MIRA INFORM REPORT

 

 

Report No. :

332475

Report Date :

16.07.2015

 

IDENTIFICATION DETAILS

 

Name :

AIKI RIOTECH CORPORATION

 

 

Registered Office :

39 Inokuchikobando-cho Inazawa City Aichi-Pref 492-8162

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2014

 

 

Date of Incorporation :

April, 1976

 

 

Com. Reg. No.:

1800-01-087263 (Aichi-Inazawa)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Textile Machines & Equipment.

 

 

No. of Employees :

32

 

 

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 – 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

 

 

AIKI RIOTECH CORPORATION

 

REGD NAME:               KK Aiki Riotech

 

MAIN OFFICE:              39 Inokuchikobando-cho Inazawa City Aichi-Pref 492-8162 JAPAN

                                                Tel: 0587-21-9191     Fax: 0587-21-1277

 

URL:                             http://www.aiki-japan.com

E-Mail address:                        info@aiki-japan.com

 

 

ACTIVITIES

 

Mfg of textile machines & equipment

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya, Ehime, Fukuoka (--sales agents)

 

 

OVERSEAS

 

China, India, Iran, Korea, Brazil, Taiwan, Turkey, USA (--sales agents)

 

 

FACTORY

 

At the caption address

 

 

OFFICER(S)

 

HAJIME MATSUMOTO, PRES & CEO

Yoshihiro Tomomatsu, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        R/WEAK                                   A/SALES                      Yen 1,497 M

PAYMENTS      SLOW BUT CORRECT               CAPITAL                       Yen 30 M

TREND UP                                            WORTH                        Yen 33 M

STARTED         2009                                         EMPLOYES                  32

                       

 

COMMENT

 

MFR SPECIALIZING IN TEXTILE & INDUSTRIAL MACHINERY. 

 

FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established on the basis of business/operations transferred from Aiki Lease KK, a machinery leasing company, at the caption address. Aiki Lease KK was established originally in 1976 as mfr of textile machinery by father of Hajime Matsumoto, and changed the business operations in 2009 to leasing of textile machinery.  This is a specialized mfr of textile machines & equipment (See OPERATION).  Products are exported mostly to China, other S/E Asian countries and also to USA and South America.  Exports are through general trading houses. 

 

 

FINANCIAL INFORMATION

 

  The sales volume for Sept/2014 fiscal term amounted to Yen 1,497 million, a 62% up from Yen 925 million in the previous term. Recovery of orders for machinery was remarkable. The operations came back to profitability to post Yen 49 million recurring profit and Yen 25 million net profit, respectively, compared with Yen 112 million recurring loss and Yen 115 million net losses, respectively, a year ago.

 

  For the current term ending Sept 2012 the recurring profit is projected at Yen 55 million and the net profit at Yen 30 million, respectively, on a 5% rise in turnover, to Yen 1,570 million. Business is seen expanding steadily.

 

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements.

 

 

REGISTRATION

 

            Date Registered:  April, 1976

            Regd No.:            1800-01-087263 (Aichi-Inazawa)

            Legal Status:       Limited Company (Kabushiki Kaisha)

            Authorized:         2,400 shares

            Issued:                600 shares

            Sum:                   Yen 30 million

            Major shareholders (%): Hajime Matsumoto (56), Yoshihiro Tomomatsu (43)

            No. of Shareholders: 2

 

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

 

 

OPERATION

 

Activities: Manufactures textile machines & equipment & industrial machines/equipment (--100%).

 

(Mfg items):

Textile Machines: air texturing machines, air covering machines, complex draw texturizing machines, yarn splitting machines, rewinders, soft winders, their parts & components;

Industrial Machines: carbon fiber mfg equipment, equipment for industrial super fiber, PVC & other coated yarn spinning line, machines for multi-axial sheet of fabric (non-woven), other

 

Machines are mostly exported.

 

Clients: [Textile industry, wholesalers] Exports to China (70%), India (20%), Turkey, Brazil, Korea, Pakistan, other.

Domestically to: Toray Textile, Itochu Corp, Marubeni Corp, Teijin Modern Yarn Co, other. 

No. of accounts: 100 (Domestic)

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Kato Hajime Kozai Co, Okaya & Co, Toyotsu Machinery, NC Automation, Mizuno Shoten, Tokai Shoji KK, Sugiura Sangyo, NC Automation, other. 

Imports from Korea, other.

 

Payment record: Slow But Correct

 

Location: Business area in Inazawa City, Aichi-Pref. Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

            Aichi Bank (Inazawa)

            MUFG (Ichinomiya)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

30/09/2015

30/09/2014

30/09/2013

30/09/2012

Annual Sales

 

1,570

1,497

925

1,981

Recur. Profit

 

55

49

-112

 

Net Profit

 

30

25

-115

31

Total Assets

 

 

646

632

510

Current Assets

 

 

502

487

 

Current Liabs

 

 

321

246

 

Net Worth

 

 

33

8

123

Capital, Paid-Up

 

 

30

30

30

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.88

61.84

-53.31

-20.44

    Current Ratio

 

..

156.39

197.97

..

    N.Worth Ratio

 

..

5.11

1.27

24.12

    R.Profit/Sales

 

3.50

3.27

-12.11

..

    N.Profit/Sales

 

1.91

1.67

-12.43

1.56

    Return On Equity

 

..

75.76

..

25.20

 

Notes: Forecast (or estimated) figures for the 30/09/2015 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.38

UK Pound

1

Rs.99.13

Euro

1

Rs.69.69

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.