MIRA INFORM REPORT

 

 

Report No. :

306265

Report Date :

03.02.2015

 

IDENTIFICATION DETAILS

 

Name :

AMADA CO LTD

 

 

Registered Office :

200 Ishida Isehara Kanagawa-Pref 259-1196

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014 (Consolidated)

 

 

Date of Incorporation :

01.05.1948

 

 

Com. Reg. No.:

(Kanagawa-Isehara) 020895

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Engaged in Manufacturing Metal Processing Machinery and Metal Processing Machine Tools

 

Subject product ranges includes:-

           

Sheet Metal Processing Machinery

Punching Machines, Laser Machines, Blending Machines, Welding Machines, Shearing Machines, General Fabrication Machines

 

Metal Processing Machine Tools

Band Saw Machines, Structural Steel Machines (Drilling Machines), Environment Related Products; Stamping Press, Machines For Cutting & Shaping Metal Blocks, Used to Process Precision Components, Tools & Dies

 

Others

Engaged in Real Estate Leasing

 

 

No of Employees :

Consolidated :7,956 (as of March 31,2014)

Non-Consolidated :2,521 (as of March 31,2014)

 

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 

 

ECGC Country Risk Classification List – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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

 

AMADA CO LTD

 

 

REGD NAME

 

KK Amada

 

 

MAIN OFFICE

 

200 Ishida Isehara Kanagawa-Pref 259-1196 JAPAN

 

Tel: 0463-96-1111     Fax: 0463-96-3281

 

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

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

 

 

ACTIVITIES

 

Engaged in Manufacturing Metal Processing Machinery and Metal Processing Machine Tools

 

Subject product ranges includes:-

           

Sheet Metal Processing Machinery

Punching Machines, Laser Machines, Blending Machines, Welding Machines, Shearing Machines, General Fabrication Machines

 

Metal Processing Machine Tools

Band Saw Machines, Structural Steel Machines (Drilling Machines), Environment Related Products; Stamping Press, Machines For Cutting & Shaping Metal Blocks, Used to Process Precision Components, Tools & Dies

 

Others

Engaged in Real Estate Leasing

 

 

BRANCHES

 

44 (domestic), 39 affiliates overseas


OVERSEAS

 

USA (4), Canada, Mexico, Europe (14), China (8), Taiwan, Korea, Thailand (2), Singapore (2), Malaysia, Vietnam, India (2), Australia (--subsidiaries)

 

 

FACTORIES

 

Fujinomiya, Odawara, Ono, Isehara

 

 

CHIEF EXEC 

 

MITSUO OKAMOTO, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                                         A/SALES          Yen 1256,482 M

PAYMENTSNo Complaints                CAPITAL           Yen 54,768 M

TREND UP                                            WORTH            Yen 417,002 M

     STARTED    1948                                         EMPLOYES      Consolidated:7,956 (as of March 31,2014)

Non-Consolidated:2,521 (as of March 31,2014)

 

 

COMMENT

 

MFR OF METAL WORKING MACHINERY.

 

      FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

163,153

6,757

2,716

(%)

375,159

(Consolidated)

31/03/2012

185,539

10,440

4,643

13.72

371,969

 

31/03/2013

190,018

9,074

4,126

2.41

385,102

 

31/03/2014

256,482

20,680

12,184

34.98

417,002

 

31/03/2015

275,000

30,000

18,000

7.22

..

                                 Unit: In Million Yen

                        Forecast (or estimated) figures for 31/03/2015 fiscal term

 

 

HIGHLIGHTS

           

This is a top-class mfr of metalworking machinery.  Once specialized in marketing, but leading merged Amada Machines, machine tool manufacturing arm in Oct 2003, and restarted production.  Largest maker of sheet metal processing machinery.  Aggressively engaged in overseas production.  The company plans to establish technical centers in India and Thailand by the end of March 2015 term.  It aims to turn the center in Thailand into a hub to adjacent countries, in view of future increase in demand.

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 256,482 million, a 35.0% up from Yen 190,018 million in the previous term.  The newly purchased Miyachi Corp added Yen 20 billion and Yen 500 million to sales and operating profit, respectively.  Sales of sheet metal processing machinery increased in the domestic market, mainly construction firms.  Orders advanced in North America, on the back of recovery in the markets.  The recurring profit was posted at Yen 20,680 million and the net profit at Yen 12,184 million, respectively, compared with Yen 9,074 million recurring profit and Yen 4,126 million net profit, respectively, a year ago

 

(Apr/Jun/2014 results): Sales Yen 51,342 million (up 13.8%), operating profit Yen 1,407 million (previously Yen 309 loss), recurring profit Yen 1,791 million (up 53.3%), net profit Yen 913 million (up 396.7%).  (% and figures compared with the corresponding period a year ago). 

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 30,000 million and the net profit at Yen 18,000 million, respectively, on a 7.2% rise in turnover, to Yen 275,000 million.  Sales of mainline sheet metal processing machinery are likely to show a favorable growth in the European and the Chinese markets, boosted by strong demand from the electrical and medical machine makers.  Orders will remain at a high level in North America, led by those for laser processing machines. 

           

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

 

 

REGISTRATION

 

Date Registered:  01 May 1948

Regd No.:         (Kanagawa-Isehara) 020895

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         550 million shares

Issued:             396,502,117 shares

Sum:                   Yen 54,768 million

 

Major shareholders (%): Japan Trustee Services T (10.5), Master Trust Bank of Japan T (6.5), Mizuho Bank (3.7), Company’s Treasury Stock (3.56), Trust & Custody Services, Trust (2.9), Amada Foundation (2.5), BNP Paribas Lux J Aberdeen G (2.3), Northern Trust (AVFC) (1.8), Nippon Life Ins (1.8), Joyo Bank (1.4); foreign owners (44.7)

 

No. of shareholders: 16,406

 

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

 

Managements: Mitsuo Okamoto, pres & CEO; Toshio Takagi, s/mgn dir; Tsutomu Isobe, s/mgn dir: Atsushige Abe, mgn dir; Kotaro Shibata, mgn dir; Takaya Shigeta, dir; Katsuhide Ito, dir

           

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

 

Related companies: Amada North America, Techno Wasino, Amada Prestech, Amada Cutting, Amada Machine Tool, other           

 

 

OPERATION

 

Activities: Manufactures metal processing machinery and metal processing machine tools

           

(Mfg Items):

 

Sheet Metal Processing Machinery (82%): punching machines, laser machines, blending machines, welding machines, shearing machines, general fabrication machines;

 

Metal Processing Machine Tools (17%): band saw machines, structural steel machines (drilling machines), environment related products; stamping press, machines for cutting & shaping metal blocks, used to process precision components, tools & dies, etc.

 

Others (1%): Real estate leasing, other

 

Overseas Sales Ratio (53%)

 

Clients: [Mfrs, wholesalers] Mitsui & Co, Toshiba Corp, Mitsubishi Electric, Fujitsu Ltd, Nippon Steel, Nissan Motors, Amada Lease, Amada USA, Amada Machine Tool, Amada Hong Kong, Amada Thailand, other.

 

            No. of accounts: 800

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Hitachi Metals, Fanuc Ltd, Metal One, Amada Soft  Services, Techno Washino, NCC Co, THK, Amada Tool Precision, Amada Engineering, NEC Fielding, Asahi Shoji Co, Sankou Denshi Co, other.

 

Payment record: No Complaints 

 

Location: Business area in Isehara City, Kanagawa-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Mizuho Bank (Shinjuku-Nishiguchi)

SMBC (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

 

256,482

190,018

 

  Cost of Sales

153,977

115,595

 

      GROSS PROFIT

102,505

74,423

 

  Selling & Adm Costs

86,280

69,798

 

      OPERATING PROFIT

16,225

4,625

 

  Non-Operating P/L

4,455

4,449

 

      RECURRING PROFIT

20,680

9,074

 

      NET PROFIT

12,184

4,126

BALANCE SHEET

 

 

 

 

  Cash

 

70,211

57,712

 

  Receivables

 

141,378

119,336

 

  Inventory

 

37,354

19,525

 

  Securities, Marketable

84,566

83,623

 

  Other Current Assets

22,930

20,845

 

      TOTAL CURRENT ASSETS

356,439

301,041

 

  Property & Equipment

126,294

118,437

 

  Intangibles

 

6,708

7,006

 

  Investments, Other Fixed Assets

63,288

68,965

 

      TOTAL ASSETS

552,729

495,449

 

  Payables

 

20,230

17,247

 

  Short-Term Bank Loans

30,015

18,143

 

 

 

 

 

 

  Other Current Liabs

67,748

53,106

 

      TOTAL CURRENT LIABS

117,993

88,496

 

  Debentures

 

 

200

 

  Long-Term Bank Loans

3,196

3,505

 

  Reserve for Retirement Allw

6,655

9,377

 

  Other Debts

 

7,882

8,769

 

      TOTAL LIABILITIES

135,726

110,347

 

      MINORITY INTERESTS

 

 

 

Common stock

54,768

54,768

 

Additional paid-in capital

163,270

163,199

 

Retained earnings

210,617

202,865

 

Evaluation p/l on investments/securities

(592)

(1,504)

 

Others

 

(2,218)

(25,042)

 

Treasury stock, at cost

(8,843)

(9,184)

 

      TOTAL S/HOLDERS` EQUITY

417,002

385,102

 

      TOTAL EQUITIES

552,729

495,449

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

 

25,980

3,379

 

Cash Flows from Investment Activities

-7,622

-15,867

 

Cash Flows from Financing Activities

2,360

-775

 

Cash, Bank Deposits at the Term End

 

88,537

63,847

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

 

Net Worth (S/Holders' Equity)

417,002

385,102

 

 

Current Ratio (%)

302.08

340.17

 

 

Net Worth Ratio (%)

75.44

77.73

 

 

Recurring Profit Ratio (%)

8.06

4.78

 

 

Net Profit Ratio (%)

4.75

2.17

 

 

Return On Equity (%)

2.92

1.07

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.88

UK Pound

1

Rs.93.27

Euro

1

Rs.69.94

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

MNL

 

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.