MIRA INFORM REPORT

 

 

Report Date :

18.06.2013

 

IDENTIFICATION DETAILS

 

Name :

JRC CO LTD

 

 

Registered Office :

Nishihonmachi NT Bldg 5F, 2-4-23 Awaza Nishiku Osaka 550-0001

 

 

Country :

Japan

 

 

Financials (as on) :

29.02.2012

 

 

Date of Incorporation :

March  1991

 

 

Com. Reg. No.:

1200-01-044197 (Osaka-Nishiku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of belt conveyors & peripherals

 

 

No. of Employees :

159

 

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 102.5 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 and address

 

JRC CO LTD

REGD NAME:    KK J. R. C

MAIN OFFICE:  Nishihonmachi NT Bldg 5F, 2-4-23 Awaza Nishiku Osaka 550-0001 JAPAN

Tel: 06-6543-8680      Fax: 06-6543-8681

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of belt conveyors & peripherals

 

BRANCHES

 

Tokyo, Yokohama, Sapporo, Sendai, Saitama, Aichi, Kobe, Hiroshima,

Kagoshima

 

OVERSEAS

 

China (2), Egypt, Iran, Iraq, Saudi Arabia, Indonesia, Malaysia

 

FACTORIES

 

Kobe, Asahikawa, Kagoshima, Saitama

 

 

OFFICERS

 

YOSHIHIRO HAMAGUCHI, PRES

Minoru Hamaguchi, v pres

Nobuhiro Hayashida, dir 

           

Yen Amount:     In million Yen, unless otherwise stated

 


SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 4,113 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 80 M

TREND UP                                WORTH            Yen 3,162 M

STARTED         1991                             EMPLOYES      159

 

 

COMMENT

 

MFR OF BELT CONVEYORS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 102.5 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

            The subject company was established originally in 1961 by Takumi Hamaguchi in order to make most of his experience in the subject line of business.  Incorporated in 1991 the firm has been succeeded by his descendants.  This is a specialize mfr of belt conveyors and peripherals.  Products are exported.  Operates sales/marketing offices in China (2), Egypt, Iran, Iraq, Saudi Arabia, Indonesia and Malaysia.  Clients include major heavy machinery makers.

 

 

FINANCIAL INFORMATION

           

            The sales volume for Feb/2012 fiscal term amounted to Yen 4,113 million, an 11% up from Yen 3,719 million in the previous term.  Exports were robust into Mid East and China.  The recurring profit was posted at Yen 321 million and the net profit at Yen 168 million, respectively, compared with Yen 348 million recurring profit and Yen 190 million net profit, respectively, a year ago.

 

            For the term that ended Feb 2013 the recurring profit was projected at Yen 330 million and the net profit at Yen 170 million, respectively, on a 3% rise in turnover, to Yen 4,250 million.  Final results are yet to be released. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 102.5 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:          Mar 1991

Regd No.:            1200-01-044197 (Osaka-Nishiku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:                    6,400 shares

Issued:                1,600 shares

Sum:                   Yen 80 million

      Major shareholders (%): Yoshihiro Hamaguchi (32), Employees’ S/Holding Assn (12)

No. of shareholders: 7

 

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

 

 

OPERATION

 

Activities: Manufactures belt conveyors and peripherals (--100%)

 

(Mfg Items): belt conveyor idlers & pulleys, peripherals (FRP covers, belt cleaners, belt sway switches, emergency pull cord switches, others.

 

Clients: [Mfrs, wholesalers] Kobe Steel, Mitsubishi Heavy Ind, Kawasaki Heavy Ind, Nikko Co, other

No. of accounts: 200

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Maruichi Steel Tube Ltd, Subaru Steel Co, Nichiden Corp, Satoh Kinzoku Seisakusho, other

 

Payment record: No Complaints

 

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

 

Bank References:

MUFG (Uehonmachi)

Mizuho Bank (Nanba)

Relations: Satisfactory

 

 

FINANCES

 (In Million Yen)

 

       Terms Ending:

28/02/2013

29/02/2012

28/02/2011

28/02/2010

Annual Sales

 

4,250

4,113

3,719

3,616

Recur. Profit

 

330

321

348

 

Net Profit

 

170

168

190

165

Total Assets

 

 

7,956

6,188

5,386

Current Assets

 

 

2,038

1,807

 

Current Liabs

 

 

2,452

1,646

 

Net Worth

 

 

3,162

3,050

2,906

Capital, Paid-Up

 

 

80

80

80

Div.P.Share(¥)

 

 

 

 

 

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.33

10.59

2.85

-19.39

    Current Ratio

 

..

83.12

109.78

..

    N.Worth Ratio

..

39.74

49.29

53.95

    R.Profit/Sales

 

7.76

7.80

9.36

..

    N.Profit/Sales

4.00

4.08

5.11

4.56

    Return On Equity

..

5.31

6.23

5.68

 

Notes: Forecast (or estimated) figures for the 28/02/2013 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.57.73

UK Pound

1

Rs.90.61

Euro

1

Rs.76.96

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.