MIRA INFORM REPORT

 

 

Report Date :

12.06.2013

 

IDENTIFICATION DETAILS

 

Name :

FOR-A COMPANY LTD

 

 

Registered Office :

3-8-1 Ebisu Shibuyaku Tokyo 150-0013

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

October  1971

 

 

Com. Reg. No.:

0110-01-030263 (Tokyo-Shibuyaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of broadcast & video equipment

 

 

No. of Employees :

220

 

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 :

Regular

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 and address

 

FOR-A COMPANY LTD

REGD NAME:   KK Hoei

MAIN OFFICE:  3-8-1 Ebisu Shibuyaku Tokyo 150-0013 JAPAN

Tel: 03-3446-3121     Fax: 03-3446-4451

                       

URL:                 http://www.for-a.co.jp

E-Mail address:            info@for-a.co.jp

 

 

ACTIVITIES

 

Mfg of broadcast & video equipment

 

 

BRANCHES

 

Sakura, Sapporo, Osaka, Sendai, Nagoya, Hiroshima, Fukuoka, Okinawa

 

OVERSEAS

 

USA (4), Canada, UK, Italy, Korea, China, UAE (--subsidiaries)

 

FACTORIES

 

(subcontracted)

 

 

OFFICERS

 

KATSUAKI KIYOHARA, PRES   Keizo Kiyohara, ch

 

Shuji Terashima, s/mgn dir         Ryoichi Kitahara, dir

 

Masatoshi Kono, dir                  Takeshi Enomoto, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 


SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 10,159 M

PAYMENTSREGULAR   CAPITAL           Yen 450 M

TREND STEADY           WORTH            Yen 11,656 M

STARTED         1971                 EMPLOYES      220

 

 

COMMENT

 

MFR SPECIALIZING IN BRAODCASTING & VIDEO EQUIPMENT & SYS-TEMS.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

           

HIGHLIGHTS

           

The subject company was established by Keizo Kiyohara in order to make most of his experience in the subject line of business.  Katsuaki is his son.  This is a specialized mfr of professional broadcast & video equipment & systems, providing a full line of advanced broadcast products, including video switches, converters, etc (See OPERATION).  Covers worldwide markets.  Imports modules, server systems, too.  In Feb 2011, acquired YEM Eletex Co Ltd, mfr of professional video equipment, and made it a consolidated subsidiary.  Clients include leading broadcasting companies, TV networks, other.

 

 

FINANCIAL INFORMATION

           

            The sales volume for Sept/2012 fiscal term amounted to Yen 10,159 million, a shade down from Yen 10,213 million in the previous term.  High Yen hurt export sales, reducing revenues and profits in Yen terms.  The recurring profit was posted at Yen 7179 million and the net profit at Yen 109 million, respectively, compared with Yen 793 million recurring profit and Yen 463 million net profit, respectively, a year ago.

 

For the current term ending Sept 2013 the recurring profit is projected at Yen 185 million and the net profit at Yen 115 million, respectively, on a 3% rise in turnover, to Yen 11,500 million.  Business is seen steadily expanding.

 

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

 

 

REGISTRATION

 

Date Registered:              Oct 1971

Regd No.:            0110-01-030263 (Tokyo-Shibuyaku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         3.6 million shares

Issued:                900,000 shares

Sum:                   Yen 450 million

Major shareholders (%): Employees’ S/Holding Assn (32), EXA International (26),

FOR-A Holdings Inc (17), Keizo Kiyohara (15),

No. of shareholders: 14

 

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

 

 

OPERATION

 

Activities: Manufactures professional broadcasting systems & equipment, CCTV                                    equipment (48%), imported electronic products & equipment (2%), other systems,                                equipment, products, such as video switches, converters, others (50%).

Exports (20%).

 

Clients: [Broadcasters, telecommunications carriers, mfrs] NHK, NTT, TDK Core, Fujitsu Ltd, Toshiba Corp, TV Tokyo, Nippon Television Network Corp, Mitsubishi Electric, Ikegami Tsushinki, Panasonic Corp, TV Asahi, Sony EMCS, Hitachi Electric Inc, other.

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Itochu Techno Solutions, Tanaka Kikinzoku Hambai, Paltec Inc, Grass Valley Corp, Kyodo Communications, DIS Solutions, Grass

Valley USA LLC, other.

 

Payment record: Regular

 

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

 

Bank References:

SMBC (Mitadori)

MUFG (Shinagawa-Ekimae)

Relations: Satisfactory.

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

30/09/2013

30/09/2012

30/09/2011

30/09/2010

Annual Sales

 

10,500

10,159

10,213

9,269

Recur. Profit

 

185

179

793

553

Net Profit

 

115

109

463

15,928

Total Assets

 

 

16,945

17,551

15,928

Current Assets

 

 

5,543

5,936

6,404

Current Liabs

 

 

1,631

2,721

2,232

Net Worth

 

 

11,656

11,614

11,195

Capital, Paid-Up

 

 

450

450

450

Div.P.Share(¥)

 

 

50.00

75.00

50.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.36

-0.53

10.18

-10.85

    Current Ratio

 

..

339.85

218.16

286.92

    N.Worth Ratio

..

68.79

66.17

70.29

    R.Profit/Sales

 

1.76

1.76

7.76

5.97

    N.Profit/Sales

1.10

1.07

4.53

171.84

    Return On Equity

..

0.94

3.99

142.28

 

Note: Forecast (or estimated) for the 30/09/2013 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.92

UK Pound

1

Rs.91.80

Euro

1

Rs.78.18

 

 

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.