MIRA INFORM REPORT

 

 

Report Date :

10.07.2014

 

IDENTIFICATION DETAILS

 

Name :

IHI AEROSPACE CO LTD

 

 

Registered Office :

900 Fujiki Tomioka City Gunma-Pref 370-2307

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

February, 1990

 

 

Com. Reg. No.:

0700-01-011877 (Gunma-Tomioka)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Mfg of rocket, space project, satellite propulsion systems, other

 

 

No. of Employees

870

 

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 :

Regular

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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

 

IHI AEROSPACE CO LTD

REGD NAME:    KK IHI Aerospace

MAIN OFFICE:  900 Fujiki Tomioka City Gunma-Pref 370-2307 JAPAN

Tel: 0274-62-4123      Fax: 0274-62-7711

 

URL:                 http://www.ihi.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of rocket, space project, satellite propulsion systems, other

 

 

BRANCHES   

 

Tokyo, Aioi (Hyogo-Pref)

 

 

FACTORIES  

 

At the caption address, Aichi

 

 

OFFICERS

 

SHIGEKI KINAI, PRES               Jiro Mitsuoka, ch

Kiyoshi Ishii, dir                         Hiroyuki Takada, dir

Masatoshi Nakamura, dir            Takashi Makino, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 47,359 M

PAYMENTS      REGULAR         CAPITAL           Yen 5,000 M

TREND             UP                    WORTH            Yen 12,159 M   

STARTED         1990                 EMPLOYES      870

 

 

COMMENT

 

MFR OF ROCKET, SATELLITE PROPULSION SYSTEM, OWNED BY IHI CORP.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established originally in 1924 as engine plant of Nakajima Aircraft Industries Ltd and in 1990 became subsidiary of IHI Corp.  This is a specialized mfr of rocket, satellite propulsion systems, space project, other (See OPERATION)  Clients include Defense Ministry, heavy machinery mfrs, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 47,359 million, a 4% down from Yen 49,519 million in the previous term.  The recurring profit was posted at Yen 1,935 million and the net profit at Yen 1,334 million, respectively, compared with Yen 1,763 million recurring profit and Yen 1,152 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 2,000 million and the net profit at Yen 1,400 million, respectively, on a 5% rise in turnover, to Yen 49,700 million. 

 

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

 

 

REGISTRATION

 

Date Registered:                      Feb 1990

Regd No.:                                 0700-01-011877 (Gunma-Tomioka)

Legal Status:                           Limited Company (Kabushiki Kaisha)

Authorized:                              400,000 shares

Issued:                                     100,000 shares

Sum:                                        Yen 5,000 million

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

 

*.. Comprehensive heavy machinery mfr, Tokyo, founded 1889, listed Tokyo S/E, capital Yen 95,763 million, sales Yen 1,304,038 million, operating profit Yen 53,271 million, recurring profit Yen 53,235 million, net profit Yen 33,133 million, total assets Yen 1,496,361 million, net worth Yen 362,555 million, employees 27,420, pres Tamotsu Saito

 

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

 

 

OPERATION

           

Activities: Manufactures: rockets (S-type sounding rockets, meteorological sounding rockets, TR-TA rockets, other), satellite propulsion systems, space projects, liquid bipropellant engines, liquid monopropellant engine, pressurant & propellant tank,, other (--100%)

 

Clients: [Mfrs, wholesalers] Defense Ministry, Japan Aerospace Exploration Agency, Mitsubishi Heavy Ind, IHI Corp, Toshiba Corp, Mitsubishi Electric, other 

            No. of accounts: 150

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Komatsu Mfg Ind, Hitachi Ltd, IHI Corp, IHI Aerospace Engineering, Asahi Kasei Corp, Daicel Corp, other

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Takasaki)

Gunma Bank (Takasaki)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

　

49,700

47,359

49,519

47,195

Recur. Profit

　

2,000

1,935

1,763

1,651

Net Profit

　

1,400

1,334

1,152

1,056

Total Assets

　

　

48,584

50,784

53,747

Current Assets

　

　

34,106

36,909

39,449

Current Liabs

　

　

23,575

28,858

31,854

Net Worth

　

　

12,159

10,924

9,877

Capital, Paid-Up

　

　

5,000

5,000

5,000

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.94

-4.36

4.92

9.04

    Current Ratio

 

..

144.67

127.90

123.84

    N.Worth Ratio

..

25.03

21.51

18.38

    R.Profit/Sales

 

4.02

4.09

3.56

3.50

    N.Profit/Sales

2.82

2.82

2.33

2.24

    Return On Equity

..

10.97

10.55

10.69

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.59.72

UK Pound

1

Rs.102.36

Euro

1

Rs.81.38

                

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

SDA

               

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.