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Report No. : |
351981 |
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Report Date : |
25.11.2015 |
IDENTIFICATION DETAILS
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Name : |
MORIMURA BROS INC |
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Registered Office : |
Morimura Bldg,
1-3-1 Toranomon Minatoku Tokyo 105-8451 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
October 1876 |
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Com. Reg. No.: |
0104-01-029693
(Tokyo-Minatoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Imports, exports and wholesales (sales breakdown by items) (--100%). |
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No. of Employee : |
257 |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Yen 1,755.3
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.
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Source
: CIA |
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
Import, export, wholesale of metals,
chemicals, electronics, other
Osaka, Nagoya, Okayama, Kitakyushu
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).
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
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
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
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
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.
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.
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
(In Million Yen)
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Terms Ending: |
31/12/2015 |
31/12/2014 |
31/12/2013 |
31/12/2012 |
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Annual Sales |
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95,550
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90,999
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84,163
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77,626
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Recur. Profit |
|
2,100 |
1,973 |
2,482 |
2,479 |
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Net Profit |
|
1,450 |
1,376 |
2,160 |
1,098 |
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Total Assets |
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35,308
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32,758
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31,140
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Current Assets |
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28,266
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24,883
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24,575
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Current Liabs |
|
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23,036
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21,788
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22,484
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Net Worth |
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|
8,331 |
6,926 |
4,335 |
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Capital, Paid-Up |
|
|
180 |
180 |
180 |
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Div.Ttl in Million (¥) |
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|
54 |
0.00 |
0.00 |
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<Analytical
Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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5.00 |
8.12 |
8.42 |
-0.27 |
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Current Ratio |
|
.. |
122.70
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114.21
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109.30
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N.Worth Ratio |
|
.. |
23.60 |
21.14 |
13.92 |
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R.Profit/Sales |
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2.20 |
2.17 |
2.95 |
3.19 |
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N.Profit/Sales |
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1.52 |
1.51 |
2.57 |
1.41 |
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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 |
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|
1 |
Rs.100.45 |
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Euro |
1 |
Rs.70.55 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
ANK |
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 |
-- |
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.