MIRA INFORM REPORT

 

 

Report Date :

11.09.2014

 

IDENTIFICATION DETAILS

 

Name :

ADO CO LTD

 

 

Registered Office :

129 Ida Kitasakicho Obu City Aichi-Pref 474-0001

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013

 

 

Year of Establishment :

1947

 

 

Com. Reg. No.:

1800-01-092376 (Aichi-Obu)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Auto Parts and Accessories

 

 

No of Employees :

12

 

 

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate 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

 

ADO CO LTD

 

REGD NAME:    Ado KK

 

MAIN OFFICE:  129 Ida Kitasakicho Obu City Aichi-Pref 474-0001 JAPAN

                                    Tel: 0562-48-7137      Fax: 0562-45-6045

 

URL:                 http://www.e-ado.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of auto parts & accessories

 

 

BRANCHES

 

Tochigi, Saitama

 

 

FACTORIES

 

At the caption address

 

 

OFFICERS

 

HIROAKI YAMAMOTO, PRES    Yoshiaki Katagiri, dir

Katsuaki Kimura, dir                   Nobuaki Kimura dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 1,132 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 10 M

TREND SLOW                          WORTH            Yen 244 M       

STARTED         1986                             EMPLOYES      12

 

 

COMMENT

 

MFR OF AUTO PARTS & ACCESSORIES.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established originally in 1947 and was incorporated in 1986.  This is a specialized mfr of auto parts & accessories, belonging to Tokai Group, Kasei Kogyo Co Ltd (See REGISTRATION). Clients include major carmakers.

 

 

FINANCIAL INFORMATION

           

The sales volume for Dec/2013 fiscal term amounted to Yen 1,132 million, a 9% down from Yen 1,250 million in the previous term.  The recurring profit was posted at Yen 28 million and the net profit at Yen 43 million, respectively, compared with Yen 81 million recurring profit and Yen 41 million net profit, respectively, a year ago.

 

For the current term ending Dec 2014 the recurring profit is projected at Yen 30 million and the net profit at Yen 45 million, respectively, on a 5% rise in turnover, to Yen 1,185 million.

 

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

 

 

REGISTRATION

 

Date Registered:          Oct 1986

Regd No.:                                 1800-01-092376 (Aichi-Obu)

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  80,000 shares

Issued:                         20,000 shares

Sum:                            Yen 10 million

Major shareholders (%): Kasei Kogyo Co Ltd* (100)

 

*.. Mfr of rubber products, Aichi-Pref, founded 1966, capital Yen 24 million, sales Yen 8,439 million, net profit Yen 190 million, employees 150, pres Katsuaki Kimura

 

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

 


 

OPERATION

           

Activities: Manufactures auto parts & accessories (--100%)

 

Clients: [Mfrs, wholesalers] Honda Access (40%), Suzuki Motor (10%), Toyota Auto Body (10%), Polytech Co (10%), Volvo Car Japan, other 

No. of accounts: 350

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Tokai Kogyo Co, Takara Kasei, Pass Eight Co, other

 

Payment record: No Complaints

 

Location: Business area in Obu City, Aichi-Pref.  Office premises at the caption address are owned and maintained satisfactory.

 

Bank References:

            Okazaki Shinkin Bank (Kariya)

            MUFG (Kariya)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/12/2014

31/12/2013

31/12/2012

31/12/2011

Annual Sales

 

1,185

1,132

1,250

1,121

Recur. Profit

 

30

28

81

60

Net Profit

 

45

43

41

37

Total Assets

 

 

858

755

800

Current Assets

 

 

567

545

576

Current Liabs

 

 

500

475

588

Net Worth

 

 

244

203

160

Capital, Paid-Up

 

 

10

10

10

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.68

-9.44

11.51

-5.72

    Current Ratio

 

..

113.40

114.74

97.96

    N.Worth Ratio

 

..

28.44

26.89

20.00

    R.Profit/Sales

 

2.53

2.47

6.48

5.35

    N.Profit/Sales

 

3.80

3.80

3.28

3.30

    Return On Equity

 

..

17.62

20.20

23.13

 

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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.83

UK Pound

1

Rs.98.15

Euro

1

Rs.78.66 

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

 

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.