MIRA INFORM REPORT

 

 

Report No. :

307959

Report Date :

12.02.2015

 

IDENTIFICATION DETAILS

 

Name :

HITACHI INDUSTRY & CONTROL SOLUTIONS LTD

 

 

Registered Office :

5-1-26 Omikacho Hitachi City Ibaraki-Pref 319-1221

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

June 1979

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is engineering of security system, imaging applications, CTI solutions, other.

 

 

No. of Employee :

4,299

 

 

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 2,218.3 Million

 

 

Status :

Satisfactory

 

 

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. Japan's industrial sector is 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 three 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. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. 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 2013 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 new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which is exceeding 230% 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 the year 2015. 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

 

HITACHI INDUSTRY & CONTROL SOLUTIONS LTD

 

REGD NAME:    KK Hitachi Sangyo Seigyo (means control) Solutions

MAIN OFFICE:  5-1-26 Omikacho Hitachi City Ibaraki-Pref 319-1221 JAPAN

                                    Tel: 0294-53-6115     

 

URL:                 http://www.hitachi-ics.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Engineering of security system, imaging applications, CTI solutions, other

 

 

BRANCHES

 

Tokyo, Yokohama, Osaka, Nagoya, Hiroshima, Fukuoka, other

 

 

OFFICERS

 

MITSUO TAKAYAMA, PRES      Teizo Fujii, s/mgn dir

Takashi Kitamura, mgn dir          Akira Nishitani, mgn dir

Shoji Yamaguchi, mgn dir           Hiroyuki Mizutani, mgn dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 46,713 M

PAYMENTSREGULAR   CAPITAL           Yen 3,000 M

TREND UP                    WORTH            Yen 14,010 M   

STARTED         1979                 EMPLOYES      4,299

 


 

COMMENT

 

ENGINEERING COMPANY, OWNED BY HITACHI LTD.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR

ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: ESTIMATED AT YEN 2,218.3 MILLION, ON 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a division separated from Hitachi Ltd (See REGISTRATION).  This is an engineering company of industrial solutions, security, embedded systems, CTI solutions, mfg, logistics, other.  In Apr 2014, the firm integrated 3 group firms to streamline operations.  Clients are Hitachi Group firms.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 46,713 million, a 1% down from Yen 47,013 million in the previous term.  The recurring profit was posted at Yen 2,812 million and the net profit at Yen 1,218 million, respectively, compared with Yen 3,506 million recurring profit and Yen 2,306 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 4,800 million and the net profit at Yen 2,000 million, respectively, on a 71% rise in turnover, to Yen 79,800million. 

This is attributed to the said merger of group firms.

 

The financial situation is considered FAIR and good for ORDINARY business    engagements.  Max credit limit is estimated at Yen 2,218.3 million, on 30 days normal terms.

 

 

REGISTRATION

    

            Date Registered:   Jun 1979

            Legal Status:      Limited Company (Kabushiki Kaisha)

            Authorized:         18 million shares

            Issued:                4.54 million shares

            Sum:                   Yen 3,000 million

  Major shareholders (%): Hitachi Ltd* (100)

 

 *.. Hitachi Ltd, largest comprehensive mfr of electrical products, Tokyo, founded 1920, listed Tokyo S/E, capital Yen 458,790 million, sales Yen 9,616,202 million, operating profit Yen 532,811 million, recurring profit Yen 568,182 million, net profit Yen 264,975 million, total assets Yen 10,882,978 million, net worth Yen 2,635,772 million, employees 325,700, pres Hiroaki Nakanishi

 

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

 

 

OPERATION

           

Activities: Engineering Company for: industrial solutions, security, embedded systems, logistics, imaging applications, CTI solutions, other (--100%)

 

Clients: [Mfrs, wholesalers] Hitachi Ltd, Hitachi Systems, Renesas Electronics, other  No. of accounts: 350

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Hitachi Systems, Hitachi Ltd, System Design, other

 

Payment record: Regular

 

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

 

Bank References:

                        Mizuho Bank (Hitachi)

                        Joyo Bank (Hitachi)

                        Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

79,800

46,713

47,013

49,903

Recur. Profit

 

4,800

2,812

3,506

4,409

Net Profit

 

2,000

1,218

2,306

1,981

Total Assets

 

 

34,708

36,508

35,735

Current Assets

 

 

25,884

26,926

 

Current Liabs

 

 

10,362

11,722

 

Net Worth

 

 

14,010

14,012

13,081

Capital, Paid-Up

 

 

3,000

3,000

3,000

Div.P.Share(¥)

 

 

189.00

357.00

306.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

70.83

-0.64

-5.79

4.23

    Current Ratio

 

..

249.80

229.70

..

    N.Worth Ratio

 

..

40.37

38.38

36.61

    R.Profit/Sales

 

6.02

6.02

7.46

8.84

    N.Profit/Sales

 

2.51

2.61

4.91

3.97

    Return On Equity

 

..

8.69

16.46

15.14

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 62.15

UK Pound

1

Rs. 94.72

Euro

1

Rs. 70.33

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ASH

 

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.