MIRA INFORM REPORT

 

 

Report No. :

338637

Report Date :

01.09.2015

 

IDENTIFICATION DETAILS

 

Name :

KURIMOTO LTD

 

 

Registered Office :

1-12-19 Kita-Horie Nishiku Osaka 550-0014

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

February 1909

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is manufacture of pipe systems, machinery systems, industrial and construction materials

 

 

No. of Employee :

2004

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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

 

KURIMOTO LTD

 

REGD NAME:   KK Kurimoto Tekkosho

MAIN OFFICE:  1-12-19 Kita-Horie Nishiku Osaka 550-0014 JAPAN

                                    Tel: 06-6538-7731     Fax: 06-6538-7756     -

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of pipe systems, machinery systems, other

 

 

BRANCHES

 

8 locations

 

 

OVERSEAS

 

USA, Singapore, other

 

 

FACTORIES

 

Osaka, Ibaraki, other (Tot 8)

 

 

CHIEF EXEC

 

HIDEKI FUKUI, PRES

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 98,394 M

PAYMENTSREGULAR   CAPITAL           Yen 31,186 M

TREND SLOW               WORTH            Yen 49,584 M

STARTED         1909                 EMPLOYES      2004

 

 

COMMENT

 

ENGINEERING FIRM SPECIALIZING IN PIPING SYSTEMS, OTHER

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

                       

Unit: In Million Yen

Forecast figures for the 31/03/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is the second largest mfr of cast iron water and gas pipes.  Also major maker of machinery and engineering works.  Expanding industrial materials for vehicle-use plastic injection mold parts, etc.  Engaged in overseas business including forging machinery.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 98,394 million, a 5.1% down from Yen 103,664 million in the previous term.  The recurring profit was posted at Yen 2,553 million and the net profit at Yen 1,598 million, respectively, compared with Yen 4,691 million recurring profit and Yen 3,747 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 3,500 million and the net profit at Yen 3,000 million, respectively, on a 6.7% rise in turnover, to Yen 105,000 million.  Demand for cast iron pipes will recover thanks to abundant orders backlog from the preceding term.

 

The financial situation is considered FAIR and good for ORDINARY business engagements

REGISTRATION

           

Date Registered:　      Feb 1909

Legal Status:       Limited Company (Kabushiki Kaisha

Authorized:               393,766,000 shares

Issued:                133,374,000 shares

Sum:                   Yen 31,186 million

 

Major shareholders (%): Japan Trustee Services T (9.6), Taiyo Life Ins (9.0), Nippon Life ins (5.0), Company’s Treasury Stock (3.5), Resona Bank (3.3), Mizuho Bank (2.7), TCSB (Mizuho Bank) (2.3), Iwatani Corp (2.1), SMBC (2.0), Master Trust Bank of Japan T (1.9); foreign owners (9.5)

 

No. of shareholders: 7,971

 

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

 

Managements: Hideaki Fukui, pres Moriyoshi Kushida, s/mgn dir; Motohito Sawai, mgn dir; Hirofumi Okada, mgn dir; Yoshiaki Shingu, dir; Mikio Yaji, dir

 

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

 

Related companies: Kurimoto Trading, Yamatogawa, Motogawa Mfg, other.

 

 

OPERATION

           

Activities: Manufactures pipe systems (58%), machinery systems (19%), industrial and construction materials, other (24%)

           

Clients: [Mfrs, wholesalers] Kurimoto Trading, Yamatogawa, Iwatani Corp, Sojitz

Machinery, TFO, Okaya & Co, Sumitomo Mitsui Construction, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Kurimoto Logistics, Mitsui Bussan Metal One, other

 

Payment record: Regular

 

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

 

Bank References:

SMBC (Namba)

Mizuho Bank (Osaka)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

  Annual Sales

　

98,394

103,664

  Cost of Sales

76,219

79,268

      GROSS PROFIT

22,175

24,395

  Selling & Adm Costs

19,250

18,993

      OPERATING PROFIT

2,925

5,402

  Non-Operating P/L

-372

-711

      RECURRING PROFIT

2,553

4,691

　

      NET PROFIT

1,598

3,747

BALANCE SHEET

  Cash

　

18,776

24,577

  Receivables

38,511

36,609

  Inventory

17,938

33,815

  Securities, Marketable

　

　

  Other Current Assets

2,095

(15,124)

      TOTAL CURRENT ASSETS

77,320

79,877

  Property & Equipment

33,061

33,009

  Intangibles

607

619

  Investments, Other Fixed Assets

16,896

15,516

      TOTAL ASSETS

127,884

129,021

  Payables

26,535

25,850

  Short-Term Bank Loans

23,448

24,939

　

　

　

  Other Current Liabs

9,884

21,951

      TOTAL CURRENT LIABS

59,867

72,740

  Debentures

　

　

  Long-Term Bank Loans

9,443

480

  Reserve for Retirement Allw

6,819

8,662

  Other Debts

　

2,171

1,831

      TOTAL LIABILITIES

78,300

83,713

      MINORITY INTERESTS

  Capital, Paid-Up

31,186

31,186

  Surplus

18,398

14,121

      SHAREHOLDERS' EQUITY

49,584

45,307

　

      TOTAL EQUITIES

127,884

129,021

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2015

31/03/2014

Cash Flows from Operating Activities

　

3,438

7,433

Cash Flows from Investment Activities

-4,701

2,365

Cash Flows from Financing Activities

-4,834

-4,324

　

Cash, Bank Deposits at the Term End

　

18,726

24,577

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

Net Worth (S/Holders' Equity)

49,584

45,307

Current Ratio (%)

129.15

109.81

Net Worth Ratio (%)

38.77

35.12

Recurring Profit Ratio (%)

2.59

4.53

Net Profit Ratio (%)

1.62

3.61

Return On Equity (%)

3.22

8.27

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.26

UK Pound

1

Rs.101.99

Euro

1

Rs.74.79

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.