MIRA INFORM REPORT

 

 

Report No. :

313561

Report Date :

30.03.2015

 

IDENTIFICATION DETAILS

 

Name :

FALTEC CO LTD

 

 

Registered Office :

580 Horikawacho Saiwaiku Kawasaki city Kanagawa 212-0013

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

April 2004

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg/Selling of automotive parts

 

 

No of Employees :

989

 

 

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 :

No Complaints

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

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

 

FALTEC CO LTD

 

 

REGD NAME 

 

FALTEC KK

 

 

MAIN OFFICE

 

580 Horikawacho Saiwaiku Kawasaki city Kanagawa 212-0013 JAPAN

Tel: 044-520-0019     Fax: 044-520-0018    

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg/Selling of automotive parts

 

 

BRANCHES   

 

Sapporo, Sendai, Kawasaki, Higashi Osaka, Fukuoka

 

 

OVERSEAS   

 

U.K., Thailand, U.S.A., China

 

 

FACTORIES  

 

Iwaki (Fukushima), Tatebayashi (Gunma), Fukuoka, other

 

 

 

CHIEF EXEC 

 

KAZUHIKO TOIDA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 77,393 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 2,183 M

TREND UP                                WORTH            Yen 14,968 M

STARTED         2004                             EMPLOYES      989

 

 

COMMENT    

 

MANUFACTURER OF AUTOMOTIVE PARTS. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

70,218

1,383

2,245

(%)

7,498

(Consolidated)

31/03/2012

75,555

3,435

1,309

7.60

8,255

31/03/2013

72,018

3,147

2,038

-4.68

12,962

31/03/2014

77,393

3,502

2,084

7.46

14,968

31/03/2015

80,000

4,000

2,200

3.37

17,168

 

                        Unit: In Million Yen

Forecast figures for the 2015 fiscal term.

 

HIGHLIGHTS

 

       The subject company was founded in 2004. Altia Co.,Ltd.(former Nissan Jidosha Hanbai Co.,Ltd, established in 1937.) entered into a corporate combination agreement with Hashimoto Forming Industries Co., Ltd. (former Hashimoto Ironworks, established in 1917.) to form FALTEC Co., Ltd. a holding company owned by the two respective companies. It handles six major categories of products: plastic exteriors, metal products, moldings, electrical/electronic components, textiles and chemicals. Its major customers are automobile manufactures in Japan and abroad.

 

 

FINANCIAL INFORMATION

 

The sales volume for March /2014 fiscal term amounted to Yen 77,393 million, a 7.5% up from Yen 72,018 million in the previous term.  The recurring profit was posted at Yen 3,502 million and the net profit at Yen 2,084 million, respectively, compared with Yen 3,147 million recurring profit and Yen 2,038 million net profit, respectively, a year ago.

 

            For the current term ending March 2015 the recurring profit is projected at Yen 4,000 million and the net profit at Yen 2,200 million, respectively, on a 3.4% rise in turnover, to Yen 80,000 million.  Final results are yet to be released.

 

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

 

 

REGISTRATION

           

Date Registered:                    April 2004

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              11 million shares

Issued:                         3 million shares

Sum:                            Yen 2,183 million

 

Major shareholders (%): TPR(55.5), Guangdong Tgpma Utomotive Industry Group(4.8), Srg Grobal Inc.(4.1), Takashi Kotegawa(3.4), Japan Trustee Service Bank(2.3),other

 

No. of shareholders: 1,252

 

Listed on the S/Exchange (s) of: Tokyo, the 1st section

 

Managements:

KAZUHIKO TOIDA, pres;  Katsuhiro Takamatsu, v.pres;

                        Hiroshi Miki,dir; Tatsuro Sato, dir; Hiroshi Kato, dir,

 

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

 

Related companies: Altia Corp, Technosash Corp, Faltec service Corp, Ishikawa Faltec Corp, other

 

 

OPERATION

           

Activities: Mfg/Selling of automotive parts such as plastic exteriors, metal products, moldings, electrical/electronic components, textiles and chemicals.

 

Plastic Exteriors:  They supply plastic exterior parts that are installed on automotive production lines. Our major clients in this category are auto manufacturers in Japan and abroad.

 

Metal Products: They supply metal sashes for doors in automobiles, as well as roof rails and other parts that are installed as options on automotive production lines.

 

Moldings: They combine roll forming, extrusion molding and stamping technologies to provide moldings that are installed together with the doors and window glass in automobiles.

 

Electrical and Electronic components: They offer products that help create more stylish cars, such as our original interior illumination kits and exterior/electrical products.

 

Textiles: They help customers create elegant, comfortable interior spaces with our carpeting and other textile products.

 

Chemicals: They offer chemical products to give safety, security and comfort to drivers. Their chemical products are used by automobile manufacturers, repair service providers and general car users.

 

 

Clients: [Mfrs, wholesalers] Nissan Motor Corp, Nissan Shatai Corp, Honda Motor Corp, Fuji Heavy Industry Corp, Daihatsu Motor Corp, Mitsubishi Motor Corp, Mazda Motor Corp, other

            No. of accounts: Unavailable

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Technosash Corp, Daikyo Nishikawa Corp, Platec Corp, other

 

Payment record: No Complaints

 

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

 

 

Bank References:

                        Muzuho Bank (Yokohamaekimae)

                        Bank of Yokohama (Kawasaki)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

  Annual Sales

77,393

72,018

 

  Cost of Sales

65,047

59,813

 

      GROSS PROFIT

12,346

12,205

 

  Selling & Adm Costs

9,019

8,989

 

      OPERATING PROFIT

3,327

3,216

 

  Non-Operating P/L

175

-69

 

      RECURRING PROFIT

3,502

3,147

 

      NET PROFIT

2,084

2,038

BALANCE SHEET

 

 

  Cash

 

2,761

3,889

 

  Receivables

16,063

13,961

 

  Inventory

3,202

2,753

 

  Securities, Marketable

0

0

 

  Other Current Assets

4,149

3,835

 

      TOTAL CURRENT ASSETS

26,175

24,438

 

  Property & Equipment

21,804

19,362

 

  Intangibles

1,308

1,541

 

  Investments, Other Fixed Assets

3,898

2,737

 

      TOTAL ASSETS

53,185

48,078

 

  Payables

11,834

13,142

 

  Short-Term Bank Loans

3,726

1,270

 

 

 

 

 

  Other Current Liabs

9,648

7,373

 

      TOTAL CURRENT LIABS

25,208

21,785

 

  Debentures

 

 

 

  Long-Term Bank Loans

2,749

4,204

 

  Reserve for Retirement Allw

7,671

6,547

 

  Other Debts

2,589

2,580

 

      TOTAL LIABILITIES

38,217

35,116

 

      MINORITY INTERESTS

 

 

Common stock

2,183

2,183

 

Additional paid-in capital

500

500

 

Retained earnings

8,824

7,138

 

Evaluation p/l on investments/securities

 

 

 

Others

3,461

3,141

 

Treasury stock, at cost

 

 

 

      TOTAL S/HOLDERS` EQUITY

14,968

12,962

 

      TOTAL EQUITIES

53,185

48,078

CONSOLIDATED CASH FLOWS

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

 

3,676

1,687

 

Cash Flows from Investment Activities

-3,178

-2,980

 

Cash Flows from Financing Activities

-1,985

-735

 

Cash, Bank Deposits at the Term End

 

2,760

3,888

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

Net Worth (S/Holders' Equity)

14,968

12,962

 

Current Ratio (%)

103.84

112.18

 

Net Worth Ratio (%)

28.14

26.96

 

Recurring Profit Ratio (%)

4.52

4.37

 

Net Profit Ratio (%)

2.69

2.83

 

 

Return On Equity (%)

13.92

15.72

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 62.60

UK Pound

1

Rs. 92.95

Euro

1

Rs. 68.14

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

DPT

 

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.