MIRA INFORM REPORT

 

 

Report Date :

24.12.2012

 

IDENTIFICATION DETAILS

 

Name :

AIKI RIOTECH CORPORATION

 

 

Registered Office :

39 Inokuchikobando-cho Inazawa City Aichi-Pref 492-8162

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

April 1976

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of textile machines & equipment

 

 

No. of Employees :

21 employees

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

No Complaints

 

 

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 – June 30th, 2012

                                                   

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. 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. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 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 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further 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 in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

Source : CIA

 

Company name

 

AIKI RIOTECH CORPORATION

 

 

REGD NAME

 

KK Aiki Riotech

 

 

MAIN OFFICE

 

39 Inokuchikobando-cho Inazawa City Aichi-Pref 492-8162 JAPAN

Tel: 0587-21-9191     Fax: 0587-21-1277

 

URL:                             http://www.aiki-japan.com/

E-Mail address:                        info@aiki-japan.com

 

 

ACTIVITIES  

 

Mfg of textile machines & equipment

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya, Ehime, Fukuoka

 

 

OVERSEAS

 

(Sales agents): China, India, Iran, Korea, Brazil, Taiwan, Turkey, USA

 

 

FACTORY

 

At the caption address

 

 

OFFICER(S)

 

HAJIME MATSUMOTO, PRES & CEO

Yoshihiro Tomomatsu, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        WEAK                          A/SALES          Yen 2,490 M

PAYMENTSNo Complaints    CAPITAL           Yen 30 M

TREND UP                                WORTH            Yen 92 M

STARTED         2009                             EMPLOYES      21

                       

 

COMMENT

           

MFR SPECIALIZING IN TEXTILE & INDUSTRIAL MACHINERY. 

 

FINANCIAL SITUATION CONSIDERED WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established on the basis of business/operations transfer from Aiki Lease KK, a machinery leasing company, at the caption address.  Aiki Lease KK was established originally in 1976 as mfr of textile machinery by father of Hajime Matsumoto, and changed the business operations in 2009 to leasing of textile machinery.  This is a specialized mfr of textile machines & equipment.  Products are mostly exported to S/E Asian countries centrally, also to USA and South America.  Exports are through general trading houses.

 

 

FINANCIAL INFORMATION

 

The sales volume for Sept/2011 fiscal term amounted to Yen 2,490 million, a 179% leap from Yen 892 million in the previous term, when the operations actually started.  Business started steadily from this year..  Exports revived.  Demand recovered particularly in China & other S/E Asian countries.  The recurring profit was posted at Yen 71 million and the net profit at Yen 46 million, respectively, compared with Yen 20 million recurring profit and Yen 16 million net profit, respectively, a year ago.

 

For the term that ended Sept 2012 the recurring profit was projected at Yen 75 million and the net profit at Yen 50 million, respectively, on a 4% rise in turnover, to Yen 2,600 million.  Final results are yet to be released.

 

The financial situation is considered WEAK but should be good for MODERATE business engagements.

 

REGISTRATION

 

Date Registered:            Apr 1976

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:        2,400 shares

Issued:              600 shares

Sum:                  Yen 30 million

Major shareholders (%): Hajime Matsumoto (56), Yoshihiro Tomomatsu (43)

No. of Shareholders: 2

 

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

 

 

OPERATION

 

Activities: Manufactures textile machines & equipment & industrial machines/equipment (--100%).

 

(Mfg items):

 

Textile Machines: air texturing machines, air covering machines, complex draw texturizing machines, yarn splitting machines, rewinders, soft winders, their parts & components;

 

Industrial Machines: carbon fiber mfg equipment, equipment for industrial super fiber, PVC & other coated yarn spinning line, machines for multi-axial sheet of fabric (non-woven), other

 

Machines are mostly exported.

 

Clients: [Textile industry, wholesalers] Toray Textile, Itochu Corp, Marubeni Corp, Teijin Modern Yarn Co, other.

 

Exports to: Taiwan, China, Korea, Canada, Mexico, India, Pakistan, Indonesia, Brazil, other.

 

No. of accounts: 100 (Domestic)

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Kato Hajime Kozai Co, Okaya & Co, Toyotsu Machinery, NC Automation, Mizuno Shoten, Tokai Shoji KK, other. 

 

Imports from Korea, other.

 

Payment record: No Complaints 

 

Location: Business area in Inazawa City, Aichi-Pre.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Aichi Bank (Inazawa)

MUFG (Ichinomiya)

Relations: Satisfactory

FINANCES

(In Million Yen)

 

       Terms Ending:

30/09/2012

30/09/2011

30/09/2010

30/09/2009

Annual Sales

　

2,600

2,490

892

464

Recur. Profit

　

75

71

20

-70

Net Profit

　

50

46

16

-80

Total Assets

　

　

639

382

209

Current Assets

　

　

478

354

209

Current Liabs

　

　

373

336

134

Net Worth

　

　

92

46

-183

Capital, Paid-Up

　

　

30

30

100

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.42

179.15

92.24

-61.59

    Current Ratio

 

..

128.15

105.36

155.97

    N.Worth Ratio

..

14.40

12.04

-87.56

    R.Profit/Sales

 

2.88

2.85

2.24

-15.09

    N.Profit/Sales

1.92

1.85

1.79

-17.24

    Return On Equity

..

50.00

34.78

..

 

Notes: Financials for the 30/09/2009 fiscal term are those of the predecessor former Aiki Lease KK.

Forecast (or estimated) figures for the 30/09/2012 fiscal term .

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.07

UK Pound

1

Rs.89.54

Euro

1

Rs.72.77

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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%)

 

 

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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.