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Report Date : |
11.10.2013 |
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) : |
31.03.2013 |
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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 (Kabushiki Kaisha) |
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Line of Business : |
importer and wholesaler of 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 |
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No. of Employees : |
98 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 |
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Moderate |
B1 |
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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 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
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 Shoichi Murakami, dir
Kazunori Iwaki, dir Hajime Imamura, dir
Yoichi Umeda, dir
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 14,875 M
PAYMENTS NO COMPLAINTS CAPITAL Yen 480 M
TREND UP WORTH Yen 1,496 M
STARTED 1969 EMPLOYES 98
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 streamline & strengthen business activities in the Asian markets. Clients include major textile makers, apparel makers, other.
The sales volume for Mar/2013 fiscal term amounted to Yen 14,875 million, a 14% up from Yen 13,007 million in the previous term. Export was robust into S/E Asian countries. Business volume expanded. The net profit was posted at Yen 300 million, compared with Yen 185 million a year ago.
For the current term ending Mar 2014 the net profit is projected at Yen 310 million, on a 5% rise in turnover, to Yen 15,600 million. Weaker Yen may push the export sales revenues in Yen terms. .
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, Nagoya, Fukuoka, Sapporo S/E’s, capital Yen 202,241 million, turnover Yen 12,551,557 million, operating profit Yen 244,219 million, recurring profit Yen 311,112 million, net profit Yen 280,297 million, total assets Yen 7,117,446 million, net worth Yen 1,765,435 million, employees 77,513, pres Masahiro Okafuji
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: No complaints
Location: Business area in Osaka. Office premises at the caption address are leased and maintained satisfactorily.
Bank References: Mizuho
Bank (Semba)
Hachijuni Bank (Osaka)
Relations: Satisfactory
(In Million Yen)
|
Terms Ending: |
31/03/2014 |
31/03/2013 |
31/03/2012 |
31/03/2011 |
|
|
Annual
Sales |
|
15,600 |
14,875 |
13,007 |
13,945 |
|
Recur.
Profit |
|
|
|
|
|
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Net
Profit |
|
310 |
300 |
185 |
140 |
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Total
Assets |
|
|
6,106 |
5,801 |
3,710 |
|
Current
Assets |
|
|
5,357 |
5,079 |
3,541 |
|
Current
Liabs |
|
|
4,476 |
4,343 |
2,348 |
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Net
Worth |
|
|
1,496 |
1,307 |
1,199 |
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Capital,
Paid-Up |
|
|
480 |
480 |
480 |
|
Div.Ttl
in Million (¥) |
|
|
0.00 |
84 |
124 |
|
<Analytical
Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
4.87 |
14.36 |
-6.73 |
37.62 |
|
|
Current Ratio |
|
.. |
119.68 |
116.95 |
150.81 |
|
N.Worth Ratio |
.. |
24.50 |
22.53 |
32.32 |
|
|
R.Profit/Sales |
|
.. |
.. |
.. |
.. |
|
N.Profit/Sales |
1.99 |
2.02 |
1.42 |
1.00 |
|
|
Return On Equity |
.. |
20.05 |
14.15 |
11.68 |
|
Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.14 |
|
|
1 |
Rs.99.02 |
|
Euro |
1 |
Rs.83.87 |
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 |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<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.