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Report No. : |
332475 |
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Report Date : |
16.07.2015 |
IDENTIFICATION DETAILS
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Name : |
AIKI RIOTECH CORPORATION |
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Registered Office : |
39 Inokuchikobando-cho Inazawa City Aichi-Pref 492-8162 |
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Country : |
Japan |
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Financials (as on) : |
30.09.2014 |
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Date of Incorporation : |
April, 1976 |
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Com. Reg. No.: |
1800-01-087263 (Aichi-Inazawa) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of
Textile Machines & Equipment. |
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No. of Employees : |
32 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
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
Mfg of textile
machines & equipment
Tokyo, Osaka, Nagoya,
Ehime, Fukuoka (--sales agents)
China, India,
Iran, Korea, Brazil, Taiwan, Turkey, USA (--sales agents)
At the caption
address
HAJIME MATSUMOTO,
PRES & CEO
Yoshihiro
Tomomatsu, dir
Yen Amount: In million Yen, unless otherwise stated
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
MFR SPECIALIZING IN TEXTILE & INDUSTRIAL MACHINERY.
FINANCIAL SITUATION CONSIDERED RATHER WEAK
BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.
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.
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.
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.
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
(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 |
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Recur.
Profit |
|
55 |
49 |
-112 |
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Net
Profit |
|
30 |
25 |
-115 |
31 |
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Total
Assets |
|
|
646 |
632 |
510 |
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Current
Assets |
|
|
502 |
487 |
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Current
Liabs |
|
|
321 |
246 |
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Net
Worth |
|
|
33 |
8 |
123 |
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Capital,
Paid-Up |
|
|
30 |
30 |
30 |
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Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
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<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
4.88 |
61.84 |
-53.31 |
-20.44 |
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Current Ratio |
|
.. |
156.39 |
197.97 |
.. |
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N.Worth Ratio |
|
.. |
5.11 |
1.27 |
24.12 |
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R.Profit/Sales |
|
3.50 |
3.27 |
-12.11 |
.. |
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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 |
|
|
1 |
Rs.99.13 |
|
Euro |
1 |
Rs.69.69 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.