MIRA INFORM REPORT

 

 

Report Date :           

14.03.2011

 

IDENTIFICATION DETAILS

 

Name :

CHUO SYSTEM CORPORATION

 

 

Registered Office :

Mejirosaka ST Bldg 6F, 2-3-3 Sekiguchi Bunkyoku Tokyo 112-0014

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

June 1981

 

 

Com. Reg. No.:

(Tokyo-Bunkyoku) 004824

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Computer system solutions, system development, software development

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

Yen 105.6 Million

Status :

Moderate

Payment Behaviour :

Regular

Litigation :

----

 

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, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

Japan

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

CHUO SYSTEM CORPORATION

 

 

REGD NAME 

 

Chuo System KK

 

 

MAIN OFFICE

 

Mejirosaka ST Bldg 6F, 2-3-3 Sekiguchi Bunkyoku Tokyo 112-0014 JAPAN

Tel: 03-5978-3611     Fax: 03-5978-3620

URL:                 www.chuosystem.co.jp  

E-mail:             mc-general@chuosystem.co.jp 

 

 

ACTIVITIES

 

Computer system solutions, system development, software development

 

 

BRANCHES

 

Tokyo (Shinjukuku), Sapporo, Osaka, Hiroshima, Yamaguchi, Fukuoka

 

 

OFFICER(S)  

 

MASAAKI NINOMIYA, PRES                  Seishi Watanabe, dir

Tadashi Honma, dir                                Masahiko Nishino, dir

Michio Arai, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 3,805 M

PAYMENTS                  REGULAR         CAPITAL           Yen 73 M

TREND             SLOW              WORTH            Yen 506 M

STARTED                     1981                 EMPLOYES      424

 

 

COMMENT

 

COMPUTER SYSTEM SOLUTIONS, DEVELOPMENT, & RELATED. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

MAX CREDIT LIMIT: YEN 105.6 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

 

The subject company was established in Sapporo as a system integration service company.  In 2008 formed a holding company, IT Holdings Corp (See REGISTRATION), thru integration between TIS and Intec group.  This is a system solution company offering to: production control, manufacturing, distribution, logistics, communication networks, sales, accounting, financing, other.  MUFG (Mitsubishi Tokyo UFJ Bank) is the main bank.

 

 

FINANCIAL INFORMATION

 

Financials are consolidated disclosed only in digest form.

 

The sales volume for Mar/2010 fiscal term amounted to Yen 3,805 million, an 18% down from Yen 4,654 million in the previous term, as impacted by the global economic downturn.  Corporate IT investments decreased and were difficult to secure new orders.  The situation was compounded by the absence of new large projects to replace completed projects.  In the solution services, demand for hardware remained sluggish, reflecting poor economic conditions.  The net profit was posted at Yen 4 million, compared with Yen 49 million a year ago.  .

 

For the current term ending Mar 2011 the net profit is projected at Yen 40 million, on a 3% rise in turnover, to Yen 3,920 million.  Orders will recover in the second half, but not enough to compensate for the first half slump.  Lower outsourcing costs will offset higher payroll & operation costs.  Profits will improve. 

           

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 105.6 million, on 30 days normal terms. 

 

 

 

REGISTRATION

 

Date Registered:  Jun 1981

Regd No.:        (Tokyo-Bunkyoku) 004824

Legal Status:   　Limited Company (Kabushiki Kaisha)

Authorized:      　240,000146,300 shares

Issued: 　146,300 shares

Sum:                　Yen 73.15 million

Major shareholders (%): IT Holdings Corp* (91), Masaaki Ninomiya (3), Company’s Treasury Stock

(3), Michio Arai (1), Watanabe Seishi (1)

 

No. of shareholders: 6

 

+.. IT Holdings Corp, Tokyo, leading information service holding company, founded 2008, listed Tokyo S/E, capital Yen 10,001 million, sales Yen 313,856 million, operating profit Yen 15,996 million, recurring profit Yen 15,719 million, net profit Yen 7,659 million, total assets Yen 295,307 million, net worth Yen 155,075 million, employees 21,007, pres Susumu Okamoto

 

Consolidated Financials are attached (See SUPPLEMENTS)

 

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

 

 

OPERATION

 

Activities: System solution, software development, outsourcing & network configuration, system application & integration services for: manufacturing, work performance, distribution, logistics, communication & networking, sales, accounting, financing, business, other (--100%)

 

Clients: [Mfrs, wholesalers] NEC group firms, Hewlett Packard Japan, NTT Data Corp, Sumisho Information Services, OGIS-RI Corp,

            No. of accounts: 300

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Shantery Corp, O2 Technology, Dear System Co, TSE Co,

Anglesoft Corp, other

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Edogawabashi)

Relations: Satisfactory

 

 

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2011

31/03/2010

31/03/2009

31/03/2008

Annual Sales

　

3,920

3,805

4,654

4,343

Recur. Profit

　

　

　

　

　

Net Profit

　

40

4

49

53

Total Assets

　

　

1,096

1,364

　

Current Assets

　

　

961

1,169

　

Current Liabs

　

　

407

673

　

Net Worth

　

　

506

516

　

Capital, Paid-Up

　

　

73

73

73

Div.P.Share(¥)

　

　

　

　

　

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.02

-18.24

7.16

3.40

    Current Ratio

 

..

236.12

173.70

..

    N.Worth Ratio

..

46.17

37.83

..

    R.Profit/Sales

 

..

..

..

..

    N.Profit/Sales

1.02

0.11

1.05

1.22

    Return On Equity

..

0.79

9.50

..

 

Notes: Financials are disclosed only in digest form.

Forecast (or estimated) figures for the 31/03/2011 fiscal term. 

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, IT HOLDINGS CORPORATION

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

313,856

338,302

 

  Cost of Sales

254,827

272,944

 

      GROSS PROFIT

59,029

65,357

 

  Selling & Adm Costs

43,032

41,569

 

      OPERATING PROFIT

15,996

23,787

 

  Non-Operating P/L

-277

-183

 

      RECURRING PROFIT

15,719

23,604

　

      NET PROFIT

7,659

9,406

BALANCE SHEET

 

 

 

 

  Cash

　

47,192

37,524

 

  Receivables

 

62,619

62,862

 

  Inventory

 

9,262

14,612

 

  Securities, Marketable

321

1,501

 

  Other Current Assets

22,573

24,300

 

      TOTAL CURRENT ASSETS

141,967

140,799

 

  Property & Equipment

91,999

89,048

 

  Intangibles

 

19,130

15,001

 

  Investments, Other Fixed Assets

59,981

50,479

 

      TOTAL ASSETS

313,077

295,327

 

  Payables

 

14,953

18,626

 

  Short-Term Bank Loans

34,895

22,919

 

　

 

　

　

 

  Other Current Liabs

36,407

40,506

 

      TOTAL CURRENT LIABS

86,255

82,051

 

  Debentures

 

7,600

11,500

 

  Long-Term Bank Loans

45,151

41,013

 

  Reserve for Retirement Allw

10,672

8,113

 

  Other Debts

　

8,323

6,433

 

      TOTAL LIABILITIES

158,001

149,110

 

      MINORITY INTERESTS

 

 

 

Common stock

10,001

1,000

 

Additional paid-in capital

85,207

86,321

 

Retained earnings

44,088

40,186

 

Evaluation p/l on investments/securities

1,182

(1,118)

 

Others

 

14,654

22,181

 

Treasury stock, at cost

(57)

(2,354)

 

      TOTAL S/HOLDERS` EQUITY

155,075

146,216

　

      TOTAL EQUITIES

313,076

295,326

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

31,400

34,311

 

Cash Flows from Investment Activities

-25,726

-20,079

 

Cash Flows from Financing Activities

6,139

-6,877

　

Cash, Bank Deposits at the Term End

　

46,987

35,104

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

155,075

146,216

 

 

Current Ratio (%)

164.59

171.60

 

 

Net Worth Ratio (%)

49.53

49.51

 

 

Recurring Profit Ratio (%)

5.01

6.98

 

 

Net Profit Ratio (%)

2.44

2.78

 

 

Return On Equity (%)

4.94

6.43

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.21

UK Pound

1

Rs.72.55

Euro

1

Rs.62.43

 

 

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

 

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%)

 

 

 

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.