MIRA INFORM REPORT

 

 

Report No. :

300548

Report Date :

15.01.2014

 

IDENTIFICATION DETAILS

 

Name :

DAIWABO INFORMATION SYSTEM CO LTD

 

 

Registered Office :

Honmachi DIS Bldg, 3-2-5 Honmachi Chuoku Osaka 541-0053

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

August 1974

 

 

Com. Reg. No.:

1200-01-083217

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Wholesales PC’s, office automation machines, other (--100%)

 

 

No. of Employee :

1,340

 

 

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 :

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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 & address

 

DAIWABO INFORMATION SYSTEM CO LTD

 

 

REGD NAME

 

Daiwabo Joho System KK

 

 

MAIN OFFICE

 

Honmachi DIS Bldg, 3-2-5 Honmachi Chuoku Osaka 541-0053 Japan

Tel: 06-6281-1161     

Fax: 06-6281-1164

 

URL:                 http://www.pc-daiwabo.co.jp

E-Mail address: (thru the URL)

 

ACTIVITIES:     Wholesale of PC’s, office automation machines, other

BRANCHES:     90 sales networks across the country

FACTORIES:    At the caption address (R&D center)

 

OFFICERS:       YOSHIHIRO NOGAMI, PRES     Tatsuya Yasunaga, s/mgn dir

                        Yoshihiro Nishimura, mgn dir     Toshihiro Tatsumi, dir

                        Keizo Toyoda, dir                      Yoshinori Nishida, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 548,062 M

PAYMENTS      REGULAR                     CAPITAL           Yen 11,813 M

TREND             UP                                WORTH            Yen 45,655 M  

STARTED         1974                             EMPLOYES      1,340

 

 

COMMENT

 

WHOLESALER OF PC’S, OFFICE AUTOMATION MACHINES OTHER.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

HIGHLIGHTS

           

The subject company was established by Daiwa Co Ltd (now Daiwabo Holdings Co Ltd, see REGISTRATION) in order to expand into the non-fiber sector, the information sector.  This is a wholesaler, with planning operation, of PC’s, office automation machines, other.  Clients include information makers, engineers, other, nationwide.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 548,062 million, a 26% up from Yen 436,645 million in the previous term.  Office automation machines were in good demand.  The recurring profit was posted at Yen 8,363 million and the net profit at Yen 3,423 million, respectively, compared with Yen 3,986 million recurring profit and Yen 2,008 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 8,400 million and the net profit at Yen 3,500 million, respectively, on a 5% rise in turnover, to Yen 575,000 million.  Business is seen steadily expanding

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

REGISTRATION

 

Date Registered:                       Aug 1974

Regd No.:                                 1200-01-083217 (Osaka-Chuoku)

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              76 million shares

Issued:                                     19,972,994 shares

Sum:                                        Yen 11,813 million

Major shareholders (%):           Daiwabo Holdings Co Ltd* (100)

 

*.. Medium-scale cotton spinner formed in 1941, listed Tokyo S/E, capital Yen 21,696 million, sales Yen 634,687 million, operating profit Yen 10,950 million, recurring profit Yen 10,571 million, net profit Yen 4,528 million, total assets Yen221,527 million, net worth Yen 48,232 million, employees 9,501, pres Masaaki Sakaguchi

 

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

 

 

OPERATION

           

Activities: Wholesales PC’s, office automation machines, other (--100%)

 

 

Clients: [Mfrs, wholesalers] Amazon Japan, Ricoh Ltd, HHT Resonant, Fuji Xerox, etc 

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Hewlett Packard Japan, Microsoft Japan, NEC Corp, Fujitsu Personals, other

 

Payment record: Regular

 

Location: Business area in Osaka.  Office premises at the caption address are owned and maintained satisfactory.

 

Bank References:

MUFG (Osaka)

SMBC (Bingomachi)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

Terms Ending:

31/03/2015

31/03/2014

31/03/2013

Annual Sales

 

575,000

548,062

436,645

Recur. Profit

 

8,400

8,363

3,986

Net Profit

 

3,500

3,423

2,008

Total Assets

 

 

175,939

154,716

Current Assets

 

 

158,093

136,115

Current Liabs

 

 

119,444

101,074

Net Worth

 

 

45,655

43,279

Capital, Paid-Up

 

 

11,813

11,813

Div.P.Share(¥)

 

 

 

 

<Analytical Data>

 

(%)

(%)

(%)

    S.Growth Rate

 

4.92

25.52

6.43

    Current Ratio

 

..

132.36

134.67

    N.Worth Ratio

 

..

25.95

27.97

    R.Profit/Sales

 

1.46

1.53

0.91

    N.Profit/Sales

 

0.61

0.62

0.46

    Return On Equity

 

..

7.50

4.64

 

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.94.24

Euro

1

Rs.73.30

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 


 

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.