MIRA INFORM REPORT

 

 

Report No. :

322365

Report Date :

14.05.2015

 

IDENTIFICATION DETAILS

 

Name :

ITOCHU CABLE SYSTEMS CORPORATION

 

 

Registered Office :

Shirakiji Bldg 3F, 1-2-33 Higashi-Gotanda Shinagawaku Tokyo 141-0022

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

September 1986

 

 

Com. Reg. No.:

0107-01-021255 (Tokyo-Shinagawaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

System integration of video processing, transport, distribution systems: network systems, broadcasting & video systems, Internet connection services

 

 

No. of Employees :

86

 

 

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

 

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

 

ITOCHU CABLE SYSTEMS CORORATION

 

REGD NAME:   Itochu Cable System KK

MAIN OFFICE:  Shirakiji Bldg 3F, 1-2-33 Higashi-Gotanda Shinagawaku Tokyo 141-0022 JAPAN

                                    Tel: 03-6277-1821      Fax: 03-6277-1850

 

URL:                 http://www.itochu-cable.co.jp

E-Mail address: info@itoch-cable.co.jp

 

 

ACTIVITIES

 

Network system integration, video processing, transport & distribution systems

 

 

BRANCHES

 

Osaka

 

 

OFFICERS

 

KENJI TSUCHIYA, PRES           Kazuma Yasuoka, dir

Kazunobu Sakai, dir                   Koji Nakaya, dir

Tatsushi Shingu, dir                   Hiroshi Kajiwara, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 3,606 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 170 M

TREND SLOW                           WORTH            Yen 732 M      

STARTED         1986                             EMPLOYES      86

 

 

COMMENT

 

NETWORK SYSTEMS INTEGRATION, VIDEO SYSRTEMS, OTHER.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                                               

HIGHLIGHTS

 

This is a trading firm, owned by Itochu Corp (See REGISTRATION) for system integration of video processing, transport and distribution system, broadcast video systems, internet connection services, other.  Clients include telecommunication companies, TV companies, other.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 3,606 million, a 6% down from Yen 3,843 million in the previous term.  The recurring profit was posted at Yen 175 million and the net profit at Yen 98 million, respectively, compared with Yen 231 million recurring profit and Yen 136 million net profit, respectively, a year ago.

 

For the term that ended Mar 2015 the recurring profit was projected at Yen 185 million and the net profit at Yen 110 million, respectively, on a 7% rise in turnover, to Yen 3,850 million.  Final results are yet to be released.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 97.0 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:           Sept 1986

Regd No.:                     0107-01-021255 (Tokyo-Shinagawaku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  1.36 million shares

Issued:                         340,000 shares

Sum:                            Yen 170 million

 

Major shareholders (%): Itochu Corp* (100)

 

*.. One of big 5 general trading firms, Tokyo, founded 1949, listed Tokyo S/E, capital Yen           253,448 million, sales Yen 5,530,895 million, operating profit Yen 279,094 million, recurring profit Yen 373,808 million, net profit Yen 310,267 million, total assets Yen        9,125,366 million, net worth Yen 2,391,362 million, employees 111,016, pres Masahiro Okafuji

 

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

 

 

OPERATION

           

Activities: System integration of video processing, transport, distribution systems: network systems (40%), broadcasting & video systems (40%), Internet connection services (20%), other

 

Clients: [Mfrs, wholesalers] Scupper JSAT, TST Inc, Century Tokyo Lease Corp, Cable TV Toyama, Fuyo General Lease Co, other 

No. of accounts: 350

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Harmonic International, Allexceed Corp, Arris Solutions, other

 

Payment record: No Complaints 

 

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

 

Bank References:

SMBC (Akasaka)

Mizuho Bank (Gaienmae)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

3,850

3,606

3,843

4,270

Recur. Profit

 

185

175

231

 

Net Profit

 

110

98

136

216

Total Assets

 

 

1,694

1,737

2,150

Current Assets

 

 

1,472

1,516

 

Current Liabs

 

 

842

866

 

Net Worth

 

 

732

772

790

Capital, Paid-Up

 

 

170

170

170

Div.Ttl in Million (¥)

 

 

0.00

155

140

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

6.77

-6.17

-10.00

-4.43

    Current Ratio

 

..

174.82

175.06

..

    N.Worth Ratio

 

..

43.21

44.44

36.74

    R.Profit/Sales

 

4.81

4.85

6.01

..

    N.Profit/Sales

 

2.86

2.72

3.54

5.06

    Return On Equity

 

..

13.39

17.62

27.34

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.19

UK Pound

1

Rs.100.58

Euro

1

Rs.72.08

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ANK

 

               

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.