MIRA INFORM REPORT

 

 

Report No. :

315797

Report Date :

22.04.2015

 

IDENTIFICATION DETAILS

 

Name :

IMASEN ELECTRIC INDUSTRIAL CO LTD

 

 

Registered Office :

Kakihata Inuyama City Aichi-Pref 484-0901

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

February 1939

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures automotive parts-related (96%), wire harnesses-related (3%), welfare-related equipment (1%)

 

 

No. of Employees :

5,193

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

Yen 3,870.2 Million

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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

 

IMASEN ELECTRIC INDUSTRIAL CO LTD

 

REGD NAME:               KK Imasen Denki Seisakusho

MAIN OFFICE:              1 Kakihata Inuyama City Aichi-Pref 484-0901 JAPAN

                                                Tel: 0568-67-1211     Fax: 0548-67-3418

 

                                    *.. The given code 739-0146 is its Higashi-Hiroshima mfg factory     -

 

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

E-Mail address:             webmaster@imasen.co.jp

 

 

ACTIVITIES

 

Mfg of automotive parts

 

 

BRANCHES

 

Hiroshima, other (Tot 4)

 

 

OVERSEAS

 

USA, Philippines, Taiwan, China, Thailand, India, & Mexico

 

 

FACTORIES

 

Gifu, Higashi-Hiroshima, Kani, Kurashiki, other (Tot 7)

 

 

CHIEF EXEC

 

OSAMU FUJIKAKE, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES                      Yen 110,265 M

PAYMENTS      REGULAR                     CAPITAL                       Yen 4,613 M

      TREND                   UP                                WORTH                        Yen 42,561 M

STARTED                     1939                             EMPLOYES                  5,193

 

 

COMMENT

 

MFR OF AUTOMOTIVE PARTS 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY  BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 3,870.2 MILLION, 30 DAYS NORMAL TERMS

 

 

 

 HIGHLIGHTS

 

This is the independent mfr of automotive parts, with 2 mainlines in mechanical components, including seat adjusters and window regulators, and electrical devices, such as lamps and horns.  Group businesses also include automobile sales and welfare equipment.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 110,265 million, a 28.0% up from Yen 86,123 million in the previous term.  The recurring profit was posted at Yen 6,104 million and the net profit at Yen 4,680 million, respectively, compared with Yen 3,609 million recurring profit and Yen 1,761 million net profit, respectively, a year ago.

 

(Apr/Dec/2014 results): Sales Yen 82,624 million (up 18%), operating profit Yen 2,818 million (down 24.9%), recurring profit Yen 3,293 million (down 28.4%), net profit Yen 2,352 million (down 31.3%).  (% as compared with the corresponding period a year ago).

 

For the term that ended Mar 2015 the recurring profit was projected at Yen 5,200 million and the net profit at Yen 3,800 million, respectively, on a 2.2% rise in turnover, to Yen 112,700 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 3,870.2 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:　          Feb 1939

Legal Status:                 Limited Company (Kabushiki Kaisha

Authorized:                              49,195,000 shares

Issued:                         18,290,486 shares

Sum:                            Yen 4,613 million

 

Major shareholders (%): Honda Motor (5.0), Customers’ S/Holding Assn (3.6), Yamaha Motor (2.9), MUFG (2.8), Employees’ S/Holding Assn (2.7), Company’s Treasury Stock (2.5), other; foreign owners (10.7)

 

No. of shareholders: 6,908

 

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

 

Managements: Kyoji Wakayama, ch; Osamu Fujikake, pres; Hiroaki Kameyama, mgn dir; Tetsunori Nakazawa, mgn dir; Takashi Adachi, mgn dir; Tetsuji Sasaki, mgn dir; Kazuo Yukitomo, dir; Yasuhiro Kameyama, dir; Masazumi Ohno, dir

 

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

 

Related companies: Imasen Engineering Corp, Imasen China, IB-Tech, IMTC, other.

 

 

OPERATION

 

Activities: Manufactures automotive parts-related (96%), wire harnesses-related (3%), welfare-related equipment (1%)

Overseas Sales Ratio (58%)

           

Clients: [Mfrs, wholesalers] NHK Spring, Isuzu Motor, Toyotsu Electronics, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsuba, Fine Tool Japan, NTN, Toyotsu Electronics, other

 

Payment record: Regular

 

 

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

 

Bank References:

 

                        MUFG (Nagoya-Chuo)

                        SMBC (Nagoya)

                        Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

 

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

　

　

  Annual Sales

　

110,265

86,123

　

  Cost of Sales

96,254

75,233

　

      GROSS PROFIT                            

14,010

10,890

　

  Selling & Adm Costs

9,352

8,079

　

      OPERATING PROFIT

4,658

2,810

　

  Non-Operating P/L

1,446

799

　

      RECURRING PROFIT

6,104

3,609

　

      NET PROFIT

4,680

1,761

BALANCE SHEET

　

　

  Cash

　

11,015

8,009

　

  Receivables

22,283

17,927

　

  Inventory

9,473

7,975

　

  Securities, Marketable

　

　

　

  Other Current Assets

8,154

7,518

　

      TOTAL CURRENT ASSETS

50,925

41,429

　

  Property & Equipment

30,194

26,601

　

  Intangibles

1,553

1,099

　

  Investments, Other Fixed Assets

5,537

4,726

　

      TOTAL ASSETS

88,209

73,855

　

  Payables

8,734

6,466

　

  Short-Term Bank Loans

4,553

3,251

　

　

　

　

　

  Other Current Liabs

16,663

15,085

　

      TOTAL CURRENT LIABS

29,950

24,802

　

  Debentures

3,370

3,505

　

  Long-Term Bank Loans

5,310

4,326

　

  Reserve for Retirement Allw

1,503

885

　

  Other Debts

　

5,514

4,371

　

      TOTAL LIABILITIES

45,647

37,889

　

      MINORITY INTERESTS

　

　

Common stock

4,613

4,548

　

Additional paid-in capital

4,346

4,281

　

Retained earnings

30,322

26,048

　

Evaluation p/l on investments/securities

1,816

1,575

　

Others

1,903

(49)

　

Treasury stock, at cost

(439)

(438)

　

      TOTAL S/HOLDERS` EQUITY

42,561

35,965

　

      TOTAL EQUITIES

88,209

73,855

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

8,462

7,258

　

Cash Flows from Investment Activities

-6,108

-6,151

　

Cash Flows from Financing Activities

-183

759

　

Cash, Bank Deposits at the Term End

　

10,458

7,573

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

42,561

35,965

　

Current Ratio (%)

170.03

167.04

　

Net Worth Ratio (%)

48.25

48.70

　

Recurring Profit Ratio (%)

5.54

4.19

　

Net Profit Ratio (%)

4.24

2.04

　

　

Return On Equity (%)

11.00

4.90

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.92

UK Pound

1

Rs.93.57

Euro

1

Rs.67.34

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

VNT

 

               

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.