MIRA INFORM REPORT

 

 

Report Date :           

30.01.2012

 

IDENTIFICATION DETAILS

 

Name :

ITOCHU TECHNO-SOLUTIONS CORPORATION (CTC)

 

 

Registered Office :

Kasumigaseki Bldg, 3-2-5 Kasumigaseki Chiyodaku Tokyo 100-6080

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

July 1979

 

 

Com. Reg. No.:

(Tokyo-Chiyodaku) 010788

 

 

Legal Form :

Limited Company

 

 

Line of Business :

System integration, software development

 

 

No. of Employees :

7180

 

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

 

Maximum Credit Limit :

Yen 11,354.2 Million

 

 

Status :

Good

 

 

Payment Behaviour :

No Complaints

 

 

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

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

 

ITOCHU TECHNO-SOLUTIONS CORPORATION (CTC)

 

 

REGD NAME

 

Itochu Techno Solutions KK

 

 

MAIN OFFICE

 

Kasumigaseki Bldg, 3-2-5 Kasumigaseki Chiyodaku Tokyo 100-6080 JAPAN

Tel: 03-6203-5000     -

 

URL:                             http://www.ctc-g.co.jp

E-Mail address:                        info@ctc-g.co.jp

 

 

ACTIVITIES

 

System integration, software development, other

 

 

BRANCHES

 

Sapporo, Saitama, Yokohama, Nagoya, Osaka, Hiroshima, other (Tot 35)

 

 

OVERSEAS

 

Singapore, other

 

 

CHIEF EXEC

 

YOICHI OKUDA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    FAIR                 　            A/SALES       Yen 283,068 M

PAYMENTS                  No Complaints          　CAPITAL        Yen 21,763 M

TREND             SLOW                          　WORTH         Yen 155,867 M

STARTED                     1979                             　EMPLOYES   7,180

 

 

COMMENT    

 

SYSTEM INTEGRATOR AFFILIATED TO ITOCHU CORP 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 11,354.2 MILLION, 30 DAYS NORMAL TERMS

 

                        Forecast figures for the 31/03/2012 fiscal term.

 

 

HIGHLIGHTS

 

The subject company (now known as CTC) was established on the basis of a telecommunications section separated from Itochu Corp (See REGISTRATION), originally as Itochu Techno Science Corp.  In 2006, merged with KK CRC Solutions and renamed as captioned.   This is a system integrator engaged in diverse business lines from computer-related Net equipment sales to computer networking and software development& maintenance services.  Among 2nd group in information processing industry.  Active in M&A activities.  The firm is building up data processing service for financial industry cashing in on Microsoft’s cloud computing base, to start with development of demand among information firms.  It began smartphone-compatible cloud-based system building service for corporate customers.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2011 fiscal term amounted to Yen 283,068 million, a 2.5% down from Yen 290,391 million in the previous term.  Net sales declined slightly due to investment cutbacks in SI development for the telecom and distribution sectors despite growth in enterprise business.  Orders received were largely on par with the previous year’s level.  The recurring profit was posted at Yen 21,574 million and the net profit at Yen 11,451 million, respectively, compared with Yen 21,627 million recurring profit and Yen 12,461 million net profit, respectively, a year ago

           

(Apr/Sept/2011 results): Sales Yen 130,426 million (up 2.4%), operating profit Yen 8,786 million (up 50.7%), recurring profit Yen 8,833 million (up 49.7%), net profit Yen 4,932 million (up 82.0%). (% compared with the corresponding period a year ago)

 

For the current term ending Mar 2012 the recurring profit is projected at Yen 21,500 million and the net profit at Yen 12,000 million, respectively, on a 1.1% fall in turnover, to Yen 280,000 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 11,354.2 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:　Jul 1979

Regd No.:         (Tokyo-Chiyodaku) 010788

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:       246 million shares

Issued:              64.5 million shares

Sum:                   Yen 21,763 million

Major shareholders (%): Itochu Corp* (53.8), Japan Trustee Services T (4.7), Master Trust Bank of Japan T (3.2), Company’s Treasury Stock (2.7), Employees’ S/Holding Assn (1.7), Japan Trustee Services T9 (1.0), Nomura Trust Inv T (0.7), TCSB (Mizuho Bank) (0.6), State Street Bank West Treaty (0.6), SSBT OD05 Omnibus Acct Treaty Cl (0.5); foreign owners (12.3)

 

*.. One of big 5 general trading houses of Japan, Tokyo, founded 1949, listed Tokyo, Osaka, Nagoya, Fukuoka, Sapporo S/E’s, capital Yen 202,241 million, sales Yen 11,392,589 million, operating profit Yen 256,082 million, recurring profit Yen 182,097 million, net profit Yen 160,975 million, total assets Yen 5,972,743 million, net worth Yen 1,224,581 million, employees 71,561, pres Masahiro Okafuji

 

No. of shareholders: 16,848

 

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

 

Managements: Yoichi Okuda, pres; Yoshinori Warashina, s/mgn dir; Hiroo Inoue, s/mgn dir; Shinichiro Sakuraba, mgn dir; Masaaki Matsuzawa, mgn dir; Akira Saitoh, mgn dir; Shigemitsu Takatori, mgn dir; Shuji Ikeda, mgn dir; Mitsuaki Kato, mgn dir; Takatoshi Matsumoto

 

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

 

Related companies: CTC Technology Corp, CTC Laboratory Systems, CTC Business Services Corp, CTC Sp Corp, other.

 

 

OPERATION

           

Activities: Total IT business solution provider with operations divided broadly into two major divisions: Information Systems Division (97%), Support/Maintenance Services Division (3%).

           

Clients: [Mfrs, wholesalers] Itochu Corp and Group firms

            No. of accounts: 500

            Domestic areas of activities: Nationwide

            Suppliers: [Mfrs, wholesalers] Itochu Corp and Group firms. other

 

Payment record: No Complaints

 

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

 

Bank References:

·         Mizuho Bank (Aoyama)

·         Mizuho Corporate Bank (Uchisaiwaicho)

Relations: Satisfactory

 

 

FINANCES

 (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

283,068

290,391

 

  Cost of Sales

208,193

213,544

 

      GROSS PROFIT

74,875

76,847

 

  Selling & Adm Costs

53,558

55,277

 

      OPERATING PROFIT

21,316

21,569

 

  Non-Operating P/L

258

58

 

      RECURRING PROFIT

21,574

21,627

　

      NET PROFIT

11,451

12,461

BALANCE SHEET

 

 

 

 

  Cash

　

29,452

35,963

 

  Receivables

 

60,321

58,379

 

  Inventory

 

14,765

13,241

 

  Securities, Marketable

38,997

37,996

 

  Other Current Assets

40,073

36,048

 

      TOTAL CURRENT ASSETS

183,608

181,627

 

  Property & Equipment

29,890

29,742

 

  Intangibles

 

8,621

5,960

 

  Investments, Other Fixed Assets

16,049

15,901

 

      TOTAL ASSETS

238,168

233,230

 

  Payables

 

24,282

25,032

 

  Short-Term Bank Loans

　

　

 

　

 

　

　

 

  Other Current Liabs

47,333

44,599

 

      TOTAL CURRENT LIABS

71,615

69,631

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

441

298

 

  Other Debts

　

10,245

8,182

 

      TOTAL LIABILITIES

82,301

78,111

 

      MINORITY INTERESTS

 

 

 

Common stock

21,763

21,763

 

Additional paid-in capital

33,076

33,076

 

Retained earnings

106,729

101,040

 

Evaluation p/l on investments/securities

306

235

 

Others

 

380

390

 

Treasury stock, at cost

(6,387)

(1,386)

 

      TOTAL S/HOLDERS` EQUITY

155,867

155,118

　

      TOTAL EQUITIES

238,168

233,230

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

14,974

25,261

 

Cash Flows from Investment Activities

-6,995

-1,379

 

Cash Flows from Financing Activities

-13,472

-7,202

　

Cash, Bank Deposits at the Term End

　

68,337

73,832

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

155,867

155,118

 

 

Current Ratio (%)

256.38

260.84

 

 

Net Worth Ratio (%)

65.44

66.51

 

 

Recurring Profit Ratio (%)

7.62

7.45

 

 

Net Profit Ratio (%)

4.05

4.29

 

 

Return On Equity (%)

7.35

8.03

 

 

           

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.65

UK Pound

1

Rs.77.80

Euro

1

Rs.65.05

 

 

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.