MIRA INFORM REPORT

 

 

Report Date :

21.11.2014

 

IDENTIFICATION DETAILS

 

Name :

CATERPILLAR JAPAN LTD

 

 

Registered Office :

Setagaya Business Square Tower, 4-10-1 Yoga Setagayaku Tokyo158-0097

 

 

Country :

Japan　

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

November, 1963

 

 

Com. Reg. No.:

0109-01-005953

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures construction machinery/ equipment, their components & parts (--100%): power shovels, hydraulic shovels, wheel loaders, bulldozers, dump trucks, tractor shovels,

 

 

No of Employees :

2,632

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 address

 

CATERPILLAR JAPAN LTD

 

REGD NAME:               Caterpillar Japan KK

MAIN OFFICE:              Setagaya Business Square Tower, 4-10-1 Yoga Setagayaku Tokyo

158-0097JAPAN　

Tel:                              03-5717-1121    

Fax:                              03-5717-1129

 

*.. The is its Sagami Plant in Sagamihara

 

URL:     http://www.japan.cat.com/

E-mail:             info@japan.cat.com     

 

 

ACTIVITIES  

 

Mfg of construction machinery, equipment

 

 

BRANCHES

 

Sagamihara (Sagami Office), Chichibu, Akashi

 

 

FACTORIES

 

Sagamihara (Sagami Plant), Akashi, Chichibu (Studio, exhibition)

 

 

OFFICER(S)

 

NORIYUKI TAKEUCHI, PRES    

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 310,572 M

PAYMENTSREGULAR               CAPITAL           Yen 15,000 M

TREND SLOW                           WORTH            Yen 64,769 M

STARTED         1963                             EMPLOYES      2,632

 

 

COMMENT

 

MFR OF CONSTRUCTION MACHINERY 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

 

HIGHLIGHTS

           

The subject company was established as a JV between Mitsubishi Heavy Ind and Caterpillar International, as Shinn Caterpillar Mitsubishi Co Ltd.  Renamed as captioned in 2008.  This is a specialized mfr of construction machinery & equipment, hydraulic shovels, power shovels, wheel loaders, bulldozers, dump trucks, their components & parts.  In Apr 2012, Caterpillar bought the shares from Mitsubishi Heavy Ind, and the firm became its wholly-owned subsidiary.  Clients are major construction companies & government agencies, nationwide.

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2013 fiscal term amounted to Yen 310,572 million, a 20% down from Yen 388,025 million in the previous term.  The recurring profit was posted at Yen 20,152 million and the net profit at Yen 14,586 million, respectively, compared with Yen 20,301 million recurring profit and Yen 12,039 million net profit, respectively, a year ago.

 

For the current term ending Dec 2014 the recurring profit is projected at Yen 21,000 million and the net profit at Yen 15,000 million, respectively, on a 5% rise in turnover, to Yen 326,000 million.

           

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

 

 

REGISTRATION

 

Date Registered:                       Nov 1963

Regd No.:                     0109-01-005953 (Tokyo-Setagayaku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                 120 million shares

Issued:                         30 million shares

Sum:                            Yen 15,000 million

Major shareholders (%):           Caterpillar International Investments (100)

 

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

 

 

OPERATION

 

Activities: Manufactures construction machinery/ equipment, their components & parts (--100%): power shovels, hydraulic shovels, wheel loaders, bulldozers, dump trucks, tractor shovels, other.

 

(Mg & handling items):

 

Tractor & Haulers: bulldozers, track-type loaders, wheel loaders, mini wheel loaders, dump trucks, rough terrain haulers, motor scrapers;

 

Excavators: hydraulic excavators, mini hydraulic excavators;

 

Road Equipment: motor graders, asphalt finishers, surface recycling equipment;

 

Disposal, Forest Machine: landfill compactor, compactor, skidder;

 

Recycle Equipment: crusher, shredder, soil blender, wood crusher, tab grinder, bark blower, trammel, vibrating screen, other.

 

Clients: [Construction companies, governments] Caterpillar East Japan, Caterpillar West Japan, for distribution/delivery nationwide.      

No. of accounts: 300

Domestic areas of activities: Nationwide

 

Suppliers [Mfrs, wholesalers] Caterpillar Inc, Mitsubishi Heavy Ind, Mitsubishi Corp, Press Ind, Kobe Sharling, Metal One Specialty Steel Corp, Mitsubishi Corporation Technos, other.

 

 

Payment record

 

Regular

 

 

Location

 

Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

 

Bank References

 

MUFG (H/O)

City Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

 

       Terms Ending:

31/12/2014

31/12/2013

31/12/2012

31/12/2011

Annual Sales

　

326,000

310,572

388,025

366,018

Recur. Profit

　

21,000

20,152

20,301

21,111

Net Profit

　

15,000

14,586

12,039

8,205

Total Assets

　

　

194,281

179,180

234,526

Current Assets

　

　

127,795

111,341

166,818

Current Liabs

　

　

75,208

119,320

152,226

Net Worth

　

　

64,769

49,827

74,153

Capital, Paid-Up

　

　

15,000

15,000

15,000

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

4.97

-19.96

6.01

34.63

    Current Ratio

　

..

169.92

93.31

109.59

    N.Worth Ratio

　

..

33.34

27.81

31.62

    R.Profit/Sales

　

6.44

6.49

5.23

5.77

    N.Profit/Sales

　

4.60

4.70

3.10

2.24

    Return On Equity

　

..

22.52

24.16

11.06

 

Notes: Forecast (or estimated) figures for the 31/12/2014 fiscal term

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.10

UK Pound

1

Rs.97.32

Euro

1

Rs.77.91

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

SNT

 

 

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.