MIRA INFORM REPORT

 

 

Report Date :

27.09.2014

 

IDENTIFICATION DETAILS

 

Name :

VISCAS CORPORATION

 

 

Registered Office :

Shinagawa Seaside West Tower 4F, 4-12-2 Higashi-Shinagawa Shinagawaku

Tokyo 140-0002

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

September 2001

 

 

Com. Reg. No.:

0107-01-013430

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Engineering of transmission cables, others

 

 

No. of Employees :

771

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

Yen 1,509.8 Million

Status :

Moderate 

Payment Behaviour :

Unknown / Slow but correct / 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 and address

 

VISCAS CORPORATION

REGD NAME:    KK Viscas

MAIN OFFICE:  Shinagawa Seaside West Tower 4F, 4-12-2 Higashi-Shinagawa Shinagawaku

Tokyo 140-0002 JAPAN

Tel: 03-5783-1850      Fax: 03-5783-1870

 

URL:                 http://www.viscas.com

E-Mail address: info@viscas.com

 

 

ACTIVITIES  

 

Engineering of transmission cables, others

 

 

BRANCHES   

 

Sapporo, Sendai, Nagoya, Osaka, Toyama, Hiroshima, Takamatsu, Okinawa

 

 

OVERSEAS   

 

China, Taiwan, Singapore, India (---subsidiaries)

 

 

FACTORIES  

 

Hiratsuka, Numazu, Suzuka, Ichihara, Ishioka, Nikko, Tokyo (Kotoku)

 

 

OFFICERS

 

SUSUMU SAKUMA, PRES        Yasuo Kumakawa, v pres

Takanori Hita, dir                        Katsuhiko Fukuda, dir

Kazuya Ono, dir                         Noboru Ishii, dir 

           

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 59,590 M

PAYMENTSslow but correct       CAPITAL           Yen 13,600 M

TREND SLOW                          WORTH            Yen 17,189 M

STARTED         2002                             EMPLOYES      771

 

 

COMMENT    

 

ENGINEERING COMPANY OF TRANSMISSION WIRES, OTHERS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

MAX CREDIT LIMIT: YEN 1,509.8 MILLION, 30 DAYS NORMAL TERMS

                       

HIGHLIGHTS

           

            The subject company was established jointly by Fujikura Ltd and Furukawa Electric Co Ltd (See REGISTRATION) as a company for underground power cable engineering and overseas sales & marketing businesses.  On Jan 1, 2005, the firm reshaped itself as a total power transmission & distribution system company.  This is an engineering firm of underground transmission cables, overhead transmission, other (See OPERATION).  Has overseas subsidiaries in China, India, Taiwan and Singapore.  Goods are exported.  Clients include electric power companies, Japan Railways, electric makers, other.

 

 

FINANCIAL INFORMATION

           

            The sales volume for Mar/2014 fiscal term amounted to Yen 59,590 million, a 7% down from Yen 64,176 million in the previous term.  The domestic market continued in the sluggish activities.  The operations continued in the red to post Yen 1,633 million recurring loss and Yen 8,242 million net losses, respectively, compared with Yen 693 million recurring loss and Yen 2,160 million net losses, respectively, a year ago.

 

            For the current term ending term that ended Mar 2015 the operations are projected to come back to profitability but still limited to a minimum amount both for recurring profit and net profit, respectively, on a 3% rise in turnover, to Yen 61,500 million.  

 

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

MAX CREDIT LIMIT: YEN 1,509.8 MILLION, 30 DAYS NORMAL TERMS

 

 

REGISTRATION

 

      Date Registered:     Sept 2001

Regd No.:                 0107-01-013430 (Tokyo-Shinagawaku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         968,000 shares

Issued:                272,000 shares

Sum:                   Yen 13,600 million

     Major shareholders (%): Furukawa Electric Co Ltd* (50), Fujikura Ltd** (50)

No. of shareholders: 2

 

*.. Furukawa Electric Co Ltd, one of 3 largest mfrs of electric wires & cables, Tokyo, founded 1896, listed Tokyo S/E, capital Yen 69,395 million, sales Yen 931,781 million, operating profit Yen 25,456 million, recurring profit Yen 25,532 million, net profit Yen 5,608 million, total assets Yen 714,845 million, net worth Yen 177,236 million, employees 47,045, pres Mitsuyoshi Shibata

 

**.. Fujikura Ltd, one of 3 largest mfrs of electric wires & cables, Tokyo, founded1910, listed Tokyo S/E, capital Yen 53,075 million, sales 590,980 million, operating profit Yen 20,345 million, recurring profit Yen 13,839 million, net profit Yen 3,328 million, total assets Yen 537,281 million, net worth Yen 193,095 million, employees 53,409, pres Yoichi Nagahama                         

 

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

 

 

OPERATION

           

Activities: Engineering of power transmission & distribution systems, others (--100%)

 

(Business Items):

Underground Transmission: power cables, accessories, installation of power cable system, maintenance & monitoring system;

Overhead Transmission: electric wire, overhead ground wire, accessories, ecology products;

Distribution: installation cable, cables, recycles, other

 

Clients: [Electric powers, railways, electric mfrs] Japan Railways, Furukawa Electric, Fujikura Ltd, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Furukawa Electric Co, Fujikura Ltd, other

 

Payment record: slow but correct

 

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

 

Bank References:

Mizuho Bank (H/O)

SMBC (H/O)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

　

61,500

59,590

64,176

60,147

Recur. Profit

　

0

-1,633

-693

-850

Net Profit

　

0

-8,242

-2,160

-412

Total Assets

　

　

55,071

57,608

54,282

Current Assets

　

　

35,886

39,972

37,448

Current Liabs

　

　

37,569

31,572

26,290

Net Worth

　

　

17,199

25,756

27,760

Capital, Paid-Up

　

　

13,600

13,600

12,100

Div.Ttl in Million (¥)

　

　

0.00

0.00

295

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

3.21

-7.15

6.70

-0.93

    Current Ratio

　

..

95.52

126.61

142.44

    N.Worth Ratio

　

..

31.23

44.71

51.14

    R.Profit/Sales

　

0.00

-2.74

-1.08

-1.41

    N.Profit/Sales

　

0.00

-13.83

-3.37

-0.68

    Return On Equity

　

..

-47.92

-8.39

-1.48

 

Notes: Forecast (or estimated) figures for the 31/05/2015 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.57

UK Pound

1

Rs.100.42

Euro

1

Rs.78.44

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

PDT

 

               

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.