MIRA INFORM REPORT

 

 

Report Date :

19.12.2014

 

IDENTIFICATION DETAILS

 

Name :

YAMADA CORPORATION

 

 

Registered Office :

1-1-3, Minami-magome, Ota-ku, Tokyo 143-0025

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

20.12.1039

 

 

Com. Reg. No.:

0108-01-012135

 

 

Legal Form :

Listed

 

 

Line of Business :

Manufacturer of Machine Tools, Auto Parts and Industrial Pumps.

 

 

No of Employees :

290

 

 

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 :

US$ 2.5 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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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

 

YAMADA CORPORATION

 

 

OUTLINE

========

Country:                                    Japan

Company name:                        YAMADA CORPORATION

Name in local language:             YAMADA CORPORATION, K.K. 

Office address:                         1-1-3, Minami-magome, Ota-ku, Tokyo 143-0025

Office tel:                                             03-3777-5101

Office fax:                                03-3777-4108

Website:                                   www.yamadacorp.co.jp

Business type:                          Manufacturer

Industry:                                               Machine tools, auto parts and industrial pumps.

Established:                              December 20, 1039

Capital:                                                 Jp. 600,000,000 yen

Employees:                              290

Corporate formation:                 Listed 

Corporation No.:                       0108-01-012135 (Tokyo Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

=====================

As of March 31, 2014:

Paid in capital :                         Jp. 600,000,000 yen

Number of authorized shares :   48,000,000 shares

Shares issued :                         12,000,000 shares

Number of shareholder :                        1,373

 

Name of shareholders              Number of thousand shares (%)

------------------------------------------------------------------------------------------------------------

Mr. Shotaro Yamada, president              874 (7.28)

Howa Corporation                                  865 (7.20)

Saitama Resona Bank, Ltd.                    588 (4.90)

Mr. Kazumasa Yamada                            525 (4.38)

Mr. Yasuo Sasaki                                    435 (3.62)

Banzai Corporation                                  434 (3.62)

Mr. Toyoo Yamada                                  415 (3.45)

Fuji Sash Co., Ltd.                                  300 (2.50)

Ms. Michiko Yamada                               249 (2.07)

Japan Securities Finance Service Co., Ltd.           244 (2.03)

-----------------------------------------------------------------------------------------------------------

Total                                                     4,930 (41.09)

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

===========================================

Activity                         Product/Service Description

-------------------------------------------------------------------------------

Manufacturing               Equipment for automobile

Manufacturing               Industrial pumps

 

 

COMPANY MANAGEMENT

=======================

President                      Mr. Shotaro Yamada

Nationality:                    Japan

 

Director                        Mr. Hiroki Murase

Nationality:                    Japan

 

Director                                    Mr. Kotaro Yamada

Nationality:                    Japan

 

 

Director                                    Mr. Shinji Kameyama

Nationality:                    Japan

 

Director                                    Mr. Kazunori Wasemoto

Nationality:                    Japan

 

Auditor                                     Mr. Norinobu Shiozawa

Nationality:                    Japan

 

Auditor                                     Mr. Morichika Iwaki

Nationality:                    Japan

 

Auditor                                     Mr. Kenji Toyota

Nationality:                    Japan

 

 

Note: The names of director(s) and auditor(s) are phonetically spelt.

 

*Key Personnel*

==============

Mr. Shotaro Yamada

President and representative director

Born on February 19, 1963

Business career:

Apr. 1985: Employed by Kubota Corp.

Oct. 1987: Employed by the subject.

Jun. 1992: Director.

Jun. 2012: Representative director and president.

Other responsibilities:

Chairman of:

- Yamada America Inc.

- Yamada Europe B.V.

President of:

- Yamada Products Service Corp.

- Yamada Shanghai Pump Trading Co., Ltd.

Home address: 5-7-14, Chuo, Ota-ku, Tokyo

 

 

FINANCIALS

===========

Currency: (local currency - Jp. yen)

-------------------------------------------------------------------------------------

 Year |         Sales            |      Net Income    

-------------------------------------------------------------------------------------

2009

8,297,000,000

loss 142,000,000

2010

6,521,000,000

loss 513,000,000

2011

7,938,000,000

465,000,000

2012

8,312,000,000

504,000,000

2013

8,279,000,000

647,000,000

2014

9,074,000,000

878,000,000

 

 

FINANCIAL DESCRIPTION

======================

*Book Closing*

============

March 31st

 

*Financials*

==========

Consolidated Balance Sheet

 

 

 

Unit: millions of JP yen

 

 

 

                          

3/31/2012

3/31/2013

3/31/2014

Current assets  

5,741

5,901

6,459

 Cash & deposits      

2,134

2,263

2,412

 Account receivables   

1,664

1,540

1,778

 Inventories          

1,806

1,943

1,979

 Others

137

155

290

Fixed assets           

4,034

3,134

3,542

 Tangible assets      

3,307

2,672

3,035

 Intangible assets    

89

72

53

 Investments & others  

637

389

453

Total Assets       

9,776

9,035

10,001

 

 

 

 

Current liabilities     

2,675

2,504

2,356

 Account payables  

1,111

1,494

1,448

 Short term loans    

279

127

102

 Bonds payable due

500

300

0

 Long term loans due   

377

122

150

 Outstanding taxes    

7

129

278

 Others

401

332

378

 

 

Fixed liabilities      

1,994

1,550

1,715

 Bonds payable

300

0

0

 Long term loans     

571

690

830

 Retirement benefits    

563

456

449

 Others

560

404

436

Shareholders' equity    

4,215

4,791

5,532

 Paid up capital      

600

600

600

 Capital reserves      

56

56

58

 Retained earnings    

3,566

4,143

4,878

 Treasury stock        

-8

-8

-4

Valuation & adjustment 

-186

-44

146

Minority Interest    

1,077

233

251

Total Net Assets       

5,106

4,980

5,929

Total Liabilities & Net Assets     

9,776

9,035

10,001

 

 

 

 

 

 

 

 

Consolidated Income Statement

 

 

 

Unit : millions of JP yen

 

 

 

                          

3/31/2012

3/31/2013

3/31/2014

Sales          

8,312

8,279

9,074

Cost of goods sold      

5,055

4,874

5,305

Gross profit(loss)    

3,256

3,405

3,768

Sales/administrative expenses  

2,458

2,358

2,526

Operating profit(loss)    

798

1,046

1,242

Non operating income        

40

45

69

Non operating expenses       

138

160

31

Ordinary profit(loss)      

700

931

1,280

Special profits                

10

36

3

Special losses             

59

112

26

Pretax profit                

651

855

1,257

Taxes & adjustment           

78

273

369

Minority interest   

68

-64

9

Net profit      

504

647

878

 

 

*Latest Financials *

================

On November 7, 2014, the subject released the following business results and forecast:

As of September 30, 2014:

Unit: millions of JPY

 

 

Year term

Sales

Operating profit

Ordinary profit

Net profit

2Q 2014      

4,298

467

524

307

2Q 2015   

4,627

555

558

368

FY 2015(F)   

9,200

1,030

1,030

720

 

 

Current assets;

6,608

Non-current assets;

3,666

Total assets;

10,275

Current liabilities;

2,267

Non-current liabilities;

1,733

Shareholders’ equity;

5,828

  Retained earnings;

5,175

Total net assets;

6,273

Total liabilities and net assets;

10,275

 

 

*Bank Details*

============

Bank Name :     Saitama Resona Bank, Ltd.

Branch :            Tokyo

 

Bank Name :     Sumitomo Mitsui Banking Corp.

Branch :            Hatanodai

 

Bank Name :     Bank of Yokohama, Ltd.

Branch :            Hashimoto

 

Bank Name :     Mizuho Bank, Ltd.

Branch :                        Marunouchi Chuo

 

 

*Credit Opinion*

=============

The subject is a non-affiliated manufacturer of industrial pumps and car-mounted equipment.

While a steady shipment has continued in the domestic auto market, the subject expects  conservative figures taking some reaction after tax hike into consideration.

All of overseas businesses have been growing.

Since the intra-company exchange rate is set as US$ 1.00 for JPY 98.00, the current situation would be pretty favorable.

A new plan of making pumps for shale gas is on the way in The United States.

Negative factors are not observed in particular at present.

Our standard suggestion would be up to US$ 2.5 million on terms of 90 days.

 

 

LOCAL BRANCHES & MANAGEMENT

===========================

Branch name:                Sapporo sales office

Branch address:            Toyohira-ku, Sapporo-shi

----------------------------------------------------------------------------------------------------

Branch name:                Nagoya sales office

Branch address:            Moriyama-ku, Nagoya-shi

----------------------------------------------------------------------------------------------------

Branch name:                Osaka sales office

Branch address:            Joto-ku, Osaka-shi

 

 

Four other local sales offices are in Sendai, Tokyo, Hiroshima and Fukuoka cities.

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

========================================

*Main Products & Services*

======================

Manufacture of the following products:

Piston pump

Ink pump

Diaphragm pump

Lubrication equipment

Automotive equipment

Grease gun

Hose reel

Control equipment

 

For Mar. 2014 term:

Automotive-related equipment (27%)

Industrial equipment (60%)

Others (13%)

 

Overseas business (48%)

 

 

FACTORY FACILITIES & MANUFACTURING CAPABILITIES

===============================================

Sagamihara plant: 1-2-38, Miyashimo, Chuo-ku, Sagamihara-shi, Kanagawa pref.

Hashimoto warehouse: Midori-ku, Sagamihara-shi, Kanagawa pref.

 

 

ORGANIZATION STRUCTURE

======================

*Address*

=========

Registered address is the same as the operational address.

 

The quoted address and phone number are for Sagamihara plant.

 

 

*Company History*

================

Date                 Development

-----------------------------------------------------------------------------------------------

1905                             Started manufacturing valves and cocks in Tokyo.

December 20, 1939                   Incorporated under the name of “Yamada Yuki Seisakusho K.K.” with

an investment of JPY 180,000.

                                    Started manufacturing grease pumps.

February 1947               Renamed as “Yamada Yuki Seizo Co., Ltd.”

September 1962            Went public on the TSE(#6392).

October 1963                Founded Sagamihara plant.

1969                             Increased the capital to JPY 600 million.

April 1977                     Relocated the head office to the current address.

December 1985             Founded a joint venture, Yamada Europe B.V. in The Netherlands.

September 1986            Founded a subsidiary, Yamada America Inc.

October 1990                Took the current company name.

1996                             ISO9001 certified.

January 2000                 Yamada Europe became an entire subsidiary.

January 2007                 Founded Yamada Shanghai Pump Trading Co., Ltd.

2014                             Opened an office in Bangkok.

 

 

TRADE REFERENCES

================

*Suppliers*

==========

Y.T.S. Corp.

Yamada Metal Tech Corp.

Nederman International Trading K.K.

Ishikawa Press Co., Ltd.

Groz Engineering Tools Pvt. Ltd.

 

*Customers*

==========

Banzai Corp.

Trusco Nakayama Co., Ltd.

Yamazen Corp.

Yuasa Corp.

Iyasaka Corp.

Anzen Jidosha Co., Ltd.

 

 

MAJOR SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

================================================

Company name:            Yamada America Inc.

Country:                        U.S.A.

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            Yamada Europe B.V.

Country:                        The Netherlands

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            Yamada Shanghai Co., Ltd.

Country:                        China

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            Yamada Products Service Co., Ltd.

Country:                        Japan

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            Yamada Metal Tech Co., Ltd.

Country:                        Japan

Status:                          Subsidiary  

 

 

RELATED PARTIES DESCRIPTION

===========================

*Subsidiaries & Affiliates*

=====================

As of March 31, 2014 the subject owns and controls a total of five subsidiaries at home and abroad.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.32

UK Pound

1

Rs.98.68

Euro

1

Rs.78.11

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

 

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