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MIRA INFORM REPORT
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Report No. : |
505007 |
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Report Date : |
20.04.2018 |
IDENTIFICATION DETAILS
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Name : |
MORIMOTO MFG CO LTD |
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Registered Office : |
1-4-17 Suna Shijonawate City Osaka-Pref 575-0001 |
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Country : |
Japan |
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Financials (as on) : |
31.07.2017 |
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Date of Incorporation : |
August, 1958 |
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Com. Reg. No.: |
1220-01-016397
(Osaka-Shijonawate) |
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Legal Form : |
Limited Company
(Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Industrial Sewing Machines. |
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No. of Employees : |
113 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Maximum Credit Limit : |
Yen 39.6 Million |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II 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 have significantly eroded under the dual pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2017 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. For three postwar decades, overall real economic growth was impressive - averaging 10% in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which resulted in several years of economic stagnation as firms sought to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession four times since 2008.
Japan enjoyed an uptick in growth since 2013, supported by Prime Minister Shinzo ABE’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the need to address its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to a sharp contraction, so Prime Minister ABE has twice postponed the next increase, which is now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.
Under the Abe Administration, Japan’s government sought to open the country’s economy to greater foreign competition and create new export opportunities for Japanese businesses, including by joining 11 trading partners in the Trans-Pacific Partnership (TPP). Japan became the first country to ratify the TPP in December 2016, but the United States signaled its withdrawal from the agreement in January 2017. In November 2017 the remaining 11 countries agreed on the core elements of a modified agreement, which they renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Japan also reached agreement with the European Union on an Economic Partnership Agreement in July 2017, and is likely seek to ratify both agreements in the Diet this year.
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Source
: CIA |
Company
name and address
MORIMOTO
MFG CO LTD
REGD
NAME: Morimoto Seisakusho KK
MAIN
OFFICE: 1-4-17 Suna Shijonawate City
Osaka-Pref 575-0001 JAPAN
Tel:
072-878-1177 Fax: 072-878-2155
URL: http://www.kansai-special.com
E-Mail address: (thru the URL)
ACTIVITIES
Mfg of industrial sewing machines
BRANCHES
Osaka (warehouse)
OVERSEAS
USA, Germany, Hong Kong, Singapore,
Bangladesh, India, China (--subsidiaries)
FACTORIES
At the caption address, Osaka, Kyoto (Tot 3)
OFFICERS
TSUTOMU MORIMOTO, PRES
Ikuyo Morimoto, dir
Yoshihide Morimoto, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES R/WEAK A/SALES Yen
2,201 M
PAYMENTS SLOW
CAPITAL Yen 55 M
TREND SLOW WORTH Yen 761 M
STARTED 1958 EMPLOYES 113
COMMENT
MFR OF INDUSTRIAL SEWING MACHINES.
FINANCIAL SITUATION
CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 39.6 MILLION, 30 DAYS NORMAL TERMS
HIGHLIGHTS
The subject company was established by
Narajiro Morimoto (father of Tsutomu Morimoto) originally in 1927 for making
drinking water making machines, on his account.
Incorporated in 1958 the firm has been succeeded by his descendants.
Tsutomu took the pres office in May 1969.
This is a family-based mfr specializing in industrial sewing machines,
their components, parts, other, by brand name “KANSAI_SPECIAL” (See OPERATION). Operates 7 overseas
subsidiaries as above. Products are exported to over 80 countries in USA,
Europe, China, Singapore, other.
FINANCIAL
INFORMATION
Financials are only partially disclosed.
The sales volume for Jul/2017 fiscal term
amounted to Yen 2,201 million, a 1% fall from Yen 2,229 million in the previous
term. The net profit was posted at Yen 97 million, compared with Yen 63 million
a year ago.
For the current term ending Jul 2018 the net
profit is projected at Yen 100 million, on a 3% rise in turnover, to Yen 2,270
million.
The financial situation is considered RATHER
WEAK but should be good for MODERATE business engagements. Max credit limit is
estimated at Yen 39.6 million, on 30 days normal terms.
REGISTRATION
Date Registered: Aug 1958
Regd No.:
1220-01-016397 (Osaka-Shijonawate)
Legal Status: Limited Company
(Kabushiki Kaisha)
Authorized: 440,000 shares
Issued: 110,000 shares
Sum: Yen 55 million
Major shareholders (%): Chikara Morimoto (46), Osaka Small &
Medium Business Promotion and Investment Assn (18), Company’s Treasury Stock
(15), other
No. of shareholders: 5
Nothing detrimental is known as to the
commercial morality of executives.
OPERATION
Activities: Manufactures industrial sewing machines,
their components, parts, other, brand name as “KANSAI_SPECIAL”. (--100%)
(Mfg Items): double chain stitch machine, multi needle,
double chain stitch machine, cover stitch machine, double chain stitch decorative
machine, overlock, interlock machines, corrugated cardboard closing machines,
their parts, other
Clients: [Mfrs, wholesalers] Exports to over 80 countries in USA, Europe,
China, Singapore, Hong Kong, other
Domestically: Ogawa
Sewing Machine KK, other
No. of accounts: Unavailable
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Inoue Metal Working Ind, Sanpo Metal Sales Co,
Dinintec Co, Kaneka Form Plastics, Tochidensha Inc, Act Ishihara Co, Sampo
Metal Sales, Omron Kansai, other
Payment record: Slow
Location: Business area in Osaka. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References:
MUFG (Kadoma)
Kinki Osaka Bank
(Shijonawate)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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Terms
Ending: |
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31/07/2018 |
31/07/2017 |
31/07/2016 |
31/07/2015 |
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Annual Sales |
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2,270 |
2,201 |
2,229 |
2,170 |
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Recur. Profit |
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.. |
.. |
.. |
.. |
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Net Profit |
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100 |
97 |
63 |
127 |
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Total Assets |
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N/A |
N/A |
N/A |
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Net Worth |
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761 |
664 |
601 |
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Capital, Paid-Up |
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55 |
55 |
55 |
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Div.P.Share(¥) |
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0.00 |
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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3.13 |
-1.26 |
2.72 |
1.40 |
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Current Ratio |
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.. |
.. |
.. |
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N.Worth Ratio |
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.. |
.. |
.. |
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N.Profit/Sales |
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4.41 |
4.41 |
2.83 |
5.85 |
Notes: Financials are only partially disclosed.
Forecast (or estimated) figures for the 31/07/2018 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.78 |
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1 |
INR 93.42 |
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Euro |
1 |
INR 81.39 |
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Yen |
1 |
INR 0.62 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIY |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.