MIRA INFORM REPORT

 

 

Report Date :

23.06.2014

 

IDENTIFICATION DETAILS

 

Name :

AMADA CO LTD

 

 

Registered Office :

200 Ishida Isehara Kanagawa-Pref 259-1196

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013 (Consolidated)

 

 

Date of Incorporation :

10.09.1946

 

 

Com. Reg. No.:

(Kanagawa-Isehara) 020895

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of Sheet Metal Processing Machinery (including punching machines, laser machines, blending machines, welding machines, shearing machines & general fabrication machines) and Metal Processing Machine Tools (including band saw machines, structural steel machines (drilling machines), environment related products; stamping press, machines for cutting & shaping metal blocks, used to process precision components, tools & dies)

 

 

No. of Employees

Consolidated : 7,840 (as of September 30,2013) 
Non-Consolidated : 2,503 (as of September 30,2013)

 


 

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 :

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

 

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 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

 

AMADA CO LTD

 

 

REGD NAME

 

KK Amada

 

 

MAIN OFFICE

 

200 Ishida Isehara Kanagawa-Pref 259-1196 JAPAN

Tel: 0463-96-1111     Fax: 0463-96-3281

 

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

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

 

 

ACTIVITIES  

 

Manufacturer of Sheet Metal Processing Machinery (including punching machines, laser machines, blending machines, welding machines, shearing machines & general fabrication machines) and Metal Processing Machine Tools (including band saw machines, structural steel machines (drilling machines), environment related products; stamping press, machines for cutting & shaping metal blocks, used to process precision components, tools & dies)

 

 

BRANCHES

 

44 (domestic), 39 affiliates overseas

 

OVERSEAS   

 

USA (4), Canada, Mexico, Europe (14), China (8), Taiwan, Korea, Thailand (2),  Singapore (2), Malaysia, Vietnam, India (2), Australia (--subsidiaries)

 

 


FACTORIES

 

Fujinomiya, Odawara, Ono, Isehara

 

CHIEF EXEC

 

MITSUO OKAMOTO, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 190,018 M

PAYMENTSNo Complaints    CAPITAL           Yen 54,768 M

TREND UP                                WORTH            Yen 385,102 M

       STARTED  1948                            

 

EMPLOYES      Consolidated : 7,840 (as of September 30,2013) 
Non-Consolidated : 2,503 (as of September 30,2013)

 

 

COMMENT

 

MFR OF METAL WORKING MACHINERY.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

           

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

135,979

-4,416

-3,739

(%)

388,667

(Consolidated)

31/03/2011

163,153

6,757

2,716

19.98

375,159

31/03/2012

185,539

10,440

4,643

13.72

371,969

31/03/2013

190,018

9,074

4,126

2.41

385,102

31/03/2014

242,000

18,500

11,000

27.36

..

                        Unit: In Million Yen

                        Forecast (or estimated) figures for 31/03/2012 fiscal term

 

 


HIGHLIGHTS

           

This is a top-class mfr of metalworking machinery.  Once specialized in marketing, but leading merged Amada Machines, machine tool manufacturing arm in Oct 2003, and restarted production.  Largest maker of sheet metal processing machinery.  Aggressively engaged in overseas production.  The company plans to establish technical centers in India and Thailand by the end of March 2015 term.  It aims to turn the center in Thailand into a hub to adjacent countries, in view of future increase in demand.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 190,018 million, a 2.4% up from Yen 185,539 million in the previous term.  The recurring profit was posted at Yen 9,074 million and the net profit at Yen 4,126 million, respectively, compared with Yen 10,440 million recurring profit and Yen 4,643 million net profit, respectively, a year ago

 

(Apr/Dec/2013 results): Sales Yen 163,582 million (up 28.7%), operating profit Yen 5,085 million (up 636.2%), recurring profit Yen 8,886 million (up 176.9%), net profit Yen 5,415 million (up 663.5%).  (% compared with the corresponding period a year ago). 

 

For the term that ended Mar 2014 the recurring profit was projected at Yen 18,500 million and the net profit at Yen 11,000 million, respectively, on a 27.4% rise in turnover, to Yen 242,000 million.  The newly purchased MIYACHI CORP, will add Yen 20 billion and Yen 500 million to sales and operating profits, respectively.  Final results are yet to be released.

           

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Foundation Date : 10 September 1946

Date Registered: 01 May 1948

Regd No.:         (Kanagawa-Isehara) 020895

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         550 million shares

Issued:                396,502,117 shares

Sum:                   Yen 54,768 million

 

Major shareholders (%): Japan Trustee Services T11.5), Master Trust Bank of Japan T (7.1), Mizuho Bank (3.7), Company’s Treasury Stock (3.6), Trust & Custody Services, Trust (3.3), Amada Foundation (2.5), Northern Trust (AVFC) British (2.2), Nippon Life Ins (1.9), BNP Paribas Lux J Aberdeen G (1.5), Joyo Bank (1.4); foreign owners (42.8)

 

No. of shareholders: 16,538

 

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

 

Managements: Mitsuo Okamoto, pres & CEO; Toshio Takagi, s/mgn dir; Tsutomu Isobe, s/mgn dir: Atsushige Abe, mgn dir; Kotaro Shibata, mgn dir; Takaya Shigeta, dir; Katsuhide Ito, dir

           

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

 

Related companies: Amada North America, Techno Wasino, Amada Prestech, Amada Cutting, Amada Machine Tool, other           

 

 

OPERATION

 

Activities: Manufacturer of sheet metal processing machinery and metal processing machine tools

           

(Mfg Items):

 

Sheet Metal Processing Machinery (79%): punching machines, laser machines, blending machines, welding machines, shearing machines & general fabrication machines;

 

Metal Processing Machine Tools (20%): band saw machines, structural steel machines (drilling machines), environment related products; stamping press, machines for cutting & shaping metal blocks, used to process precision components, tools & dies

 

Others (1%): Real estate leasing, other

 

Overseas Sales Ratio (50%)

 

Clients: [Mfrs, wholesalers] Mitsui & Co, Toshiba Corp, Mitsubishi Electric, Fujitsu Ltd, Nippon Steel, Nissan Motors, Amada Lease, Amada USA, Amada Machine Tool, Amada Hong Kong, Amada Thailand, other.

 

            No. of accounts: 800

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Hitachi Metals, Fanuc Ltd, Metal One, Amada Soft  Services, Techno Washino, NCC Co, THK, Amada Tool Precision, Amada Engineering, NEC Fielding, other.

 

Payment record: No Complaints 

 

Location: Business area in Isehara City, Kanagawa-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Mizuho Bank (Shinjuku-Nishiguchi)

SMBC (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

  Annual Sales

 

190,018

185,539

  Cost of Sales

118,596

109,509

      GROSS PROFIT

71,423

76,030

  Selling & Adm Costs

68,953

67,339

      OPERATING PROFIT

2,470

8,691

  Non-Operating P/L

6,604

1,749

      RECURRING PROFIT

9,074

10,440

 

      NET PROFIT

4,126

4,643

BALANCE SHEET

  Cash

 

57,712

57,835

  Receivables

119,336

109,240

  Inventory

83,623

69,982

  Securities, Marketable

19,525

29,016

  Other Current Assets

20,845

18,981

      TOTAL CURRENT ASSETS

301,041

285,054

  Property & Equipment

118,437

109,555

  Intangibles

7,006

6,392

  Investments, Other Fixed Assets

68,965

68,835

      TOTAL ASSETS

495,449

469,836

  Payables

17,247

14,277

  Short-Term Bank Loans

18,143

9,619

 

 

 

  Other Current Liabs

53,106

52,828

      TOTAL CURRENT LIABS

88,496

76,724

  Debentures

200

 

  Long-Term Bank Loans

3,505

4,230

  Reserve for Retirement Allw

9,377

10,594

  Other Debts

 

8,769

6,318

      TOTAL LIABILITIES

110,347

97,866

      MINORITY INTERESTS

Common stock

54,768

54,768

Additional paid-in capital

163,199

163,199

Retained earnings

202,865

203,980

Evaluation p/l on investments/securities

(2,504)

(5,613)

Others

(24,042)

(35,212)

Treasury stock, at cost

(9,184)

(9,153)

      TOTAL S/HOLDERS` EQUITY

385,102

371,969

 

      TOTAL EQUITIES

495,449

469,836

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2013

31/03/2012

Cash Flows from Operating Activities

 

3,379

7,457

Cash Flows from Investment Activities

-15,867

-13,401

Cash Flows from Financing Activities

-775

-1,625

 

Cash, Bank Deposits at the Term End

 

63,847

74,428

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

Net Worth (S/Holders' Equity)

385,102

371,969

Current Ratio (%)

340.17

371.53

Net Worth Ratio (%)

77.73

79.17

Recurring Profit Ratio (%)

4.78

5.63

Net Profit Ratio (%)

2.17

2.50

Return On Equity (%)

1.07

1.25

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.28

UK Pound

1

Rs.102.77

Euro

1

Rs.82.12

                

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

MNL

               

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.