MIRA INFORM REPORT

 

 

Report Date :

24.12.2014

 

IDENTIFICATION DETAILS

 

Name :

ERECTA INTERNATIONAL CORPORATION 

 

 

Registered Office :

Naka-meguro GT Tower 14F., 2-1-1, Kami-meguro, Meguro-ku, Tokyo 153-0051

 

 

Country :

Japan

 

 

Date of Incorporation :

29.08.1966

 

 

Com. Reg. No.:

0132-01-018469 (Tokyo)

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

·         Engaged in manufacturing and distributing Erecta Shelf, the Steel Wire Shelf, in Technical Collaboration with InterMetro Industries Corp. of the United States

·         Engaged in Manufacture and sales of wire shelf

·         Engaged in Manufacture and sales of meal cart(carrier) to be used inside hospital

·         Engaged in Manufacture and sales of palette rack for logistics industry

·         Engaged in Import and sales of the products supplied by Inter Metro, USA

·         Engaged in Import and sales of the products supplied by Rubbermaid, USA

·         Engaged in Import and sales of the products supplied by Rieber, Germany

·         Engaged in Import and sale of the products supplied by Socalmel, France

·         Engaged in Import and Sales of the products supplied by Vollrath, USA

·         Engaged in Import and Sales of the products supplied by Barth, Germany

 

 

No of Employees :

146

 

 

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 :

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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. 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

 

ERECTA INTERNATIONAL CORPORATION

 

Company OUTLINE

 

Company name:            ERECTA INTERNATIONAL CORPORATION

Name in local language: ERECTA K.K. 

Office address:             Naka-meguro GT Tower 14F., 2-1-1, Kami-meguro, Meguro-ku, Tokyo 153-0051

Country:                        Japan

Office tel:                                 03-6742-0000

Website:                       www.erecta.co.jp  

Business type:              Trader

Industry:                       Steel(wire) shelves, cart and special-purpose vehicles

Established:                  August 29, 1966

Capital:                                     Jp. 88,000,000 yen

Employees:                  146

Corporate formation:     Private

Corporation No.:           0132-01-018469 (Tokyo Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

Paid in capital :                         Jp. 88,000,000 yen

Number of authorized shares :   687,104 shares

Shares issued :                         159,104 shares

Number of shareholder :                        4

 

Name of shareholders                           Number of shares (%)

------------------------------------------------------------------------------------------------------------

Mr. Takashi Yanagiya, president            110,352 shares (69.4)

Employees shareholders fund                 29,744 shares (18.7)

------------------------------------------------------------------------------------------------------------

Total                                                     140,096 shares (88.1)

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

Activity             Product/Service Description

-------------------------------------------------------------------------------

Trading             Steel(wire shelves)

Trading             Cart and special-purpose vehicles

 

 

COMPANY MANAGEMENT

 

President                      Mr. Takashi Yanagiya

Nationality:                    Japan

 

Auditor                                     Mr. Toshitsugu Ehara

Nationality:                    Japan

 

 

Note: The names of director(s) and auditor(s) are phonetically spelt.

 

*Key Personnel*

==============

Mr. Takashi Yanagiya

President and representative director

Born on June 24, 1949

Home address: The Homes Uehara 101, 2-13-12, Uehara, Shibuya-ku, Tokyo 151-0064

 

 

FINANCIALS

 

Currency: (local currency - Jp. yen)

-------------------------------------------------------------------------------------

 Year |         Sales            |      Net Income     

-------------------------------------------------------------------------------------

2008

6,573,664,000

loss 51,625,000

2009

5,215,006,000

128,025,000

2010

5,059,439,000

45,666,000

2011

5,635,859,000

59,368,000

2012

6,024,685,000

23,563,000

2013

6,500,835,000

43,700,000

 

 

FINANCIAL DESCRIPTION

 

*Book Closing*

============

September 30th

 

*Financials*

==========

As a private limited company, no official financial statement is required to be disclosed publicly.

 


 

*Bank Details*

============

Bank Name :     Sumitomo Mitsui Banking Corp.

Branch :            Shibuya

 

Bank Name :     Bank of Tokyo-Mitsubishi UFJ, Ltd.

Branch :            Shibuya-chuo

 

Bank Name :     Resona Bank, Ltd.

Branch :            Shibuya

 

 

*Credit Opinion*

=============

The subject is a Tokyo-based firm specializing in dealing with wire(steel) shelves and special-purpose vehicles such as meal cart to be used inside hospital or some other institutions and for home use with 48-year business history.

 

Sale has been picking up since 2010 with a certain level of net income.

Although the exact financial condition is not available due to non-disclosure of its financial statements, there would be a certain amount of retained earnings.

Negative factors are not observed in particular at present except for a weaker currency for imported products.

 

 

LOCAL BRANCHES & MANAGEMENT

 

Branch name:                Osaka branch

Branch address:            Minami-senba, Chuo-ku, Osaka-shi

----------------------------------------------------------------------------------------------------

Branch name:                Nagoya sales office

Branch address:            Higashi-zakura, Higashi-ku, Nagoya-shi

----------------------------------------------------------------------------------------------------

Branch name:                Fukuoka sales office

Branch address:            Hakata-ekiminami, Hakata-ku, Fukuoka-shi

 

Two other local sales offices are in Sendai and Sapporo cities.


PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

 

*Main Products & Services*

======================

Engaged in manufacturing and distributing Erecta Shelf, the Steel Wire Shelf, in technical Collaboration with InterMetro Industries Corp. of the United States

Manufacture and sales of wire shelf

Manufacture and sales of meal cart(carrier) to be used inside hospital

Manufacture and sales of palette rack for logistics industry

Import and sales of the products supplied by Inter Metro, USA

Import and sales of the products supplied by Rubbermaid, USA

Import and sales of the products supplied by Rieber, Germany

Import and sale of the products supplied by Socalmel, France

Import and sales of the products supplied by Vollrath, USA

Import and sales of the products supplied by Barth, Germany

Metal processing work

Metal-plating/galvanizing finish

Antistatic coating work

Consulting for introduction of cook chill system

 

 

FACTORY FACILITIES & MANUFACTURING CAPABILITIES

 

Address: 817, Ochiai-cho, Kofu-shi, Yamanashi 400-0834

Tel: 055-241-6261    Fax: 055-220-2006

 

 

ORGANIZATION STRUCTURE

 

*Address*

=========

Registered address is the same as the operational address.

 

*Company History*

================

Date                 Development

-----------------------------------------------------------------------------------------------

1966:    Japan Erecta Shelf Company is established and Japan Erecta Shelf Company builds a

manufacturing factory to produce wire shelving and promote the shelving in Japan under

manufacturing license of Inter Metro Corp in America.

1968:    An agreement of the sales exclusive right covering all the area of Asia is concluded

between Inter Metro Corp and Japan Erecta Shelf Company.

            Inter Metro Corp, US, develops Super Erecta Shelf.

1970:    Meal Delivery Carts are developed.

1971:    Super Erecta Shelf is released.

            A distribution centre is constructed in Gotenba City to control all products in order.

1975:    An exclusive distribution contract of Jacuzzi products is concluded between Jacuzzi

Whirlpoor Bath Inc. in America for covering Asian market.

Osaka Branch is established.

1976:    An exclusive sales contract of Rubbermaid products is concluded between Rubbermaid

Corporation in America.

1979:    A distributorship contract for redwood planters in Japan is concluded with Little Lake

Inc. of the United States.

1981:    A distributorship contract for products from Sylight Inc. of the United States is concluded

for the Japanese market.

            Erecta Industries Co., Ltd. is established with a bolstered plating line.

Sapporo branch is established.

1982:    A distribution contract of dome houses is made between Cathedralite Dome for

comprising markets of Japan, Southeast Asia and Middle East.

            Process of paint coating is fully automatized.

            The company name is changed to Erecta International Corporation from Japan Erecta

Shelf Company.

 

 

1984:    Spot welding plant is additionally installed to increased production capacity.

1985:    the FRP made service cart is developed and released in a market.

     Nagoya branch is established.

  Technical license contract is made between Rubbermaid Corporation for production of

several portion of Rubbermaid products in Japan.

1986:    Production of the Rubbermaid products begins.

     Super Erecta Shelf products obtain Good Design Prize.

     Blute Container of Rubbermaid products obtain Good Design Prize.

            Fukuoka branch is established.

1987:    John Robert Powers Finishing School opens in Aoyama, Tokyo.

     Kofu distribution centre is built.

1988:    Erecta Shelf sales top 2,000,000.

Erecta Industries Co., Ltd. introduces a large fully automatic welding machine.

     A distribution contract of Thermoport transport boxes in Japan is made between Rieber

Werke in Garmany.

1990:    Showrooms in Tokyo and Osaka and Sendai Branch are established.

            Erecta Industries Co., Ltd. constructs a large plating line.

1994:    The head office is relocated to Aobadai Meguroku from Shinjuku NS Bldg.

    Operations commence at office with a steep rafter roof.

1995:    Home Erecta shelf for home use is added on sales range.

1997:    Super Erecta Shelf obtains Long Life Design Prize.

2000:    Head office is relocated to Shibuya Cross Tower, near Shibuya Station in Tokyo.

2002:    Erecta Kofu Distribution Center is established.

2008:    Merged Erecta Industries Co., Ltd.

2011:    Head office is relocated to the current address.

 


 

TRADE REFERENCES

 

*Suppliers*

==========

Masuhari Ltd.

Sasaki Steel Bending Co., Ltd.

Inoue Metal Co., Ltd.

Toyo Corp.

Kyowa Pallette Co., Ltd.

Wakabayashi Seisakusho Co., Ltd.

Erecta Industries Co., Ltd.

InterMetro Industries Corporation

Rubbermaid Commercial Products Inc.

Rieber GmbH & Co.,

Socalmel Technologies S.A.

 

 

Vollrath Company LLC

Barth GmbH

 

*Customers*

==========

Nichiyu MHI Tokyo Inc.

Nippon Choriki(Cookware) Co., Ltd.

Hoshizaki Tokyo Corp.

Askul Corp.

Yamazen Corp.

Nittsu Trading Co., Ltd.

Kajiwara Sangyo Co., Ltd.

Ikeda Rika Co., Ltd.

Tanikoh Co., Ltd.

Fujimac Corp.

 

 

SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

 

Company name:            Erecta Shanghai International Corp.

Country:                        China

Status:                          Subsidiary 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.45

UK Pound

1

Rs.98.88

Euro

1

Rs.77.62

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

MNL

 

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.