MIRA INFORM REPORT
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Report No. : |
305022 |
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Report Date : |
07.02.2015 |
IDENTIFICATION DETAILS
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Name : |
ADVAN CO LTD |
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Registered Office : |
4-32-14 Jingumae Shibuyaku Tokyo 150-0001 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
March 1975 |
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Legal Form : |
Limited Company |
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Line of Business : |
Subject is a Fabless Mfr of Building Materials: Stones, Granite, Marbles, Tiles, Floorings, Gardening-Related Products (93%), Others (7%) |
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No. of Employees : |
305 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source
: CIA |
Company
name & address
ADVAN
CO LTD
REGD
NAME
KK Advan
MAIN
OFFICE
4-32-14 Jingumae
Shibuyaku Tokyo 150-0001 JAPAN
Tel:
03-3475-0281
Fax:
03-3475-0280 -
URL: http://www.advan.co.jp
E-Mail address: (thru the URL)
ACTIVITIES: Fabless
mfr of building materials (stones, granite, tiles, other)
BRANCHES: Osaka,
Nagoya, Fukuoka, other (Tot 7)
FACTORIES: (Fabless;
imported)
CHIEF EXEC: MASANOSUKE
YAMAGATA, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen
16,394 M
PAYMENTS NO COMPLAINTS CAPITAL Yen
12,500 M
TREND UP WORTH Yen
26,682 M
STARTED 1975 EMPLOYES 305
COMMENT: FABLESS MFR OF BUILDING MATERIALS 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 a fabless maker of building materials, with imported building
stones as mainstay. Stone products are
processed into standardized sizes by Italian, French and other overseas
makers. Also spurring sales of new
building materials & gardening-related products. Operates own distribution centers.
FINANCIAL
INFORMATION
The sales volume for Mar/2014 fiscal term amounted to Yen 16,394
million, a 6.4% up from Yen 15,413 million in the previous term. The recurring profit was posted at Yen 4,042
million and the net profit at Yen 2,527 million, respectively, compared with
Yen 4,611 million recurring profit and Yen 2,714 million net profit,
respectively, a year ago.
For the current term ending Mar 2015 the recurring profit is projected
at Yen 4,300 million and the net profit at Yen 2,600 million, respectively, on
a 4.9% rise in turnover, to Yen 17,200 million.
Sales of construction materials for commercial facilities and stores
will be robust.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 500.4 million, on 30 days normal terms.
REGISTRATION
Date Registered: Mar 1975
Legal Status: Limited
Company (Kabushiki Kaisha
Authorized:
81 million shares
Issued: 26,906.340
shares
Sum: Yen
12,500 million
Major
shareholders (%): Fuji Sogyo Corp (30.7), Company’s Treasury Stock (24.9), Masako Yabuta
(2.9), Masanosuke Yamagata (2.8), Japan Trustee Services T (1.8), Yamagata
Brothers Ltd (1.7), Japan Trustee Services T4 (1.7), Yoshinosuke Yamagata
(1.7), Master Trust Bank of Japan T (1.6), Masaji Yamagata (1.3); foreign
owners (2.5)
No.
of shareholders: 4,100
Listed on the S/Exchange (s) of: Tokyo
Managements: Masanosuke
Yamagata, pres; Hiroaki Suetsugu, v pres; Masaru Hayashi, dir; Yoshinosuke
Yamagata, dir; Tomomichi Yamagata, dir
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Fabless mfr of
building materials: stones, granite, marbles, tiles, floorings,
gardening-related products (93%), others (7%)
Clients: [Mfrs, wholesalers]
Kajima Corp, Tokyu Construction, Daiwa House Ind, Orient Trading, Shimizu Corp, other
No. of accounts:
350
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] Materials are imported
from Italy, France, USA, made into standardized
sizes.
Payment record: No Complaints
Location: Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
Mizuho Bank
(Aoyama)
SMBC (Aoyama)
Relations:
Satisfactory
FINANCES
(In Million
Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME STATEMENT |
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Annual Sales |
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16,394 |
15,413 |
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Cost of Sales |
8,284 |
7,839 |
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GROSS PROFIT |
8,109 |
7,573 |
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Selling & Adm Costs |
4,089 |
3,794 |
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OPERATING PROFIT |
4,020 |
3,779 |
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Non-Operating P/L |
22 |
832 |
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RECURRING PROFIT |
4,042 |
4,611 |
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NET PROFIT |
2,527 |
2,714 |
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BALANCE SHEET |
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Cash |
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5,126 |
7,458 |
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Receivables |
3,823 |
4,224 |
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Inventory |
2,930 |
2,453 |
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Securities, Marketable |
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Other Current Assets |
1,671 |
1,044 |
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TOTAL CURRENT ASSETS |
13,550 |
15,179 |
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Property & Equipment |
18,933 |
18,304 |
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Intangibles |
283 |
75 |
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Investments, Other Fixed Assets |
4,040 |
3,571 |
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TOTAL ASSETS |
36,806 |
37,129 |
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Payables |
395 |
678 |
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Short-Term Bank Loans |
1,785 |
1,031 |
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Other Current Liabs |
2,462 |
6,290 |
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TOTAL CURRENT LIABS |
4,642 |
7,999 |
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Debentures |
1,400 |
1,500 |
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Long-Term Bank Loans |
3,002 |
2,786 |
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Reserve for Retirement Allw |
38 |
33 |
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Other Debts |
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1,041 |
768 |
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TOTAL LIABILITIES |
10,123 |
13,086 |
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MINORITY INTERESTS |
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Common
stock |
12,500 |
12,500 |
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Additional
paid-in capital |
2,230 |
2,230 |
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Retained
earnings |
15,240 |
13,423 |
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Evaluation
p/l on investments/securities |
(44) |
59 |
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Others |
2,412 |
1,349 |
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Treasury
stock, at cost |
(5,656) |
(5,518) |
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TOTAL S/HOLDERS` EQUITY |
26,682 |
24,043 |
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TOTAL EQUITIES |
36,806 |
37,129 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash
Flows from Operating Activities |
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2,862 |
2,689 |
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Cash
Flows from Investment Activities |
1,017 |
205 |
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Cash
Flows from Financing Activities |
-3,977 |
-364 |
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Cash,
Bank Deposits at the Term End |
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5,087 |
4,265 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
26,682 |
24,043 |
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Current
Ratio (%) |
291.90 |
189.76 |
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Net
Worth Ratio (%) |
72.49 |
64.76 |
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Recurring
Profit Ratio (%) |
24.66 |
29.92 |
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Net
Profit Ratio (%) |
15.41 |
17.61 |
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Return
On Equity (%) |
9.47 |
11.29 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.74 |
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1 |
Rs.94.65 |
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Euro |
1 |
Rs.70.79 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.