MIRA INFORM REPORT

 

 

Report Date :

09.04.2014  

 

IDENTIFICATION DETAILS

 

Name :

YUASA TRADING CO LTD

 

 

Registered Office :

13-10 Nihombashi-Ohdenmacho Chuoku Tokyo 103-8570

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

June 1919

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of industrial machinery, machine tools.

 

 

No. of Employees

1,660

 

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

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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 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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership 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 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy

 

Source : CIA

 

 

 


Company name and address

 

YUASA TRADING CO LTD

 

REGD NAME:   Yuasa Shoji KK

MAIN OFFICE:  13-10 Nihombashi-Ohdenmacho Chuoku Tokyo 103-8570 JAPAN

Tel: 03-3665-6511     Fax: 03-3665-6513     -

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Import, export, wholesale of industrial machinery, machine tools, other

 

 

BRANCHES   

 

Sapporo, Sendai, Nagoya, Osaka, Hiroshima, Fukuoka, other (Tot32)

 

 

OVERSEAS   

 

China (8) Taiwan (2), Thailand (2), Malaysia (3), Indonesia (2), India (2),

Vietnam (2), USA (2), Mexico, Germany

 

 

CHIEF EXEC

 

ETSURO SATO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

FINANCES        FAIR                 A/SALES          Yen 400,252 M

PAYMENTSREGULAR   CAPITAL           Yen 20644 M

TREND UP                    WORTH        Yen 38,869 M

STARTED         1919                 EMPLOYES      1,660


 

COMMENT    

 

TRADING HOUSE SPECIALIZING IN INDUSTRIAL MACHINERY

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

309,196

-87

-5,133

(%)

26,724

(Consolidated)

31/03/2011

355,910

4,691

3,293

15.11

30,205

31/03/2012

396,732

6,714

4,202

11.47

33,821

31/03/2013

400,252

7,827

5,276

0.89

38,669

31/03/2014

420,000

9,500

5,300

4.93

..

                        Unit: In Million Yen

Forecast figures for the 31/03/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is the leading mfr long-established trading house dating back to 1666.  Involved in transactions with variety of industrial machinery and machine tools and construction materials and machinery as well as airconditioners.  Top-ranked player machine tool transactions.  The company will propose projects for mega solar facilities on non-performing golf courses.  It will install water-purifying systems at disaster-prevention warehouses, a key growth area, in collaboration with suppliers.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 400,252 million, a 0.9% up from Yen 396,732 million in the previous term.   The recurring profit was posted at Yen 7,827 million and the net profit at Yen 5,276 million, respectively, compared with Yen 6,714 million recurring profit and Yen 4,202 million net profit, respectively, a year ago.

 

(Apr/Dec/2013 results): Sales Yen 307,077 million (up 5.0%), operating profit Yen 5,712 million (up 12.5%), recurring profit Yen 5,870 million (up 9.5%), net profit Yen 3,498 million (up 11.2%).  (% compared with the corresponding period a year ago). 

           

For the term that ended Mar 2014 the recurring profit was projected at Yen 9,500 million and the net profit at Yen 5,300 million, on a 4.9% rise in turnover, to Yen 420,000 million.  Sales of machine tools grew in Japan and North America, mainly to the automobile industry, and large orders shed up sales I the second half.  Final results are yet to be released.

 

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

 

REGISTRATION

           

      Date Registered:    Jun 1919

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:              400 million shares

Issued:                231,558,826 shares

Sum:                   Yen 20,644 million

 

Major shareholders (%): Japan Trustee Services Bank (7.2), Company’s Treasury Stock (5.2), Master Trust Bank of Japan (3.2), Yuasa Tankyo S/Holding Assn (2.9), Tobu Yuasa Yamazumi Stockhold (2.5), Seibu Yuasa Yamazumi Stockhold (2.5), SMBC (2.5), Mori Seiki (2.5), DMG Mori Seiki (2.5), Daikin Industries (1.9), TOTO Ltd (1.7); foreign owners (10.7)

 

No. of shareholders: 12,582

 

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

 

Managements: Etsuro Sato, pres; Kazuaki Sawamura, s/mgn dir; Michimasa Suzuki, g/mgn dir; AkioMiyazaki, mgn dir; Ryoichi Shirai, mgn dir; Yoshiyasu Matsudaira, dir; Kazumi Mizumachi, dir; Haruo Sanoki, dir Eizo Haimoto, dir

 

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

 

Related companies: Kokko Co, Yuasa Techno, Yuasa Primes, other.

 

 

OPERATION

           

Activities: Trading firm for import, export and wholesale of: industrial machinery (17%), industrial equipment (22%), housing equipment $ pipe products & airconditioners (26%), housing & building exteriors (11%), construction machinery (7%), others (18%)

           

Clients: [Mfrs, wholesalers] Miydui Sumitomo Finance & Leasing, Nippon Kanzai Center, Senko Group, Kyudeno Corp, other

No. of accounts: 300

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Ebara Corp, Sekisui Jushi Corp, Mitsui Leasing, Okuma Corp, Kubota Machinery Japan, Dainichi Co, other

 

Payment record: Regular

 

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


 

Bank References:         SMBC (Ningyocho)

                                    MUFG (H/O)

                                    Relations: Satisfactory

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

  Annual Sales

 

400,252

396,732

  Cost of Sales

365,671

363,213

      GROSS PROFIT

34,580

33,518

  Selling & Adm Costs

27,269

26,883

      OPERATING PROFIT

7,310

6,634

  Non-Operating P/L

517

80

      RECURRING PROFIT

7,827

6,714

 

      NET PROFIT

5,276

4,202

BALANCE SHEET

  Cash

 

28,911

30,653

  Receivables

109,717

107,696

  Inventory

14,018

14,436

  Securities, Marketable

 

 

  Other Current Assets

6,994

7,400

      TOTAL CURRENT ASSETS

159,640

160,185

  Property & Equipment

18,190

16,637

  Intangibles

4,069

2,472

  Investments, Other Fixed Assets

14,841

16,146

      TOTAL ASSETS

196,740

195,440

  Payables

116,176

117,999

  Short-Term Bank Loans

25,489

26,475

 

 

 

  Other Current Liabs

8,189

7,992

      TOTAL CURRENT LIABS

149,854

152,466

  Debentures

 

 

  Long-Term Bank Loans

4,940

5,606

  Reserve for Retirement Allw

336

336

  Other Debts

 

2,940

3,210

      TOTAL LIABILITIES

158,070

161,618

      MINORITY INTERESTS

Common stock

20,644

20,644

Additional paid-in capital

6,789

6,777

Retained earnings

11,517

7,855

Evaluation p/l on investments/securities

652

(52)

Others

647

288

Treasury stock, at cost

(1,580)

(1,691)

      TOTAL S/HOLDERS` EQUITY

38,669

33,821

 

      TOTAL EQUITIES

196,740

195,440

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2013

31/03/2012

Cash Flows from Operating Activities

 

5,729

11,602

Cash Flows from Investment Activities

-3,329

-724

Cash Flows from Financing Activities

-4,323

-5,440

 

Cash, Bank Deposits at the Term End

 

28,696

30,447

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

Net Worth (S/Holders' Equity)

38,669

33,821

Current Ratio (%)

106.53

105.06

Net Worth Ratio (%)

19.65

17.31

Recurring Profit Ratio (%)

1.96

1.69

Net Profit Ratio (%)

1.32

1.06

Return On Equity (%)

13.64

12.42

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.95

UK Pound

1

Rs.99.36

Euro

1

Rs.82.15

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIS

 

               

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.