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Report No. : |
354609 |
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Report Date : |
11.12.2015 |
IDENTIFICATION DETAILS
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Name : |
HOKKAIDO ELECTRIC INDUSTRIES LTD |
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Registered Office : |
776 Naiecho Sorachigun Hokkaido 079-0300 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
May, 1987 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Electric Wires, Heating Equipment, Optical Fiber Cable, Electric Heater. |
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No. of Employees : |
80 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 146.0 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 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 |
HOKKAIDO ELECTRIC INDUSTRIES LTD
REGD NAME: Hokkaido
Denki KK
MAIN OFFICE: 776
Naiecho Sorachigun Hokkaido 079-0300 JAPAN
Tel: 0125-65-6155 Fax: 0125-65-6144
URL: http://www.hokkaido-denki.co.jp
E-Mail address: (thru the URL)
Mfg of electric
wires, heating equipment, optical fiber cable, electric heater
Tokyo, Toyama,
Sendai (Tot 3)
At the caption
address (Tot 2)
ATSUHIDE JINNO, PRES Sakashi Inaba, mgn dir
Hidehiko Yoneda,
dir Kaoru Mizuguchi, dir
Tetsuya Tsuchida,
dir Masuo Nakado, dir
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 3,031 M
PAYMENTSSLOW BUT
CORRECT CAPITAL Yen 200 M
TREND SLOW WORTH Yen 1,381 M
STARTED 1987 EMPLOYES 80
MFR OF ELECTRIC CABLES.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT:
ESTIMATED AT YEN 146.0 MILLION, ON 30 DAYS NORMAL TERMS.
The subject company is a specialized mfg of electric cables, optical
fiber cables, others. Clients include
Hokkaido Electric Power, others.
The sales volume for Mar/2015 fiscal term amounted to Yen 3,031 million,
an 18% down from Yen 3,706 million in the previous term. The tsunami & earthquake accidents
affected the sales. The recurring profit
was posted at Yen 23 million and the net profit at Yen 1 million, respectively,
compared with Yen 148 million recurring profit and Yen 44 million net profit,
respectively, a year ago.
For the current term ending Mar 2016 the recurring profit is projected
at Yen 60 million and the net profit at Yen 40 million, respectively, on a 5%
rise in turnover, to Yen 3,200 million.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 146.0 million, on 30 days normal terms.
Date Registered: May
1987
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 1.6 million shares
Issued: 400,000
shares
Sum: Yen
200 million
Major
shareholders (%): Sumitomo Electric Ind
Ltd* (80), Hokkai Electric Ind (10), Hokuden Service (10)
No. of shareholders: 3
*..Mfr of electric wire & cable, Osaka, founded 1911, listed Tokyo,
Nagoya, Fukuoka S/E’s capital Yen 99,737 million, sales Yen 2,822,811 million,
operating profit Yen 134,457 million, recurring profit Yen 160,597 million, net
profit Yen 119,771 million, total assets Yen 2,953,211 million, net worth Yen
1,438,017 million, employees 243,450, pres Masayoshi Matsumoto
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Manufactures
electric cable & wire, optical fiber cable, electric heater, electric works
materials, other (--100%)
Clients: [Mfrs,
wholesalers] Hokkaido Electric Power, Hokuden Service, other Hokuden Group
firms, other
No. of accounts:
350
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Sumitomo Electric Ind, other
Payment record: Slow but correct
Location: Business area in
Hokkaido. Office premises at the caption
address are owned and maintained satisfactory.
Bank References:
North Pacific Bank (Sunakawa)
Hokkaido Bank (Sunakawa)
Relations: Satisfactory
(In Million
Yen)
|
Terms Ending: |
31/03/2016 |
31/03/2015 |
31/03/2014 |
31/03/2013 |
|
|
Annual
Sales |
|
3,200 |
3,031 |
3,706 |
3,549 |
|
Recur.
Profit |
|
60 |
23 |
148 |
90 |
|
Net
Profit |
|
40 |
1 |
94 |
50 |
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Total
Assets |
|
|
2,074 |
2,107 |
2,271 |
|
Current
Assets |
|
|
1,027 |
1,108 |
1,236 |
|
Current
Liabs |
|
|
671 |
687 |
859 |
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Net
Worth |
|
|
1,381 |
1,400 |
1,315 |
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Capital,
Paid-Up |
|
|
200 |
200 |
200 |
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Div.Ttl
in Million(¥) |
|
|
22 |
11 |
11 |
|
<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
5.58 |
-18.21 |
4.42 |
1.72 |
|
Current Ratio |
|
.. |
153.06 |
161.28 |
143.89 |
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N.Worth Ratio |
|
.. |
66.59 |
66.45 |
57.90 |
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R.Profit/Sales |
|
1.88 |
0.76 |
3.99 |
2.54 |
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N.Profit/Sales |
|
1.25 |
0.03 |
2.54 |
1.41 |
|
Return On Equity |
|
.. |
0.07 |
6.71 |
3.80 |
Notes: Forecast (or estimated) figures for the
31/03/2016 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.79 |
|
|
1 |
Rs.101.37 |
|
Euro |
1 |
Rs.73.46 |
|
Yen |
1 |
Rs.0.55 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
KIN |
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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.