MIRA INFORM REPORT

 

 

Report No. :

320881

Report Date :

02.05.2015

 

IDENTIFICATION DETAILS

 

Name :

HINO SYSTECH CORPORATION

 

 

Registered Office :

1-20-2 Minami-Rokugo Otaku Tokyo 144-0045

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2014

 

 

Date of Incorporation :

October 1957

 

 

Com. Reg. No.:

0108-01-010052

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of electric equipment, control console, switch board, other

 

 

No of Employees :

80

 

 

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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 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. The government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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 & address

 

HINO SYSTECH CORPORATION

 

 

REGD NAME 

 

Hino Systech KK

 

 

MAIN OFFICE

 

1-20-2 Minami-Rokugo Otaku Tokyo 144-0045 JAPAN

Tel: 03-3732-3591      Fax: 03-3739-7249

 

URL:                 http://www.hino-systech.co.jp

E-Mail address: n-ueno@hino-systech.co.jp (products); s-muramatsu@hino-systech.co.jp

                        (technical)

 

 

ACTIVITIES  

 

Mfg of electric equipment, control console, switch board, other

 

 

BRANCHES   

 

Nil

 

 

FACTORIES  

 

(subcontracted)

 

 

OFFICERS

 

AKIRA KUMAZAWA, PRES      

Nariyuki Ueno, dir

Satoru Muramatsu, dir  

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 1,598 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 45 M

TREND UP                                WORTH            Yen 295 M

STARTED         1957                             EMPLOYES      80

 

 

COMMENT

 

MFR OF ELECTRIC EQUIPMENT.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

            The subject company was established by Eiji Hino originally in 1950 for starting electric work business.  Incorporated in 1957 the firm has been succeeded by his descendants.  This is a specialized mfr of electric equipment, control console, switch board, monitor control systems, process instrument system, offering electric instrumentation work, other.  Clients include major heavy machinery makers, construction companies, Tokyo-Metrop Office, other.

 

 

FINANCIAL INFORMATION

           

            The sales volume for Sept/2014 fiscal term amounted to Yen 1,598 million, a 7% down from Yen 1,710 million in the previous term.  The recurring profit was posted at Yen 259 million and the net losses of Yen 2 million, respectively, compared with Yen 134 million recurring profit and Yen 66 million net losses, respectively, a year ago.

 

            For the current term ending Sept 2015 the recurring profit is projected at Yen 150 million and the net profit at Yen 65 million, respectively, on a 3% rise in turnover, to Yen 1,650 million.

 

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

 

 

REGISTRATION

 

Date Registered:           Oct 1957

Regd No.:                     0108-01-010052 (Tokyo-Otaku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  360,000 shares

Issued:                          90,000 shares

Sum:                            Yen 45 million

Major shareholders (%): Masayasu Hino (20), Akira Kumazawa (13), Masanori Hino (12), Employees’ S/Holding Assn (10), Hatsue Hino (7)

No. of shareholders:     26

 

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

 

 

OPERATION

           

Activities: Manufactures electric equipment: control console, switch board, instrument board, monitor controlling system, anti-disaster equipment, process instrumentation system, others, offering electric instrumentation work (--100%)

 

Clients: [Mfrs, wholesalers] JGC Corp, Chiyoda Corp, Mitsubishi Heavy Ind, IHI Corp, Tokyo-Metrop Office, Kawasaki Heavy Ind, JFE Engineering, Ebara Corp, Mitsui Engineering & Shipbuilding Ind, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Kanaden Corp, Teruya Electric Co, Aitech Engineering, HIMA, Midoriya Techno Co, Takagi Shokai, Sanwa Technos Corp, other

 

Payment record: No Complaints

 

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

 

Bank References:

                        MUFG (Kamata)

                        Mizuho Bank (Kamata)

                        Relations: Satisfactory

 

FINANCES (In Million Yen)

 

       Terms Ending:

30/09/2015

30/09/2014

30/09/2013

30/09/2012

Annual Sales

 

1,650

1,598

1,710

1,649

Recur. Profit

 

150

259

134

70

Net Profit

 

65

-2

66

23

Total Assets

 

 

1,170

864

1,042

Current Assets

 

 

956

571

806

Current Liabs

 

 

766

320

860

Net Worth

 

 

295

298

231

Capital, Paid-Up

 

 

45

45

45

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

3.25

-6.55

3.70

39.27

    Current Ratio

 

..

124.80

178.44

93.72

    N.Worth Ratio

 

..

25.21

34.49

22.17

    R.Profit/Sales

 

9.09

16.21

7.84

4.24

    N.Profit/Sales

 

3.94

-0.13

3.86

1.39

    Return On Equity

 

..

-0.68

22.15

9.96

 

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

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 63.57

UK Pound

1

Rs. 97.98

Euro

1

Rs. 70.53

 

INFORMATION DETAILS

 

Analysis Done by :

RSM

 

 

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%)

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