MIRA INFORM REPORT

 

 

Report No. :

330651

Report Date :

03.07.2015

 

IDENTIFICATION DETAILS

 

Name :

IMV CORPORATION

 

 

Registered Office :

2-6-10 Takejima Nishiyodogawaku Osaka 555-0011

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2014

 

 

Date of Incorporation :

April, 1957

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Vibration Simulation Systems, Measuring Systems, Test & Solution Service.

 

 

No. of Employees :

180

 

 

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 158.5 Million

 

 

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 second-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

 

IMV CORPORATION

 

REGD NAME:               IMV KK

 

MAIN OFFICE:              2-6-10 Takejima Nishiyodogawaku Osaka 555-0011 JAPAN

                                                Tel: 06-6478-2565     Fax: 06-6478-2567     -

 

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

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES

 

Mfg of vibration simulation systems, measuring systems, test & solution service

 

 

BRANCHES

 

Tokyo, Kanagawa, Nagoya, other (Tot 7)

 

 

OVERSEAS

 

China, Thailand, Malaysia, UK, Germany

 

 

FACTORIES

 

At the caption address, Sagamihara

 

 

CHIEF EXEC

 

JIRO OKAMOTO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES                      Yen 7,863 M

PAYMENTSREGULAR   CAPITAL                       Yen 464 M

TREND UP                    WORTH                        Yen 3,729 M

STARTED         1957                 EMPLOYES                 180

 

 

COMMENT

 

MFR OF VIBRATION TESTING & MEASURING EQUIPMENT, OTHER 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 158.5 MILLION, 30 DAYS NORMAL TERMS

 

 

Unit: In Million Yen

Forecast figures for the 30/09/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is a specialized mfr of vibration testing equipment and measuring instruments. Top ranked in Japan and top-class in field of electronic dynamic vibrations. Also conducts vibration testing on consignment. Expanding overseas expansion. Applied for corporate rehabilitation in 1974 after the oil shock, completed in 1985.  Main customers include mfrs of automobiles, railway rollingstock, electrical machinery and semiconductors.  Undertakes on consignment at testing laboratories in Tokyo, Osaka and Nagoya. Actively developing energy-saving and compact wireless models.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 7,863 million, a 28.5% up from Yen 6,119 million in the previous term.  The recurring profit was posted at Yen 1,244 million and the net profit at Yen 713 million, respectively, compared with Yen 726 million recurring profit and Yen 448 million net profit, respectively, a year ago.

 

(Oct/2014-Mar/2015 results): Sales Yen 5,467 million (up 25.8), operation profit Yen 1,189 million (up 25.9%), recurring profit Yen 1,199 million (up 22.5%), net profit Yen 767 million (up 38.4%).  (% as compared with the corresponding period a year ago)

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 2,300 million and the net profit at Yen 780 million, respectively, on a 5.5% rise in turnover, to Yen 8,300 million.  Sales (demand) for vibration simulation systems will grow in overseas.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 158.5 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　                   Apr 1957

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              67,800,000 shares

Issued:                         16,957,016 shares

Sum:                            Yen 464 million

 

Major shareholders (%): SEIKO Ltd (17.6), Shigeo Kojima (7.5), Employees’ S/Holding Assn (7.4), Japan Trustee Services T (5.1), Junpei Kojima (4.8), Customers’ S/Holding Assn (4.6), ESPEC Corp (4.5), Company’s Treasury Stock (3.6), Kentaro Kojima (2.5), Afro Ltd (1.6); foreign owners (0.4)

 

No. of shareholders: 91

 

Listed on the S/Exchange (s) of: JASDAQ

 

Managements: Shigeo Kojima, ch; Jiro Okamoto, pres; Jumpei Kojima, s/mgn dir; Hidenao Aoki, dir; Kinya Kusano, dir; Kentaro Kojima, dir

 

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

 

Related companies: Nitto Seiki, MV (Thailand), other.

 

 

OPERATION

           

Activities: Manufactures: Vibration simulation systems (72%), Measuring instruments (11%), Test & solution services (17%)

Overseas Sales Ratio (24%)

           

Clients: [Mfrs, wholesalers] Tokai Riki Co (Riki means scientific equipment), Roadex        America Inc, Hikari Alphax Inc, Mahle Filter Systems, Moriya Corp, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Nitto Seiki Co, Daito Denshi Co, Sankei Electronics,  Suzuki Machinery, Tsukasa  Giken Co, Matsumoto Ind, Siix Corp, other

 

Payment record: Regular

 

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

 

Bank References:

            Mizuho Bank (Dojima)

            MUFG (Umeda)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

30/09/2014

30/09/2013

INCOME STATEMENT

　

　

  Annual Sales

　

7,863

6,119

　

  Cost of Sales

4,769

3,847

　

      GROSS PROFIT

3,093

2,271

　

  Selling & Adm Costs

1,905

1,623

　

      OPERATING PROFIT

1,188

647

　

  Non-Operating P/L

56

79

　

      RECURRING PROFIT

1,244

726

　

      NET PROFIT

713

448

BALANCE SHEET

　

　

  Cash

　

1,700

1,317

　

  Receivables

2,718

1,669

　

  Inventory

1,601

1,620

　

  Securities, Marketable

　

　

　

  Other Current Assets

276

221

　

      TOTAL CURRENT ASSETS

6,295

4,827

　

  Property & Equipment

2,812

2,754

　

  Intangibles

29

25

　

  Investments, Other Fixed Assets

215

156

　

      TOTAL ASSETS

9,351

7,762

　

  Payables

1,355

1,047

　

  Short-Term Bank Loans

1,910

1,560

　

　

　

　

　

  Other Current Liabs

1,501

1,191

　

      TOTAL CURRENT LIABS

4,766

3,798

　

  Debentures

　

　

　

  Long-Term Bank Loans

557

581

　

  Reserve for Retirement Allw

　

　

　

  Other Debts

　

298

297

　

      TOTAL LIABILITIES

5,621

4,676

　

      MINORITY INTERESTS

　

　

Common stock

464

464

　

Additional paid-in capital

557

557

　

Retained earnings

2,782

2,150

　

Evaluation p/l on investments/securities

34

18

　

Others

(99)

6

　

Treasury stock, at cost

(9)

(109)

　

      TOTAL S/HOLDERS` EQUITY

3,729

3,086

　

      TOTAL EQUITIES

9,351

7,762

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

30/09/2014

30/09/2013

　

Cash Flows from Operating Activities

　

463

251

　

Cash Flows from Investment Activities

-313

-170

　

Cash Flows from Financing Activities

203

57

　

Cash, Bank Deposits at the Term End

　

1,487

1,111

ANALYTICAL RATIOS            Terms ending:

30/09/2014

30/09/2013

　

Net Worth (S/Holders' Equity)

3,729

3,086

　

Current Ratio (%)

132.08

127.09

　

Net Worth Ratio (%)

39.88

39.76

　

Recurring Profit Ratio (%)

15.82

11.86

　

Net Profit Ratio (%)

9.07

7.32

　

　

Return On Equity (%)

19.12

14.52

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.57

UK Pound

1

Rs.99.20

Euro

1

Rs.70.35

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

 

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.