MIRA INFORM REPORT

 

 

Report Date :

20.04.2013

 

IDENTIFICATION DETAILS

 

Name :

FXC INC

 

 

Registered Office :

Komagata TC Bldg 9F, 1-3-14 Komagata Taitoku Tokyo 111-0043

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

January 2001

 

 

Com. Reg. No.:

0105-01-029351 (Tokyo-Taitoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Provider of network solutions: Ethernet switches, fiber optic CWDM systems

 

 

No. of Employees :

51

 

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 :

Satisfactory 

 

 

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 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 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. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan 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 and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 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 2012. The new government will continue a longstanding debate 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

 

FXC INC

 

 

REGD NAME

 

FXC KK

 

 

MAIN OFFICE

 

Komagata TC Bldg 9F, 1-3-14 Komagata Taitoku Tokyo 111-0043 JAPAN

Tel: 03-5827-0760    

Fax: 03-5827-0717

 

URL:                             http://www.fxc.jp/

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES

 

Provider of network solutions: Ethernet switches, fiber optic CWDM systems

 

 

BRANCHES

 

Shanghai (FXC China Co Ltd), California (Future Communications Inc)

 

 

FACTORIES  

 

(subcontracted)

 

 

OFFICER(S)

 

SHIGEYUKI TANIWA, PRES      Ken’ichi Tabata, dir

Kazuhiro Uchida, dir                   Shinobu Kobayashi, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 834 M

PAYMENTS      No  Complaints         CAPITAL           Yen 100 M

TREND             UP                                WORTH            Yen 333 M

STARTED                     2001                             EMPLOYES      51

 

 

COMMENT

 

PROVIDER OF NETWORK EQUIPMENT

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

 

HIGHLIGHTS

 

The subject company was established by Shigeyuki Taniwa in order to make most o his experience in the subject line of business.  This is a trading firm, with mfg division, for import, export and wholesale of network/multimedia equipment that includes Layer 2 & Layer 3 Ethernet switches & fiber optic CWDM systems.  Distributor of SMC Networks products in Japan.  Has offices in China & USA, covering operations & clients in each market.  Clients include major electronics mfrs, network providers, other, nationwide.

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2012 fiscal term amounted to Yen 834 million, a 24% up from Yen 672 million in the previous term.  New cloud service started in 2012 contributed.  Operations came back to profitability to post Yen 15 million recurring profit and Yen 10 million net profit, respectively, compared with Yen 81 million recurring loss and Yen 80 million net losses, respectively, a year ago.  Capital decreased to Yen 100 million from 302 million.

 

For the current term ending Dec 2013 the recurring profit is projected at Yen 15 million and the net profit at Yen 10 million, respectively, on a 3% rise in turnover, to Yen 860 million.

 

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

 

 

REGISTRATION

 

Date Registered:  Jan 2001

Regd No.:         0105-01-029351 (Tokyo-Taitoku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         8,000 shares

Issued:             2,000 shares

Sum:                   Yen 100 million

Major shareholders (%): Shigeyuki Taniwa (30), Taiga-1 Investment (15), Technology Ventures Investment (10), NVCC Investment (10), Satoru Kuwayama (5)

 

No. of shareholders: 38

 

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

 

 

OPERATION

 

Activities: Imports, exports and wholesales network/multi media equipment: management switches, Ethernet switches, media converters, CWDM devices; provider of SMC Networks products in Japan, cloud services, other (--100%).

 

(SMC Networks products): CWDM “Light Edge” series, management switches, media converters, micro MPEG4 recorder/player units, Ethernet switches, other.

 

 

Clients: [Electronic mfrs, network firms] NTT Advance Technology, Net One Systems, Daiwabo Information System, Sun Telephone, Mitsui Knowledge Ind, DNP Fine Electronics, Itochu Techno Solutions, Fujitsu Business System, SoftBank BB, Daiwabo Information Systems, other

            No. of accounts: 500

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Repotec Co, Acton Technology Corp, Browave Corp, UDM International Co, Packet Light Networks Ltd, Nobile Japan Ltd, Nitto Tsushinki, other.

 

Payment record: No  Complaints 

 

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

 

Bank References:

MUFG (Nihombashi-Chuo)

Mizuho Bank (Roppongi)

Relations: Satisfactory

 

 

 

 

 

 

 

 


 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/12/2013

31/12/2012

31/12/2011

31/12/2010

Annual Sales

 

860

834

672

903

Recur. Profit

 

15

15

-81

14

Net Profit

 

10

10

-80

10

Total Assets

 

 

942

939

912

Current Assets

 

 

831

851

815

Current Liabs

 

 

292

230

232

Net Worth

 

 

333

327

407

Capital, Paid-Up

 

 

100

302

302

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.12

24.11

-25.58

9.19

    Current Ratio

 

..

284.59

370.00

351.29

    N.Worth Ratio

..

35.35

34.82

44.63

    R.Profit/Sales

 

1.74

1.80

-12.05

1.55

    N.Profit/Sales

1.16

1.20

-11.90

1.11

    Return On Equity

..

3.00

-24.46

2.46

 

Notes: Forecast (or estimated) figures for the 31/12/2013 fiscal term. 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.03

UK Pound

1

Rs.82.43

Euro

1

Rs.70.49

 

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%)

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.