MIRA INFORM REPORT

 

 

Report No. :

335771

Report Date :

06.08.2015

 

 

IDENTIFICATION DETAILS

 

Name :

FUJITSU COMPONENT LIMITED

 

 

Registered Office :

Shinagawa Seaside Park Tower, 4-12-4 Higashi-Shinagawa Shinagawaku Tokyo 140-0002

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

Sep., 2001

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Electronic Components, Including Relays, Connectors & Input/ Output Device

 

 

No. of Employees :

3,386

 

 

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 219.8 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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

 

 

Company Name and address

 

FUJITSU COMPONENT LIMITED

 

REGD NAME:               Fujitsu Component KK

 

MAIN OFFICE:              Shinagawa Seaside Park Tower, 4-12-4 Higashi-Shinagawa Shinagawaku Tokyo ,140-0002 JAPAN

                                                Tel: 03-3450-1601         

 

                                                *.. The is its division office-

 

URL:                             http://www.fcl-fujitsu.com

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES

 

Mfg of electronic components, including relays, connectors & input/output device

 

 

BRANCHES

 

Nagoya, Osaka, Fukuoka, other (Tot 5)

 

 

OVERSEAS

 

China, Malaysia, Taiwan (Tot 3)

 

 

FACTORIES

 

China, Malaysia & group firms

 

 

CHIEF EXEC

 

KOICHI ISHIZUKA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 46,943 M

PAYMENTSREGULAR   CAPITAL           Yen 8,764 M

TREND UP                    WORTH            Yen 2,750 M

STARTED         2001                 EMPLOYES      3,386

 

 

COMMENT

 

MFR OF ELECTRONIC COMPONENTS (RELAYS, CONNECTORS), OTHER

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 219.8 MILLION, 30 DAYS NORMAL TERMS

 

Unit: In Million Yen

Forecast figures for the 31/03/2016 fiscal term.

 

 

HIGHLIGHTS

 

The firm is engaged in manufacture and sale of electronic components, including relays, connectors, and input/output devices. Has mfg base in China (2) and Malaysia. Holding company set up jointly by Takamisawa Electric and Nagano Fujitsu Component. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 46,913 million, a 9.0% up from Yen 43,073 million in the previous term.  The recurring profit was posted at Yen 939 million and the net profit at Yen 1,143 million, respectively, compared with Yen 304 million recurring profit and Yen 210 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 1,000 million and the net profit at Yen 800 million, respectively, on a 5.0% rise in turnover, to Yen 49,300 million.  Sales of relays will continue holding steady, and those of input/output devices, such as touch panels and thermal printers, are likely to advance.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 219.8 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　                   Sep 2001

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              26 million shares

Issued:                         7,965,000 shares

Sum:                            Yen 6,764 million

 

Major shareholders (%): Fujitsu Ltd (56.9), Minoru Yoshida (1.8), Shoichi Sakurai (1.7), Mizuho Bank (1.5), others; foreign owners (0.1)

 

No. of shareholders: 2,917

 

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

 

Managements: Koichi Ishizuka, pres; Yasuto Hara, mgn dir; Yoshio Okamoto, mgn dir; Kazuhiro Igarashi, dir; Masaharu Kuramoto, dir

 

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

 

           

OPERATION

           

Activities: Manufactures electronic components: relays (43%), connectors (3%), output & input devices (40%), others (14%)

Overseas Sales Ratio (47%)

           

Clients: [Mfrs, wholesalers] Fujitsu Electronics, Fujitsu Ltd, Fujitsu Components Asia, other

No. of accounts: 350

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Fujitsu Optical Components, other group firms

 

Payment record: Regular

 

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

 

Bank References

            Mizuho Bank (Gotanda & Meguro)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

  Annual Sales

　

46,943

43,073

  Cost of Sales

36,950

34,381

      GROSS PROFIT

9,993

8,692

  Selling & Adm Costs

9,170

8,585

      OPERATING PROFIT

822

106

  Non-Operating P/L

117

198

      RECURRING PROFIT

939

304

　

      NET PROFIT

1,143

210

BALANCE SHEET

  Cash

　

1,248

1,305

  Receivables

15,382

13,612

  Inventory

6,616

5,678

  Securities, Marketable

　

　

  Other Current Assets

673

1,092

      TOTAL CURRENT ASSETS

23,919

21,687

  Property & Equipment

13,073

11,605

  Intangibles

844

430

  Investments, Other Fixed Assets

695

718

      TOTAL ASSETS

38,531

34,440

  Payables

11,182

9,745

  Short-Term Bank Loans

14,677

15,407

　

　

　

  Other Current Liabs

4,296

3,559

      TOTAL CURRENT LIABS

30,155

28,711

  Debentures

　

　

  Long-Term Bank Loans

　

　

  Reserve for Retirement Allw

3,153

3,174

  Other Debts

　

(33,308)

(31,885)

      TOTAL LIABILITIES

      MINORITY INTERESTS

35,780

33,393

  Capital, Paid-Up

6,764

6,764

  Surplus

(4,014)

(5,718)

      SHAREHOLDERS' EQUITY

2,750

1,046

　

      TOTAL EQUITIES

38,531

34,440

 

 

 

 

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2015

31/03/2014

Cash Flows from Operating Activities

　

1,550

247

Cash Flows from Investment Activities

-217

-1,531

Cash Flows from Financing Activities

-1,410

1,227

　

Cash, Bank Deposits at the Term End

　

1,248

1,305

 

 

 

 

 

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

Net Worth (S/Holders' Equity)

2,750

1,046

Current Ratio (%)

79.32

75.54

Net Worth Ratio (%)

7.14

3.04

Recurring Profit Ratio (%)

2.00

0.71

Net Profit Ratio (%)

2.43

0.49

Return On Equity (%)

41.56

20.08

 

 

           

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.82

UK Pound

1

Rs.99.15

Euro

1

Rs.69.31

 

 

 

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

 

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.