MIRA INFORM REPORT

 

 

Report Date :

01.08.2014

 

IDENTIFICATION DETAILS

 

Name :

KASHIMA ELECTRONICS INC

 

 

Registered Office :

203 Jinba Yoshiokacho Kita-Gunmagun Gunma-Pref 370-3603

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2013

 

 

Date of Incorporation :

October 1975

 

 

Com. Reg. No.:

0700-01-017568

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures electronics products: IC, EMS, semiconductor solutions, condensers (power generation, power transfer, power supply, other), hardware, software, other (--100%)

 

 

No. of Employees :

230

 

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 :

Slow but correct

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. 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

Company name

 

KASHIMA ELECTRONICS INC

 

 

REGD NAME

 

Kashima Electro Sangyo KK

 

 

MAIN OFFICE

 

203 Jinba Yoshiokacho Kita-Gunmagun Gunma-Pref 370-3603 Japan

Tel: 0279-54-5211     

Fax: 0279-54-8260

 

URL:                 http://www.kashima-electro.co.jp

E-Mail address: (thru the URL)

 

ACTIVITIES:     Mfg of IC, EMS, semiconductor solutions, other

BRANCHES:     Nagoya, Fukuoka

OVERSEAS:     China (Factory)

FACTORIES:     At the caption address, Gunma; China (Shanghai)

 

OFFICERS:       YASUHIRO KASHIMA, PRES     Noboru Kashima, ch

                        Masao Ikawa, s/mgn dir              Koji Suda, dir

                        Tadashi Shimabara, dir               Akemi Kashima, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

 

SUMMARY    

 

FINANCES        FAIR                                         A/SALES                      Yen 5,247 M

PAYMENTS      SLOW BUT CORRECT               CAPITAL                       Yen 50 M

TREND             UP                                            WORTH                        Yen 715 M       

STARTED         1975                                         EMPLOYES                  230

 

COMMENT:       MFR OF IC, EMS, OTHER.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established by Noboru Kashima in order to make most of his experience in the subject line of business.  Yasuhiro is his son, who took the pres office in Oct 1996.  This is a specialized mfr of electronic products: IC, EMS, semiconductor solutions, taping parts, condensers (power generation, power transfer, power supply, other), other.  Has a factory in China, where products are made for marketing in China and exported.  Clients include semiconductor mfrs, electronic makers, other, nationwide.

 

 

FINANCIAL INFORMATION

           

Financials are disclosed only partially.

 

The sales volume for Sept/2013 fiscal term amounted to Yen 5,247 million, a 22% up from Yen 4,314 million in the previous term.  Production increased thanks to module facility set-up at factories, also production in China rose.  Demand rose in China.  The net profit was posted at Yen 25 million, compared with Yen 163 million a year ago.

 

For the current term ending Sept 2014 the net profit is projected at Yen 30 million, on a 5% rise in turnover, to Yen 5,500 million.  Business is seen expanding steadily.

 

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

 

REGISTRATION

 

Date Registered:                      Oct 1975

Regd No.:                                 0700-01-017568 (Gunma-Kita-Gunma)

Legal Status:                           Limited Company (Kabushiki Kaisha)

Authorized:                              400,000 shares

Issued:                                     100,000 shares

Sum:                                        Yen 50 million

Major shareholders (%):           Noboru Kashima (35), Yasuhiro Kashima (30), Akemi Kashima (20)

No. of shareholders:                7

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

 

 

OPERATION

           

Activities: Manufactures electronics products: IC, EMS, semiconductor solutions, condensers (power generation, power transfer, power supply, other), hardware, software, other (--100%)

 

 

Clients: [Mfrs, wholesalers] MX Mobiling, Hoshiden, Yamaha Semiconductors Kagoshima, NEC Saitama, Sanyo Kogyo Co, Miyoshi Electronics Corp, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Hoshiden, Sanyo Kogyo, Sanyo Electric System Solutions, Kaga Electronics, Miyoshi Electronics Corp, Renesas Easton, other

 

Payment record: slow but correct

 

Location: Business area in Gunma.  Office premises at the caption address are owned and maintained satisfactory.

 

Bank References:

Gunma Bank (H/O)

Mizuho Bank (Takasaki)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

 

Terms Ending:

　

30/09/2014

30/09/2013

30/09/2012

30/09/2011

Annual Sales

　

5,500

5,247

4,314

4,207

Recur. Profit

　

..

..

..

..

Net Profit

　

30

25

163

25

Total Assets

　

　

N/A

N/A

N/A

Net Worth

　

　

715

690

527

Capital, Paid-Up

　

　

50

50

50

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.82

21.63

2.54

-18.09

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

..

..

..

    N.Profit/Sales

0.55

0.48

3.78

0.59

 

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 30/09/2014 fiscal term.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.25

UK Pound

1

Rs.101.92

Euro

1

Rs.80.70

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 

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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