MIRA INFORM REPORT

 

 

Report Date :

19.09.2014

 

IDENTIFICATION DETAILS

 

Name :

TADANO LTD

 

 

Registered Office :

Ko-34 Shindencho Takamatsu City Kagawa-Pref 761-0185

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

August 1948

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures construction-use cranes (100%): terrain cranes, rough cranes, truck cranes, loader cranes, telescope boom cranes, boom truck cranes, aerial work platforms, special purpose vehicles, used equipment, other.

 

 

No of Employees :

3,227

 

 

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 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 & address

 

TADANO LTD

 

 

REGD NAME

 

Tadano KK

 

 

MAIN OFFICE

 

Ko-34 Shindencho Takamatsu City Kagawa-Pref 761-0185 Japan

Tel: 087-839-5555   

 Fax: -087-839-5743

 

*.. The is its Tokyo Office-

 

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

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

 

ACTIVITIES:     Mfg of construction-use cranes

BRANCHES:     Tokyo, Sapporo, Sendai, Saitama, Toyama, Hiroshima, other (Tot 8)

OVERSEAS:     Europe (24), N America (3), Carib/Central/South America (10), Asia (21),

                                    Middle East (11), Africa (21), CIS (12), Oceania (4). (Number of countries)

FACTORIES:     Takamatsu, Shido, Tadotsu, Chiba, Germany, China, Thailand

 

CHIEF EXEC:    KOICHI TADANO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 181,764 M

PAYMENTSREGULAR   CAPITAL           Yen 13,021 M

TREND UP                    WORTH            Yen 102,965 M

STARTED         1948                 EMPLOYES      3,227

 

COMMENT:      MFR OF CONSTRUCTION-USE CRANES   FINANCIAL SITUATION COSIDERED FAIR AND

GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

 

 

 

Unit: In Million Yen

Forecast figures for the 31/03/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is the top-ranked mfr of construction-use cranes & truck cranes in Japan and 2nd of hydraulic cranes in overseas market.  Particularly strong in rough terrain cranes.  Also top-ranked mfr of truck loader cranes, including loading & unloading cranes and aerial working vehicles.  Has 106 overseas offices/facilities in overseas countries.  Fostering non-truck cranes, including loading & unloading cranes and aerial working vehicles.  More emphasis is placed on development of Latin American market. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 181,764 million, a 34.8% up from Yen 134,836 million in the previous term.  Sales of cranes were better than projected in North America, buoyed by growing demand for resource exploitation and lucrative large lot orders.  Demand increased from post-quake renovation works and improved profit margin with price hike.  The recurring profit was posted at Yen 21,642 million and the net profit at Yen 14,410 million, respectively, compared with Yen 11,448 million recurring profit and Yen 7,341 million net profit, respectively, a year ago. 

 

(Apr/Jun/2014 results): Sales Yen 44,082 million (up 15.7%), operating profit Yen 5,817 million (up 24.3%), recurring profit Yen 5,634 million (up 7.6%), net profit Yen 3,698 million (down 6.9%).  (% as compared with the corresponding period a year ago).

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 22,500 million and the net profit at Yen 14,700 million, on a5.6% rise in turnover, to Yen 192,000 million.  Cranes will advance in both the domestic and overseas markets.

 

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

 

 

REGISTRATION

           

Date Registered:　     Aug 1948

Regd No.:                    (Kagawa-Takamatsu) 002700

Legal Status:               Limited Company (Kabushiki Kaisha

Authorized:                  400 million shares

Issued:                         129,500,355 shares

Sum:                            Yen 13,021 million

 

Major shareholders (%): Japan Trustee Services Bank (11.0), Nippon Life Ins (5.4), Mizuho Bank (4.8), Hyakujushi Bank (4.7), Master Trust Bank of Japan (3.8), Meiji Yasuda Life Ins (3.1), MUFG (2.6), Dai-ichi Life Ins (2.5), Customers’ S/Holding Assn (2.2), Company’s Treasury Stock (2.1); foreign owners (18.5)

 

No. of shareholders: 5,541

 

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

 

Managements: Koichi Tadano, pres; Tadashi Suzuki, s/mgn dir; Tamaki Okuyama, mgn dir; Yoichiro Nishi, mgn dir

 

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

 

Related companies: Tadano Faun GmbH, Tadano America Corp, Tadano IMES, other.

 

 

OPERATION

           

Activities: Manufactures construction-use cranes (100%): terrain cranes, rough cranes, truck cranes, loader cranes, telescope boom cranes, boom truck cranes, aerial work platforms, special purpose vehicles, used equipment, other.

(Sales): Japan (62%), Europe (12%), US (16%), others (10%)

Overseas Sales (53%)

           

Clients: [Mfrs, wholesalers] Tadano America Corp, Tadano Asia Pte Ltd, Tadano IMES Corp, Tadano Oceania Pte Ltd, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Tadano Faun GmbH, Amron Co, Mimura Iron Works, other

 

Payment record: Regular

 

 

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

 

Bank References:

Mizuho Bank (Takamatsu)

Hyakujushi Bank (H/O)

Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

　

　

  Annual Sales

　

181,764

134,836

　

  Cost of Sales

132,259

101,205

　

      GROSS PROFIT

49,505

33,631

　

  Selling & Adm Costs

28,365

22,706

　

      OPERATING PROFIT

21,140

10,925

　

  Non-Operating P/L

502

523

　

      RECURRING PROFIT

21,642

11,448

　

      NET PROFIT

14,410

7,341

BALANCE SHEET

 

 

　

　

  Cash

　

48,365

39,582

　

  Receivables

 

48,259

40,820

　

  Inventory

 

45,967

44,341

　

  Securities, Marketable

　

　

　

  Other Current Assets

8,077

7,401

　

      TOTAL CURRENT ASSETS

150,668

132,144

　

  Property & Equipment

36,859

34,584

　

  Intangibles

 

857

776

　

  Investments, Other Fixed Assets

10,560

10,107

　

      TOTAL ASSETS

198,944

177,611

　

  Payables

 

30,036

31,094

　

  Short-Term Bank Loans

7,795

15,454

　

　

 

　

　

　

  Other Current Liabs

38,211

13,457

　

      TOTAL CURRENT LIABS

76,042

60,005

　

  Debentures

 

　

20,000

　

  Long-Term Bank Loans

9,765

2,677

　

  Reserve for Retirement Allw

6,593

4,736

　

  Other Debts

　

3,578

3,519

　

      TOTAL LIABILITIES

95,978

90,937

　

      MINORITY INTERESTS

 

　

　

Common stock

13,021

13,021

　

Additional paid-in capital

16,848

16,846

　

Retained earnings

73,074

61,272

　

Evaluation p/l on investments/securities

1,745

1,445

　

Others

 

766

(3,527)

　

Treasury stock, at cost

(2,489)

(2,383)

　

      TOTAL S/HOLDERS` EQUITY

102,965

86,674

　

      TOTAL EQUITIES

198,944

177,611

CONSOLIDATED CASH FLOWS

 

　

　

 

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

15,467

2,188

　

Cash Flows from Investment Activities

-3,753

-1,972

　

Cash Flows from Financing Activities

-4,910

-2,050

　

Cash, Bank Deposits at the Term End

　

48,156

39,512

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

 

Net Worth (S/Holders' Equity)

102,965

86,674

　

 

Current Ratio (%)

198.14

220.22

　

 

Net Worth Ratio (%)

51.76

48.80

　

 

Recurring Profit Ratio (%)

11.91

8.49

　

 

Net Profit Ratio (%)

7.93

5.44

　

　

Return On Equity (%)

14.00

8.47

 

 

           

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.05

UK Pound

1

Rs.99.55

Euro

1

Rs.78.57

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

TPT

 

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.