MIRA INFORM REPORT

 

 

Report No. :

330379

Report Date :

03.07.2015

 

IDENTIFICATION DETAILS

 

Name :

AXISMATERIA LTD

 

 

Registered Office :

Ono Kogyo Danchi, 1 Takumidai Ono City Hyogo-Pref 675-1322

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

August 2000

 

 

Com. Reg. No.:

1400-01-096577

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacture carbide blanks for round cutting tools, automobile, other (--100%)

 

 

No. of Employees :

120

 

 

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 second-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

 

AXISMATERIA LTD

 

REGD NAME:   KK Axismateria

MAIN OFFICE:  Ono Kogyo Danchi, 1 Takumidai Ono City Hyogo-Pref 675-1322 JAPAN

                                    Tel: 0794-62-8535      Fax: 0794-62-8536

 

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

E-Mail address: (thru the URL)

 

ACTIVITIES:     Mfg of carbide blanks, other

BRANCHES:     Nil

FACTORIES:    At the caption address

 

OFFICERS:       TAKAAKI KAWAMOTO, PRES   Akihiko Yamamura, dir

                        Eiichi Matsumoto dir                  Nobuyuki Kitagawa, dir

                        Makoto Ushijima, dir                  Kazuo Yamagata, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 11,054 M

PAYMENTSREGULAR               CAPITAL           Yen 490 M

TREND STREADY                     WORTH            Yen 4,947 M     

STARTED         2000                             EMPLOYES      120

 

COMMENT:      MFR OF CARBIDE BLANKS, OTHER. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established jointly with Sumitomo Electric Hardmetal and ALMT Corp.  This is a special mfr of carbide blanks for round cutting tools, such as drills and endmills.  Goods are exported to USA, Korea, China, other.  Clients include machine tool makers, other

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 11,054 million, a 15% up from

Yen 9,574 million in the previous term.  The recurring profit was posted at Yen 1,671 million and the net profit at Yen 1,020 million, respectively, compared with Yen 902 million recurring profit and Yen 566 million net profit, respectively, a year ago.

 

For the term ended Mar 2015 the recurring profit was projected at Yen 1,750 million and the net profit at Yen 1,065 million, respectively, on a 5% rise in turnover, to Yen 11,610 million.  Final results are yet to be released.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 524.1 million, on 30 days normal terms.

 

 

REGISTRATION

    

Date Registered:                                   Aug 2000

Regd No.:                                             1400-01-096577 (Hyogo-Ono)

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              39,200 shares

Issued:                                     9,800 shares

Sum:                                        Yen 490 million

Major shareholders (%):                       Sumitomo Electric Hardmetal Co 60), ALMT Corp (40)

No. of shareholders:                             2

 

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

 

 

OPERATION

           

Activities: Manufacture carbide blanks for round cutting tools, automobile, other (--100%)

 

Clients: [Mfrs, wholesalers] Sumitomo Electric Hardmetal (50%), other to machine tools makers nationwide

Exports to USA, Korea, China, other 

No. of accounts: 350

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Hokkaido Sumiden Precision (65%), Sumitomo Electric Hardmetal (20%), Kobe Steel, IHI Corp, other

 

Payment record: Regular

 

Location: Business area in Ono City, Hyogo-Pref.  Office premises at the caption address are leased and maintained satisfactorily.

 

Bank References:

SMBC (Osaka)

Minato Bank (Ono)

Relations: Satisfactory

 

 


FINANCES

 

(In Million Yen)

 Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

11,610

11,054

9,574

11,795

Recur. Profit

 

1,750

1,671

902

 

Net Profit

 

1,065

1,020

566

1,059

Total Assets

 

 

7,326

6,135

6,914

Current Assets

 

 

4,185

2,765

 

Current Liabs

 

 

2,363

1,599

 

Net Worth

 

 

4,947

4,521

4,386

Capital, Paid-Up

 

 

490

490

490

Div.Ttl in Million (¥)

 

 

343.98

396.90

822.22

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.03

15.46

-18.83

7.71

    Current Ratio

 

..

177.11

172.92

..

    N.Worth Ratio

 

..

67.53

73.69

63.44

    R.Profit/Sales

 

15.07

15.12

9.42

..

    N.Profit/Sales

 

9.17

9.23

5.91

8.98

    Return On Equity

 

..

20.62

12.52

24.15

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.57

UK Pound

1

Rs.99.20

Euro

1

Rs.70.35

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.