MIRA INFORM REPORT

 

 

Report Date :

04.10.2014

 

IDENTIFICATION DETAILS

 

Name :

AIKOKU ALPHA CORPORATION

 

 

Registered Office :

4-1 Hongo Juichi Morikami Sobuecho Inagawa City Aichi-Pref 495-8501

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

August 1943

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures automobile parts & equipment, hand tools, other

 

 

No of Employees :

949

 

 

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 505.1 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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 & address

 

AIKOKU ALPHA CORPORATION

 

 

REGD NAME

 

Aikoku Alpha KK

 

 

MAIN OFFICE

 

4-1 Hongo Juichi Morikami Sobuecho Inagawa City Aichi-Pref 495-8501 Japan

Tel: 0587-97-1111     

Fax: 0587-97-7161

 

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

E-Mail address: (thru the URL)

 

ACTIVITIES:     Mfg of automobile parts, hand cranes, aero equipment, CAD/CAM systems

BRANCHES:     Tokyo, Nagoya, Osaka, Yokohama

OVERSEAS:     USA

FACTORIES:     At the caption address, Inazawa (4), Ichinomiya

 

OFFICERS:       KATSUFUMI HIDA, PRES          Seiji Hida, ch

                        Tadahiro Iwamoto, mgn dir          Hiroshi Hirao, mgn dir

                        Satoru Mikuni, dir                       Susumu Endo, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 25,820 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 1,200 M

TREND             UP                                WORTH             Yen 7,893 M    

STARTED         1943                             EMPLOYES      949

 

COMMENT:       MFR OF AUTOMOBILE PARTS, OTHERS.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                        MAX CREDIT LIMIT: ESTIMATED AT YEN 505.1 MILLION, ON 30 DAYS NORMAL TERMS.

 

 

 

 

HIGHLIGHTS

           

The subject company was established by Seiji Hida for making metallic materials for construction & agricultural machinery.  In 1947, began mfg pedals, free-wheeling mechanisms, and other bicycle parts.  Now mainstay items are mfg of automobile parts, equipment.  It also makes hand tools, CAD/CAM systems, other (See OPERATION).  Clients include automakers, heavy machinery makers, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 25,820 million, a 6% up from Yen 24,355 million in the previous term.  Automobile production increased both at home and abroad.  Sales of continuously variable joints components (having 20% market share worldwide) rose more than expected.  The recurring profit was posted at Yen 1,290 million and the net profit at Yen 665 million, respectively, compared with Yen 1,173 million recurring profit and Yen 768 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 1,400 million and the net profit at Yen 800 million, respectively, on a 5% rise in turnover, to Yen 27,100 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 505.1 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Aug 1943

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         96 shares

Issued:                24 million shares

Sum:                   Yen 1,200 million

Major shareholders (%): Company’s Treasury Stock (67.4), Aikoku Alpha Development (15.2), Aikoku Families (12.5), other

 No. of shareholders: 152

 

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

 

 

OPERATION

           

Activities: Manufactures automobile parts & equipment, hand tools, other:

 

(Mfg Items by Divisions):

Cold Forming Division (47%): precision cold-formed automotive parts, including continuously variable joints components, transmission parts, pinion shafts for power steering systems, and sun gear shafts;

Raku-Raku Hand Division (Raku-Raku means easy handling) (11%): multipurpose hand cranes that work seamlessly with human hands;

Aero Precision Division (21%): machines airframe components & engine parts for the aerospace industry, and a variety of impellers with simultaneous 5-axis machine centers;

Manufacturing Solutions Division (CAM/CAD Systems) (21%): NC-based software with a focus on sales and support for CATIA, one of the leading CAD/CAM systems in the aerospace and auto industries.

Export Ratio (29%)

 

 

Clients: [Mfrs, wholesalers] Aisin AW Corp, NTN, Toyota Motor, Nexteer GKN, J-Techt, Volkswagen GM, Mitsubishi Heavy Ind, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Toyota Tsusho Corp, NTN, Shinsho Corp, 3DS Systems, other

 

Payment record: No Complainants

 

Location: Business area in Inazawa City, Aichi-Pref.  Office premises at the caption address are owned and maintained satisfactory.

 

Bank References:

MUFG (Nagoya)

Mizuho Bank (Nagoya)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

 

Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

　

27,100

25,820

24,355

22,965

Recur. Profit

　

1,400

1,290

1,173

975

Net Profit

　

800

665

768

542

Total Assets

　

　

25,829

23,709

22,072

Current Assets

　

　

14,297

13,714

　

Current Liabs

　

　

8,908

8,119

　

Net Worth

　

　

7,893

7,147

6,313

Capital, Paid-Up

　

　

1,200

1,200

1,200

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

4.96

6.02

6.05

8.59

    Current Ratio

　

..

160.50

168.91

..

    N.Worth Ratio

　

..

30.56

30.14

28.60

    R.Profit/Sales

　

5.17

5.00

4.82

4.25

    N.Profit/Sales

　

2.95

2.58

3.15

2.36

    Return On Equity

　

..

8.43

10.75

8.59

 

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

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.75

UK Pound

1

Rs.100.07

Euro

1

Rs.77.95

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 

 

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.