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Report Date : |
07.04.2014 |
IDENTIFICATION DETAILS
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Name : |
EREX CO LTD |
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Registered Office : |
Central Bldg 8F, 3-3-14 Nihombashi-Hongokucho Chuoku Tokyo 103-0021 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
December, 1999 |
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Com. Reg. No.: |
0100-01-066839 (Tokyo-Chuoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Supply of electric power, petroleum oil |
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No. of Employees : |
28 |
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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Maximum Credit Limit : |
Yen 563.7 Million |
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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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.
|
Source
: CIA |
EREX CO LTD
REGD NAME: KK eREX
MAIN OFFICE: Central Bldg 8F, 3-3-14 Nihombashi-Hongokucho
Chuoku Tokyo 103-0021
JAPAN
Tel:
03-3243-1118
Fax: 03-3271-8490
URL: http://www.erex.co.jp
E-Mail address: (thru the URL)
Supply of electric power, petroleum oil, other
Nil
(subcontracted)
HIROSHI WATANABE, PRES
Hitoshi Motona, v pres
Motohiko Ueda, dir
In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen
12,428 M
PAYMENTS NO COMPLAINTS CAPITAL Yen
625 M
TREND SLOW WORTH Yen 2,774 M
STARTED 1999 EMPLOYES 28
SUPPLY OF ELECTRIC POWER, PETROLEUM OIL, OTHER.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 563.7 MILLION, 30 DAYS NORMAL TERMS
The subject company was established originally as Nittan Energy Co and
renamed as captioned in 2000. This is a
supplier (retail) of electric power, petroleum oil, other. Started supply of electric power in 2001 to
Kyushu area, Kanto area and Tohoku area (See OPERATION). Clients include
ministries, prefectural governments, other.
Supply sources are electric powers.
The sales volume for Mar/2013 fiscal term amounted to Yen 12,428
million, a 12% down from Yen 14,099 million in the previous term. The recurring profit was posted at Yen 1,233
million and the net profit at Yen 747 million, respectively, compared with Yen
1,346 million recurring profit and Yen 766 million net profit, respectively, a
year ago.
For the term that ended Mar 2014 the recurring profit was projected at
Yen 1,250 million and the net profit at Yen 760 million, respectively, on a 3%
rise in turnover, to Yen 12,800 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 563.7 million, on 30 days normal terms.
Date Registered: Dec 1999
Regd No.: 0100-01-066839 (Tokyo-Chuoku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
50,000 shares
Issued:
12,500 shares
Sum: Yen 625 million
Major shareholders
(%): Nittan eREX Co Ltd, Hitachi Ltd, Toshiba Corp, Maeda Corp, Ueda Yagi
Tanshi, Hiroshi Watanabe, other (Breakdown unavailable)
No. of
shareholders: 20
Nothing detrimental is known as to the commercial morality of
executives.
Activities: Supplier
(retailer) of electric powers, petroleum oils, other (--100%)
(Supply results
for 2012):
Kyushu areas: 550 facilities
Kanto areas: 600 facilities
Tohoku areas: 250 facilities
Clients: [Mfrs,
wholesalers] Japan Electric Power Exchange, Ministry of Finance, Tokyo Regional
Taxation Bureau, Kanagawa-Pref Office, Kagoshima-Pref Office Kumamoto-Pref
Office, Oita-Pref Office, other
No. of accounts: 300
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Goi Coast Energy (50%), Tokyo Electric Power, Kyushu Electric
Power, Hitachi Ltd, Taiheiyo Cement, TonenGeneral Sekiyu KK, other
Payment record: No complaints
Location: Business area in
Tokyo. Office premises at the caption
address are eased and maintained satisfactorily.
Bank References:
Mizuho Bank
(H/O)
Relations:
Satisfactory
|
Terms Ending: |
31/03/2014 |
31/03/2013 |
31/03/2012 |
31/03/2011 |
|
|
Annual Sales |
|
12,800 |
12,428 |
14,099 |
10,426 |
|
Recur. Profit |
|
1,250 |
1,233 |
1,346 |
487 |
|
Net Profit |
|
760 |
747 |
766 |
281 |
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Total Assets |
|
|
4,342 |
3,971 |
2,508 |
|
Current Assets |
|
|
3,676 |
3,785 |
2,378 |
|
Current Liabs |
|
|
1,359 |
1,732 |
1,167 |
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Net Worth |
|
|
2,774 |
2,103 |
1,336 |
|
Capital, Paid-Up |
|
|
625 |
625 |
625 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
2.99 |
-11.85 |
35.23 |
942.60 |
|
|
Current Ratio |
.. |
270.49 |
218.53 |
203.77 |
|
|
N.Worth Ratio |
.. |
63.89 |
52.96 |
53.27 |
|
|
R.Profit/Sales |
9.77 |
9.92 |
9.55 |
4.67 |
|
|
N.Profit/Sales |
5.94 |
6.01 |
5.43 |
2.70 |
|
|
Return On Equity |
.. |
26.93 |
36.42 |
21.03 |
|
Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.32 |
|
|
1 |
Rs.100.04 |
|
Euro |
1 |
Rs.82.65 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
NNA |
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 |
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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 |
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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.