MIRA INFORM REPORT

 

 

Report No. :

355184

Report Date :

14.12.2015

 

IDENTIFICATION DETAILS

 

Name :

MAKITECH CO., LTD

 

 

Registered Office :

1-18, Nabehira Yatomi, Aichi 490-1406

 

 

Country :

Japan

 

 

Financial (as on) :

31.03.2015

 

 

Date of Incorporation :

May 1974

 

 

Com. Reg. No.:

1800-01-022765 (Nagoya-Atsutaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufactures conveyers, FA (Factory Automation) system, labor saving appliances, and others (--100%).

 

 

No. of Employee :

463

 

 

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

 

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

 

MAKITECH CO., LTD

 

REGD NAME:               KK MAKITECH

MAIN OFFICE:              1-18, Nabehira Yatomi, Aichi 490-1406, Japan.

                                                Tel: 81-52-681-3205        Fax: 81-52-681-3387

 

                                    *.. Registered at: 1-9-21 Hataya Atsutaku Nagoya

 

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

E-Mail address:             (thru the URL)

 

 

ACTIVITIES

 

Mfg of conveyers, FA system, labor saving appliances, and others.

 

 

BRANCHES

 

Hokkaido, Sendai, Niigata, Tokyo, Chiba, Osaka, Nagoya, Kyoto, (total of 78)

 

 

OVERSEAS

 

China, Taiwan, Malaysia

 

 

FACTORIES

 

At the caption address, Mie, Yamaguchi, Fukuoka, (total of 11)

 

 

OFFICERS

 

HIROYUKI OONO, PRES                       Shin’ichi Maki, ch,         

Akihiro Onishi, v pres                             Toshihiro Endo, s/mgn dir

Tsutomu Yoshioka, mgn dir                   Shigeru Yokoi, mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 23,149 M

PAYMENTSREGULAR   CAPITAL           Yen 79 M

TREND UP                    WORTH            Yen 4,186 M     

STARTED         1974                 EMPLOYES      463

 

 

COMMENT

 

MFR SPECIALIZED IN CONVEYERS, FA SYSTEM, AND LABOR-SAVING EQUIPMENT, OTHER.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMTNTS: US$1,500,000 / O/A 90 DAYS TERMS

                       

 

HIGHLIGHTS

           

The subject company was established by Masao Maki in order to make most of his         experience in the subject line of business.  Renamed as captioned in Dec 1988.  Originally          started as mfg of spinning components and agricultural power generator.  Business ranges from mfg, marketing, construction of conveyers, FA (Factory Automation) system, labor saving appliances, and others.  Based in Aichi, but expanded operation nationwide, having 78 branch      offices domestically.  Goods are also exported.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2015 fiscal term amounted to Yen 23,149 million, a 9% up from Yen 21,220 million in the previous term.  The recurring profit was posted at Yen 346 million and the net profit at Yen 213 million, respectively, compared with Yen 841 million recurring profit and Yen 309 million net profit, respectively, a year ago.

 

For the current term ending Mar/ 2016 the recurring profit is projected at Yen 360 million and the net profit at Yen 220 million, respectively, on a 5% rise in turnover, to Yen 24,300 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 391.2 million, on 30 days normal terms.  The proposed credit amount for 90 days terms is considered well within the firm’s financial capacities.

 

 


REGISTRATION

 

Date Registered:                       May 1974

Regd No.:                     1800-01-022765 (Nagoya-Atsutaku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  232,968 shares

Issued:                         158,242 shares

Sum:                            Yen 79.121 millio16),    

Major shareholders (%):    Shinichi Maki (35), Company’s Treasury Stock (16), Hisayo Maki (13), Masao Maki (10)

No. of shareholders: 35

 

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

 

 

OPERATION

           

Activities: Manufactures conveyers, FA (Factory Automation) system, labor saving appliances, and others (--100%).

 

Clients: [Mfrs, wholesalers] Hanwa Co, Daido Corp, Tsubakimoto Kogyo Co, Trusco Nakayama, Yuasa Corp, Murata Machinery, Mitsubishi Heavy Machinery, G-Net Corp, Teijin Engineering, other

No. of accounts: 350

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Kyowa Mfg, Marubeni Itochu Steel, Ito Dendo Kogyo, Hikari Corp, Mitsubishi Steel Mfg, Hanwa Co, Iwatani Corp, other

 

Payment record: Regular

 

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

 

Bank References:

Iyo Bank (Nagoya)

SMBC (Kamimaezu)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2016

31/03/2015

31/03/2014

31/03/2013

Annual Sales

 

24,300

23,149

21,220

16,877

Recur. Profit

 

360

346

841

690

Net Profit

 

220

213

309

462

Total Assets

 

 

18,259

16,470

16,673

Current Assets

 

 

10,630

10,425

9,355

Current Liabs

 

 

9,202

8,731

7,922

Net Worth

 

 

4,186

3,954

3,646

Capital, Paid-Up

 

 

79

79

79

Div.Ttl in Million (¥)

 

 

6.493

9.68

6.498

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.97

9.09

25.73

9.31

    Current Ratio

 

..

115.52

119.40

118.09

    N.Worth Ratio

 

..

22.93

24.01

21.87

    R.Profit/Sales

 

1.48

1.49

3.96

4.09

    N.Profit/Sales

 

0.91

0.92

1.46

2.74

    Return On Equity

 

..

5.09

7.81

12.67

 

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

UK Pound

1

Rs.101.10

Euro

1

Rs.73.10

YEN

1

Rs.0.56

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ANK

 


 

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.