MIRA INFORM REPORT

 

 

Report Date :

26.07.2014

 

IDENTIFICATION DETAILS

 

Name :

YAMAZEN CORPORATION

 

 

Registered Office :

2-3-16 Itachibori Nishiku Osaka 550-8660

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

May 1947

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of machine tools, housing equipment

 

 

No. of Employees :

2,534

 

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 :

Satisfactory

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately 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. 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 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 exceeds 225% 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

 

YAMAZEN CORPORATION

 

REGD NAME:   KK Yamazen

MAIN OFFICE:  2-3-16 Itachibori Nishiku Osaka 550-8660 JAPAN

Tel: 06-6534-3021     Fax: 06-637-2105

 

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

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

 

 

ACTIVITIES  

 

Import, export, wholesale of machine tools, housing equipment

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya, Hiroshima, Fukuoka, other (Tot 55)

 

 

OVERSEAS

 

Yamazen Inc (USA), Yamazen Co Ltd (Taiwan), Yamazen (Singapore) Pte Ltd,

Yamazen (Malaysia) Sdn Bhd, Yamazen (Thailand), Yamazen Thai Engineering

Co Ltd (Thailand), Manila, other.  (Consolidated subsidiaries)

Plustech Inc (USA), PT Yamazen Indonesia, Yamazen Machinery & Tools India

Pte Ltd, Yamazen (Shanghai) Trading Co Ltd, Yamazen (Shenzhen) Trading Co

Ltd, Yamazen (Korea) Ltd, other.  (Non-consolidated subsidiaries). (Total 19  subsidiaries & 62 offices)

 

 

CHIEF EXEC

 

TOHRU YOSHII, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY:      FINANCES        FAIR                 A/SALES          Yen 370,338 M

PAYMENTS      REGULAR         CAPITAL           Yen 7,909 M

TREND             STEADY           WORTH                        Yen 51,469 M

STARTED         1947                 EMPLOYES      2,534

 

COMMENT

 

TRADING HOUSE SPECIALIZING IN MACHINE TOOLS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

MAX CREDIT LIMIT:

 

YEN 8,657.2 MILLION, 30 DAYS NORMAL TERMS.

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

Results:

31/03/2010

241,410

955

438

(%)

37,140

(Consolidated)

31/03/2011

323,703

7,623

4,363

34.09

39,721

 

31/03/2012

372,830

11,155

4,933

15.18

43,515

 

31/03/2013

370,338

10,351

6,249

-0.67

51,469

 

31/03/2014

385,000

10,500

5,900

3.96

..

Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is a leading specialized trader of machinery & tools, particularly strong in machine tools, founded by Takeo Yamamoto.  Also deals in housing-related equipment and materials.  Emphasis placed on expansion of new business areas of high-tech machinery & systems, such as industrial robots and OA equipment.  Fostering eco-related products and solar power system.  The company is actively developing health equipment and other products for active seniors.  It aims at 2 million entries in the product database it is developing.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 370,338 million, a 0.7% down from Yen 372,830 million in the previous term.  The recurring profit was posted at Yen 10,351 million and the net profit at Yen 6,249 million, respectively, compared with Yen 11,155 million recurring profit and Yen 4,933 million net profit, respectively, a year ago.

 

(Apr/Dec/2013 results): Sales Yen 288,652 million (up 2.6%), operating profit Yen 6,329 million (down 13.3%), recurring profit Yen 6,579 million (down 14.9%), net profit Yen 3,632 million (down 20.9%).  (% compared with the corresponding period a year ago).

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 10,500 million and the net profit at Yen 5,900 million, respectively, on a 4% rise in turnover, to Yen 385,000 million.  Sales of machine tools overseas are slowing, but domestic sales are robust, led by automobiles. Housing construction materials are benefitting from growth of photovoltaic power generation equipment and water-related products.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 8,657.2 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  May 1947

Legal Status:        Limited Company (Kabushiki Kaisha)

Authorized:           200 million shares

Issued:                 93,840,310 shares

Sum:                   Yen 7,909 million

 

Major shareholders (%):Customers’ S/Holding Assn Osaka (9.0), Customers’ S/Holding Assn Tokyo (6.2), DMG Mori Seiki (3.7), Employees’ Stock Investment (3.6), Mizuho Bank (3.4), Resona Bank (3.2), Master Trust Bank of Japan T (2.7), Customers’ S/Holding Assn Nagoya (2.5), Japan Trustee Services T (1.8), Customers’ S/Holding Assn Hiroshima (1.4); foreign owners (11.6)

 

No. of shareholders: 5,302

 

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

 

Managements: Tohru Yoshii, pres & CEO; Katsuhiko Shimizu, v pres; Masami Yamamoto, v pres; Akira Nakada, v pres; Mitsuo Terasaka, mgn dir; Ryuji Kakegawa, mgn dir; Shozo Sasai, mgn dir; Taichi Aso, dir; Hiroshi Fukuda, dir; Nobuo Sekiya, dir

 

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

 

Related companies: Yamazen Create, Yamazen Logistics, Yamazen Inc (USA), Yamazen General Service Corp, Yamazen Co Ltd (Taiwan), other

 

 

OPERATION

 

Activities: Trading house for import, export and wholesale of machine tools, industrial tools & equipment, MRO internet purchase, housing/construction equipment & materials, house products, others (--100%)

 

(Sales breakdown by divisions):

Domestic Production Equipment (43%), Overseas Producer Goods (20%), Housing

Construction Materials (14%), Household Equipment (20%), others (2%)

Overseas Sales Ratio (20%)

 

Clients: [DIY goods chains, mfrs, wholesalers] Toyo Corp, Kahma, Kohnan Shoji, Etoh Oxygen, Nishikawa Sangyo, Toyo Corp, Tama Homes, Iwase Sangyo Co, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Daikin Ind, Cleanup Corp, OSG Corp, Corona Corp, Mori                   Seiki Co, Brother Ind, other.

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Corporate Bank (Osaka)

Resona Bank (Osaka)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen):

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

　

370,338

372,830

 

  Cost of Sales

323,307

325,258

 

      GROSS PROFIT

47,031

47,571

 

  Selling & Adm Costs

37,274

37,043

 

      OPERATING PROFIT

9,756

10,528

 

  Non-Operating P/L

595

627

 

      RECURRING PROFIT

10,351

11,155

　

      NET PROFIT

6,249

4,933

BALANCE SHEET

 

 

 

 

  Cash

　

23,797

22,398

 

  Receivables

 

85,976

92,861

 

  Inventory

 

17,928

15,934

 

  Securities, Marketable

7,000

2,000

 

  Other Current Assets

4,316

4,302

 

      TOTAL CURRENT ASSETS

139,017

137,495

 

  Property & Equipment

10,175

10,334

 

  Intangibles

 

1,187

1,286

 

  Investments, Other Fixed Assets

9,799

8,445

 

      TOTAL ASSETS

160,178

157,560

 

  Payables

 

92,796

94,504

 

  Short-Term Bank Loans

3,099

5,189

 

　

 

　

　

 

  Other Current Liabs

10,854

12,617

 

      TOTAL CURRENT LIABS

106,749

112,310

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

233

322

 

  Reserve for Retirement Allw

98

100

 

  Other Debts

　

1,628

1,312

 

      TOTAL LIABILITIES

108,708

114,044

 

      MINORITY INTERESTS

 

 

 

Common stock

7,909

7,909

 

Additional paid-in capital

8,081

8,081

 

Retained earnings

35,952

31,109

 

Evaluation p/l on investments/securities

1,659

767

 

Others

 

(2,116)

(4,335)

 

Treasury stock, at cost

(16)

(16)

 

      TOTAL S/HOLDERS` EQUITY

51,469

43,515

　

      TOTAL EQUITIES

160,178

157,560

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

　

10,027

5,005

 

Cash Flows from Investment Activities

143

283

 

Cash Flows from Financing Activities

-5,005

-5,355

　

Cash, Bank Deposits at the Term End

　

30,775

24,358

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

51,469

43,515

 

 

Current Ratio (%)

130.23

122.42

 

 

Net Worth Ratio (%)

32.13

27.62

 

 

Recurring Profit Ratio (%)

2.80

2.99

 

 

Net Profit Ratio (%)

1.69

1.32

 

 

Return On Equity (%)

12.14

11.34

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.14

UK Pound

1

Rs.102.22

Euro

1

Rs.81.02

 

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.