MIRA INFORM REPORT

 

 

Report Date :

09.08.2014

 

IDENTIFICATION DETAILS

 

Name :

AB TECH CO LTD

 

 

Registered Office :

Kimura Bldg 2F, 6-35-14 Kamata Ohtaku Tokyo 144-0051

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

January 1997

 

 

Com. Reg. No.:

0108-01-001878

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Imports and wholesales industrial electrical machinery & apparatus, their parts & components: power supply, adapters, battery chargers (lead, lithium, nickel metal hydride), other (--100%)

 

 

No. of Employees :

6

 

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 – 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 & address

 

AB TECH CO LTD

 

 

REGD NAME

 

Ebitekku KK

 

 

MAIN OFFICE

 

Kimura Bldg 2F, 6-35-14 Kamata Ohtaku Tokyo 144-0051 Japan

Tel: 03-3735-1036     

Fax: 03-2735-6072

                                               

URL:                 http://www.ab-tech.co.jp

E-Mail address: (thru the URL)

 

ACTIVITIES:     Import, wholesale of industrial electrical machinery & equipment

BRANCHES:     Nil

FACTORIES:     China (subcontracted)

 

OFFICERS:       ISAMU EBISAWA, PRES

                        Yukio Ushiyama, dir

                        Shigeko Ebisawa, dir                 

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        R/WEAK                       A/SALES                      Yen 332 M

PAYMENTS      NO COMPLAINTS          CAPITAL                       Yen 10 M

TREND             UP                                WORTH                        Yen 116 M

STARTED         1997                             EMPLOYES                  6

 

COMMENT:       TRADING FIRM SPECIALIZING IN INDUSTRIAL ELECTRICAL MACHINERY.

FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOUL BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

HIGHLIGHTS

           

The subject company was established originally in 1974 by Isamu Ebisawa in order to import industrial electrical equipment, on his account, and was incorporated in 1997.  This is a family-based trading firm specializing in import and wholesale of industrial electrical machinery & apparatus, their parts & attachments: power supply, adapters, battery chargers, other.  Goods are imported from China (subcontracted factory), other.   Clients include machinery makers, wholesalers, other.

 

 

FINANCIAL INFORMATION

           

Financial are only partially disclosed as is the case with family-based companies.

 

The sales volume for Dec/2013 fiscal term amounted to Yen 332 million, a 41% up from Yen 236 million in the previous term.  Demand was robust.  The previous year the industrial activity was down-pressed and business was slow.  The net profit was posted at Yen 20 million, compared with Yen 2 million a year ago.

 

For the current term ending Dec 2014 the net profit is projected at Yen 25 million, on a 4% rise in turnover, to Yen 345 million.  Weaker Yen may push sales upward in Yen terms. 

 

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements. 

 

 

REGISTRATION

 

Date Registered:                      Jan 1997

Regd No.:                                 0108-01-001878 (Tokyo-Ohtaku)

Legal Status:                           Limited Company (Kabushiki Kaisha)

Authorized:                              800 shares

Issued:                                     200 shares

Sum:                                        Yen 10 million

Major shareholders (%):           Isamu Ebisawa (100)

Related Companies:                None

           

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

 

 

OPERATION

           

Activities: Imports and wholesales industrial electrical machinery & apparatus, their parts & components: power supply, adapters, battery chargers (lead, lithium, nickel metal hydride), other (--100%)

 

Clients: [Mfrs, wholesalers] Yamada Electric Ind, HIOS Inc, Koshin Ltd, SANWA Ltd, Uniden Corp, Hitachi Living Supply, France Bed Co, BIOS Corp, Koshin Ltd (Pump maker), other

No. of accounts: 300

Domestic areas of activities: Centered in greater-Tokyo

Suppliers: [Mfrs, wholesalers] EP Ace Co, Honkwang Electric Co, Freerider Corp, LI-DIANN Enterprise Co, High Power Tech Inc, Mitra Electronics Ind, Sinpo Electronics Inc, Shinden Co, other

Imports from China, other

 

Payment record: No Complaints

 

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

 

Bank References:

MUFG (Kamata-Ekimae)

Relations: Money deposits & transfers only

 

 

FINANCES

 

(In Million Yen)

Terms Ending:

　

31/12/2014

31/12/2013

31/12/2012

31/12/2011

Annual Sales

　

345

332

236

369

Recur. Profit

　

..

..

..

..

Net Profit

　

25

20

2

27

Total Assets

　

　

N/A

N/A

N/A

Net Worth

　

　

116

96

93

Capital, Paid-Up

　

　

10

10

10

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

3.92

40.68

-36.04

6.65

    Current Ratio

　

　

..

..

..

    N.Worth Ratio

　

　

..

..

..

    N.Profit/Sales

　

7.25

6.02

0.85

7.32

 

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/12/2014 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.55

UK Pound

1

Rs.103.50

Euro

1

Rs.82.41

 

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