MIRA INFORM REPORT

 

 

Report No. :

357446

Report Date :

29.12.2015

 

IDENTIFICATION DETAILS

 

Name :

YASHIMA DENKI CO LTD

 

 

Registered Office :

Sumitomo Shiba-Koen Bldg, 2-7-17 Shiba Minatoku Tokyo 105-0014

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

April 1947

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Trading firm for import, export and wholesale of: plants (25%), industrial systems (31%), social infrastructure (24%), electronic devices & components (20%)

 

 

No. of Employee :

984

 

 

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 :

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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 four times since 2008. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 2014 stood as the fourth-largest economy in the world after first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

 

Company name and address

 

YASHIMA DENKI CO LTD

 

REGD NAME:   Yashima Denki KK

MAIN OFFICE:  Sumitomo Shiba-Koen Bldg, 2-7-17 Shiba Minatoku Tokyo 105-0014 JAPAN

                        Tel: 03-3507-3711     Fax: 03-3507-3999     -

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Import, export, wholesale of electric equipment, systems, other

 

 

BRANCHES

 

Osaka, Hiroshima, Okayama, other (Tot 22)

 

 

OVERSEAS   

 

China, Singapore (--subsidiaries)

 

 

CHIEF EXEC

 

AKIO OHTA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 82,605 M

PAYMENTSREGULAR   CAPITAL           Yen 1,585 M

TREND UP                    WORTH            Yen 15,515 M

STARTED         1947                 EMPLOYES      984

 

COMMENT    

 

TRADING FIRM SPECIALIZING IN ELECTRIC EQUIPMENT, PRODUCTS, OTHERS FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Unit: In Million Yen

Forecast figures for the 31/03/2016 fiscal term.

 

 

HIGHLIGHTS

 

The firm is Hitachi Ltd-affiliated trading company that started out as a distributor for Hitachi products, selling products such as electronic components and industrial machinery.  Mainstay businesses are Hitachi’s system business-related equipment sales and design and maintenance business, and the Hitachi-related components wholesaling business.  Major customers are plants, chemicals companies and steel companies.  Expanding overseas bases as customers advance overseas, with the ratio of overseas sales now accounting for around 20%.

 

 

FINANCIAL INFORMATION:

 

The sales volume for Mar/2015 fiscal term amounted to Yen 82,605 million, a 14.0% up from Yen 72,464 million in the previous term.  The recurring profit was posted at Yen 1,858 million and the net profit at Yen 1,504 million, respectively, compared with Yen 1,727 million recurring profit and Yen 758 million net profit, respectively, a year ago.

 

(Apr/Sept/2015 results): Sales Yen 35,581 million (up 18.4%), operating profit Yen 184 million (down 24.7%), recurring profit Yen241 (down 17.3%), net profit Yen 82 million (down 22.4%).  (% as compared with the corresponding period a year ago).

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 2,050 million and the net profit at Yen 1,080 million, respectively, on a 0.5% rise in turnover, to Yen 83,000 million.  Lucrative projects, including plants and industrial systems-related projects, will continue at a high level.

 

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

 

REGISTRATION

           

Date Registered:　          Apr 1947

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                  50 million shares

Issued:                         21,782,500 shares

Sum:                            Yen 1,585 million

 

Major shareholders (%): Yashima Environment Tech. Found (6.5), Employees’ S/Holding Assn (4.2), Ken Ochiai (2.9), Hitachi Appliances (2.2), Fumie Takeyama (2.0), Hitachi Ltd (1.8), Eiji Ochiai (1.8), MUFG (1.6), Mizuho Bank (1.6), Japan Trustee Services T (1.4); foreign owners 1.8) 

 

No. of shareholders: 21,487

 

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

 

Managements: Ken Ochiai, ch; Akio Ochiai, pres; Hiroyuki Matsuo, mgn dir; Seiji Shiraishi, mgn dir; Kazuya Imamachi, dir; Yoji Mizumoto, dir; Teruyuki Ishizawa, dir; Akira Midorikawa, dir

 

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

 

Related companies: Yashima Eco System, Yashima Power System (China), other.

 

 

OPERATION

           

Activities: Trading firm for import, export and wholesale of: plants (25%), industrial systems (31%), social infrastructure (24%), electronic devices & components (20%)

 

Overseas Sales Ratio (12%)

           

Clients: [Mfrs, wholesalers] Nintendo, Tobu Railway, JFE Steel, Hitachi Ltd, other

No. of accounts: 800

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Hitachi Ltd, Japan Display, Hitachi Appliance, Hitachi Plant                       Mechanics, Hitachi Building Systems, other

 

Payment record: Regular

 

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

 

Bank References:

            MUFG (Kanda)

            Mizuho Bank (Shimbashi)

                        Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

82,605

72,464

　

  Cost of Sales

71,242

61,619

　

      GROSS PROFIT

11,363

10,845

　

  Selling & Adm Costs

9,610

9,233

　

      OPERATING PROFIT

1,753

1,611

　

  Non-Operating P/L

105

116

　

      RECURRING PROFIT

1,858

1,727

　

      NET PROFIT

1,504

758

BALANCE SHEET

　

　

  Cash

　

9,503

9,434

　

  Receivables

31,334

28,684

　

  Inventory

3,552

1,674

　

  Securities, Marketable

2,424

688

　

  Other Current Assets

6,183

6,598

　

      TOTAL CURRENT ASSETS

52,996

47,078

　

  Property & Equipment

825

984

　

  Intangibles

856

1,196

　

  Investments, Other Fixed Assets

2,611

2,813

　

      TOTAL ASSETS

57,288

52,071

　

  Payables

31,113

25,080

　

  Short-Term Bank Loans

220

380

　

　

　

　

　

  Other Current Liabs

7,623

9,843

　

      TOTAL CURRENT LIABS

38,956

35,303

　

  Debentures

　

　

　

  Long-Term Bank Loans

530

139

　

  Reserve for Retirement Allw

2,131

2,295

　

  Other Debts

　

156

153

　

      TOTAL LIABILITIES

41,773

37,890

　

      MINORITY INTERESTS

　

　

Common stock

1,585

1,585

　

Additional paid-in capital

1,037

1,037

　

Retained earnings

12,653

11,499

　

Evaluation p/l on investments/securities

352

204

　

Others

(112)

(145)

　

Treasury stock, at cost

0

0

　

      TOTAL S/HOLDERS` EQUITY

15,515

14,180

　

      TOTAL EQUITIES

57,288

52,071

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

1,378

3,002

　

Cash Flows from Investment Activities

-207

39

　

Cash Flows from Financing Activities

-173

-436

　

Cash, Bank Deposits at the Term End

　

10,780

9,781

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

15,515

14,180

　

Current Ratio (%)

136.04

133.35

　

Net Worth Ratio (%)

27.08

27.23

　

Recurring Profit Ratio (%)

2.25

2.38

　

Net Profit Ratio (%)

1.82

1.05

　

　

Return On Equity (%)

9.69

5.35

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.14

UK Pound

1

Rs.98.69

Euro

1

Rs.72.55

YEN

1

Rs.0.55

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

TRU

 

 

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.