines, emission gas analyzers, cutting tools, hydraulic fitting products), aromatics & foodstuffs (oils & fats, spirits, aroma chemical, frozen foods, functional food materials), household products (rubber boots & sandals, shoes, model trains, gardening materials, wiper blades, other).

 

Imports & exports (50%).

           

Clients: [Mfrs, wholesalers] Kawasaki Heavy Ind, Fuji Heavy Ind, Krosaki Harima Corp, NGK Insulators, Toyama Murata Mfg, Denki Kagaku Kogyo, Hitachi Zosen, Toyo Ink Mfg, Almatis Ltd, Sumitomo Corp, Morimura Bros Co Shanghai, Morimura Bros Co Hong Kong, Morimura Bros Inc USA, Nippon Electric Glass Co, other.

 

No. of accounts: 2,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Alcoa Japan Ltd, Morimura Chemical Ltd, Showa Denko, Toto Ltd, Tosoh Ltd, Morimura Bros (HK), Alcoa Inc (USA), Hydro Magnesium X’ian Co Ltd (China), Almatis Ltd, Sumitomo Bakelite, Sumitomo Chemical, other.

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Toranomon)

Mizuho Bank (Toranomon)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/12/2015

31/12/2014

31/12/2013

31/12/2012

Annual Sales

 

95,550

90,999

84,163

77,626

Recur. Profit

 

2,100

1,973

2,482

2,479

Net Profit

 

1,450

1,376

2,160

1,098

Total Assets

 

 

35,308

32,758

31,140

Current Assets

 

 

28,266

24,883

24,575

Current Liabs

 

 

23,036

21,788

22,484

Net Worth

 

 

8,331

6,926

4,335

Capital, Paid-Up

 

 

180

180

180

Div.Ttl in Million (¥)

 

 

54

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.00

8.12

8.42

-0.27

    Current Ratio

 

..

122.70

114.21

109.30

    N.Worth Ratio

 

..

23.60

21.14

13.92

    R.Profit/Sales

 

2.20

2.17

2.95

3.19

    N.Profit/Sales

 

1.52

1.51

2.57

1.41

    Return On Equity

 

..

16.52

31.19

25.33

 

Notes: Forecast (or estimated) figures for the 31/12/2015 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.38

UK Pound

1

Rs.100.45

Euro

1

Rs.70.55

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ANK

 


 

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.