MIRA INFORM REPORT

 

 

Report Date :

22.11.2014

 

IDENTIFICATION DETAILS

 

Name :

UBE MACHINERY CORPORATION LTD

 

 

Registered Office :

980 Okinoyama Kogushi Ube Yamaguchi-Pref 755-8633

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

September, 1999

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufactures industrial machinery  die casting machines (58%), injection molding, extrusion press, vertical mill, kiln (25%), bulk handling machines, water screening equipment, bridges, floodgate, steel structure, other (7%), other industrial equipment (10%)

 

 

No. of Employees :

978

 

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 – 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 and address

 

UBE MACHINERY CORPORATION LTD

REGD NAME:   Ube Kosan Kikai KK

MAIN OFFICE:  980 Okinoyama Kogushi Ube Yamaguchi-Pref 755-8633 JAPAN

                        Tel: 0836-22-0072      Fax: 0836-22-6457

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of industrial machinery

 

 

BRANCHES

 

Tokyo, Omiya, Shizuoka, Nagoya, Osaka (2), Hiroshima, Okinawa

 

 

OVERSEAS

 

Korea, Taiwan, China

 

 

FACTORIES

 

At the caption address

 

 

OFFICERS

 

YUKIO HISATSUGU, PRES        Tokuhisa Okada, ch

Yoshiyuki Tamechika, mgn dir    Hironari Maeda, mgn dir

Hisao Yamane, mgn dir                        

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 38,296 M

PAYMENTS      REGULAR         CAPITAL           Yen 6,700 M

TREND             UP                    WORTH            Yen 32,982 M

STARTED         1999                 EMPLOYES      978

 

 

COMMENT    

 

MFR OF INDUSTRIAL MACHINERY, OWNED BY UBE INDUSTRIE LTD.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

           

HIGHLIGHTS

           

The subject company was established on the basis of a division separated from Ube Industries Ltd (See REGISTRATION).  This is a specialized mfr of industrial machinery: die casting machine, injection molding, extrusion press, other.  In 2012 went into mfg tie-up of die casting machines with Toyo Machinery & Metal Co Ltd.  In Oct 2013 merged into a sister company, Ube Techno End Co.  Clients include major car makers, government agencies, other

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 38,296 million, an 11% up from Yen 34,614 million in the previous term.  The recurring profit was posted at Yen 3,329 million and the net profit at Yen 8,378 million, respectively, compared with Yen 3,172 million recurring profit and yen 2,243 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 3,900 million and the net profit at Yen 8,500 million, respectively, on a 5% rise in turnover, to Yen 40,200 million.  Sales are expected to grow further by the said merger of a sister company. 

 

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

 

 

REGISTRATION

 

Date Registered:                       Sept 1999

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              88,000 shares

Issued:                                     22,000 shares

Sum:                                        Yen 6,700 million

Major shareholders (%):           Ube Industrial Ltd* (100)

           

*.. Diversified mfr of chemicals & cement, Tokyo, founded 1942, listed Tokyo S/E, capital Yen 58,435 million, sales Yen 650,510 million, operating profit Yen 24,413 million, recurring profit Yen 18,691 million, net profit Yen 12,623 million, total assets Yen 698,816 million, net worth Yen 235,757 million, employees 11,361, pres Michio Takeshita

 

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

 

 

OPERATION

           

Activities: Manufactures industrial machinery  die casting machines (58%), injection molding, extrusion press, vertical mill, kiln (25%), bulk handling machines, water screening equipment, bridges, floodgate, steel structure, other (7%), other industrial equipment (10%)

 

Clients: Auto makers, aluminum makers, Government agencies, cement makers, other

Exports to overseas makers.

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Ube Steel, TU Electronics, Obayashi Corp, Yokoyama Haguruma Co, Yokoyama Construction Ind, other

 

Payment Record: Regular

 

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

 

Bank References:

MUFG Bank (Tokyo)

Mizuho Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

　

40,200

38,296

34,614

30,573

Recur. Profit

　

3,900

3,829

3,172

1,862

Net Profit

　

8,500

8,378

2,243

1,347

Total Assets

　

　

48,717

45,387

41,130

Current Assets

　

　

30,311

27,989

23,960

Current Liabs

　

　

15,389

19,434

16,774

Net Worth

　

　

32,982

25,613

24,091

Capital, Paid-Up

　

　

6,700

6,700

6,700

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

4.97

10.64

13.22

-3.44

    Current Ratio

　

..

196.97

144.02

142.84

    N.Worth Ratio

　

..

67.70

56.43

58.57

    R.Profit/Sales

　

9.70

10.00

9.16

6.09

    N.Profit/Sales

　

21.14

21.88

6.48

4.41

    Return On Equity

　

..

25.40

8.76

5.59

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.85

UK Pound

1

Rs.97.01

Euro

1

Rs.77.62

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

SDA

 

               

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.