MIRA INFORM REPORT

 

 

Report Date :

30.06.2014   

 

IDENTIFICATION DETAILS

 

Name :

ALTECH CO LTD

 

 

Registered Office :

Sumitomo Irifune Bldg 2F, 2-1-1 Irifune Chuoku Tokyo 104-0042

 

 

Country :

Japan

 

 

Financials (as on) :

30.11.2013

 

 

Date of Incorporation :

May 1976

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, wholesale of industrial machinery, machine tools

 

 

No. of Employees

532

 

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

 

Maximum Credit Limit :

Yen 655.4 Million

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 – 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 Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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

 

ALTECH CO LTD

 

REGD NAME:   Altech KK

MAIN OFFICE:  Sumitomo Irifune Bldg 2F, 2-1-1 Irifune Chuoku Tokyo 104-0042

JAPAN

Tel: 03-5542-6760     Fax: 03-5542-6767

 

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

E-Mail address: info@altech.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of industrial machinery, machine tools

 

 

BRANCHES

 

Osaka, Fukuoka

 

 

FACTORIES

 

(subsidiaries): China, Thailand, Indonesia, other

 

 

CHIEF EXEC 

 

NORIHIRO CHONO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                           A/SALES          Yen 18,591 M

PAYMENTS      NO COMPLAINTS           CAPITAL        Yen 5,527 M

TREND             SLOW                            WORTH         Yen 9,710 M

STARTED         1976                              EMPLOYES   532


 

COMMENT    

 

TRADING FIRM SPECIALIZING IN INDUSTRIAL MACHINERY. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 655.4 MILLION, 30 DAYS NORMAL TERMS

 

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

19,272

365

7

(%)

9,102

(Consolidated)

30/11/2011

16,854

331

48

-12.55

8,731

30/11/2012

17,233

202

26

2.25

8,842

30/11/2013

16,591

547

75

-3.73

9,710

30/11/2014

17,000

200

100

2.47

..

Unit: In Million Yen

Forecast (or estimated) figures for 30/11/2014 fiscal term

 

 

HIGHLIGHTS

 

The subject company is an independent trading house specializing in industrial machinery, with strength in printing and image processing systems imported from Europe.  Grew rapidly with PET bottle making system.  Leads industry in paper can-producing system.  Also engaged in manufacturing of perform plastic caps for beverage bottles in China.  Promoting metal mold-mfg equipment for lightweight auto parts, reflecting strong demand.  In new energy, importing to sell measuring devices for thin film sola battery.  Engaged in Mfg in Asia.

           

 

FINANCIAL INFORMATION

 

The sales volume for Nov/2013 fiscal term amounted to Yen 16,591 million, a3.7% down from Yen 17,233 million in the previous term.  Sales of preform struggled.  In trading companies business, sales of large-scale machines slackened.  The recurring profit was posted at Yen 547 million and the net profit at Yen 75 million, respectively, compared with Yen 202 million recurring profit and Yen 26 million net profit, respectively, a year ago.

 

(Dec/2013-Feb/2014 results): Sales Yen 3,426 million (up 18.8%), operating loss Yen 16 million (previously Yen 17 million loss), recurring profit Yen 28 million (down 75.2%), net profit Yen 43 million (down 66.3%).  (% & figures compared with the corresponding period a year ago).

           

For the current term ending Nov 2014 the recurring profit is projected at Yen 200 million and the net profit at Yen100 million, respectively, on a 2.5% rise in turnover, to Yen 17,000 million.  New commercial products including 3D printers will fare well.

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 655.4 million, on 30 days normal terms.

 

 

REGISTRATION

           

      Date Registered: May 1976

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         40 million shares

Issued:                19,354,696 shares

Sum:                   Yen 5,527 million

 

Major shareholders (%): Phoenix Capital Partners Tree Inv (14.4), Japan Securities Finance (5.0), TAKEUCHI M&T (4.6), MUFG (2.6), Kazuhisa Yuri (2.6), Phillip Securities Japan (2.0), Almine Co (2.0), Yachiyo Muranaga (2.0), Masao Naruse (1.3), Company’s Treasury Stock (1.3); foreign owners (4.5)

 

No. of shareholders: 5,570

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Norihiro Chono, pres; Ken’ichi Takigawa, s/mgn dir; Noriyuki Sakaguchi, dir; Hidehiko Suyama, dir; Toshishige Iketani, dir

 

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

 

Related companies: Altech Communications, other

 

 

OPERATION

           

Activities: Imports, exports and wholesales industrial machinery, equipment, machine tools, other; Wholesaling Div (65%), preform (26%), others (10%),

Overseas Sales Ratio (38%).

 

(Breakdown of Divisions): :Digital Solution (digital printer), Package Solution (CD/DVD package); Industrial Solutions (industrial machinery & equipment), Recycling Solution (recycling of waste plastics, heat recovery, other; Overseas Div (machinery & preforms associated with PET bottles.)

           

Clients: Printing houses, paper-processing industries, game-console mfrs, digital electronics      equipment mfrs, government agencies, other.

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Imports from Europe, China, Indonesia, Thailand, other

 

Payment record: No complaints

 

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

 

Bank References:

MUFG (Ohdenmacho)

Mizuho Bank (Yaesuguchi)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

30/11/2013

30/11/2012

INCOME STATEMENT

  Annual Sales

 

16,591

17,233

  Cost of Sales

13,579

14,352

      GROSS PROFIT

3,011

2,881

  Selling & Adm Costs

2,701

2,677

      OPERATING PROFIT

309

204

  Non-Operating P/L

238

-2

      RECURRING PROFIT

547

202

 

      NET PROFIT

75

26

BALANCE SHEET

  Cash

 

3,716

2,493

  Receivables

2,427

3,284

  Inventory

1,639

1,869

  Securities, Marketable

 

 

  Other Current Assets

764

689

      TOTAL CURRENT ASSETS

8,546

8,335

  Property & Equipment

5,552

5,028

  Intangibles

574

447

  Investments, Other Fixed Assets

2,092

1,896

      TOTAL ASSETS

16,764

15,706

  Payables

2,321

1,778

  Short-Term Bank Loans

1,460

1,537

 

 

 

  Other Current Liabs

1,609

2,171

      TOTAL CURRENT LIABS

5,390

5,486

  Debentures

94

50

  Long-Term Bank Loans

1,187

1,087

  Reserve for Retirement Allw

 

 

  Other Debts

 

382

241

      TOTAL LIABILITIES

7,053

6,864

      MINORITY INTERESTS

Common stock

5,527

5,527

Additional paid-in capital

2,252

2,309

Retained earnings

1,812

1,736

Evaluation p/l on investments/securities

66

3

Others

975

(511)

Treasury stock, at cost

(922)

(222)

      TOTAL S/HOLDERS` EQUITY

9,710

8,842

 

      TOTAL EQUITIES

16,764

15,706

CONSOLIDATED CASH FLOWS

Terms ending:

30/11/2013

30/11/2012

Cash Flows from Operating Activities

 

2,069

1,379

Cash Flows from Investment Activities

-104

-887

Cash Flows from Financing Activities

-977

-812

 

Cash, Bank Deposits at the Term End

 

3,716

2,493

ANALYTICAL RATIOS            Terms ending:

30/11/2013

30/11/2012

Net Worth (S/Holders' Equity)

9,710

8,842

Current Ratio (%)

158.55

151.93

Net Worth Ratio (%)

57.92

56.30

Recurring Profit Ratio (%)

3.30

1.17

Net Profit Ratio (%)

0.45

0.15

Return On Equity (%)

0.77

0.29

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.102.40

Euro

1

Rs.81.88

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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.