|
Report Date : |
22.01.2013 |
IDENTIFICATION DETAILS
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Name : |
ITOCHU SYSTECH CORPORATION |
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Registered Office : |
Ito Bldg 9F, 3-6-14 Minami-Honmachi Chuoku Osaka 541-0054 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
April 1969 |
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Com. Reg. No.: |
(Osaka-Chuoku) 074630 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, export, wholesale of textile machinery |
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No. of Employees : |
107 |
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 |
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Payment Behaviour : |
Slow but correct |
|
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 (31.03.2011) |
Current Rating (30.06.2012) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
ITOCHU SYSTECH CORPORATION
REGD NAME: Itochu
Systech KK
MAIN OFFICE: Ito
Bldg 9F, 3-6-14 Minami-Honmachi Chuoku Osaka 541-0054 JAPAN
Tel: 06-6282-1114 Fax: 06-6282-1109
URL: http://www.itochu-systech.co.jp/
E-Mail address: (thru
the URL)
Import, export,
wholesale of textile machinery
Tokyo, Nagoya,
Suita, Fukui
Shanghai, Jakarta,
Istanbul, Karachi, USA, Germany, France, Italy, Singapore
(--subsidiaries)
HIROYUKI SONODA,
PRES Yoichi Umeda, dir
Shoichi Murakami,
dir Kazunori Iwaki, dir
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 12,809 M
PAYMENTSSLOW BUT
CORRECT CAPITAL Yen 480 M
TREND SLOW WORTH Yen 1,307 M
STARTED 1969 EMPLOYES 107
TRADING FIRM SPECIALIZING IN TEXTILE MACHINERY, OWNED BY ITOCHU CORP
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
The subject company was established on the
basis of a machinery export division separated from Itochu Corp, a leading
general trading house, Tokyo (See REGISTRATION),
as Itochu Texmac Corp. In Apr 2008,
merged a sister company, Itochu Plamac Corp, and renamed as captioned. This is a trading firm for export, and
partially import, of textile machinery & peripheral equipment in the main,
hi-tic polymer processing machinery, including their parts & attachments. Also offers installation, maintenance and
engineering services. Export
destinations are China, Pakistan, Thailand, Turkey, Indonesia, India,
Bangladesh, Europe, USA, etc. In Apr
2011, merged three sister firms to make them consolidated subsidiaries in order
to strengthen business activities in the Asian markets. Clients include major textile makers, apparel
makers, other.
The sales volume for Mar/2012 fiscal
term amounted to Yen 12,809 million, an 8% down from Yen 13,945 million in the
previous term. Export volumes were
decreased. High Yen hurt revenues in Yen
terms. The net profit was posted at Yen
185 million, compared with Yen 140 million a year ago.
For the current term ending Mar 2013 the net
profit is projected at Yen 190 million, on a 3% rise in turnover, to Yen 13,200
million. .
The financial situation is considered FAIR
and good for ORDINARY business engagements.
Date Registered: Apr 1969
Regd No.:
(Osaka-Chuoku) 074630
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 38,400 shares
Issued: 9,600 shares
Sum: Yen 480 million
Major
shareholders (%): Itochu Corp* (75), Mori Seiki (17), Itochu Machine-Technos (8) No.
of shareholders: 3
*.. One of big 5 general trading houses, at
the caption address, founded 1949, listed Tokyo, Osaka, Nagoya, Fukuoka,
Sapporo S/E’s, capital Yen 202,241 million, turnover Yen 11,978,276 million, operating
profit Yen 272,620 million, recurring profit Yen 341,174 million, net profit
Yen 300,505 million, total assets Yen 6,507,273 million, net worth Yen
1,696,141 million, employees 70,639 million, pres Masahiro Okafuji
Consolidated
Financials are attached (See SUPPLEMENTS)
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Exports, imports
and wholesales textile machinery/equipment: spinning machinery, dyeing &
finishing machinery, synthetic fiber machines, high-tech polymer processing
machinery, automatic side hemming machines for towels, automatic towel slitting
machines, cross hemming machines, their parts & components, offering
installation, maintenance & engineering services (--100%).
Clients: [Textile mfrs,
wholesalers] Exports to Texmac Inc (USA), Texmac Europe Spa (Italy), Weiqiao
Tex, Colony Tex, Sheikh Spinning, Crescent Steel, other to China, India,
Indonesia, Turkey, Bangladesh, Pakistan, Thailand, other.
Domestic clients: Kawashima Selcon Textiles,
Sato Pharmaceutical, Tokyo Neo Print, Unitika, Daifuku Co, Kaihara Co, Toyota
Automatic Loom Works, Kuraray, CI Kasei Co, Sumitomo Chemical, Sanko Co, other
No. of accounts:
300
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs] For
exports, supplied from Murata Machinery, Toyoda Automatic Loom Works, Tsudakoma
Corp, Happy Ind, TMT Machinery, Plastic Research Laboratory of Plastic
Technology Co, other.
Partially imports from: Van de Wiele, Bonas
Textile Machinery, CF Scheer & Cie GmbH, other from Germany, Switz,
Belgium, Korea, etc.
Payment record: Slow but correct
Location: Business area in
Osaka. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
Mizuho Bank
(Semba)
Hyakujushi Bank (Osaka)
Relations:
Satisfactory
(In Million Yen)
|
Terms Ending: |
31/03/2013 |
31/03/2012 |
31/03/2011 |
31/03/2010 |
|
|
Annual
Sales |
|
13,200 |
12,809 |
13,945 |
10,133 |
|
Recur.
Profit |
|
|
|
141 |
235 |
|
Net Profit |
|
190 |
185 |
140 |
249 |
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Total
Assets |
|
|
5,801 |
3,710 |
4,020 |
|
Current
Assets |
|
|
5,079 |
3,541 |
3,827 |
|
Current
Liabs |
|
|
4,343 |
2,348 |
2,670 |
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Net
Worth |
|
|
1,307 |
1,199 |
1,180 |
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Capital,
Paid-Up |
|
|
480 |
480 |
480 |
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Div.Ttl
in Million (¥) |
|
|
0.00 |
124 |
68 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
3.05 |
-8.15 |
37.62 |
-27.17 |
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Current Ratio |
|
.. |
116.95 |
150.81 |
143.33 |
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N.Worth Ratio |
.. |
22.53 |
32.32 |
29.35 |
|
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R.Profit/Sales |
|
.. |
.. |
1.01 |
2.32 |
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N.Profit/Sales |
1.44 |
1.44 |
1.00 |
2.46 |
|
|
Return On Equity |
.. |
14.15 |
11.68 |
21.10 |
|
Notes: Forecast (or
estimated) figures for the 31/03/2013 fiscal term.
CONSOLIDATED FINANCIALS OF THE PARENT, ITOCHU CORP
|
FINANCES: (Consolidated
in million yen) |
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|||||
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Terms Ending: |
31/03/2012 |
31/03/2011 |
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INCOME STATEMENT |
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Annual Sales |
|
11,978,276 |
11,393,584 |
||
|
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Cost of Sales |
8,947,829 |
10,417,206 |
|||
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GROSS PROFIT |
3,030,447 |
976,378 |
|||
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Selling & Adm Costs |
2,757,822 |
720,075 |
|||
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OPERATING PROFIT |
272,620 |
256,303 |
|||
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Non-Operating P/L |
68,554 |
-73,971 |
|||
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RECURRING PROFIT |
341,174 |
182,332 |
|||
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NET PROFIT |
300,505 |
161,114 |
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BALANCE SHEET |
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|||
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Cash |
|
513,489 |
633,756 |
||
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Receivables |
|
1,653,412 |
1,426,677 |
||
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Inventory |
|
574,345 |
504,342 |
||
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Securities, Marketable |
2,770 |
3,560 |
|||
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Other Current Assets |
636,070 |
507,321 |
|||
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TOTAL CURRENT ASSETS |
3,380,086 |
3,075,656 |
|||
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Property & Equipment |
707,933 |
643,974 |
|||
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Intangibles |
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||
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Investments, Other Fixed Assets |
2,419,254 |
1,957,079 |
|||
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TOTAL ASSETS |
6,507,273 |
5,676,709 |
|||
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Payables |
|
1,434,241 |
1,236,561 |
||
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Short-Term Bank Loans |
415,268 |
241,915 |
|||
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Other Current Liabs |
601,565 |
565,066 |
|||
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TOTAL CURRENT LIABS |
2,451,074 |
2,043,542 |
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Debentures |
|
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||
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Long-Term Bank Loans |
2,259,717 |
2,160,772 |
|||
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Reserve for Retirement Allw |
64,304 |
52,564 |
|||
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Other Debts |
|
36,037 |
20,877 |
||
|
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TOTAL LIABILITIES |
4,811,132 |
4,277,755 |
|||
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MINORITY INTERESTS |
|
|
|||
|
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Common
stock |
202,241 |
202,241 |
|||
|
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Additional
paid-in capital |
112,370 |
112,370 |
|||
|
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Retained
earnings |
1,296,265 |
1,036,095 |
|||
|
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Evaluation
p/l on investments/securities |
(244,394) |
(193,683) |
|||
|
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Others |
|
332,344 |
244,605 |
||
|
|
Treasury
stock, at cost |
(2,685) |
(2,674) |
|||
|
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TOTAL S/HOLDERS` EQUITY |
1,696,141 |
1,398,954 |
|||
|
|
TOTAL EQUITIES |
6,507,273 |
5,676,709 |
|||
|
CONSOLIDATED CASH FLOWS |
|
|
||||
|
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Terms ending: |
31/03/2012 |
31/03/2011 |
||
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|
Cash
Flows from Operating Activities |
|
212,830 |
335,361 |
||
|
|
Cash
Flows from Investment Activities |
-416,315 |
-230,866 |
|||
|
|
Cash
Flows from Financing Activities |
84,704 |
53,202 |
|||
|
|
Cash,
Bank Deposits at the Term End |
|
513,489 |
633,756 |
||
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ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
||||
|
|
|
Net
Worth (S/Holders' Equity) |
1,696,141 |
1,398,954 |
||
|
|
|
Current
Ratio (%) |
137.90 |
150.51 |
||
|
|
|
Net
Worth Ratio (%) |
26.07 |
24.64 |
||
|
|
|
Recurring
Profit Ratio (%) |
2.85 |
1.60 |
||
|
|
|
Net
Profit Ratio (%) |
2.51 |
1.41 |
||
|
|
|
Return
On Equity (%) |
17.72 |
11.52 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.87 |
|
|
1 |
Rs.85.52 |
|
Euro |
1 |
Rs.71.77 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.