MIRA INFORM REPORT

 

 

Report No. :

301788

Report Date :

17.01.2015

 

IDENTIFICATION DETAILS

 

Name :

RHEON AUTOMATIC MACHINERY CO LTD

 

 

Registered Office :

2-3 Nozawa Utsunomiya Tochigi-Pref 320-0071

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

March 1963

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturing of food processing machines

 

 

No. of Employees :

1,030

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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 and address

 

RHEON AUTOMATIC MACHINERY CO LTD

 

REGD NAME:    Rheon Jidoki KK

MAIN OFFICE:  2-3 Nozawa Utsunomiya Tochigi-Pref 320-0071 JAPAN

                                    Tel: 028-665-1111     Fax: 028-665-3256     -

 

URL:                 http://www.rheon.com

E-Mail address: info@rheon.com

 

 

ACTIVITIES

 

Mfg of food processing machines

 

 

BRANCHES

 

Tokyo, Nagoya, Suita, Fukuoka, other (Tot10)

 

 

OVERSEAS

 

USA, Germany, Taiwan, China

 

 

FACTORIES

 

At the caption address; Utsunomiya (2); USA

 

 

CHIEF EXEC

 

YASUNORI TASHIRO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 21,284 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 7,351 M

TREND             UP                                WORTH        Yen 15,335 M

STARTED         1963                             EMPLOYES      1,030

 

 

COMMENT    

 

MFR OF FOOD PROCESSING MACHINES 

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 largest food processing machine producer.  Leading industry with prepared food-production systems developed in-house.  Started out in 1963 as incrusting machinery maker applying rheology method.  Holstering bread baking business in the US, where the factory is operated.  Stressing overseas operations.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 21,284 million, a 24% up from Yen 17,162 million in the previous term.  Orders for high-priced bread baking lines expanded in Japan.  Sales were well in Asia, and grew in North America and Europe in the second half.  The bread baking business in the US rose, aided by increase in sales volume and the Yen depreciation.  The recurring profit was posted at Yen 2,118 million and the net profit at Yen 1,789 million, respectively, compared with Yen 993 million recurring profit and Yen 275 million net losses, respectively, a year ago.

 

(Apr/Sept/2014 results): Sales Yen 11,082 million (up 1.8%), operating profit Yen 814 million (down 33.7%), recurring profit Yen 908 million (down 29.4%), net profit Yen 671 million (down 38.8%).  (% as compared with the corresponding period a year ago).

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 1,700 million and the net profit at Yen 1,300 million, respectively, on a 1.3% fall in turnover, to Yen 21,000 million. 

 

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

 

 

REGISTRATION

           

Date Registered:　Mar 1963

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       42.8 million shares

Issued:                28,393,000 shares

Sum:                   Yen 7,351 million

 

Major shareholders (%): Hayashi M.F. For Rheology (10.6), Japan Trustee Services T (8.0), Futaba Kikaku (6.7), Ramu Shoji (6.0), Customers’ S/Holding Assn (5.5), Ashikaga Bank (4.4), Employees’ S/Holding Assn (3.4), Mizuho Bank (2.7), Master Trust Bank of Japan T (2.6), Tochigi Bank (2.3); foreign owners (2.7)

 

No. of shareholders: 2,306

 

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

 

Managements: Yasunori Tashiro, pres; Michio Morikawa, s/mgn dir; Toshiaki Yamasaki, mgn dir; Akiyoshi Nakao, dir; Koreyuki Haishi, dir; Yoshio Katayama, dir; Masato Nezu, dir

 

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

 

Related companies: Rheon USA, Orange Bakery, Rheon Automatic Machinery GmbH, Rheon Automatic Machinery Asia, other.

 

 

OPERATION

           

Activities: Manufactures food processing machines (71%), food manufacturing (29%).

Overseas Sales Ratio (54%)

           

Clients: [Mfrs, wholesalers] Rheon Europe, Yamazaki Baking Co, Rheon USA, Lotte Service, Rheon Asia, Rheon France, Meiji Holdings, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Revent International AB, UEX, SMC, Ryoden Trading Co, Takatsu Corp,other

 

Payment record No complaints

 

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

 

Bank References:

                        Ashikaga Bank (H/O)

                        Mizuho Bank (Utsunomiya)

                        Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

　

　

  Annual Sales

　

21,284

17,162

　

  Cost of Sales

11,475

9,370

　

      GROSS PROFIT

9,809

7,792

　

  Selling & Adm Costs

7,781

6,871

　

      OPERATING PROFIT

2,028

920

　

  Non-Operating P/L

90

73

　

      RECURRING PROFIT

2,118

993

　

      NET PROFIT

1,789

-275

BALANCE SHEET

 

 

　

　

  Cash

　

2,442

1,953

　

  Receivables

 

3,076

3,081

　

  Inventory

 

7,738

3,629

　

  Securities, Marketable

　

　

　

  Other Current Assets

(3,479)

236

　

      TOTAL CURRENT ASSETS

9,777

8,899

　

  Property & Equipment

11,519

11,208

　

  Intangibles

 

191

106

　

  Investments, Other Fixed Assets

1,051

967

　

      TOTAL ASSETS

22,538

21,180

　

  Payables

 

659

506

　

  Short-Term Bank Loans

1,152

3,395

　

　

 

　

　

　

  Other Current Liabs

2,502

1,955

　

      TOTAL CURRENT LIABS

4,313

5,856

　

  Debentures

 

　

　

　

  Long-Term Bank Loans

1,698

601

　

  Reserve for Retirement Allw

　

　

　

  Other Debts

　

1,191

1,122

　

      TOTAL LIABILITIES

7,202

7,579

　

      MINORITY INTERESTS

 

　

　

Common stock

7,351

7,351

　

Additional paid-in capital

7,060

7,060

　

Retained earnings

7,468

5,842

　

Evaluation p/l on investments/securities

87

45

　

Others

 

(6,457)

(6,528)

　

Treasury stock, at cost

(174)

(169)

　

      TOTAL S/HOLDERS` EQUITY

15,335

13,601

　

      TOTAL EQUITIES

22,538

21,180

CONSOLIDATED CASH FLOWS

 

　

　

 

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

2,797

1,641

　

Cash Flows from Investment Activities

-1,047

-491

　

Cash Flows from Financing Activities

-1,446

-1,210

　

Cash, Bank Deposits at the Term End

　

2,442

1,953

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

 

Net Worth (S/Holders' Equity)

15,335

13,601

　

 

Current Ratio (%)

226.69

151.96

　

 

Net Worth Ratio (%)

68.04

64.22

　

 

Recurring Profit Ratio (%)

9.95

5.79

　

 

Net Profit Ratio (%)

8.41

-1.60

　

　

Return On Equity (%)

11.67

-2.02

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.89

UK Pound

1

Rs.93.92

Euro

1

Rs.72.01

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIS

 

               

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.