MIRA INFORM REPORT

 

 

Report Date :

31.10.2013

 

IDENTIFICATION DETAILS

 

Name :

ISS MACHINERY SERVICES LIMITED

 

 

Registered Office :

Osaka Kasen Bldg, 4-6-8 Kawaramachi Chuoku Osaka 541-0048

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

April, 1991

 

 

Com. Reg. No.:

(Hong Kong) 004722

 

 

Legal Form :

Branch Office

 

 

Line of Business :

Supply of ship machinery & equipment

 

 

No. of Employees :

125

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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

 

ISS MACHINERY SERVICES LIMITED

 

 

REGD NAME

 

ISS Machinery Services Limited (Branch Office)

 

 

MAIN OFFICE

 

Osaka Kasen Bldg, 4-6-8 Kawaramachi Chuoku Osaka 541-0048 JAPAN

Tel: 06-6203-5156    

Fax: 06-6203-5195

 

URL:                 http//:www.issmachinery.com

E-mail:             psc@iss-shipping.com  

 

 

ACTIVITIES

 

Supply of ship machinery & equipment

 

 

BRANCHES   

 

Tokyo

 

 

OFFICER(S)  

 

KIYONAMI HAYASHI, MGN DIR

Mikihiko Oka, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 13,745 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 285 M

TREND             SLOW                          WORTH            Yen 3,550 M

STARTED         1991                             EMPLOYES      125

 

 

COMMENT    

 

SUPPLIER OF SHIP ENGINES & EQUIPMENT, OWNED BY INCHCAPE

SHIPPING SERVICES 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

           

HIGHLIGHTS

           

The subject company was established originally in 1971 on the basis of a ship engine sales division separated from Dodwell & Co Ltd and was reorganized in 1991 when the ownership changed to Inchcape Shipping Services.  This is a branch office acting as import agent for ship engines & machinery parts.  It has two operating divisions: Parts Supply Division (supplying ship’s spare parts, etc), and Plant Machinery Division (supplying industrial & land machinery).  Goods are mostly supplied from the domestic heavy machinery makers nationwide.  Clients are shipping companies, shipyards, oil refineries, other.

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2012 fiscal term amounted to Yen 13,245 million, a 14% down from Yen 15,401 million in the previous term.  The net profit was posted at Yen 575 million, compared with Yen 775 million net profit a year ago.  .

 

For the current tem ending Dec 2013 the net profit is projected at Yen 450 million, on a 10% rise in turnover, to Yen 14,500 million. 

           

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

 

 

REGISTRATION

 

Date Registered:                      Apr 1991

Regd No.:                                 (Hong Kong) 004722

Legal Status:   　                       Branch Office

Regd Capital:                           Yen 825 million

Major shareholders (%):           Istithmar PJSC (UAE)* (100)

* Inchcape Shipping Service, the original owner, sold the stocks in Jan 2006

           

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

 

 

 

 

OPERATION

 

Activities: Imports and supplies marine spare parts & equipment for vessels: main engine, auxiliary engine, pumps, compressors, navigation, control, communication, deck & bridge equipment, industrial & land machinery & equipment (--100%).

 

Clients: [Shipping lines, dockyards] Barber Line, Oil Refinery, Billabong, other

            No. of accounts: 500

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsubishi Heavy Ind, Kawasaki Heavy Ind, IHI, Kobe Steel, Kubota Corp, Naniwa Pump Mfg,

 

Payment record: No Complaints

 

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

 

Bank References:

MUFG (Kawaramachi)

Hong Kong Shanghai Bank (Osaka)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

Terms Ending:

　

31/12/2013

31/12/2012

31/12/2011

31/12/2010

Annual Sales

　

14,500

13,245

15,401

16,506

Recur. Profit

　

..

..

..

..

Net Profit

　

450

392

575

775

Total Assets

　

　

N/A

N/A

N/A

Net Worth

　

　

3,550

3,276

2,873

Capital, Paid-Up

　

　

285

285

285

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

9.48

-14.00

-6.69

10.91

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

..

..

..

    N.Profit/Sales

3.10

2.96

3.73

4.70

 

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/12/2013 fiscal term. 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.49

UK Pound

1

Rs.98.71

Euro

1

Rs.84.49

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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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