MIRA INFORM REPORT

 

 

Report No. :

329156

Report Date :

25.06.2015

 

IDENTIFICATION DETAILS

 

Name :

YOKOGAWA ELECTRIC CORPORATION

 

 

Registered Office :

2-9-32 Nakacho Musashino City Tokyo-Metrop 180-0006

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

December 1920

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of industrial instruments (control equipment, measuring instruments)

 

 

No of Employees :

19,667

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

Yen 9,946.9 Million

 

 

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 Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

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

 

YOKOGAWA ELECTRIC CORPORATION

 

 

REGD NAME

 

Yokogawa Denki KK

 

 

MAIN OFFICE

 

2-9-32 Nakacho Musashino City Tokyo-Metrop 180-0006 JAPAN

Tel: 0422-52-5555     Fax: 0422-52-0461     -

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of industrial instruments (control equipment, measuring instruments)

 

 

BRANCHES   

 

Nagoya, Osaka, Hiroshima, Kurashiki, Fukuoka, other (Tot 7)

 

 

OVERSEAS   

 

Europe (7), N/S Americas (8), Asia (9), Mid East (7), Africa (4), other

 

 

FACTORIES  

 

At the caption address, Kofu, Kanazawa, Akiruno, Ome, Nagano (Tot 6)

 

 

CHIEF EXEC

 

TAKASHI NISHIJIMA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 405,792 M

PAYMENTSREGULAR   CAPITAL           Yen 43,401 M

TREND UP                    WORTH            Yen 221,976 M

STARTED         1920                 EMPLOYES      19,667

 

 

COMMENT    

 

MFR OF INDUSTRIAL INSTRUMENTS

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 9,946.9 MILLION, 30 DAYS NORMAL TERMS

 

 

                        Unit: In Million Yen

Forecast figures for the 31/03/2016 fiscal term.

 

HIGHLIGHTS

 

This is the top-ranked mfr of industrial instruments, with control equipment and measuring instruments as 2 mainlines.  Boasts strong share in control equipment for petroleum, chemical, steel and other industrial plants.  Putting more emphasis on overseas business.  .

 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 405,792 million, a 4.5% up from Yen 388,463 million in the previous term.  Sales of mainstay control equipment for overseas grew.  The recurring profit was posted at Yen 33,366 million and the net profit at Yen 17,223 million, respectively, compared with Yen 25,679 million recurring profit and Yen 12,341 million net profit, respectively, a year ago.

 

            For the current term ending Mar 2016 the recurring profit is projected at Yen 30,000 million and the net profit at Yen 19,000 million, respectively, on a 1.78% rise in turnover, to Yen 413,000 million.  Sales will expand, assuming continued strong capital investment demand by main customer makers of downstream products for oil refineries and petrochemical plants, despite a sign of uncertainty under lower crude oil prices.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 9,946.9 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　                   Dec 1920

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              600 million shares

Issued:                         268,624,510 shares

Sum:                            Yen 43,401 million

 

Major shareholders (%): Master Trust Bank of Japan T (11.1), Dai-ichi Life Ins (5.8), Nippon Life Ins (5.0), Japan Trustee Services T (4.8), TCSB (Mizuho Bank) (4.0), Company’s Treasury Stock (4.1), Japan Trustee Services T9 (3.2), Company’s S/Holding Assn (3.0), JP Morgan Chase Bank 385078 (1.9), Juniper (1.1); foreign owners (27.0)

 

No. of shareholders:     21,360

 

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

 

Managements: Shuzo Kaihori, ch; Takashi Nishijima, pres; Satoru Kurosu, v pres; Hitoshi Nara, s/mgn dir; Masatoshi Nakahara, s/mgn dir; Jun’ichi Anabuki, mgn dir; Yasuro Tanahashi, dir; Mitsudo Urano, dir; Noritaka Uji, dir

 

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

 

Related companies: Yokogawa Mfg, other.

 

 

OPERATION

           

Activities: Manufactures industrial instruments: control equipment (87%), measuring instruments (7%), others (6%)

Overseas Sales Ratio (67%)

           

Clients: [Mfrs, wholesalers] Yokogawa & Co, Tokyo Denki Sangyo Co, Sumitomo Chem- ical, Shinkawa Electric, Sumisho Aero-Systems, Chiyoda Corp, other

No. of accounts: 800

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Yokogawa Mfg, Yokogawa Solution Service, Yokogawa   Electric Asia, Hitachi Ltd, other

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

                        Mizuho Bank (Ohtemachi)

                        Aozora Bank (H/O)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

405,792

388,463

　

  Cost of Sales

236,578

229,256

　

      GROSS PROFIT

169,214

159,206

　

  Selling & Adm Costs

139,395

133,313

　

      OPERATING PROFIT

29,818

25,893

　

  Non-Operating P/L

3,548

-214

　

      RECURRING PROFIT

33,366

25,679

　

      NET PROFIT

17,223

12,341

BALANCE SHEET

　

　

  Cash

　

76,093

57,296

　

  Receivables

143,133

135,053

　

  Inventory

33,258

34,443

　

  Securities, Marketable

　

　

　

  Other Current Assets

18,011

13,191

　

      TOTAL CURRENT ASSETS

270,495

239,983

　

  Property & Equipment

84,252

82,616

　

  Intangibles

26,163

26,245

　

  Investments, Other Fixed Assets

59,047

50,076

　

      TOTAL ASSETS

439,957

398,920

　

  Payables

34,994

32,461

　

  Short-Term Bank Loans

24,373

19,286

　

　

　

　

　

  Other Current Liabs

105,206

84,086

　

      TOTAL CURRENT LIABS

164,573

135,833

　

  Debentures

　

　

　

  Long-Term Bank Loans

40,898

62,120

　

  Reserve for Retirement Allw

4,100

2,895

　

  Other Debts

　

8,410

5,966

　

      TOTAL LIABILITIES

217,981

206,814

　

      MINORITY INTERESTS

　

　

Common stock

43,401

43,401

　

Additional paid-in capital

50,344

50,344

　

Retained earnings

114,638

100,470

　

Evaluation p/l on investments/securities

15,325

8,590

　

Others

9,287

316

　

Treasury stock, at cost

(11,019)

(11,015)

　

      TOTAL S/HOLDERS` EQUITY

221,976

192,106

　

      TOTAL EQUITIES

439,957

398,920

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

38,293

30,107

　

Cash Flows from Investment Activities

-1,844

-13,884

　

Cash Flows from Financing Activities

-20,163

-21,596

　

Cash, Bank Deposits at the Term End

　

74,722

55,857

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

221,976

192,106

　

Current Ratio (%)

164.36

176.68

　

Net Worth Ratio (%)

50.45

48.16

　

Recurring Profit Ratio (%)

8.22

6.61

　

Net Profit Ratio (%)

4.24

3.18

　

　

Return On Equity (%)

7.76

6.42

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 63.66

UK Pound

1

Rs. 100.50

Euro

1

Rs. 71.31

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

DPT

 

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.