MIRA INFORM REPORT

 

 

Report No. :

323684

Report Date :

21.05.2015

 

IDENTIFICATION DETAILS

 

Name :

HIROTEC CORPORATION

 

 

Registered Office :

5-2-1 Ishiuchiminami Saekiku Hiroshima 731-5108

 

 

Country :

Japan

 

 

Date of Incorporation :

Nov 1958

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures automobile body parts, body tooling, stamping dies, doors, automobile exhaust systems, other (--100%)

 

 

No. of Employees :

1,247

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

Yen 2,870.3 Million

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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

 

HIROTEC CORPORATION

 

REGD NAME:   KK Hirotec

 

 

Address

 

MAIN OFFICE:  5-2-1 Ishiuchiminami Saekiku Hiroshima 731-5108 JAPAN

                                    Tel: 082-941-7800      Fax: 082-941-7833

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of automobile body parts, stamping dies, automobile body tooling, other

 

 

BRANCHES

 

Hiroshima, Yamaguchi, Oita, other

 

 

OVERSEAS

 

USA, Korea, Mexico, Australia, Germany, Thailand, India, China (--subsidiaries)

 

 

FACTORIES

 

At the caption address, Yamaguchi, Hiroshima, Oita, other (Tot 7)

 

 

OFFICERS

 

NORIFUMI UNO, PRES              Toshifumi Uno, v pres

Yoshiki Asaeda, s/mgn dir                     Katsutoshi Uno, s/mgn dir

Kuniyuki Mae, mgn dir               Shigeru Kimura, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES                      Yen 68,756 M

PAYMENTSREGULAR               CAPITAL                       Yen 280 M

TREND UP                                WORTH                       Yen 28,381 M   

STARTED         1958                             EMPLOYES                  1,247

 

 

COMMENT

 

MFR OF AUTOMOBILE BODY PARTS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR

ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: ESTIMATED AT YEN 2,870.3 MILLION, ON 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

           

This is a specialized mfr of automobile body parts, body tooling, stamping dies, automobile exhaust systems, other.  Major client is Mazda Motor, with whom the firm has business-tie ups in doors, exhaust pipes, systems, other.  75% of the products are supplied to Mazda Motor.  Clients are mostly automobile mfrs.

 

 

FINANCIAL INFORMATION

           

The sales volume for Dec/2014 fiscal term amounted to Yen 68,756 million, a 4% up from

Yen 65,875 million in the previous term.  The recurring profit was posted at Yen 8,016 million and the net profit at Yen 5,120 million, respectively, compared with Yen 8,333 million recurring profit and Yen 4,773 million net profit, respectively, a year ago.

 

For the current term ending Dec 2015 the recurring profit is projected at Yen 8,300 million and the net profit at Yen 5m400 million, respectively, on a 5% rise in turnover, to Yen 72,200 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 2,870.3 million, on 30 days normal terms.

 

 

REGISTRATION

    

            Date Registered:   Nov 1958

            Regd No.:            2400-01-010045 (Hiroshima-Saekiku)

            Legal Status:       Limited Company (Kabushiki Kaisha)

            Authorized:         2.24 million shares

            Issued:                560,000 shares

            Sum:                   Yen 280 million

  Major shareholders (%): Presco Co (53), other

  No. of shareholders: 18 (about)

 

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

 

 

OPERATION

           

Activities: Manufactures automobile body parts, body tooling, stamping dies, doors, automobile exhaust systems, other (--100%)

 

 

Clients: [Mfrs, wholesalers] Mazda Motor (75%), Kobelco Construction Machinery, Toyota Motor, Mitsubishi Motor, Nissan Motor, Honda Motor, Daihatsu Motor, Iseki & Co, Ford Motor, General Motors, Chrysler Corp, other 

            No. of accounts: 300

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mazda Steel, Sanyo Kouzai, Taisei Denki, Metal One West Japan, other

 

Payment record: Regular

 

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

 

            Bank References:

                        Hiroshima Bank (H/O)

                        Momiji Bank (H/O)

                        Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

Terms Ending:

31/12/2015

31/12/2014

31/12/2013

31/12/2012

Annual Sales

 

72,200

68,756

65,875

64,247

Recur. Profit

 

8,300

8,016

8,333

 

Net Profit

 

5,400

5,120

4,773

1,855

Total Assets

 

 

53,463

52,221

42,375

Current Assets

 

 

28,477

29,282

 

Current Liabs

 

 

20,045

24,356

 

Net Worth

 

 

28,381

23,287

17,683

Capital, Paid-Up

 

 

280

280

280

Div.Ttl in Million (¥)

 

 

56

56

56

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.01

4.37

2.53

-7.01

    Current Ratio

 

..

142.07

120.22

..

    N.Worth Ratio

 

..

53.09

44.59

41.73

    R.Profit/Sales

 

11.50

11.66

12.65

..

    N.Profit/Sales

 

7.48

7.45

7.25

2.89

    Return On Equity

 

..

18.04

20.50

10.49

 

Notes: Forecast (or estimated) figures for the 31/12/2015 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.87

UK Pound

1

Rs.98.89

Euro

1

Rs.70.73

 

INFORMATION DETAILS

 

Analysis Done by :

 

 

 

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%)

 

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.