MIRA INFORM REPORT

 

 

Report Date :

05.09..2014

 

IDENTIFICATION DETAILS

 

Name :

ATLAS COPCO KK

 

 

Registered Office :

Sumitomo Fudosan Shiba Bldg No.4 11F, 2-13-4 Shiba Minatoku Tokyo

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

June 1979

 

 

Com. Reg. No.:

0104-01-001811

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of Compressors, Mining and Civil Engineering Equipment and Tools

 

 

No of Employees :

273

 

 

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 191.3 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 – 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

 

ATLAS COPCO KK

 

 

REGD NAME

 

Atlas Copco KK

 

 

MAIN OFFICE

 

Sumitomo Fudosan Shiba Bldg No.4 11F, 2-13-4 Shiba Minatoku Tokyo

105-0014 JAPAN

Tel: 03-5765-7805     

Fax: 03-5765-3198

 

*.. The is one of its Kanagawa Factory

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of compressors, mining & civil engineering equipment & tools

 

 

BRANCHES

 

Kanagawa

 

 

FACTORIES

 

Kanagawa (2)

 

 

OFFICERS

 

THOMAS ESTERGREN, PRES 

Kenjiro Nakamura, dir

 

Yen Amount:    In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 14,600 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 375 M

TREND             UP                                WORTH            Yen 3,300 M

STARTED         1979                             EMPLOYES      273

 

 

COMMENT

 

MFR OF COMPRESSORS, OWNED BY SWEDISH COMPANY.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 191.3 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established by Atlas Copco AB, Sweden, in order to advance into Japan.  This is a specialized mfr of compressors, mining & civil engineering equipment/tools, industrial machinery, other.  Goods are imported and exported.  Clients include car makers, heavy machinery mfrs, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Dec/2013 fiscal term amounted to Yen 14,600 million, a 4% up from Yen 14,100 million in the previous term.  Sales of mining & civil engineering equipment rose.  The recurring profit was posted at Yen 1,100 million and the net profit at Yen 300 million, respectively, compared with Yen 300 million net profit at Yen 900 million, respectively, a year ago.

 

For the current term ending Dec 2014 the recurring profit is projected at Yen 1,150 million and the net profit at Yen 320 million, respectively, on a 5% rise in turnover, to Yen 15,300 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 191.3 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:          Jun 1979

Regd No.:                     0104-01-001811 (Tokyo-Minatoku)

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  750,000 shares

Issued:                         750,000 shares

Sum:                            Yen 375 million

Major shareholders (%): Atlas Copco AB (Sweden) (100)

 

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

 

 

OPERATION

           

Activities: Manufactures compressors (40%), mining & civil engineering equipment/tools (50%), industrial machinery (8%), others (2%).

 

Clients: [Mfrs, wholesalers] Mitsubishi Electric, Atlas Copco Group firms, Toyota Motor, Kirin Brewery, Mitsubishi Heavy Ind, Mazda Corp, JGC, Chiyoda Corp, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Atlas Copco MCT AB, Atlas Copco Tool AB, Atlas Copco Air Power NV, other

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Shimbashi)

SMBC (Hibiya)

Relations: Satisfactory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCES

(In Million Yen)                

 

       Terms Ending:

31/12/2014

31/12/2013

31/12/2012

31/12/2011

Annual Sales

　

15,300

14,600

14,100

15,600

Recur. Profit

　

1,150

1,100

300

　

Net Profit

　

320

300

900

450

Total Assets

　

　

15,400

14,800

　　　　　　　N/A

Current Assets

　

　

9,400

8,900

　

Current Liabs

　

　

12,100

12,200

　

Net Worth

　

　

3,300

2,600

1,700

Capital, Paid-Up

　

　

375

375

375

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

4.79

3.55

-9.62

20.00

    Current Ratio

　

..

77.69

72.95

..

    N.Worth Ratio

　

..

21.43

17.57

..

    R.Profit/Sales

　

7.52

7.53

2.13

..

    N.Profit/Sales

　

2.09

2.05

6.38

2.88

    Return On Equity

　

..

9.09

34.62

26.47

 

Notes: Financials are only partially disclosed for the Dec/2011 fiscal term

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

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.45

UK Pound

1

Rs.99.46

Euro

1

Rs.79.46

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

SHG

 

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%)

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