MIRA INFORM REPORT

 

 

Report Date :

03.05.2007

 

IDENTIFICATION DETAILS

 

Name :

MITSUBISHI AGRICULTURAL MACHINERY CO LTD

 

 

Registered Office :

667-1 Iya Izumocho Yatsukagun Shimane-Pref 699-0195

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

Feb 1980

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of agricultural machinery & equipment

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

Yen 230.7 millions

 

 

Status :

Moderate

 

 

Payment Behaviour :

Regular

 

 

Litigation :

--

 

 

name

 

MITSUBISHI AGRICULTURAL MACHINERY CO LTD

 

 

REGD NAME

 

Mitsubishi Noki KK (Noki means agricultural machinery)

 

 

MAIN OFFICE

 

667-1 Iya Izumocho Yatsukagun Shimane-Pref 699-0195 JAPAN

Tel: 0852-52-2111

Fax: 0852-52-2111

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

E-Mail address: info@mam.co.jp

 

 

ACTIVITIES

 

Mfg of agricultural machinery & equipment

 

 

BRANCHES

 

Tokyo, Sapporo, Sendai, Nagoya, Osaka, Fukuoka, other (Tot 7 & 8 distributors)

 

 

OVERSEAS

 

USA, Canada, Portugal, Denmark, UK, Spain, Italy, Australia, New Zealand, Korea, Taiwan, India, Malaysia (2), Thailand

(Business partners): Portugal, Denmark, UK, Germany, Spain, Korea, Taiwan, India, USA (2), Australia (2)

 

 

FACTORY(IES)

 

At the caption address & Machinery Factory located adjacently

 

 

PARTS DEPOT

 

USA (2), Portugal, Taiwan,

 

 

OFFICER(S)

 

NOBUYOSHI AIKAWA, PRES                Akishige Yamashita, mgn dir

Kazuo Harada, mgn dir                           Toshiharu Yamazaki, dir

Susumu Watanabe, dir                           Ryoichi Yazawa, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        R/WEAK                       A/SALES          Yen 68,884 M

PAYMENTS      REGULAR                     CAPITAL           Yen 2,866 M

TREND             UP                                WORTH            Yen 3,270 M

STARTED         1980                             EMPLOYES      2,620

 

 

COMMENT

 

MFR OF AGRICULTURAL MACHINERY, AFFILIATED TO MITSUBISHI HEAVY      IND.  FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 230.7 MILLION, 30 DAYS NORMAL TERMS.

 

                        Forecast (or estimated) for the 31/03/2007 fiscal term.

 

 

HIGHLIGHTS

 

The subject company was established originally in 1914 by a certain Satoh as Satoh Agricultural Machinery Co for mfg rice-planting equipment, on his account.   In 1980, merged with a Mitsubishi-group machinery wholesaler, Mitsubishi Machinery Sales Co, to rename as captioned and restarted.  This is a specialized mfr of tractors, rice trans-planters, combine harvesters, rotors, tillers, and other agricultural machinery centrally.  Also seedling & nursery cabinets, flower planters, garbage incinerators, etc.  Placed 4th in the mfg of agricultural machinery.  Products are distributed through 8 subsidiary agent dealers nationwide.

 

           

Financial information

 

The sales volume for Mar/2006 fiscal term amounted to Yen 68,884 million, a 2% up from Yen 67,431 million in the previous term.  Newly remodeled series of compact tractors were very much in demand.  Rice-planters also enjoyed robust sales.  The operations plunged into the red to register Yen 224 million recurring loss and Yen 498 million net loss, respectively, compared with Yen 400 million recurring profit and Yen 119 million net loss, respectively, a year ago.  Escalating fuel costs and rising materials costs ate into the profits.  The firm wrote off Yen 298 million extraordinary losses from the evaluation losses of golf club memberships.

 

For the term just ended Mar 2007 the operations were expected to come back to profitability projecting the recurring profit at Yen 200 million and the net profit at Yen 150 million, respectively, on a 2.4% rise in turnover, to Yen 70,500 million.

 

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements.  Max credit limit is estimated at Yen 230.7 million, on normal 30 days terms. 

 

 

REGISTRATION

 

Date Registered:            Feb 1980

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    200 million shares

Issued:                          5,732,000 shares

Sum:                            Yen 2,866 million

Major shareholders (%): Mitsubishi Heavy Ind*(56.07), Zen-Noh (11.19), Norin Chukin Bank (4.92), Hirokawa

                                    Sharyo (1.78), Sanin Godo Bank (1.03)

*.. Nation’s largest comprehensive heavy machinery mfr, Tokyo, founded 1950, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 265,608 million, sales Yen 2,792,108 million, recurring profit Yen 50,365 million, net profit Yen 29,816 million, total assets Yen 4,047,122 million, net worth Yen 1,376,289 million, employees 62,212, pres Kazuo Tsukuda

No. of shareholders:       1,240

           

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

 

 

OPERATION

 

Activities: Manufactures agricultural machinery & general machinery (--100%): tractors, rice trans-planters, combined harvesters, mini rotors, tillers, seedling & nursery cabinets, flower & horticultural equipment, garbage incinerators, other.

 

Export 15%.

 

Products are distributed nationwide through 8 subsidiary agent dealers.

 

Clients: [Farm coops, machinery mfrs] Zen-Noh, farm coops distributed through 8 subsidiary agent dealers nationwide.

 

No. of accounts: 1,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsubishi Heavy Ind and group firms, Mitsubishi Corp, Kubota Corp, Yanmar Agricultural Equipment, Hirokawa Sharyo, Okanetsu Co, other.

 

Payment record: Regular

 

Location: Business area in Yatsukagun, Shimane-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

 

Bank References

 

Norin Chukin Bank (H/O)

Bank of Tokyo-Mitsubishi UFJ (H/O)

 

Relations: Satisfactory

 

 

FINANCES

 

(Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2006

31/03/2005

INCOME STATEMENT

 

 

 

  Annual Sales

　

68,884

67,431

 

  Cost of Sales

54,141

51,975

 

      GROSS PROFIT

14,743

15,456

 

  Selling & Adm Costs

14,607

14,728

 

      OPERATING PROFIT

135

728

 

  Non-Operating P/L

-359

-328

 

      RECURRING PROFIT

-224

400

　

      NET PROFIT

-498

-119

BALANCE SHEET

 

 

 

 

  Cash

　

1,974

1,764

 

  Receivables

 

17,727

21,166

 

  Inventory

 

21,784

21,996

 

  Securities, Marketable

　

　

 

  Other Current Assets

724

678

 

      TOTAL CURRENT ASSETS

42,209

45,604

 

  Property & Equipment

16,108

16,399

 

  Intangibles

 

235

275

 

  Investments, Other Fixed Assets

5,386

5,383

 

      TOTAL ASSETS

63,938

67,661

 

  Payables

 

22,245

23,104

 

  Short-Term Bank Loans

25,364

26,410

 

　

 

　

　

 

  Other Current Liabs

1,906

2,413

 

      TOTAL CURRENT LIABS

49,515

51,927

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

920

1,666

 

  Reserve for Retirement Allw

8,105

8,237

 

  Other Debts

　

1,707

1,649

 

      TOTAL LIABILITIES

60,247

63,479

 

      MINORITY INTERESTS

420

392

 

Common stock

2,866

2,866

 

Additional paid-in capital

　

　

 

Retained earnings

404

902

 

Evaluation p/l on investments/securities

26

44

 

Others

 

0

0

 

Treasury stock, at cost

(26)

(23)

 

      TOTAL S/HOLDERS` EQUITY

3,270

3,789

　

      TOTAL EQUITIES

63,938

67,661

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2006

31/03/2005

 

Cash Flows from Operating Activities

　

2,979

104

 

Cash Flows from Investment Activities

-973

-1,002

 

Cash Flows from Financing Activities

-1,796

771

　

Cash, Bank Deposits at the Term End

　

1,822

1,613

ANALYTICAL RATIOS            Terms ending:

31/03/2006

31/03/2005

 

 

Net Worth (S/Holders' Equity)

3,270

3,789

 

 

Current Ratio (%)

85.24

87.82

 

 

Net Worth Ratio (%)

5.11

5.60

 

 

Recurring Profit Ratio (%)

-0.33

0.59

 

 

Net Profit Ratio (%)

-0.72

-0.18

 

 

Return On Equity (%)

-15.23

-3.14

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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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