MIRA INFORM REPORT

 

 

Report No. :

333711

Report Date :

27.07.2015

 

IDENTIFICATION DETAILS

 

Name :

AMADA CO LTD

 

 

Registered Office :

200 Ishida Isehara Kanagawa-Pref 259-1196

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

May 1948

 

 

Com. Reg. No.:

(Kanagawa-Isehara) 020895

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufactures metal processing machinery and metal processing machine tools, others

 

 

No. of Employee :

7,956

 

 

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

 

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

 

Mfg of metal working machinery

 

 

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

PAYMENTSREGULAR   CAPITAL           Yen 54,768 M

TREND UP                    WORTH            Yen 417,002 M

STARTED         1948                 EMPLOYES      7,956

 

 

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.  Max credit limit is estimated at Yen 9,680.6 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:                       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, others

           

(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: Regular

 

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.63.89

UK Pound

1

Rs.99.10

Euro

1

Rs.70.12

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ANK

 

 

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.