MIRA INFORM REPORT

 

 

Report Date :

10.06.2014

 

IDENTIFICATION DETAILS

 

Name :

AIR WATER INC

 

 

Registered Office :

Air Water Bldg, 2-12-8 Minami-Semba Chuoku Osaka 542-0081

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

September, 1929

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of industrial gas

 

 

No. of Employees :

790

 

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 17,924.4 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 – 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. 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

 

AIR WATER INC

 

REGD NAME:   Air Water KK

MAIN OFFICE:  Air Water Bldg, 2-12-8 Minami-Semba Chuoku Osaka 542-0081 JAPAN

                        Tel: 06-6252-5411   

Fax: 06-6252-3965     -

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of industrial gas

 

 

BRANCHES   

 

Sapporo, Tokyo, Sendai, Nagoya, Nagano, other

 

 

FACTORIES  

 

Hokkaido, Kashima, Utsunomiya, Wakayama, Kudmatsu, Kitakyushu

 

 

CHIEF EXEC

 

YASUO IMAI, PRES

 

 

Yen Amount    

 

In million Yen, unless otherwise stated

 

 


SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 641,256 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 32,263 M

TREND             UP                                WORTH            Yen 219,622 M

STARTED         1929                             EMPLOYES      790

 

 

COMMENT

 

LEADING MFR OF INDUSTRIAL GAS 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 17,924.4 MILLION, 30 DAYS NORMAL TERMS

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

471,809

32,958

11,680

(%)

169,126

(Consolidated)

31/03/2012

492,679

33,601

17,167

4.42

182,699

31/03/2013

540,016

35,155

18,365

9.61

199,212

31/03/2014

641,256

36,275

19,219

18.75

219,622

31/03/2015

670,000

39,000

20,500

4.48

..

Unit: In Million Yen

Forecast figures for the 31/03/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is the leading mfr mfr of industrial gas and in rivalry with Taiyo Nippon Sanso Corp.  Expanding chemical lines, and stressing specialty gases for use in electronic parts manufacturing. Fostering medical, agricultural and life style related area to grow into mainlines.  The company aims to get chances into hospital facility engineering works and gas and equipment sale by providing such services as distribution management of in-hospital supplies and medical instrument sterilization.  It is promoting mobile power stations to generate electricity by LPG to municipalities as a disaster counter plan. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 641,256 million, an 18% upfrom Yen 540,016 million in the previous term.   The recurring profit was posted at Yen 36,275 million and the net profit at Yen 19,219 million, respectively, compared with Yen 35,155 million recurring profit and Yen 18,365 million net profit, respectively, a year ago. 

           

For the current term ending Mar 2015 the recurring profit is projected at Yen 39,000 million and the net profit at Yen 20,500 million, on a 4.5% rise in turnover, to Yen 670,000 million.  Medical and LPG-related businesses will go strong. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 17,924.4 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered: Sept 1929

Legal Status:        Limited Company (Kabushiki Kaisha

Authorized:         480 million

Issued:                198,705,000 shares

Sum:                   Yen 32,263 million

 

Major shareholders (%): Nippon Steel & Sumitomo Metal (5.0), Master Trust Bank of Japan T (4.1), Sumitomo Mitsui Trust Bank (3.9), Chase  London SL Omnibus Acct (3.7), SMBC (3.1), Customers’ S/Holding Assn (2.5), Northern Trust (AVFC) British (2.5), Zenkyoren (2.4), Japan Trustee Services T9 (2.2); foreign owners (25.2)

 

No. of shareholders: 5,492

 

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

 

Managements: Hiroshi Aoki, ch; Yasuo Imai, pres; Akihiro Toyoda, v ch; Akira Yoshino, v pres; Takashi Izumida/ s/mgn dir; Toshihiko Akazu, s/mgn dir; Akira Fujita, s/mgn dir; Kikuo Toyoda, s/mgn dir; Jun’ichi Nakagawea, s/mgn dir

 

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

 

Related companies: Tateho Chemical Ind, Daido Air Products Electronics, other.

 

 

OPERATION

           

Activities: Manufactures industrial gas-related (32%), chemicals-related (17%), medical equipment-related (15%), energy-related (10%), agriculture and food products-related (8%), others (18%)

           

Clients: [Mfrs, wholesalers] Hokkaido Air Water, Nippon Steel & Sumikin Metal, Kinki Air

Water, Daido Air Products Electronics, Tateho Chemical Ind, other

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

            Suppliers: [Mfrs, wholesalers] Mitsui & Co, Kobe Steel, Idemitsu Kosan, other

 

Payment record: No complaints

 

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

Bank References:

                        SMBC (Midosuji) 

                        Mizuho Bank (Osaka)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

  Annual Sales

 

641,256

540,016

  Cost of Sales

517,201

429,862

      GROSS PROFIT

124,054

110,153

  Selling & Adm Costs

88,977

82,256

      OPERATING PROFIT

15,076

27,897

  Non-Operating P/L

21,199

7,258

      RECURRING PROFIT

36,275

35,155

 

      NET PROFIT

19,219

18,365

BALANCE SHEET

  Cash

 

21,458

19,879

  Receivables

142,416

125,851

  Inventory

35,578

33,096

  Securities, Marketable

 

 

  Other Current Assets

17,165

22,290

      TOTAL CURRENT ASSETS

216,617

201,116

  Property & Equipment

207,453

197,686

  Intangibles

18,269

17,922

  Investments, Other Fixed Assets

85,753

67,404

      TOTAL ASSETS

528,092

484,128

  Payables

93,913

87,715

  Short-Term Bank Loans

30,729

32,037

 

 

 

  Other Current Liabs

51,695

62,355

      TOTAL CURRENT LIABS

176,337

182,107

  Debentures

10,019

10,057

  Long-Term Bank Loans

85,777

57,296

  Reserve for Retirement Allw

833

846

  Other Debts

 

35,504

34,810

      TOTAL LIABILITIES

308,470

285,116

      MINORITY INTERESTS

Common stock

32,263

32,263

Additional paid-in capital

34,560

34,455

Retained earnings

144,163

129,973

Evaluation p/l on investments/securities

4,749

1,165

Others

7,007

4,636

Treasury stock, at cost

(3,120)

(3,280)

      TOTAL S/HOLDERS` EQUITY

219,622

199,212

 

      TOTAL EQUITIES

528,092

484,328

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2014

31/03/2013

Cash Flows from Operating Activities

 

48,248

30,057

Cash Flows from Investment Activities

-62,186

-42,501

Cash Flows from Financing Activities

4,620

10,253

 

Cash, Bank Deposits at the Term End

 

20,751

19,469

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

Net Worth (S/Holders' Equity)

219,622

199,212

Current Ratio (%)

122.84

110.44

Net Worth Ratio (%)

41.59

41.13

Recurring Profit Ratio (%)

5.66

6.51

Net Profit Ratio (%)

3.00

3.40

Return On Equity (%)

8.75

9.22

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.06

UK Pound

1

Rs.99.35

Euro

1

Rs.80.62

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.