MIRA INFORM REPORT

 

 

Report Date :

22.09.2012

 

 

 

IDENTIFICATION DETAILS

 

Name :

SAERA CORPORATION LTD

 

 

Registered Office :

Shoto Raj Bldg 4F, 1-26-10 Shoto Shibuyaku Tokyo 150-0046

 

 

Country :

Japan

 

 

Financials (as on) :

31.05.2011

 

 

Date of Incorporation :

June 1991

 

 

Com. Reg. No.:

0110-01-008950 (Tokyo-Shibuyaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Export of used vehicles, construction equipment, machine tools

 

 

No. of Employees :

3

 

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 :

Slow

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 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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 and address

 

SAERA CORPORATION LTD

REGD NAME:   KK Saera Corporation

MAIN OFFICE:  Shoto Raj Bldg 4F, 1-26-10 Shoto Shibuyaku Tokyo 150-0046 JAPAN

                                    Tel: 03-5453-3001      Fax: 03-5453-3006

 

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

E-Mail address: raj@saera.co.jp

 

 

ACTIVITIES

 

Export of used vehicles, construction equipment, machine tools

 

BRANCHES

 

Nil

 

 

OFFICERS

 

RAJ KUMAR MALHOTRA, PRES          

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    R/WEAK           A/SALES          Yen 30 M

PAYMENTS      SLOW               CAPITAL           Yen 20 M

TREND             SLOW               WORTH            Yen 120 M

STARTED                     1991                 EMPLOYES      3

 

 

COMMENT

 

EXPORTER OF USED VEHICLES, CONSTRUCTION MACHINES, OTHER.

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

                       

 

 

HIGHLIGHTS

           

            The subject company was established by Raj Kumar Malhotra, an Indian resident, in order to make most of his experience in the subject line of business.  This is a trading firm specializing in exporting used vehicles, construction machines, machine tools, game machines, other.  Exports to India, New Zealand, Australia, other.

 

 

FINANCIAL INFORMATION

           

            Financials are only partially disclosed.

 

The sales volume for May/2011 fiscal term amounted to Yen 30 million, a 70% down from Yen 100 million in the previous term.  This is referred to the great damage by the Great East Japan Earthquake that occurred in March 2011, disrupting supply chains, delays, other.  The operations plunged into the red to post Yen 9 million net losses, compared with Yen 5 million net profit a year ago.

 

            For the term that ended May 2012 the operations were projected to come back to profitability to post Yen 10 million net profit, on a 266% rise in turnover, to Yen 110 million.  Final results are yet to be released. 

 

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

 

 

REGISTRATION

 

Date Registered:      Jun 19911.8

Regd No.:                 0110-01-008950 (Tokyo-Shibuyaku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         1,600 shares

Issued:                400 shares

Sum:                   Yen 20 million

     Major shareholders (%): R Kumar Malhotra (90%), Eriko Yamamoto (10)

No. of shareholders: 2

 

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

 

 

OPERATION

 

Activities: Exports used vehicles, used construction machines & equipment, used machine tools, used game machines, others (--100%)

 

Clients: [Mfrs, wholesalers] Exports to New Zealand, Australia, India, Republic of Cyprus, other

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] USA, JAA, Toyota-Usec Co, Nissan Used Car Center, Honda Utech Co, other

 

Payment record: Slow

 

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

 

Bank References:

SMBC (Shibuya)

Mizuho Bank (Ogikubo)

Relations: Money deposits and transfers only

 

 

FINANCES

(In Million Yen)

 

 

 

31/05/2012

31/05/2011

31/05/2010

31/05/2009

Annual Sales

 

110

30

100

300

Recur. Profit

 

 

 

 

 

Net Profit

 

10

-9

5

7

Total Assets

 

 

N/A

N/A

N/A

Net Worth

 

 

120

129

124

Capital, Paid-Up

 

 

20

20

20

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

266.67

-70.00

-66.67

-80.00

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

..

..

..

    N.Profit/Sales

9.09

-30.00

5.00

2.33

 

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/05/2012 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.90

UK Pound

1

Rs.87.60

Euro

1

Rs.70.01

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.