MIRA INFORM REPORT

 

 

Report Date :

22.02.2014

 

IDENTIFICATION DETAILS

 

Name :

ITOCHU MACHINE-TECHNOS CORP 

 

 

Registered Office :

Sanno Grand Bldg 3F, 2-14-2 Nagatacho Chiyodaku Tokyo 100-0014

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

01.04.1966

 

 

Com. Reg. No.:

0100-01-010785 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Importer, exporter and wholesaler of industrial machinery, machine tools, generators, food making machinery, chemical equipment, gas turbine, semiconductor/LCD manufacturing machines, oil/chemical plant machinery, pulp & paper, plastic/films & electronics

 

 

No. of Employees

220

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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

 

ITOCHU MACHINE-TECHNOS CORP

 

 

REGD NAME

 

Itochu Machine Technos KK

 

 

MAIN OFFICE

 

Sanno Grand Bldg 3F, 2-14-2 Nagatacho Chiyodaku Tokyo 100-0014 JAPAN 

Tel: 03-3506-3511     Fax: 03-3506-3520

 

URL:     http://www.itcmt.co.jp/

E-mail:             (thru the URL)   

 

 

ACTIVITIES

 

Import, export, wholesale of industrial machinery, machine tools, food & pharmaceutical machinery

 

 

BRANCHES

 

Osaka, Nagoya, Hiroshima, Fukuoka, other (Tot 7)

 

 

OVERSEAS   

 

China, Mexico (--subsidiaries)

 

 

OFFICER(S)

 

MASAHIRO IWASAKI, PRES     Shigemi Kondo, mgn dir

     Masahiko Kobayashi, mgn dir           Yoshiyuki Hayashi, dir

     Masaru Tanba, dir                             Toru Sasaki, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 30,230 M

PAYMENTSNo Complaints    CAPITAL           Yen 300 M

TREND SLOW                           WORTH            Yen 3,117 M

STARTED         1966                             EMPLOYES      220

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN INDUSTRIAL MACHINER, WHOLLY  OWNED BY ITOCHU CORP 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a machinery division separated from Itochu Corp, nation’s leading general trading house, Tokyo (See REGISTRATION).  In Apr 2010, merged a sister company, Itochu Mechatronics Corp, and renamed as captioned.  This is a trading firm specializing in industrial machinery, machine tools, food-processing equipment, electronics, other (See OPERATION).  Overseas subsidiaries in China & Mexico. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 30,230 million, a 3% down from Yen 31,061.  The recurring profit was posted at Yen 1,151 million and the net profit at Yen 670 million, respectively, compared with Yen757 million recurring profit and Yen 447 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 1,200 million and the net profit at Yen 690 million, respectively, on a 4% rise in turnover, to Yen 31,500 million.

           

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

 

 

REGISTRATION

 

Date Registered: 01 Apr 1966

Regd No.:        0100-01-010785 (Tokyo-Chiyodaku)

Legal Status:     Limited Company (Kabushiki Kaisha)

Authorized:       2.4 million shares

Issued:              600,000 shares

Sum:                 Yen 300 million

Major shareholders (%): Itochu Corp* (100)

 

*.. One of big 5 general trading houses of Japan, Tokyo, founded 1949, listed Tokyo S/E, capital Yen 202,241 million, turnover Yen 12,551,557 million, operating profit Yen 244,219 million, recurring profit Yen 311,112 million, net profit Yen 280,297 million, total assets Yen 7,584,546 million, net worth Yen 1,949,670 million, employees 104,543, pres Masahiro Okafuji

 

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

 

 

OPERATION

 

Activities: Imports, exports and wholesales industrial machinery, machine tools, generators, food making machinery, chemical equipment, gas turbine, semiconductor/LCD mfg machines, oil/chemical plant machinery, pulp & paper, plastic/films, electronics, other (--100%).

 

Clients: [Mfrs, wholesalers] Oji F-Tex, Anhui Technology, Mazda, Texmac, Kawasaki Heavy Ind, Nippon Steel & Sumikin Metal Ind, other         

No. of accounts: 500

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Bruckner Machine, Hitachi Plant Technology, Polytype Converting, Toshiba Machinery, Hugo Miebach, other

           

Payment record: No Complaints 

 

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

 

Bank References:

Mizuho Bank (Tokyo)

MUFG (Akasaka)

Relations: Satisfactory

 


FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

31,500

30,230

31,061

24,776

Recur. Profit

 

1,200

1,151

757

 

Net Profit

 

690

670

447

378

Total Assets

 

 

15,147

14,975

12,453

Current Assets

 

 

14,092

13,588

 

Current Liabs

 

 

11,281

11,391

 

Net Worth

 

 

3,117

2,665

2,231

Capital, Paid-Up

 

 

300

300

300

Div.P.Share(¥)

 

 

 

 

 

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.20

-2.68

25.37

55.48

    Current Ratio

..

124.92

119.29

..

    N.Worth Ratio

..

20.58

17.80

17.92

    R.Profit/Sales

3.81

3.81

2.44

..

    N.Profit/Sales

2.19

2.22

1.44

1.53

    Return On Equity

..

21.50

16.77

16.94

 

Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.16

UK Pound

1

Rs.103.44

Euro

1

Rs.85.27

 

INFORMATION DETAILS

 

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.