MIRA
INFORM REPORT
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Report Date : |
18.07.2013 |
IDENTIFICATION DETAILS
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Name : |
AZBIL CORPORATION |
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Registered Office : |
Tokyo Bldg, 2-7-3 Marunouchi Chiyodaku Tokyo 100-6419 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
August 1949 |
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Com. Reg. No.: |
0100-01-096367 (Tokyo-Chiyodaku |
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Legal Form : |
Limited Company (Kabushiki Kaisha |
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Line of Business : |
Engineering, mfg of building automation equipment, controllers, other |
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No. of Employees : |
9,585 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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 31st, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 a technologically
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. Japan's
industrial sector is heavily dependent on imported raw materials and 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 spectacular - 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 after effects 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 three times since 2008. A sharp downturn in business investment
and global demand for Japan's exports in late 2008 pushed Japan into recession.
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 disrupted manufacturing. The
economy has largely recovered in the two years since the disaster, but
reconstruction in the Tohoku region has been uneven. Newly-elected Prime
Minister Shinzo ABE has declared the economy his government's top priority; he
has pledged to reconsider his predecessor's plan to permanently close nuclear
power plants and is pursuing an economic revitalization agenda of fiscal
stimulus and regulatory reform and has said he will press the Bank of Japan to
loosen monetary policy. Measured on a purchasing power parity (PPP) basis that
adjusts for price differences, Japan in 2012 stood as the fourth-largest
economy in the world after second-place China, which surpassed Japan in 2001,
and third-place India, which edged out Japan in 2012. The new government will
continue a longstanding debate on restructuring the economy and reining in
Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation,
reliance on exports to drive growth, and an aging and shrinking population are
other major long-term challenges for the economy.
Source
: CIA
Company name and address
AZBIL CORPORATION
REGD NAME: Azbil
KK
MAIN OFFICE: Tokyo
Bldg, 2-7-3 Marunouchi Chiyodaku Tokyo 100-6419 JAPAN
Tel:
03-6810-1000
*.. The is its R&D
Center
URL: http://www.azbil.com
E-Mail address: (thru the URL)
ACTIVITIES
Engineering, mfg
of building automation equipment, controllers, other
BRANCHES
126 (major cities
nationwide)
OVERSEAS
China (7), Hong
Kong, Taiwan (2), Korea, Philippines, Thailand (2), Malaysia,
Singapore, Indonesia, Mid East (3), India,
Vietnam, USA (3), Brazil, Belgium, Spain, Australia (2), other
FACTORIES
Kanagawa (3),
China, other
CHIEF EXECUTIVES
HIROZUMI SONE,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 227,584 M
PAYMENTS REGULAR CAPITAL Yen 10,522 M
TREND UP WORTH Yen 141,197 M
STARTED 1949 EMPLOYES 9,585
COMMENT
ENGINEERING OF BUILDING AUTOMATION, AUTMATION EQUIPMENT.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast figures for the 31/03/2014 fiscal term.
HIGHLIGHTS
This is the
leading comprehensive mfr of automation equipment & controllers. Company JV formed in 1953 by Yamatake &
Honeywell (USA), as Yamatake Honeywell Co.
Name changed to Azbil in April 2012.
The firm has three business divisions: building automation, advanced
automation and life infrastructure automation (See OPERATION). Operations
extend to worldwide markets, including mfg bases overseas. Clients include major mfrs, builders, other.
FINANCIAL INFORMATION
The sales volume for
Mar/2013 fiscal term amounted to Yen 227,584 million, a 1.8% up from Yen
223,499 million in the previous term.
Modest improvement was observed in some sectors of Japan’s economy. Slowdown in the recovery of overseas
economies has affected exports and mfg.
Orders received were down 1.2% to Yen 231,143 million. By Divisions: Building Automation up 3.4% to
Yen 107,426 million, as consolidation of construction & engineering company
in China and post-flood reconstruction demand in Thailand both contributed;
Advanced Automation down 1.3% to Yen 87,676 million; Life Automation up 4.5% to
Yen 33,994 million. The recurring profit
was posted at Yen 14,569 million and the net profit at Yen 8,308 million,
respectively, compared with Yen 14,596 million recurring profit and Yen 8,518
million net profit, respectively, a year ago.
For the current term
ending Mar 2014 the recurring profit is projected at Yen 13,500 million and the
net profit at Yen 8,000 million, on a 9.8% rise in turnover, to Yen 250,000
million. The newly acquired subsidiary
in Spain will contribute to profits for the full term. Replacement demand for energy saving products
will increase in the domestic market, covering drop in sales of products for
new buildings. The overseas sales ratio
will be 15%, over 2-fold of the Mar 2010 term, led by strong demand from
building renovation works for energy saving in Asia and the growth in sales in
the medical engineering subsidiary in Europe.
The financial
situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date
Registered: Aug 1949
Regd No.: 0100-01-096367 (Tokyo-Chiyodaku)
Legal Status: Limited Company (Kabushiki Kaisha
Authorized: 279,710 million shares
Issued: 75,116,101 shares
Sum: Yen 10,522 million
Major
shareholders (%): Master Trust Bank of Japan T (8.8), Meiji Yasuda Life Ins (6.9), Japan
Trustee Services T (5.5), Nippon Life Ins (3.5), TCSB (Mizuho Trust Bank)
(3.0), Zenkyoren (2.9), Chase London SL Omnibus Acct (2.5), Northern Trust
(AVFC) British (2.3), Nomura Trust Inv T (2.2), Group Employees’ S/Holding Assn
(2.0); foreign owners (31.3)
No.
of shareholders: 8,902
Listed on the S/Exchange (s) of: Tokyo
Managements: Seiji Onoki, ch;
Hirozumi Sone, pres; Tadayuki Sasaki, s/mgn dir; Makoto Kawai, mgn dir; Keiichi
Fuwa, mgn dir; Masato Iwasaki, mgn dir; Ichio Kunii, mgn dir; Yoshihide Sugino,
mgn dir; Kenji Hidaka, mgn dir; Mitsuharu Miyazawa, mgn dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Azbil Trading, Azbil Kimmon Co, Azbil Care
& Support Co, other.
OPERATION
Activities: Engineering &
manufacturing of: building automation (47%), advanced automation (38%), life
infrastructure automation (15%)
Overseas
Sales Ratio (10%)
(Business
by Divisions)
Building
Automation: building automation system, energy savings, airflow control system for
critical spaces, total energy management saving services, electric controllers,
electronic controllers, DDC controllers, intelligent component series (sensor,
valve, actuator, etc), sensors, valves & actuators, others (thermostat,
user terminal, etc);
Advances
Automation: to plants & factories: field instruments (electronic
pressure/differential pressure transmitters, pneumatic pressure/differential
pressure transmitters, manifold valves, flow meters, temperature transmitters,
field mounted indicating controllers, level transmitters, indicators,
converters, auxiliary equipments); control valves (single-seated valves, cage
type & double-seated valves, angle type valves, eccentric rotary valves,
butterfly valves & 3-way valves, special purpose valves, motorized valves,
pneumatic actuators & positioners, auxiliary equipments for control
valves);
Life
Infrastructure Automation: services related to living environments: nursing
care & health care support, essential utilities life gas & water, life
science research, pharmaceutical & medical fields, other
Clients: [Mfrs,
wholesalers] Takasago Thermal Engineering Co, Shinryo Corp, Azbil Trading, NTT
Facilities, Azbil Royal Controls, Nihon Dengi Co, Totech Corp, Taikisha Ltd,
Noble Electronic Ind, Tonets Corp, other
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Kikuchi Co, Sun-S Co, Azbil Daishin, Hitachi Densen Shoji Ltd,
Azbil Control Instruments (Dalian) Co Ltd, Azbil Trading, NTT Facilities,
Chuo-Keiso Co, Noble Electronic Ind, other
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
Mizuho Corporate
Bank (Ohtemachi)
Bank of Yokohama
(Tokyo)
Relations:
Satisfactory
FINANCES
(In Million
Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
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227,584 |
223,499 |
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Cost of Sales |
149,712 |
142,659 |
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GROSS PROFIT |
77,871 |
80,840 |
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Selling & Adm Costs |
64,461 |
66,491 |
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OPERATING PROFIT |
13,410 |
14,348 |
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Non-Operating P/L |
1,159 |
248 |
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RECURRING PROFIT |
14,569 |
14,596 |
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NET PROFIT |
8,308 |
8,518 |
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BALANCE SHEET |
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Cash |
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48,411 |
45,061 |
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Receivables |
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88,874 |
85,546 |
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Inventory |
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16,502 |
16,133 |
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Securities, Marketable |
13,251 |
12,400 |
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Other Current Assets |
14,136 |
13,846 |
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TOTAL CURRENT ASSETS |
181,174 |
172,986 |
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Property & Equipment |
24,677 |
24,146 |
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Intangibles |
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12,625 |
4,405 |
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Investments, Other Fixed Assets |
24,942 |
21,939 |
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TOTAL ASSETS |
243,418 |
223,476 |
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Payables |
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40,548 |
37,185 |
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Short-Term Bank Loans |
13,308 |
5,543 |
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Other Current Liabs |
28,972 |
26,562 |
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TOTAL CURRENT LIABS |
82,828 |
69,290 |
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Debentures |
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90 |
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Long-Term Bank Loans |
4,441 |
4,686 |
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Reserve for Retirement Allw |
12,719 |
12,392 |
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Other Debts |
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2,143 |
2,031 |
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TOTAL LIABILITIES |
102,221 |
88,399 |
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MINORITY INTERESTS |
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Common
stock |
10,522 |
10,522 |
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Additional
paid-in capital |
17,197 |
17,197 |
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Retained
earnings |
111,141 |
107,538 |
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Evaluation
p/l on investments/securities |
3,776 |
2,451 |
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Others |
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(487) |
(1,131) |
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Treasury
stock, at cost |
(952) |
(1,501) |
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TOTAL S/HOLDERS` EQUITY |
141,197 |
135,076 |
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TOTAL EQUITIES |
243,418 |
223,476 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2013 |
31/03/2012 |
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Cash
Flows from Operating Activities |
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15,010 |
5,633 |
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Cash
Flows from Investment Activities |
-12,716 |
-3,549 |
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Cash
Flows from Financing Activities |
-2,485 |
-6,393 |
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Cash,
Bank Deposits at the Term End |
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56,050 |
55,355 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net Worth
(S/Holders' Equity) |
141,197 |
135,076 |
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Current
Ratio (%) |
218.74 |
249.66 |
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Net
Worth Ratio (%) |
58.01 |
60.44 |
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Recurring
Profit Ratio (%) |
6.40 |
6.53 |
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Net
Profit Ratio (%) |
3.65 |
3.81 |
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Return
On Equity (%) |
5.88 |
6.31 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.59.36 |
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|
1 |
Rs.89.69 |
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Euro |
1 |
Rs.77.98 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.