MIRA INFORM REPORT

 

 

Report No. :

345573

Report Date :

15.10.2015

 

IDENTIFICATION DETAILS

 

Name :

AMADA CO LTD (AMADA HOLDINGS 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 :

Manufacturer of Metal Working Machinery.

 

 

No. of Employees :

8,083

 

 

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 (AMADA HOLDINGS CO LTD)

 

REGD NAME:               KK Amada Holdings

 

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

 

76 (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; Germany, France (2), Finland

 

 

CHIEF EXEC

 

TSUTOMU ISOBE, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES                      Yen 286,527 M

PAYMENTSREGULAR   CAPITAL                       Yen 54,768 M

TREND UP                    WORTH                        Yen 426,481 M

STARTED         1948                 EMPLOYES                  8,083

 

 

COMMENT

 

MFR OF METAL WORKING MACHINERY.

 

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 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. In Apr 2015, the firm established a Holding Company, Amada Holding Co Ltd (as parenthesis in the head company title), and became its wholly owned subsidiary.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 286,527 million, an 11.7% up from Yen 256,482 million in the previous term.  Sales of sheet metal processing machinery fared well in Japan and North America, led by strong demand from electric and electronic device mfrs.    The recurring profit was posted at Yen 33,277 million and the net profit at Yen 18,423 million, respectively, compared with Yen 20,680 million recurring profit and Yen 12,184 million net profit, respectively, a year ago

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 37,000 million and the net profit at Yen 23,000 million, respectively, on a 3.0% rise in turnover, to Yen 295,000 million.  Orders for mainline sheet metal processing machines will grow, backed by strong demand for replacements and automation. 

           

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

 

 

REGISTRATION

           

            Date Registered:           May 1948

            Regd No.:                     (Kanagawa-Isehara) 020895

            Legal Status:                Limited Company (Kabushiki Kaisha)

            Authorized:                  550 million shares

            Issued:                         386,502,117 shares

            Sum:                            Yen 54,768 million

           

Major shareholders (%): Japan Trustee Services T (11.3), Master Trust Bank of Japan T (5.8), BNP Paribas Lux J Aberdeen G (5.2), Mizuho Bank (3.8), Company’s Treasury Stock (3.3), Amada Foundation (2.5), Trust & Custody Services, Trust (2.5), Bank of New York Mellon 140030 (1.6), Nippon Life Ins (1.5), State Street Bank & Trust 505217 (1.4); foreign owners (46.0)

 

No. of shareholders: 30,185

 

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

 

Managements: Mitsuo Okamoto, ch; Tsutomu Isobe, pres; s/mgn dir: Atsushige Abe, s/mgn dir; Koji Yamamoto, dir; Kazuo Yamamoto, dir; Yasuhiro Kawashita, dir; Toshitake Chino, dir; Hidekazu Miyoshi, 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 (55%)

 

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:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

286,527

256,482

　

  Cost of Sales

165,961

153,977

　

      GROSS PROFIT

120,565

102,505

　

  Selling & Adm Costs

92,871

86,280

　

      OPERATING PROFIT

27,694

16,225

　

  Non-Operating P/L

5,583

4,455

　

      RECURRING PROFIT

33,277

20,680

　

      NET PROFIT

18,423

12,184

BALANCE SHEET

　

　

  Cash

　

80,203

70,211

　

  Receivables

147,911

141,378

　

  Inventory

90,108

84,566

　

  Securities, Marketable

33,739

37,354

　

  Other Current Assets

25,325

22,930

　

      TOTAL CURRENT ASSETS

377,286

356,439

　

  Property & Equipment

129,511

126,294

　

  Intangibles

5,613

6,708

　

  Investments, Other Fixed Assets

61,127

63,288

　

      TOTAL ASSETS

573,537

552,729

　

  Payables

20,261

20,230

　

  Short-Term Bank Loans

32,903

30,015

　

　

　

　

　

  Other Current Liabs

72,523

67,748

　

      TOTAL CURRENT LIABS

125,687

117,993

　

  Debentures

　

　

　

  Long-Term Bank Loans

5,887

3,196

　

  Reserve for Retirement Allw

7,733

6,655

　

  Other Debts

　

7,748

7,882

　

      TOTAL LIABILITIES

147,055

135,726

　

      MINORITY INTERESTS

　

　

Common stock

54,768

54,768

　

Additional paid-in capital

163,199

163,270

　

Retained earnings

208,449

210,617

　

Evaluation p/l on investments/securities

1,155

(592)

　

Others

9,247

(2,218)

　

Treasury stock, at cost

(10,337)

(8,843)

　

      TOTAL S/HOLDERS` EQUITY

426,481

417,002

　

      TOTAL EQUITIES

573,537

552,729

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

25,242

25,980

　

Cash Flows from Investment Activities

-1,790

-7,622

　

Cash Flows from Financing Activities

-17,866

2,360

　

Cash, Bank Deposits at the Term End

　

96,320

88,537

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

426,481

417,002

　

Current Ratio (%)

300.18

302.08

　

Net Worth Ratio (%)

74.36

75.44

　

Recurring Profit Ratio (%)

11.61

8.06

　

Net Profit Ratio (%)

6.43

4.75

　

　

Return On Equity (%)

4.32

2.92

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.11

UK Pound

1

Rs.99.50

Euro

1

Rs.74.24

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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.