MIRA INFORM REPORT

 

 

Report No. :

349406

Report Date :

07.11.2015

 

IDENTIFICATION DETAILS

 

Name :

YAMAZEN CORPORATION

 

 

Registered Office :

2-3-16 Itachibori Nishiku Osaka 550-8660

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

May, 1947

 

 

Com. Reg. No.:

1200-01-049040 (Osaka-Nishiku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, Export and Wholesale of Machine Tools, Housing Equipment.

 

 

No. of Employees :

2,725

 

 

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 – 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

 

YAMAZEN CORPORATION

 

REGD NAME:               KK Yamazen

 

MAIN OFFICE:              2-3-16 Itachibori Nishiku Osaka 550-8660 JAPAN

                                                Tel: 06-6534-3021     Fax: 06-637-2105

 

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

E-Mail address:                        info@yamazen.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of machine tools, housing equipment

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya, Hiroshima, Fukuoka, other (Tot 54)

 

 

OVERSEAS

 

Yamazen Inc (USA), Yamazen Co Ltd (Taiwan), Yamazen (Singapore) Pte Ltd, Yamazen (Malaysia) Sdn Bhd, Yamazen (Thailand), Yamazen Thai Engineering Co Ltd (Thailand), Manila, other. (Consolidated subsidiaries) Plustech Inc (USA), PT Yamazen Indonesia, Yamazen Machinery & Tools India Pte Ltd, Yamazen (Shanghai) Trading Co Ltd, Yamazen (Shenzhen) Trading Co Ltd, Yamazen (Korea) Ltd, other.  (Non-consolidated subsidiaries). (Total 21 subsidiaries & 67 offices)

 

 

CHIEF EXEC

 

MEGURU NAKATA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES                      Yen 435,803 M

PAYMENTS      REGULAR                     CAPITAL                       Yen 7,909 M

TREND STEADY                       WORTH                        Yen 65,148 M

STARTED         1947                             EMPLOYES                  2,725

 

 

COMMENT

 

TRADING HOUSE SPECIALIZING IN MACHINE TOOLS.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

         Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2016 fiscal term

 

 

HIGHLIGHTS

           

This is a leading specialized trader of machinery & tools, particularly strong in machine tools, founded by Takeo Yamamoto. Also deals in housing-related equipment and materials. Emphasis placed on expansion of new business areas of high-tech machinery & systems, such as industrial robots and OA equipment.  Fostering eco-related products and solar power system. The company is actively developing health equipment and other products for active seniors. Also engaged in sales of environmental-friendly equipment such as photovoltaic power generation systems. Expanding sales among local firms in China, EMS in Taiwan and sales of industrial machinery in ASEAN countries.

 

           

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 435.803 million, a 10.3% up from Yen 395,249 million in the previous term.  The recurring profit was posted at Yen 13,330 million and the net profit at Yen 5,851 million, respectively, compared with Yen 9,838 million recurring profit and Yen 5,515 million net profit, respectively, a year ago. 

 

(Apr/Jun/2015 results): Sales Yen 110,559 million (up 16.7%), operating profit Yen 3,121 million (up 99.6%), recurring profit Yen 3,234 million (up 94.9%), net profit Yen 2,030 million (up 92.0%).  (% compared with the corresponding period a year ago).

           

For the current term ending Mar 2016 the recurring profit is projected at Yen 13,500 million and the net profit at Yen 8,500 million, respectively, on a 2.1% rise in turnover, to Yen 445,000 million. Sales of machine tools for the automobile industry and for EMS in Taiwan and China will increase.

 

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

 

 

REGISTRATION

 

            Date Registered:  May 1947

            Regd No.:            1200-01-049040 (Osaka-Nishiku)

            Legal Status:       Limited Company (Kabushiki Kaisha)

            Authorized:         200 million shares

            Issued:                93,840,310 shares

            Sum:                   Yen 7,909 million

           

Major shareholders (%):Customers’ S/Holding Assn Osaka (9.2), Customers’ S/Holding Assn Tokyo (6.0), DMG Mori Seiki (3.7), Mizuho Bank (3.4), Employees’ Stock Investment (3.4), Resona Bank (3.2), Master Trust Bank of Japan T (2.9), Customers’ S/Holding Assn Nagoya (2.5), Japan Trustee Services T (1.7), Customers’ S/Holding Assn Kyushu (1.4); foreign owners (13.4)

 

No. of shareholders: 4,869

 

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

 

Managements: Tohru Yoshii, ch; Meguru Nakata, pres; Masami Yamamoto, v pres; Ryuji Kakekawa, s/mgn dir; Hiroshi Fukuda, mgn dir; Nobuo Sekiya, mgn dir; Taichi Aso, mgn dir; Yuji Nagao, mgn dir; Toshiyasu Noumi, dir; Shigeru Sunayama dir

           

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

 

Related companies: Yamazen Create, Yamazen Logistics, Yamazen Inc (USA), Yamazen General Service Corp, Yamazen Co Ltd (Taiwan), other        

 

 

OPERATION

           

Activities: Trading house for import, export and wholesale of machine tools, industrial tools & equipment, MRO internet purchase, housing/construction equipment & materials, house products, others (--100%)

 

(Sales breakdown by divisions):

Domestic Production Equipment (44%), Overseas Producer Goods (19%), Housing

Construction Materials (16%), Household Equipment (19%), others (3%)

Overseas Sales Ratio (19%)

 

Clients: [DIY goods chains, mfrs, wholesalers] Nishikawa Sangyo, Iwase Sangyo, Toyo Corp, Keiyo Co,  Shimachu Co, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Brother Ind, Daikin Ind, DMG Mori Precision, Panasonic Corp, Okuma Corp, OSG  Corp, other.

 

Payment record: Regular

 

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

 

Bank References:

            Mizuho Bank (Osaka)

            Resona Bank (Osaka)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

435,803

395,249

　

  Cost of Sales

379,721

345,041

　

      GROSS PROFIT

56,081

50,208

　

  Selling & Adm Costs

42,951

40,645

　

      OPERATING PROFIT

13,130

9,562

　

  Non-Operating P/L

200

276

　

      RECURRING PROFIT

13,330

9,838

　

      NET PROFIT

5,851

5,515

BALANCE SHEET

　

　

  Cash

　

37,810

30,631

　

  Receivables

101,998

96,949

　

  Inventory

21,532

18,062

　

  Securities, Marketable

9,000

6,500

　

  Other Current Assets

6,247

3,728

　

      TOTAL CURRENT ASSETS

176,587

155,870

　

  Property & Equipment

7,353

10,104

　

  Intangibles

2,318

1,788

　

  Investments, Other Fixed Assets

14,043

11,326

　

      TOTAL ASSETS

200,301

179,088

　

  Payables

113,551

105,232

　

  Short-Term Bank Loans

11,750

2,227

　

　

　

　

　

  Other Current Liabs

4,983

11,439

　

      TOTAL CURRENT LIABS

130,284

118,898

　

  Debentures

　

　

　

  Long-Term Bank Loans

　

　

　

  Reserve for Retirement Allw

2,609

3,052

　

  Other Debts

　

2,260

1,231

　

      TOTAL LIABILITIES

135,153

123,181

　

      MINORITY INTERESTS

　

　

Common stock

7,909

7,909

　

Additional paid-in capital

6,081

6,081

　

Retained earnings

44,165

40,332

　

Evaluation p/l on investments/securities

4,846

2,769

　

Others

2,163

(1,169)

　

Treasury stock, at cost

(16)

(16)

　

      TOTAL S/HOLDERS` EQUITY

65,148

55,906

　

      TOTAL EQUITIES

200,301

179,088

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

12,575

9,677

　

Cash Flows from Investment Activities

422

-373

　

Cash Flows from Financing Activities

-5,260

-3,995

　

Cash, Bank Deposits at the Term End

　

46,799

37,110

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

65,148

55,906

　

Current Ratio (%)

135.54

131.10

　

Net Worth Ratio (%)

32.53

31.22

　

Recurring Profit Ratio (%)

3.06

2.49

　

Net Profit Ratio (%)

1.34

1.40

　

　

Return On Equity (%)

8.98

9.86

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.79

UK Pound

1

Rs.99.95

Euro

1

Rs.71.55

 

INFORMATION DETAILS

 

Analysis Done by :

HEE

 

 

Report Prepared by :

NIT

 

               

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.