MIRA INFORM REPORT

 

 

Report No. :

340005

Report Date :

04.09.2015

 

IDENTIFICATION DETAILS

 

Name :

KURARAY TRADING CO LTD

 

 

Registered Office :

Umeda Hankyu Bldg Office Tower 39F, Kakudacho Kitaku Osaka 530-0017

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2015

 

 

Date of Incorporation :

June 1961

 

 

Com. Reg. No.:

1200-01-078477 (Osaka-Kitaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

A Trading firm for import, export and wholesale of: resins, chemicals, chemical products, yarns, textiles, apparel.

 

 

No. of Employee :

289

 

 

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

 

KURARAY TRADING CO LTD

 

REGD NAME:   Kuraray Trading KK

MAIN OFFICE:  Umeda Hankyu Bldg Office Tower 39F, Kakudacho Kitaku Osaka 530-0017

                                    JAPAN

                                    Tel: 06-7635-1600      Fax: 06-7635-1971

URL:                 http://www.kuraray-trading.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Import, export, wholesale of industrial chemicals, synthetic leather, textiles, etc

 

 

BRANCHES

 

Tokyo, other (Tot 5)

 

 

OVERSEAS

 

China, Vietnam, Korea, Taiwan, other

 

 

FACTORIES

 

Okayama (processing)

 

 

OFFICERS

 

KENZO MURAI, PRES               Shiro Kataoka, ch

Yuzo Nakayama, mgn dir                       Tsugio Hattori, dir

Takeshi Yamada, dir                              Yoshihiro Yamana, dir

 

Yen Amount:                               In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 88,989 M

PAYMENTS      REGULAR         CAPITAL           Yen 2,200 M

TREND SLOW               WORTH            Yen 76,400 M   

STARTED         1961                 EMPLOYES      289

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN CHEMICALS, TEXTILES, OTHER, OWNED BY KURARAY CO LTD.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR

ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

This is a trading firm, established by Kuraray Co Ltd (See REGISTRATION), for import, export and wholesale of apparel, textiles, industrial chemicals, other, products of the parent.  Goods are exported to China, Vietnam, Taiwan, other. 

 

 

FINANCIAL INFORMATION

           

Financials are disclosed only partially.

 

The sales volume for Dec/2014 fiscal term amounted to Yen 88,989 million, an 18% down from Yen 107,983 million in the previous term.  The net profit was posted at Yen 1,730 million, compared with Yen 3,168 million a year ago.

 

For the current term ending Dec 2015 the net profit is projected at Yen 1,800 million, on a 5% rise in turnover, to Yen 93,500 million.  The weaker Yen may contribute to raise export revenues in Yen terms.

 

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

 

 

REGISTRATION

    

Date Registered:           Jun 1961

Regd No.:         1200-01-078477 (Osaka-Kitaku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:                  17.6 million shares

Issued:                4.4 million shares

Sum:                   Yen 2,200 million

Major shareholders (%): Toray Co Ltd* (100)

 

*.. Leading synthetic fiber mfr, Tokyo, founded 1936, listed Tokyo S/E, capital Yen 88,955 million, sales Yen 411,408 million, operating profit Yen 40,298 million, recurring profit Yen 40,084 million, net profit Yen 21,296 million, total assets Yen 675,488 million, net worth Yen 477,941 million, employees 8,106, pres Masaki Ito

 

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

 

 

OPERATION

           

Activities: A Trading firm for import, export and wholesale of: resins, chemicals, chemical products (63.8%), yarns, textiles, apparel, other (36.2%)

 

Clients: [Mfrs, wholesalers] Samsung Group (Korea), Wah Lee Industrial, other 

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Kuraray Co, and Group firms

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Semba-Chuo)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

Terms Ending:

 

31/12/2015

31/12/2014

31/12/2013

31/12/2012

Annual Sales

 

93,500

88,989

107,983

108,307

Recur. Profit

 

..

..

3,536

3,397

Net Profit

 

1,800

1,730

2,168

2,088

Total Assets

 

 

N/A

N/A

N/A

Net Worth

 

 

76,400

75,189

73,671

Capital, Paid-Up

 

 

2,200

2,200

2,200

Div.Ttl in Million (¥)

 

 

650

626

622

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.07

-17.59

-0.30

-2.89

    Current Ratio

 

 

..

..

..

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.23

UK Pound

1

Rs.101.22

Euro

1

Rs.74.33

 

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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