MIRA INFORM REPORT
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Report Date : |
08.10.2014 |
IDENTIFICATION DETAILS
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Name : |
RIKEI CORPORATION |
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Registered Office : |
Shinjuku Nomura Bldg 35F, 1-26-2 Nishi Shinjuku Shinjukuku Tokyo
163-0535 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
June, 1957 |
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Com. Reg. No.: |
0111-01-022577 (Tokyo-Shinjukuku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import and Wholesale of Data-Processing Equipment, Electronics
Products. |
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No. of Employees : |
163 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
YEN 303.5 MILLION |
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Status : |
Satisfactory |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
RIKEI CORPORATION
REGD NAME: KK
Rikei
MAIN OFFICE: Shinjuku
Nomura Bldg 35F, 1-26-2 Nishi Shinjuku Shinjukuku Tokyo 163-0535 JAPAN
Tel:
03-3345-2150 Fax: 03-3344-3949
URL: http://rikei.co.jp/
E-Mail address: (thru the URL)
ACTIVITIES
Import, wholesale of
data-processing equipment, electronics products
BRANCH
Osaka, Sendai,
Tsukuba, Nagoya, Fukuoka, Chiba (R&D Center); China
OVERSEAS
USA, China, Hong
Kong
CHIEF
EXEC
TETSUO KURODA,
PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 7,815 M
PAYMENTSNO
COMPLAINTS CAPITAL Yen 3,426 M
TREND SLOW WORTH Yen 4,345 M
STARTED 1957 EMPLOYES 163
COMMENT
TRADING FIRM SPECIALIZING IN ELECTRONICS PRODUCTS.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 303.5 MILLION, 30 DAYS NORMAL TERMS.
Unit: In million Yen
Forecast
(or estimated) figures for 31/03/2015 fiscal term
HIGHLIGHTS
This is a technology firm specializing in importing US-made computers
and information & electronic equipment.
Imports US-made computers and information and electronic equipment. Has development and import base in US. Excels
in technologies for Internet and satellite communications.
FINANCIAL
INFORMATION
The sales volume for Mar/2014 fiscal term amounted to Yen 7,815 million,
a 9.7% down from Yen 8,656 million in the previous term. Sales of video distribution systems were absent
or decreased. The recurring profit was
posted at Yen 168 million and the net profit at Yen 164 million, respectively,
compared with Yen 194 million recurring profit and Yen 176 million net profit,
respectively, a year ago.
(Apr/Jun/2014 results): Sales Yen 1,094
million (down 16.9%), operating loss Yen 188 million (previously Yen 119
million loss), recurring loss Yen 185 million (previously Yen 115 million
loss), net loss Yen 189 million (previously Yen 118 million loss). (% & figures as compared with the
corresponding period a year ago).
For the current term ending Mar 2015 the recurring profit is projected
at Yen 180 million and the net profit at Yen 160 million, on a 6.2% rise in
turnover, to Yen 8,300 million. Sales of
systems for disaster prevention will expand in addition to those for the
education sector.
The financial situation is considered maintained FAIR and good for
ORDINARY business engagements. Max credit limit is estimated at Yen 303.5
million, on 30 days normal terms.
REGISTRATION
Date Registered: Jun 1957
Regd No.:
0111-01-022577
(Tokyo-Shinjukuku)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 55
million shares
Issued: 15,514,721
shares
Sum: Yen
3,426 million
Major
shareholders (%): Rika Ishikawa (12.2), Michiko Ishikawa (4.7), MUFG (3.0), Meiji Yasuda
Life Ins (3.0), Casio Computer (2.7), Company’s Treasury Stock (2.5), SBI
Securities (2.2), Japan Securities Finance (2.1), Employees’ S/Holding Assn
(1.2), Credit Suisse (ZRH) Resident Tokyo (1.2); foreign owners (2.6)
No. of shareholders: 3,467
Listed on the S/Exchange (s) of: Tokyo (Second
Section)
Managements:
Tetsuo
Kuroda, pres; mgn dir; Naoki Furuhata, dir; Koji Furuta, dir; Satoshi Inosaka, dir;
Shoji Hasegawa, dir; Makoto Koyanagi, dir; Rika Ishikawa, dir
Related Companies:
Japan Log Force Corp, Rikei America, Rikei HK, other
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Imports and wholesales data processing
equipment, electronics/ telecommunications equipment & microchips,
.electronics products, others: System Solutions (45%), Network Solutions (17%),
Electronics & Components (38%)
Overseas
Sales Ratio (14%)
Clients: [Governments, telecommunications
carriers, electronics mfrs] Ministry of National Self Defense, IBM Japan, Rikei
America, HK, Singapore, Fuji Soft ABC, NEC Corp, Nippon National Instruments,
Daido Steel, Fujitsu Ltd, Sumitomo Mitsui Finance & lease, other
No. of accounts:
800
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Daiwabo Information Systems, Japan HP, PTC Japan, Casio
Electronics Device, IBM Japan, Nippon National Instruments, Hewlett-Packard
Japan, SoftBank BB, DMC Corp, Armtech Countermeasures, Sakura Internet, Iguaz
Co, other.
Goods are imported from USA, other
Payment record: No Complaints
Location: Business area in Tokyo. Office premises at
the caption address are leased and maintained satisfactorily.
Bank References:
MUFG (Shinjuku-Shintoshin)
Mizuho Bank (Shinjuku-Nishiguchi)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME STATEMENT |
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Annual Sales |
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7,815 |
8,656 |
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Cost of Sales |
5,793 |
6,587 |
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GROSS PROFIT |
2,021 |
2,069 |
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Selling & Adm Costs |
1,856 |
1,840 |
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OPERATING PROFIT |
164 |
228 |
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Non-Operating P/L |
4 |
-34 |
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RECURRING PROFIT |
168 |
194 |
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NET PROFIT |
164 |
176 |
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BALANCE SHEET |
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Cash |
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2,985 |
3,086 |
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Receivables |
2,390 |
1,966 |
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Inventory |
96 |
149 |
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Securities, Marketable |
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Other Current Assets |
193 |
831 |
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TOTAL CURRENT ASSETS |
5,664 |
6,032 |
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Property & Equipment |
424 |
443 |
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Intangibles |
6 |
4 |
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Investments, Other Fixed Assets |
818 |
526 |
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TOTAL ASSETS |
6,912 |
7,005 |
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Payables |
1,549 |
1,673 |
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Short-Term Bank Loans |
100 |
200 |
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Other Current Liabs |
521 |
547 |
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TOTAL CURRENT LIABS |
2,170 |
2,420 |
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Debentures |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
274 |
228 |
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Other Debts |
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122 |
141 |
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TOTAL LIABILITIES |
2,566 |
2,789 |
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MINORITY INTERESTS |
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Common
stock |
3,426 |
3,426 |
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Additional
paid-in capital |
615 |
615 |
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Retained
earnings |
488 |
369 |
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Evaluation
p/l on investments/securities |
24 |
2 |
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Others |
(96) |
(85) |
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Treasury
stock, at cost |
(112) |
(111) |
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TOTAL S/HOLDERS` EQUITY |
4,345 |
4,216 |
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TOTAL EQUITIES |
6,912 |
7,005 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash
Flows from Operating Activities |
|
-290 |
1,155 |
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Cash Flows
from Investment Activities |
-157 |
452 |
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Cash
Flows from Financing Activities |
-149 |
-547 |
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Cash,
Bank Deposits at the Term End |
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2,985 |
3,586 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
4,345 |
4,216 |
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Current
Ratio (%) |
261.01 |
249.26 |
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Net
Worth Ratio (%) |
62.86 |
60.19 |
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Recurring
Profit Ratio (%) |
2.15 |
2.24 |
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Net
Profit Ratio (%) |
2.10 |
2.03 |
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Return
On Equity (%) |
3.77 |
4.17 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.36 |
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|
1 |
Rs.98.71 |
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Euro |
1 |
Rs.77.47 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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.