MIRA INFORM REPORT

 

 

Report No. :

299912

Report Date :

23.01.2015

 

IDENTIFICATION DETAILS

 

Name :

HITACHI BUSINESS INTERNATIONAL LTD.

 

 

Registered Office :

NBF Ogawa-cho Bldg., 1-3, Kanda-ogawa-cho, Chiyoda-ku, Tokyo 101-0052

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

01.04.1987

 

 

Com. Reg. No.:

0100-01-027006

 

 

Legal Form :

Private Company

 

 

Line of Business :

Trader/Service of Industrial machinery & other services

 

 

No. of Employee :

75

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

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

a

 

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

 

HITACHI BUSINEE INTERNATIONAL LTD.

 

 

OUTLINE

 

Country:                                                Japan

Company name:                                    HITACHI BUSINESS INTERNATIONAL LTD.

Name in local language:                         HITACHI KOKUSAI BUSINESS, K.K.  

Office address:                                     NBF Ogawa-cho Bldg., 1-3, Kanda-ogawa-cho, Chiyoda-ku,

                  Tokyo 101-0052

Office tel:                                             03-5259-5511

Office fax:                                            03-5259-5519

Website:                                               www.hitachi-bi.co.jp  

Business type:                                      Trader/Service

Industry:                                               Industrial machinery & other services

Established:                                          April 1, 1987

Capital:                                                 Jp. 100,000,000 yen

Employees:                                          75

Corporate formation:                             Private 

Corporation No.:                                   0100-01-027006 (Tokyo Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

Paid in capital :                         Jp. 100,000,000 yen

Number of authorized shares :   6,000 shares

Shares issued :                         2,000 shares

Number of shareholder :                        1

 

Hitachi Ltd. holds 100 percent.

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

Activity                                     Product/Service Description

-------------------------------------------------------------------------------

Trading                                     Special industrial machines

Service                                     Personal language lessons

Service                                     Business solution consulting

 

 

COMPANY MANAGEMENT

 

President                      Mr. Masakazu Hamada

Nationality:                    Japan

 

Director                        Mr. Hirofumi Maeda

Nationality:                    Japan

 

Director                        Mr. Hiroshi Tsuganuma

Nationality:                    Japan

 

Director                        Mr. Akira Shimizu

Nationality:                    Japan

 

Auditor                         Mr. Atsushi Nakajima

Nationality:                    Japan

 

Auditor                         Mr. Mamoru Sasaki

Nationality:                    Japan

 

Note: The names of director(s) and auditor(s) are phonetically spelt.

 

 

*Key Personnel*

=============

Mr. Masakazu Hamada

President and representative director

Home address: 1-77-14, Shinmachi, Fuchu-shi, Tokyo

 

 

FINANCIALS

===========

Currency: (local currency - Jp. yen)

-------------------------------------------------------------------------------------

 Year |           Sales            |                              Net Income    

-------------------------------------------------------------------------------------

2009

12,900,000,000

68,524,000

2010

10,446,000,000

loss 55,715,000

2011

9,513,000,000

1,443,000

2012

7,915,000,000

loss 42,892,000

2013

7,790,000,000

loss 210,481,000

2014

4,883,000,000

loss 118,716,000

 

 

FINANCIAL DESCRIPTION

=====================

*Book Closing*

============

March 31st

 

 

*Financials*

==========

Balance Sheet

Unit: millions of JP yen

                          

3/31/2014

Current assets  

3,883

Fixed assets           

146

Total Assets       

4,029

 

 

Current liabilities     

3,535

Fixed liabilities      

213

Shareholders' equity    

281

 Paid up capital      

100

 Retained earnings    

181

Total Liabilities & Net Assets     

4,029

 

 

*Bank Details*

 

Bank Name :     Bank of Tokyo-Mitsubishi UFJ, Ltd.

Branch :            Head office

 

Bank Name :     Mizuho Bank, Ltd.

Branch :            Tokyo corporate banking department

 

 

*Credit Opinion*

 

Subject is one of many subsidiaries of Hitachi Ltd., a world-class manufacturer of a wide range of electric and electronic products.

The business spheres of the subject has been re-engineered at the discretion of Hitachi Group.

Its business size has been shrinking due to re-formation of the business structure of Hitachi Group.

 

The total scheme is not any problem as the parent carries JPY 1,652,375 million of retained earnings as of September 30, 2014.

Our rating is based on the latest available financial data of the subject itself as a single business entity.

In case of drastic change of the business of the subject, the parent will be able to pay off at any time.

 

Our standard suggestion would be up to US$ 100,000 on terms of 90 days.

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

 

*Main Products & Services*

======================

The subject is conducting its business activities under the following organization:

Smart Transformation Promotion Division

-       Business Strategy Group

-       New Business Development Group

-       Business Partnering Group

Global Business Solution Division

-       Business Solution Group: Support work for trading procedure and documentation

-       Language Solution Group: Language lesson support

Infra Solution Business Division

-       Steel Group

-       Chemical Group

 

 

ORGANIZATION STRUCTURE

 

*Address*

=========

Registered address is the same as the operational address.

 

 

*Company History*

================

Date                 Development

-----------------------------------------------------------------------------------------------

April 1, 1987                  Incorporated under the name of “International Business Service Ltd.” as

        a subsidiary of Hitachi Ltd., former International Business Headquarters

        with an investment of JPY 40 million.

October 1990                Took the current company name.

May 2000                      Increased the capital to JPY 100 million.

March 2006                   Terminated the translation service.

August 2010                  Shut down the business in Shanghai.

March 2011                   Terminated SAP/BI business.

April 2013                     Assigned the business assets of system development to “Hitachi Solutions Ltd.”

        Started trading business support(shared service).

October 2013                Assigned the business assets of IT support business to “Hitachi ICT

        Business Service Ltd.”

                                                Assigned the business assets of staffing agency business to “Pasona Inc.”

 

 

TRADE REFERENCES

 

*Suppliers*

==========

Hitachi Ltd.

Hitachi-Mitsubishi Steel-Making Machine Co., Ltd.

First High Frequency Wave Industry Co., Ltd.

Hitachi Industrial Machines Ltd.

 

*Customers*

==========

Hitachi America Ltd.

Hitachi Data System Corp.

Hitachi Canada Ltd.

Hitachi Asia Ltd.

Overseas Power Generation Firms

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.69

UK Pound

1

Rs.93.33

Euro

1

Rs.71.49

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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%)

 

 

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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.