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Report Date : |
23.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
HOKUSHIN EIDEN CO
LTD |
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|
|
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Registered Office : |
8-39 Kaminoboricho Nakaku Hiroshima
730-0014 |
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Country : |
Japan |
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Financials (as on) : |
30.04.2014 |
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Date of Incorporation : |
May 1965 |
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Legal Form : |
Limited Company |
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Line of Business : |
· Subject is an engineering firm specializing in telecommunication-related works Manufacturer of audio/visual equipment (VTR< video camera), PC’s & peripherals |
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No of Employees : |
93 |
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 40.3 Million |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
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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 |
HOKUSHIN EIDEN CO LTD
Hokushin Eiden KK
8-39 Kaminoboricho
Nakaku Hiroshima 730-0014 JAPAN
Tel:
082-228-2783 Fax: 082-228-2979
URL: http://www.hokushin-eiden.co.jp
E-Mail address: (thru the URL)
· Subject is an engineering firm specializing in telecommunication-related works
Manufacturer
of audio/visual equipment (VTR<
video camera), PC’s & peripherals
Tokyo,
Hiroshima (3), Okinawa
Higashiku
(Hiroshima)
MINORU
YOSHITANI, PRES Yoshihiro Kunimoto, v pres
Masahiro
Kunimoto, ch Kazumi
Ogawa, s/mgn dir
Masako
Nakato, mgn dir Tomoharu Ogawa, mgn dir
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 2,867 M
PAYMENTSNo Complaints CAPITAL Yen 35 M
TREND UP WORTH Yen 621 M
STARTED 1965 EMPLOYES 93
TELECOMMUNICATION-RELATED WORKS.
FINANCIAL SITUATION CONSIDERED FAIR
AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: ESTIMATED AT
YEN 40.3 MILLION, ON 30 DAYS NORMAL
TERMS.
The subject company was established by Masahiro Kunimoto in order to
make most of his experience in the subject line of business. This is a major engineering firm specializing
in telecommunication-related works, mfg of audio/visual equipment, PC’s,
other. Clients include universities,
schools, municipal offices, electric power works, communication firms, other.
The sales volume for Apr/2013 fiscal term amounted to Yen 2,867 million,
a 43% up from Yen 2,004 million in the previous term. Orders increased from the municipal
offices. The recurring profit was posted
at Yen 38 million and the net profit at Yen 143 million, respectively, compared
with Yen 158 million recurring loss and Yen 152 million net losses,
respectively, a year ago.
For the term that ended Apr 2014 the recurring profit was projected at
Yen 170 million and the net profit at Yen 150 million, respectively, on a 5%
rise in turnover, to Yen 3,000 million.
Final results are yet to be released.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 40.3 million, on the normal 30 days terms.
Date Registered: May 1965
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
280,000 shares
Issued:
70,000 shares
Sum: Yen 35 million
Major shareholders (%): Masahiro Kunimoto (28), Taeko
Kunimoto (10), Yoshihiro Kunimoto (3), other
No. of shareholders: 24
Nothing
detrimental is known as to the commercial morality of executives.
Activities:
Telecommunication-related works, mfg of audio/visual equipment (VTR< video
camera, other), PC’s & peripherals, other (--100%)
Clients: [Mfrs,
wholesalers] NTT West Corp, Hiroshima City Toshi Seibi Kosha, Naganuma Electric
Construction, Chugoku Densetsu Kogyo, Miura Corp, Chudenko Corp, other
No. of accounts: 300
Domestic areas of
activities: Centered in Hiroshima
Suppliers: [Mfrs,
wholesalers] Sony Business Solution, Sony Marketing, NEC Fielding, Cannon
Marketing Japan, other to universities, schools, municipal offices, other
Payment record: No Complaints
Location: Business area in
Hiroshima. Office premises at the
caption address are owned and maintained satisfactorily.
Bank
References:
Hiroshima Shinkin Bank (Hiroshima-Ekimae)
Hiroshima Bank (Hiroshima-Ekimae)
Relations: Satisfactory
(In Million Yen)
|
Terms Ending: |
30/04/2014 |
30/04/2013 |
30/04/2012 |
30/04/2011 |
|
|
Annual
Sales |
|
3,000 |
2,867 |
2,004 |
2,622 |
|
Recur.
Profit |
|
170 |
138 |
-158 |
|
|
Net
Profit |
|
150 |
143 |
-152 |
1 |
|
Total
Assets |
|
|
2,699 |
2,758 |
3,364 |
|
Current
Assets |
|
|
2,000 |
2,046 |
|
|
Current
Liabs |
|
|
1,761 |
1,895 |
|
|
Net
Worth |
|
|
621 |
478 |
630 |
|
Capital,
Paid-Up |
|
|
35 |
35 |
35 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
4.64 |
43.06 |
-23.57 |
-14.93 |
|
|
Current Ratio |
|
.. |
113.57 |
107.97 |
.. |
|
N.Worth Ratio |
.. |
23.01 |
17.33 |
18.73 |
|
|
R.Profit/Sales |
|
5.67 |
4.81 |
-7.88 |
.. |
|
N.Profit/Sales |
5.00 |
4.99 |
-7.58 |
0.04 |
|
|
Return On Equity |
.. |
23.03 |
-31.80 |
0.16 |
|
Notes:
Forecast (or estimated) figures for the 30/04/2014 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.57 |
|
UK Pound |
1 |
Rs.98.88 |
|
Euro |
1 |
Rs.80.05 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.