MIRA INFORM REPORT

 

 

Report No. :

347592

Report Date :

29.10.2015

 

IDENTIFICATION DETAILS

 

Name :

YUASA TRADING CO LTD

 

 

Registered Office :

Sumitomo Fudosan Kanda Bldg 16-19F, 7 Kanda-Mitoshirocho Chiyodaku Tokyo 101-0053

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

June 1919

 

 

Com. Reg. No.:

0100-01-034958

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Trading firm for import, export and wholesale of: industrial machinery (14), industrial equipment (24%), housing equipment $ pipe products & air-conditioners (29%), housing & building exteriors (11%), construction machinery (8%), others (15%)

 

 

No. of Employees :

1,726

 

 

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

 

YUASA TRADING CO LTD

 

REGD NAME:   Yuasa Shoji KK

      MAIN OFFICE:        Sumitomo Fudosan Kanda Bldg 16-19F, 7 Kanda-Mitoshirocho Chiyodaku Tokyo 101-0053 JAPAN

                                    Tel: 03-6369-1111     Fax: 03-6369-1103     -

 

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

E-Mail address: (thru the URL)

 

ACTIVITIES:     Import, export, wholesale of industrial machinery, machine tools, other

BRANCHES:     Sapporo, Sendai, Nagoya, Osaka, Hiroshima, Fukuoka, other (Tot 31)

OVERSEAS:     China (8) Taiwan (2), Thailand (2), Malaysia (3), Indonesia (2), India (2),

                                    Vietnam (2), USA (2), Mexico, Germany

 

CHIEF EXEC:   ETSURO SATO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 441,723 M

PAYMENTSREGULAR               CAPITAL           Yen 20,644 M

TREND UP                                WORTH            Yen 52,684 M

STARTED         1919                             EMPLOYES      1,726

 

COMMENT:      TRADING HOUSE SPECIALIZING IN INDUSTRIAL MACHINERY FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Unit: In Million Yen

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

HIGHLIGHTS

 

This is the time-honored trading house with a focus on machine tools.  Began in 1666 as a charcoal merchant founded in Kyoto by Shokuro Yuasa.  Involved in transactions with variety of industrial machinery and machine tools and construction materials and machinery as well as air-conditioners.  Top-ranked player in machine tool transactions.  Reinforcing overseas sales, including in Asia, in recent years.  On the domestic market, focusing on proposal-backed sales of environment-friendly products for plants and housing, and mega solar construction.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 441,723 million, a 0.1% down from Yen 442,213 million in the previous term.  Sales of housing facilities grew slowly.  The recurring profit was posted at Yen 10,353 million and the net profit at Yen 7,494 million, respectively, compared with Yen 9,782 million recurring profit and Yen 5,483 million net profit, respectively, a year ago.

 

(Apr/Jun/2015 results): Sales Yen 92,859 million (up 4.6%), operating profit Yen 1,113 million (up 10.6%), recurring profit Yen 1,273 million (up 13.3%), net profit Yen 937 million (up 23.5%).  (% as compared with the corresponding period a year ago). 

           

For the current term ending Mar 2016 the recurring profit is projected at Yen 10,500 million and the net profit at Yen 6,700 million, on a 2.3% rise in turnover, to Yen 452,000 million.  Sales of machine tools will remain steady, despite a downturn in housing-related sales.

 

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

 

 

REGISTRATION

           

Date Registered:　                         Jun 1919

Regd No.:                                             0100-01-034958 (Tokyo-Chiyodaku)

Legal Status:                            Limited Company (Kabushiki Kaisha

Authorized:                                          400 million shares

Issued:                                     231,558,826 shares

Sum:                                        Yen 20,644 million

 

Major shareholders (%): Japan Trustee Services Bank (10.0), Company’s Treasury Stock (4.9), Master Trust Bank of Japan (3.7), Yuasa Tankyo S/Holding Assn (3.0), SMBC (2.5), DMG Mori (2.5), Tobu Yuasa Yamazumi Stockhold (2.4), Daikin Industries (1.9), Employees’ S/Holding Assn (1.9); foreign owners (17.0)

 

No. of shareholders: 9,725

 

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

 

Managements: Etsuro Sato, pres; Kazuaki Sawamura, s/mgn dir; Akio Miyazaki, mgn dir; Hiroyuki Tamura, mgn dir; Ryoichi Shirai, mgn dir; Yoshiyasu Matsudaira, dir; Haruo Sanoki, dir Ken’ichi Tanaka, dir; Shinzo Maeda, dir; Eizo Haimoto, dir

 

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

 

Related companies: Kokko Co, Yuasa Techno, Yuasa Primes, other.

 

 

OPERATION

           

Activities: Trading firm for import, export and wholesale of: industrial machinery (14), industrial equipment (24%), housing equipment $ pipe products & air-conditioners (29%), housing & building exteriors (11%), construction machinery (8%), others (15%)

           

Clients: [Mfrs, wholesalers] Mitsui Sumitomo Finance & Leasing, Nippon Kanzai Center, Senko Group, Kyudeno Corp, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Ebara Corp, Sekisui Jushi Corp, Mitsui Leasing, Okuma Corp, Kubota Machinery Japan, Dainichi Co, other

 

Payment record: Regular

 

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

 

Bank References:

SMBC (Ningyocho)

MUFG (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

　

441,723

442,213

　

  Cost of Sales

402,982

404,906

　

      GROSS PROFIT

38,740

37,306

　

  Selling & Adm Costs

28,925

27,788

　

      OPERATING PROFIT

9,815

9,518

　

  Non-Operating P/L

538

264

　

      RECURRING PROFIT

10,353

9,782

　

      NET PROFIT

7,494

5,483

BALANCE SHEET

　

　

  Cash

　

31,256

36,680

　

  Receivables

121,083

121,553

　

  Inventory

12,964

13,983

　

  Securities, Marketable

　

　

　

  Other Current Assets

3,953

(4,709)

　

      TOTAL CURRENT ASSETS

169,256

167,507

　

  Property & Equipment

13,050

18,013

　

  Intangibles

5,135

4,894

　

  Investments, Other Fixed Assets

17,456

15,255

　

      TOTAL ASSETS

204,897

205,669

　

  Payables

125,071

126,283

　

  Short-Term Bank Loans

10,892

19,346

　

　

　

　

　

  Other Current Liabs

10,078

7,165

　

      TOTAL CURRENT LIABS

146,041

152,794

　

  Debentures

　

　

　

  Long-Term Bank Loans

1,043

2,950

　

  Reserve for Retirement Allw

407

382

　

  Other Debts

　

4,721

4,397

　

      TOTAL LIABILITIES

152,212

160,523

　

      MINORITY INTERESTS

　

　

Common stock

20,644

20,644

　

Additional paid-in capital

6,777

6,777

　

Retained earnings

21,626

15,765

　

Evaluation p/l on investments/securities

2,591

1,825

　

Others

2,409

1,606

　

Treasury stock, at cost

(1,363)

(1,471)

　

      TOTAL S/HOLDERS` EQUITY

52,684

45,146

　

      TOTAL EQUITIES

204,897

205,669

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

12,476

9,414

　

Cash Flows from Investment Activities

3,550

-880

　

Cash Flows from Financing Activities

-11,810

-11,790

　

Cash, Bank Deposits at the Term End

　

31,031

26,470

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

52,684

45,146

　

Current Ratio (%)

115.90

109.63

　

Net Worth Ratio (%)

25.71

21.95

　

Recurring Profit Ratio (%)

2.34

2.21

　

Net Profit Ratio (%)

1.70

1.24

　

　

Return On Equity (%)

14.22

12.15

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.04

UK Pound

1

Rs.99.58

Euro

1

Rs.71.75

 

 

INFORMATION DETAILS

 

Analysis Done by :

HEE

 

 

Report Prepared by :

TPT

 

               

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.