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Report No. : |
357679 |
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Report Date : |
30.12.2015 |
IDENTIFICATION DETAILS
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Name : |
ITOCHU SYSTECH CORPORATION |
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Registered Office : |
Ito Bldg 9F, 3-6-14 Minami-Honmachi Chuoku Osaka 541-0054 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
April, 1969 |
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Com. Reg. No.: |
1200-01-074630 (Osaka-Chuoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, Export and Wholesale of Textile Machinery. |
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No. of Employees : |
90 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 |
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Insignificant |
A1 |
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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.
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Source
: CIA |
ITOCHU SYSTECH CORPORATION
REGD NAME: Itochu
Systech KK
MAIN OFFICE: Ito Bldg 9F, 3-6-14 Minami-Honmachi
Chuoku Osaka 541-0054 JAPAN
Tel: 06-6282-1114 Fax: 06-6282-1109
URL: http://www.itochu-systech.co.jp/
E-Mail address: (thru
the URL)
Import, export,
wholesale of textile machinery
Tokyo, Nagoya,
Imabari, Higashi-Osaka (Technical Center)
Shanghai, Jakarta,
Istanbul, Karachi, USA, Germany, France, Italy, Singapore (--subsidiaries)
HIROYUKI SONODA, PRES Shoichi
Murakami, dir
Kazunori Iwaki,
dir Hajime Imamura,
dir
Masao Morita, dir Yoshinari Yokouchi, dir
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 20,790 M
PAYMENTSREGULAR CAPITAL Yen 480 M
TREND SLOW WORTH Yen 1,657 M
STARTED 1969 EMPLOYES 90
TRADING FIRM SPECIALIZING IN TEXTILE MACHINERY, AFFILIATED TO ITOCHU
CORP
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
The subject company
was established on the basis of a machinery export division separated from
Itochu Corp, a leading general trading house, Tokyo (See REGISTRATION), as Itochu Texmac Corp. In Apr 2008, merged a sister company, Itochu
Plamac Corp, and renamed as captioned. This is a trading
firm for export, and partially import, of textile machinery & peripheral
equipment in the main, hi-tic polymer processing machinery, including their
parts & attachments. Also offers
installation, maintenance and engineering services. Export destinations are China, Pakistan,
Thailand, Turkey, Indonesia, India, Bangladesh, Europe, USA, etc. In Apr 2011, merged three sister firms to
make them consolidated subsidiaries in order to streamline & strengthen
business activities in the Asian markets.
Clients include major textile makers, apparel makers, other.
The sales volume for Mar/2015 fiscal term amounted to Yen 20,790
million, an 11% down from Yen 23,301 million in the previous term. The recurring profit was posted at Yen 599
million and the net at Yen 261 million, respectively, compared with Yen 470
million recurring profit and Yen 208 million net profit, respectively, a year
ago.
For the current
term ending Mar 2016 the recurring profit is projected at Yen 620 million and
the net profit at Yen 380 million, respectively, on a 5% rise in turnover, to
Yen 21,830 million. The weaker Yen
will raise export revenues in Yen terms.
The financial
situation is considered FAIR and good for ORDINARY business engagements.
Date Registered:
Apr 1969
Regd No.:
1200-01-074630
(Osaka-Chuoku)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 38,400
shares
Issue: 9,600
shares
Sum: Yen
480 million
Major shareholders (%): Itochu Corp* (75), DMG Mori Co Ltd (17), Itochu
Machine-Technos (8)
No. of shareholders: 3
*.. One of big 5 general trading houses, at the caption address, founded
1949, listed Tokyo S/E, capital Yen 253,448 million, turnover Yen 5,591,435
million, operating profit Yen 384,960 million, recurring profit Yen 418,515
million, net profit Yen 300,569 million, total assets Yen 9,194,593 million,
net worth Yen 2,507,363 million, employees 111,036, pres Masahiro Okafuji.
Nothing detrimental
is known as to the commercial morality of executives.
Activities: Exports, imports
and wholesales textile machinery/equipment: spinning machinery, dyeing &
finishing machinery, synthetic fiber machines, high-tech polymer processing
machinery, automatic side hemming machines for towels, automatic towel slitting
machines, cross hemming machines, their parts & components, offering
installation, maintenance & engineering services (--100%).
Clients: [Textile mfrs,
wholesalers] Exports to Texmac Inc (USA), Texmac Europe Spa (Italy), Weiqiao
Tex, Colony Tex, Sheikh Spinning, Crescent Steel, other to China, India,
Indonesia, Turkey, Bangladesh, Pakistan, Thailand, other.
Domestic clients: Kawashima Selcon Textiles, Sato Pharmaceutical, Tokyo
Neo Print, Unitika, Daifuku Co, Kaihara Co, Toyota Automatic Loom Works,
Kuraray, CI Kasei Co, Sumitomo Chemical, Sanko Co, other
No. of accounts: 300
Domestic areas of activities: Nationwide
Suppliers: [Mfrs] For exports,
supplied from Murata Machinery, Toyoda Automatic Loom Works, Tsudakoma Corp,
Happy Ind, TMT Machinery, Plastic Research Laboratory of Plastic Technology Co,
other.
Imports from Germany, Belgium, Korea, other.
Payment
record: Regular
Location: Business area in Osaka. Office premises at the caption address are
leased and maintained satisfactorily.
Bank
References:
Mizuho
Bank (Semba)
Hachijuni
Bank (Osaka)
Relations:
Satisfactory
(In
Million Yen)
|
Terms Ending: |
31/03/2016 |
31/03/2015 |
31/03/2014 |
31/03/2013 |
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Annual
Sales |
|
21,830 |
20,790 |
23,301 |
14,875 |
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Recur.
Profit |
|
620 |
599 |
470 |
256 |
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Net
Profit |
|
380 |
361 |
208 |
300 |
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Total
Assets |
|
|
7,697 |
8,218 |
6,106 |
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Current
Assets |
|
|
6,998 |
7,596 |
5,357 |
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Current
Liabs |
|
|
5,897 |
6,556 |
4,476 |
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Net
Worth |
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|
1,657 |
1,524 |
1,496 |
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Capital,
Paid-Up |
|
|
480 |
480 |
480 |
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Div.Ttl
in Million (¥) |
|
|
182.534 |
108.374 |
111.398 |
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<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
5.00 |
-10.78 |
56.65 |
14.36 |
|
Current Ratio |
|
.. |
118.67 |
115.86 |
119.68 |
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N.Worth Ratio |
|
.. |
21.53 |
18.54 |
24.50 |
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R.Profit/Sales |
|
2.84 |
2.88 |
2.02 |
1.72 |
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N.Profit/Sales |
|
1.74 |
1.74 |
0.89 |
2.02 |
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Return On Equity |
|
.. |
21.79 |
13.65 |
20.05 |
Notes: Forecast (or estimated) figures for the
31/03/2016 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.37 |
|
|
1 |
Rs.98.91 |
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Euro |
1 |
Rs.72.85 |
|
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
: |
TRI |
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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.