MIRA INFORM REPORT

 

 

Report Date :

20.01.2014

 

IDENTIFICATION DETAILS

 

Name :

ANEST IWATA CORPORATION

 

 

Registered Office :

3176 Shinyoshidacho Kohokuku Yokohama 223-8501

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

June, 1948

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of painting machines

 

 

No. of Employees :

1,134

 

 

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 790.1 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, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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. 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 & address

 

ANEST IWATA CORPORATION

 

REGD NAME:   Anest Iwata KK

MAIN OFFICE:  3176 Shinyoshidacho Kohokuku Yokohama 223-8501 JAPAN

                        Tel: 045-591-1111    

Fax: 045-591-9362

 

URL:                 http://www.anest-iwata.co.jp/

E-Mail address: aijinfo@anest-iwata.co.jp

 

 

ACTIVITIES  

 

Mfg of painting machines

 

 

BRANCH(ES) 

 

Tokyo, Sapporo, Sendai, Niigata, Omiya, Chiba, Nagoya, Osaka, other (Tot 12)

 

 

OVERSEAS   

 

(Related companies): USA (3), Europe (6), Asia (11), Australia

 

 

FACTORIES  

 

Akita, Fukushima

 

 

CHIEF EXEC 

 

TAKAHIRO TSUBOTA, PRES

 

 

Yen Amount

 

In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 22,540 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 3,354 M

TREND             STEADY                       WORTH            Yen 19,677 M

STARTED         1948                             EMPLOYES      1,134

 

COMMENT    

 

MFR SPECIALIZING IN PAINTING MACHINES. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 790.1 MILLION, 30 DAYS NORMAL TERMS.

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

17,886

1,103

711

(%)

17,440

(Consolidated)

31/03/2011

20,171

2,325

1,379

12.78

17,367

 

31/03/2012

21,212

3,264

1,322

5.16

17,852

 

31/03/2013

22,540

2,638

1,780

6.26

19,677

 

31/03/2014

24,000

3,300

2,100

6.48

..

                        Unit: In million Yen

                        Forecast (or estimated) figures for 31/03/2014 fiscal term

 

 

HIGHLIGHTS

 

The subject company is a comprehensive mfr of painting machines, with domestic share of over 60%.  Started originally in 1926, as individual entity developing spray gun and compressor while making machinery parts.  Engaged in OEM exports to US firms.  Strengthening business in China.  In view of strong demand for medium-sized compressors, the company will broaden the lineup of those products.  It is expanding operations in the overseas markets, and is considering establishment of a base in Myanmar.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 22,540 million, a 6.3% up from Yen 21,212 million in the previous term.  The recurring profit was posted at Yen 2,638 million and the net profit at Yen 1,780 million, respectively, compared with Yen 2,264 million recurring profit and Yen 1,322 million net profit, respectively, a year ago. 

           

(Apr/Sept/2013 results): Sales Yen 11,806 million (up 11.7%), operating profit Yen 1,397

million (up 23.2%), recurring profit Yen 1,683 million (up 34.7%), net profit Yen 1,059 million (up       28.5%).  (% compared with the corresponding period last year). 

For the current term ending Mar 2014 the recurring profit is projected at Yen 3,300 million and the net profit at Yen 2,100 million, on a 6.5% rise in turnover, to Yen 24,000 million.  In the domestic market, orders for both coaters & compressors will grow sluggishly generally, despite strong demand from some of automakers.  Sales of products bound for the overseas markets will lead the sales growth.  Profit margin will improve, supported by boosted output & enhancement of production efficiency at plants including production bases in the overseas market.  

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 790.1 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Jun 1948

Legal Status:        Limited Company (Kabushiki Kaisha)

Authorized:           189,290,000 shares

Issued:                 42,315,505 shares

Sum:                   Yen 3,354 million

           

Major shareholders (%): Dai-Ichi Life Ins (5.3), Material Suppliers’ S/Holding Assn (4.8), Meiji Yasuda Life Ins (3.5), Employees’ S/Holding Assn (3.1), Japan Trustee Services T (3.0), Joyo Bank (2.3), MUFG (2.6), Master Trust Bank of Japan T (2.5), Resona Bank (2.4); foreign owners (2.6).

           

No. of shareholders: 3,777

 

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

 

Managements: Takahiro Tsubota, pres; Noriyuki Iida, dir; Hiroshi Koga, dir

           

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

 

Related companies: Anest Iwata Service, Anest Iwata Europe, other.

           

 

OPERATION

           

Activities: Manufactures painting machines, associated equipment & components, compressors, others:

 (Sales Breakdown by Divisions):

Compressors (47%): reciprocating compressors, scroll compressors, screw           compressors;

Vacuum Equipment (7%): vacuum pumping systems, vacuum chunk, de-aerators, vacuum shaping, vacuum drying, their parts (O-rings, clamps, flanges, elbows, etc);

Painting Equipment (39%): spray guns, paint supply equipment, air brush, other;

Painting Process Systems (7%)

Overseas Sales Ratio (43%)

 

Clients: [Mfrs, wholesalers] Anest Iwata Service, Anest Iwata Europe srl, Atlas Copco Air Power NV, Kainan Co, Yuasa Corp, other

            No. of accounts: 500

            Domestic areas of activities: Nationwide

            Suppliers: [Mfrs, wholesalers] Mitsubishi Heavy Ind, Kanaden Corp, Ryobi Ltd, Topre Corp, other.

 

Payment record: No complaints

 

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

 

Bank References:

                        Joyo Bank (Shinjuku)

                        MUFG (Ebisu)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

 

22,540

21,212

 

  Cost of Sales

13,282

12,576

 

      GROSS PROFIT

9,258

8,635

 

  Selling & Adm Costs

7,148

6,591

 

      OPERATING PROFIT

2,109

2,043

 

  Non-Operating P/L

529

1,221

 

      RECURRING PROFIT

2,638

3,264

 

      NET PROFIT

1,780

1,322

BALANCE SHEET

 

 

 

 

  Cash

 

6,713

4,903

 

  Receivables

 

4,210

3,803

 

  Inventory

 

3,677

3,269

 

  Securities, Marketable

250

100

 

  Other Current Assets

1,064

960

 

      TOTAL CURRENT ASSETS

15,914

13,035

 

  Property & Equipment

6,367

5,411

 

  Intangibles

 

649

202

 

  Investments, Other Fixed Assets

4,635

6,068

 

      TOTAL ASSETS

27,565

24,716

 

  Payables

 

2,388

2,069

 

  Short-Term Bank Loans

97

50

 

 

 

 

 

 

  Other Current Liabs

2,912

2,337

 

      TOTAL CURRENT LIABS

5,397

4,456

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

37

35

 

  Reserve for Retirement Allw

1,968

1,880

 

  Other Debts

 

486

492

 

      TOTAL LIABILITIES

7,888

6,863

 

      MINORITY INTERESTS

 

 

 

Common stock

3,354

3,354

 

Additional paid-in capital

1,380

1,380

 

Retained earnings

14,434

13,477

 

Evaluation p/l on investments/securities

170

(34)

 

Others

 

340

(323)

 

Treasury stock, at cost

(1)

(2)

 

      TOTAL S/HOLDERS` EQUITY

19,677

17,852

 

      TOTAL EQUITIES

27,565

24,716

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

 

2,727

879

 

Cash Flows from Investment Activities

-936

-347

 

Cash Flows from Financing Activities

-953

-837

 

Cash, Bank Deposits at the Term End

 

5,601

4,684

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

19,677

17,852

 

 

Current Ratio (%)

294.87

292.53

 

 

Net Worth Ratio (%)

71.38

72.23

 

 

Recurring Profit Ratio (%)

11.70

15.39

 

 

Net Profit Ratio (%)

7.90

6.23

 

 

Return On Equity (%)

9.05

7.41

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.35

UK Pound

1

Rs.100.21

Euro

1

Rs.83.52

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.