MIRA INFORM REPORT

 

 

Report Date :

19.08.2014

 

IDENTIFICATION DETAILS

 

Name :

YANMAR CO LTD

 

 

Registered Office :

Umeda Gate Tower, 1-9 Tsurunocho Kitaku Osaka 530-0014

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

January 1936

 

 

Com. Reg. No.:

1200-01-071567 (Osaka-Kitaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Industrial Engines, Marine Engines, Agricultural Machinery & Equipment

 

Subject product ranges are as follows: -

 

Industrial Engines

Vertical Engines, Air-Cooled Engines, Horizontal Engines, Diesel Generators;

 

Power Products

Generators, Welders, Pumps;

 

Marine Engines

Small-Size Engines For: Pleasure Boats, Fishery Boats, Sail Drive Units, For Life Boats, Other; Large-Size Engineers: Propulsion Engines, Auxiliary Engines, Marine Compressors

 

Agricultural Machinery

Tractors, Combine, Rice Transplanters, Tiller Transporters, Lawn Mowers, Snow Throwers, Rice Hulling Machines, Tractors

 

 

No of Employees :

3,314

 

 

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 4,888.0 Million

Status :

Satisfactory

Payment Behaviour :

No Complaints

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

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

 

YANMAR CO LTD

 

 

REGD NAME

 

Yanmar KK

 

 

MAIN OFFICE

 

Umeda Gate Tower, 1-9 Tsurunocho Kitaku Osaka 530-0014 JAPAN

 

Tel: 06-6376-6211     Fax: 06-6376-2455 

  

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

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

 

 

ACTIVITIES

 

Mfg of diesel engines, agricultural/marine/industrial machinery

 

 

BRANCHES

 

Tokyo, Sapporo, Sendai, Nagoya, Osaka, Takamatsu, Hiroshima, Fukuoka, Okinawa (Tot 9)

 

 

OVERSEAS

 

Asia (6), N America (3), Europe (6), Russia, S America, Africa (--subsidiaries)

 

 

FACTORIES

 

Shiga (3), Amagasaki, other (Tot 8)

 

 

OFFICER(S)

 

TAKEHITO YAMAOKA, CH & PRES      

Yasuyuki Yamaoka, v ch                        Gakuto Suzuki, v pres                                       

Hiroshi Karita, s/mgn dir                         Yasunori Nakane, s/mgn dir                   

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                                         A/SALES          Yen 338,665 M

PAYMENTSNo Complaints                CAPITAL           Yen 6,300 M

TREND STEADY                                   WORTH            Yen 71,818 M

STARTED         1936                                         EMPLOYES      3,314

 

 

COMMENT

 

MFR SPECIALIZING IN DIESEL ENGINES AND AGRICULTURAL MACHINERY. 

           

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 4,888.0 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

 

This is a leading diesel engine mfr based in Osaka.  Also manufactures agricultural machinery and equipment (see OPERATION).  In Apr 2013 founded a holding company, Yanmar Holdings Co Ltd, and became its wholly owned subsidiary.  Products are widely exported with export ratio accounting for about 40% of total sales.  Products are manufactured by group factories.  Distribution is also handled by the group firms in major areas.  Group general trading houses handle exports and imports.   Active in overseas operations, with particular stress in China.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 338,665 million, an 11% up from Yen 305,754 million in the previous term.  Exports of used machinery & agricultural equipment were robust particularly into China.  The recurring profit was posted at Yen 16,988 million and net profit at Yen 14,367 million, respectively, compared with Yen 11,866 million recurring profit and Yen 7,254 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 17,500 million and net profit at Yen 15,000 million, respectively, on a 5% rise in turnover, to Yen 355,600 million.  Exports & overseas production continue steady & rising.

 

The financial situation is considered maintained FAIR and should be good for ORDINARY business engagements.  Max credit limit is estimated at Yen 4,888.0 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Jan 1936

Regd No.:         1200-01-071567 (Osaka-Kitaku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         49.6 million shares

Issued:                12.6 million shares

Sum:                   Yen 6,300 million

Major shareholders (%): Yanmar Holdings Co Ltd* (100)

 

*.. Holding Company, founded 2013, capital Yen 90 million, sales Yen 650,790 million, operating profit Yen 43,550 million, recurring profit Yen 44,866 million, net profit Yen29,861 million, total assets Yen 588,551 million, net worth Yen 163,236 million, employees 16,055, pres Takehito Yamaoka, concurrently

 

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

 

 

OPERATION

 

Activities: Manufactures industrial engines, marine engines, agricultural machinery & equipment, others (--100%).

 

(Handling Items):

 

Industrial Engines: vertical engines, air-cooled engines, horizontal engines, diesel generators;

 

Power Products: generators, welders, pumps;

 

Marine Engines: small-size engines for: pleasure boats, fishery boats, sail drive units, for life boats, other; large-size engineers: propulsion engines, auxiliary engines, marine compressors;

 

Agricultural Machinery: tractors, combine, rice transplanters, tiller transporters, lawn mowers, snow throwers, rice hulling machines, tractors, other.

 

Overseas Sales Ratio (42%).

 

Clients: [Mfrs, wholesalers] Yanmar Agricultural Equipment, Seirei Ind, Yanmar Energy System     

(--all group firms), Sumitomo Corp, Mitsubishi Corp, Yanmar Marine System, other. 

Goods are exported to worldwide destinations.

 

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Seirei Ind, Bridgestone Tire Kyoji Hambai, Matsue Diesel,

Kanzaki Kokyu Koki Mfg, Yanmar Casting Technology, Yanmar Engineering, Daichu Co, other.

 

Payment record: No Complaints 

 

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

 

Bank References:

Resona Bank (Osaka)

MUFG (Osaka)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2015

31/03/2014

31/03/3013

31/03/3012

Annual Sales

　

355,600

338,665

305,754

311,668

Recur. Profit

　

17,500

16,988

11,866

7,006

Net Profit

　

15,000

14,367

7,258

3,711

Total Assets

　

　

331,643

323,077

309,976

Current Assets

　

　

145,699

152,435

130,467

Current Liabs

　

　

175,142

167,413

131,215

Net Worth

　

　

71,818

57,180

49,352

Capital, Paid-Up

　

　

6,300

6,300

6,300

Div.Ttl in Million (¥)

　

　

164

164

164

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

5.00

10.76

-1.90

6.00

    Current Ratio

 

..

83.19

91.05

99.43

    N.Worth Ratio

..

21.66

17.70

15.92

    R.Profit/Sales

 

4.92

5.02

3.88

2.25

    N.Profit/Sales

4.22

4.24

2.37

1.19

    Return On Equity

..

20.00

12.69

7.52

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.05

UK Pound

1

Rs.101.84

Euro

1

Rs.81.55

 

INFORMATION DETAILS

 

Report Prepared by :

TPT

 

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.