MIRA INFORM REPORT

 

 

Report Date :

11.12.2013

 

IDENTIFICATION DETAILS

 

Name :

PARCO SPACE SYSTEMS CO LTD

 

 

Registered Office :

Shibuya First Place Bldg, 18-16 Shinsencho Shibuyaku Tokyo 150-0045

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2013

 

 

Date of Incorporation :

June, 1964

 

 

Com. Reg. No.:

0110-01-040488 (Tokyo-Shibuyaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Subject is engaged in the business of Engineering works of construction works, interior finishing works, electric works of commercial buildings

 

 

No. of Employees :

424

 

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 456.0 Million

 

 

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 & address

 

PARCO SPACE SYSTEMS CO LTD

 

REGD NAME:    KK Parco Space Systems

 

MAIN OFFICE:  Shibuya First Place Bldg, 18-16 Shinsencho Shibuyaku Tokyo 150-0045 JAPAN

Tel: 03-5459-0311     

 

URL:                 www.parco-space.co.jp

 

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Engineering works of construction works, interior finishing works, electric works of commercial buildings

 

 

BRANCHES   

 

Sapporo, Sendai, Chiba, Nagoya, Shizuoka, Fukuoka, other (Tot 28)

 

 

OVERSEAS   

 

China

 

 

FACTORIES  

 

(subcontracted to group firms)

 

 

OFFICERS

 

TATSUMI IMAEDA, PRES          Mototeru Fujishima, adv

Masaru Odagiri, dir                     Takakazu Inaba, dir

Terushi Inoue, dir                       Shuichi Hirano, dir         

 

           


Yen Amount

 

In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES                      Yen 18,581 M

PAYMENTS      NO COMPLAINTS          CAPITAL                       Yen 490 M

TREND             UP                                WORTH                        Yen 2,503 M

STARTED         1964                             EMPLOYES                  424

 

 

COMMENT    

 

ENGINEERING COMPANY, OWNED BY PARCO CO LTD.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 456.0 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a division separated from Parco Co Ltd (See REGISTRATION).  This is an engineering company for construction, interior finishing works, electric works, etc, of commercial facilities/buildings.  About 40% of the works are thru the parent, Parco Co Ltd.  Clients include hotels, airline offices, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Feb/2013 fiscal term amounted to Yen 18,581 million, a 2% up from Yen 18,221 million in the previous term.  The recurring profit was posted at Yen 336 million and the net profit at Yen 206 million, respectively, compared with Yen 442 million recurring profit and yen 62 million net profit, respectively, a year ago.

 

For the current term ending Feb 2014 the recurring profit is projected at Yen 340 million and the net profit at Yen 210 million, respectively, on a 2% rise in turnover, to Yen 19,000 million.  Business is seen expanding steadily. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 456.0 million, on 30 days normal terms.

 

 

 

 

 

 

REGISTRATION

 

Date Registered:                      Jun 1964

Regd No.:                                 0110-01-040488 (Tokyo-Shibuyaku)

Legal Status:                           Limited Company (Kabushiki Kaisha)

Authorized:                              7 million shares

Issued:                                     17.74 million shares

Sum:                                        Yen 490 million

Major shareholders (%):           Parco Co Ltd* (100)

 

*.. Shopping Center operator, Tokyo, listed Tokyo S/E, capital Yen 34,367 million, sales Yen 267,511 million, operating profit Yen 10,824 million, recurring profit Yen 10,329 million, net profit Yen 5,083 million, total assets Yen 227,498 million, net worth Yen 104,527 million, employees 1,968, pres Kozo Makiyama

 

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

 

 

OPERATION

           

Activities:                     Engineering company for construction works, interior finishing works, electric works, other of commercial facilities/buildings (--100%)

 

Clients:                        [Mfrs, wholesalers] Parco Co (41.2%), I Ing Co (9.2%), Delta Airlines Japan, other 

                                    No. of accounts: 300

                                    Domestic areas of activities: Nationwide

Suppliers:                   [Mfrs, wholesalers] PM Contractor, Taisei Electric Ind, Plus Electric Co, 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 (Marunouchi-Chuo)

                                    SMBC (Ikebukuro-Higashiguchi)

                                    Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

       Terms Ending:

28/02/2014

28/02/2013

29/02/2012

28/02/2011

Annual Sales

 

19,000

18,581

18,221

18,830

Recur. Profit

 

340

336

442

 

Net Profit

 

210

206

62

422

Total Assets

 

 

7,974

7,906

8,819

Current Assets

 

 

6,054

6,099

 

Current Liabs

 

 

4,185

3,858

 

Net Worth

 

 

2,503

2,808

3,807

Capital, Paid-Up

 

 

490

490

490

Div.P.Share(¥)

 

 

6.00

28.00

57.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.25

1.98

-3.23

6.04

    Current Ratio

 

..

144.66

158.09

..

    N.Worth Ratio

..

31.39

35.52

43.17

    R.Profit/Sales

 

1.79

1.81

2.43

..

    N.Profit/Sales

1.11

1.11

0.34

2.24

    Return On Equity

..

8.23

2.21

11.08

 

Notes: Forecast (or estimated) figures for the 28/02/2014 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.21

UK Pound

1

Rs.100.65

Euro

1

Rs.84.15

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.