MIRA INFORM REPORT

 

 

Report Date :

31.08.2014

 

IDENTIFICATION DETAILS

 

Name :

COMPACT TOOLS CO LTD

 

 

Registered Office :

2-14-13 Hatanaka Niiza Saitama-Pref 352-0012

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2014

 

 

Date of Incorporation :

December 1969

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturing of machine tools

 

 

No. of Employees

61

 

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 :

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 and address

 

COMPACT TOOLS CO LTD

 

REGD NAME:    Compact Tool KK

MAIN OFFICE:  2-14-13 Hatanaka Niiza Saitama-Pref 352-0012 JAPAN

    Tel: 048-478-1500      Fax: 048-477-0777

 

URL:                 http://www.compacttool.com

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of machine tools (air/electric tools), other

 

 

BRANCHES   

 

Sapporo, Sendai, Nagoya, Kawagoe, Osaka, Fukuoka

 

 

FACTORIEs

 

At the caption address

 

 

OFFICERS

 

FUJIKO SATOH, PRES              Yutaka Shimojima, mgn dir

Mitsuaki Tanaka, dir                   Makoto Ishida, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 1,369 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 50 M

TREND UP                                WORTH            Yen 922 M      

STARTED         1969                             EMPLOYES      61

 

COMMENT

 

MFR OF MACHINE WORKING TOOLS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established by Husband of Fujiko Satoh in order to make most of his experience in the subject line of business.  This is a specialized mfr of machine working tools, air/electric tools, other (See OPERATION).  Products are widely exported to USA, S/E Asia, other.  Clients include mfrs, wholesalers, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Feb/2014 fiscal term amounted to Yen 1,369 million, a 10% up from Yen 1,250 million in the previous term.  Production rose.  The weaker Yen contributed to raise export earnings in Yen terms.  The net profit was posted at Yen 27 million, compared with Yen 39 million a year ago.

 

For the current term ending Feb 2015 the net profit is projected at Yen 30 million, on a 6% rise in turnover, to Yen 1,450 million.  Business is seen expanding steadily.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 42.8 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Dec 1969

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         400,000 shares

Issued:                100,000 shares

Sum:                   Yen 50 million

Major shareholders (%): Fujiko Satoh (27), Shigemi Satoh (25), Mitsuaki Tanaka (8),

Hitomi Satoh (7)

No. of shareholders: 24

 

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

 

 

 

 

 

 

OPERATION

           

Activities: Manufactures machine working tools: dust collectors, air sanders, straight sanders, belt sanders, drills, ratchet wrench, air saw, other (--100%)

 

Clients: [Mfrs, wholesalers] Sankyo Rikagaku Co (25%), COPAX Co (10%), Alpha Professional (7%), Sumitomo 3M Ltd (6%), other

Exports to USA, S/E Asia, other

No. of accounts: 300

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Shinmei Sangyo, Nomizu Machine Mfg, Abilita Co, Makita Mfg, NSK Ltd, other

 

Payment record: No complaints

 

Location: Business area in Niiza City, Saitama-Pref.  Office premises at the caption address are owned and maintained satisfactory.

 

Bank References:

Musashino Bank (Asaka)

MUFG (Wako-Ekimae)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

28/02/2015

28/02/2014

28/02/2013

29/02/2012

Annual Sales

　

1,450

1,369

1,250

1,210

Recur. Profit

　

　

　

　

　

Net Profit

　

30

27

39

39

Total Assets

　

　

1,823

1,306

1,259

Current Assets

　

　

1,084

1,076

1,030

Current Liabs

　

　

324

298

276

Net Worth

　

　

922

896

859

Capital, Paid-Up

　

　

50

50

50

Div.Ttl in Million (¥)

　

　

2

2

2

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

5.92

9.52

3.31

5.31

    Current Ratio

　

..

334.57

361.07

373.19

    N.Worth Ratio

　

..

50.58

68.61

68.23

    R.Profit/Sales

　

..

..

..

..

    N.Profit/Sales

　

2.07

1.97

3.12

3.22

    Return On Equity

　

..

2.93

4.35

4.54

 

Notes: Forecast (or estimated) figures for the 28/02/2015 fiscal term.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.48

UK Pound

1

Rs.100.35

Euro

1

Rs.79.86

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIS

 

               

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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