MIRA INFORM REPORT

 

 

Report No. :

320971

Report Date :

11.05.2015

 

IDENTIFICATION DETAILS

 

Name :

EIZO SYSTEM CO LTD

 

 

Registered Office :

NOF Shiba Bldg 5F, 4-2-3 Shiba Minatoku Tokyo 108-0014

 

 

Country :

Japan

 

 

Financials (as on) :

31.07.2014

 

 

Date of Incorporation :

July 1971

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Engineering company; AV systems installation, design, consulting, maintenance, other (--100%)

 

 

No. of Employees :

107

 

 

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 44.6 Million

 

 

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

 

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 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 and address

 

EIZO SYSTEM CO LTD

 

REGD NAME:   KK Eizo System

MAIN OFFICE:  NOF Shiba Bldg 5F, 4-2-3 Shiba Minatoku Tokyo 108-0014 JAPAN

                                    Tel: 03-6809-4741      Fax: 03-6809-4744

 

URL:                 http://www.eizo-system.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

AV system installation, consulting, system design 

 

 

BRANCHES

 

Kyoto, Osaka, Fukuoka

 

 

OFFICERS

 

RYUJI TAKANO, RES                Kikue Kuroiwa, dir

Jun Kuroiwa, dir                                    Tatsuko Takahashi, dir

                       

Yen Amount:                             In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                                         A/SALES          Yen 3,977 M

PAYMENTSNO COMPLAINTS                CAPITAL           Yen 50 M

TREND UP                                            WORTH            Yen 271 M      

STARTED         1971                                         EMPLOYES      107

 

 

COMMENT

 

AV SYSTEMS INSTALLATION, CONSULTING, OTHER.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR

ORDINARY BUSINESS ENGAGEMENTS.

MAX CREDIT LIMIT: ESTIMATED AT YEN 44.6 MILLION, ON 30 DAYS  NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company is an engineering company for installation of AV systems, designs, consulting, other.  Clients include telecommunication companies, universities, other

 

 

FINANCIAL INFORMATION

           

The sales volume for July/2014 fiscal term amounted to Yen 3,977 million, a 36% up from

Yen 2,923 million in the previous term.  The recurring profit was posted at Yen 85 million and the net profit at Yen 49 million, respectively, compared with Yen 44 million recurring profit and Yen 24 million net profit, respectively, a year ago.

 

For the current term ending July 2015 the recurring profit is projected at Yen 90 million and the net profit at Yen 55 million, respectively, on a 5% rise in turnover, to Yen 4,170 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 44.6 million, on 30 days normal terms.

 

 

REGISTRATION

    

            Date Registered:   July 1971

            Legal Status:       Limited Company (Kabushiki Kaisha)

            Authorized:         400,000 shares

            Issued:                100,000 shares

            Sum:                   Yen 50 million

  Major shareholders (%): Company’s Treasury Stock (53), Yoshitaka Takano (47)

  No. of shareholders: 2

 

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

 

 

OPERATION

           

Activities: Engineering company: AV systems installation, design, consulting, maintenance, other (--100%)

 

 

Clients: [Mfrs, wholesalers] Tokyo Denki University, NTT Higashi-Nippon, NTT Nishi-Nippon, Panasonic Corp, Kandenko, other 

No. of accounts: 350

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Panasonic Corp, JVC Kenwood, NEC, Canon Inc, Elmo Co, Imagenics Co, other

Payment record: No Complaints

 

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

 

Bank References:

                        MUFG (Kasugacho)

                        SMBC (Koishikawa)

                        Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/07/2015

31/07/2014

31/07/2013

31/07/2012

Annual Sales

 

4,170

3,977

2,923

3,783

Recur. Profit

 

90

85

44

 

Net Profit

 

55

49

24

32

Total Assets

 

 

1,749

1,832

2,010

Current Assets

 

 

1,410

1,502

 

Current Liabs

 

 

1,216

1,550

 

Net Worth

 

 

271

223

284

Capital, Paid-Up

 

 

50

50

50

Div.Ttl in Million (¥)

 

 

1.1

2.7

3

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.85

36.06

-22.73

32.18

    Current Ratio

 

..

115.95

96.90

..

    N.Worth Ratio

 

..

15.49

12.17

14.13

    R.Profit/Sales

 

2.16

2.14

1.51

..

    N.Profit/Sales

 

1.32

1.23

0.82

0.85

    Return On Equity

 

..

18.08

10.76

11.27

 

Notes: Forecast (or estimated) figures for the 31/07/2015 fiscal term.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.05

UK Pound

1

Rs.99.04

Euro

1

Rs.71.76

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

VNT

 

               

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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