MIRA INFORM REPORT

 

 

Report No. :

324631

Report Date :

26.05.2015

 

IDENTIFICATION DETAILS

 

Name :

YKB CORPORATION

 

 

Registered Office :

World Trade Center Bldg, 2-4-1Hamamatsucho Minatoku Tokyo 105-0013

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

November 1948 

 

 

Com. Reg. No.:

0104-01-07296 (Tokyo-Minatoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufactures hydraulic components, shock absorbers, hydraulic equipment, automotive components, others: automotive components, hydraulic components

 

 

No. of Employee :

13,754

 

 

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

 

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 – 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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 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. The government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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

 

YKB CORPORATION (Changed Corporate Name)

 

REGD NAME:               Kayaba Kogyo KK

MAIN OFFICE:              World Trade Center Bldg, 2-4-1Hamamatsucho Minatoku Tokyo 105-0013

                                    JAPAN

                                    Tel: 03-3435-3511          Fax: 03-3436-6759

 

                        *.. Changed in 01/Oct/2005 from Kayaba Industry Ltd, as given     -

 

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

E-Mail address:             (thru the URL)

 

 

ACTIVITIES

 

Mfg of hydraulic equipment including cylinders

 

 

BRANCHES

 

Nagoya, Osaka, Hiroshima, Fukuoka, other (Tot 10)

 

 

OVERSEAS

 

Asia (24), Europe (16), Americas (8)

 

 

FACTORIES

 

Sagamihara, Fukaya, Gifu (3)

 

 

CHIEF EXEC

 

MASAO USUI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 370,425 M

PAYMENTS      REGULAR         CAPITAL           Yen 27,647 M

TREND             UP                    WORTH            Yen 174,258 M

STARTED         1948                 EMPLOYES      13,754

 

 

COMMENT

 

MFR OF HYDRAULIC EQUIPMENT

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

 

Unit: In Million Yen

Forecast figures for the 31/10/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is the leading mfr of hydraulic equipment including cylinders.  Branched out into various fields, with world-level hydraulic shock absorbers for autos as core products.  Highly competitive in aircraft- and motorcycle-use absorbers, and to-ranked maker of construction machinery-use cylinders. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 370,425 million, a 5.0% up from Yen 352,710 million in the previous term.  Sales of automobile-use shock absorbers expanded on overseas markets.  The recurring profit was posted at Yen 15,852 million and the net profit at Yen 7,052 million, respectively, compared with Yen 20,390 million recurring profit and Yen 12,761 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 14,400 million and the net profit at Yen 9,200 million, respectively, on a 1.8% rise in turnover, to Yen 377,000 million. 

 

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

 

 

REGISTRATION

           

Date Registered:　       Nov 1948

Regd No.:                     0104-01-07296 (Tokyo-Minatoku)

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                  491,955,000 shares

Issued:                         257,484,315 shares

Sum:                            Yen 27,647 million

 

Major shareholders (%): Toyota Motor (7.6), Northern Trust (AVFC) Re 15PCT T (4.4), Master Trust Bank of Japan T (4.2), Meiji Yasuda Life Ins (3.9), Hitachi Construction Machinery (3.4), Co-op Companies’ S/Holding Assn (2.3), TCSB (Mizuho Bank) (2.3), Ogaki Kyoritsu Bank (2.2), Juniper Networks Inc (2.1), Japan Trustee Services T (2.1); foreign owners (21.7)

 

No. of shareholders: 14,991

 

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

 

Managements: Masao Usui, pres; Kazuhisa Ikenoya, v pres; Akiyoshi Tanaka, v pres; Yasusuke Nakajima, s/mgn dir; Keisuke Saito, s/mgn dir; Morio Komiya, s/mgn dir; Tadahiko Ozawa, dir

 

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

 

Related companies: KYB America Corp, KYB System Machinery, other.

 

 

OPERATION

 

Activities: Manufactures hydraulic components, shock absorbers, hydraulic equipment, automotive components, others: automotive components (64.0), hydraulic components (26.3), others (9.7)

Overseas Sales Ratio (52%)

           

Clients: [Mfrs, wholesalers] Hitachi Construction Machinery, Sumitomo Construction        Machinery, KYB America, Kayo Works, Aichi Corp, Taiyo Co, Kubota Corp, other

No. of accounts: 800

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] KYB-YS, Taiyo Co, Kato Metech, Murakoshi Mfg, Chita Kogyo, KSD, Fine-Sinter Co, Gosho Works, other

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Ohtemachi)

MUFG (Shimbashi)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

370,425

352,710

　

  Cost of Sales

299,603

282,465

　

      GROSS PROFIT

70,822

70,245

　

  Selling & Adm Costs

57,230

52,074

　

      OPERATING PROFIT

13,591

18,170

　

  Non-Operating P/L

2,261

2,220

　

      RECURRING PROFIT

15,852

20,390

　

      NET PROFIT

7,052

12,761

BALANCE SHEET

　

　

  Cash

　

31,752

39,505

　

  Receivables

91,249

86,443

　

  Inventory

47,125

46,576

　

  Securities, Marketable

　

　

　

  Other Current Assets

14,733

13,524

　

      TOTAL CURRENT ASSETS

184,859

186,048

　

  Property & Equipment

163,910

147,636

　

  Intangibles

1,976

2,170

　

  Investments, Other Fixed Assets

34,184

25,229

　

      TOTAL ASSETS

384,929

361,083

　

  Payables

64,991

62,584

　

  Short-Term Bank Loans

46,785

44,206

　

　

　

　

　

  Other Current Liabs

37,699

39,956

　

      TOTAL CURRENT LIABS

149,475

146,746

　

  Debentures

　

　

　

  Long-Term Bank Loans

42,623

41,395

　

  Reserve for Retirement Allw

6,011

9,949

　

  Other Debts

　

12,562

8,995

　

      TOTAL LIABILITIES

210,671

207,085

　

      MINORITY INTERESTS

　

　

Common stock

27,647

27,647

　

Additional paid-in capital

29,543

29,543

　

Retained earnings

81,066

78,323

　

Evaluation p/l on investments/securities

9,671

4,354

　

Others

26,904

14,695

　

Treasury stock, at cost

(573)

(565)

　

      TOTAL S/HOLDERS` EQUITY

174,258

153,997

　

      TOTAL EQUITIES

384,929

361,083

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

21,123

28,788

　

Cash Flows from Investment Activities

-29,425

-36,078

　

Cash Flows from Financing Activities

-580

5,708

　

Cash, Bank Deposits at the Term End

　

30,510

38,132

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

174,258

153,997

　

Current Ratio (%)

123.67

126.78

　

Net Worth Ratio (%)

45.27

42.65

　

Recurring Profit Ratio (%)

4.28

5.78

　

Net Profit Ratio (%)

1.90

3.62

　

　

Return On Equity (%)

4.05

8.29

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.62

UK Pound

1

Rs.96.51

Euro

1

Rs.69.93

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.