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Report No. : |
348072 |
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Report Date : |
02.11.2015 |
IDENTIFICATION DETAILS
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Name : |
ITOCHU SYSTECH CORPORATION |
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Registered Office : |
Ito Bldg 9F, 3-6-14 Minami-Honmachi Chuoku Osaka 541-0054 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
April 1969 |
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Com. Reg. No.: |
1200-01-074630 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, Export, Wholesale of Textile Machinery. |
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No. of Employees : |
98 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source
: CIA |
ITOCHU SYSTECH CORPORATION
REGD NAME: Itochu Systech KK
MAIN OFFICE: Ito Bldg 9F, 3-6-14 Minami-Honmachi Chuoku Osaka 541-0054 JAPAN
Tel: 06-6282-1114 Fax: 06-6282-1109
URL: http://www.itochu-systech.co.jp/
E-Mail address: (thru
the URL)
Import, export, wholesale of textile machinery
Tokyo, Nagoya
Shanghai, Jakarta, Istanbul, Karachi, USA, Germany, France,
Italy, Singapore (--subsidiaries)
HIROYUKI SONODA, PRES Shoichi
Murakami, dir
Kazunori Iwaki, dir Hajime
Imamura, dir
Yoichi Umeda, dir Masao
Morita, dir
Yen Amount: In
million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 23,301 M
PAYMENTSNO COMPLAINTS CAPITAL Yen 480 M
TREND UP WORTH Yen 1,524 M
STARTED 1969 EMPLOYES 98
TRADING
FIRM SPECIALIZING IN TEXTILE MACHINERY, OWNED BY ITOCHU CORP
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
The subject company was established on the basis of a machinery export division separated from Itochu Corp, a leading general trading house, Tokyo (See REGISTRATION), as Itochu Texmac Corp. In Apr 2008, merged a sister company, Itochu Plamac Corp, and renamed as captioned. This is a trading firm for export, and partially import, of textile machinery & peripheral equipment in the main, hi-tic polymer processing machinery, including their parts & attachments. Also offers installation, maintenance and engineering services. Export destinations are China, Pakistan, Thailand, Turkey, Indonesia, India, Bangladesh, Europe, USA, etc. In Apr 2011, merged three sister firms to make them consolidated subsidiaries in order to streamline & strengthen business activities in the Asian markets. Clients include major textile makers, apparel makers, other.
The sales volume for Mar/2014 fiscal term amounted to Yen
23,301 million, a 57% up from Yen 14,875 million in the previous term. Group firms were integrated and sales
rose. Export was robust into S/E Asian
countries, particularly to India and Pakistan.
Business volume expanded. Weaker
Yen also contributed. The recurring
profit was posted at Yen 470 million and the net at Yen 208 million,
respectively, compared with Yen 256 million recurring profit and Yen 300
million net profit, respectively, a year ago.
For the term that ended Mar 2015
the recurring profit was projected at Yen 500 million and the net profit at Yen
300 million, respectively, on a 6% rise in turnover, to Yen 24,600
million. Final results are yet to be
released. The weaker Yen may have raised
export revenues in Yen terms.
The financial situation is
considered FAIR and good for ORDINARY business engagements.
Date Registered: Apr 1969
Regd No.: 1200-01-074630 (Osaka-Chuoku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 38,400 shares
Issued: 9,600 shares
Sum: Yen 480 million
Major shareholders (%): Itochu Corp* (75), Mori Seiki (17), Itochu Machine-Technos (8)
No. of shareholders: 3
*..
One of big 5 general trading houses, at the caption address, founded 1949,
listed Tokyo S/E, capital Yen 253,448 million, turnover 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.
Activities: Exports, imports and wholesales textile machinery/equipment: spinning machinery, dyeing & finishing machinery, synthetic fiber machines, high-tech polymer processing machinery, automatic side hemming machines for towels, automatic towel slitting machines, cross hemming machines, their parts & components, offering installation, maintenance & engineering services (--100%).
Clients: [Textile mfrs, wholesalers] Exports to Texmac Inc (USA), Texmac Europe Spa (Italy), Weiqiao Tex, Colony Tex, Sheikh Spinning, Crescent Steel, other to China, India, Indonesia, Turkey, Bangladesh, Pakistan, Thailand, other.
Domestic clients: Kawashima Selcon Textiles, Sato Pharmaceutical, Tokyo Neo Print, Unitika, Daifuku Co, Kaihara Co, Toyota Automatic Loom Works, Kuraray, CI Kasei Co, Sumitomo Chemical, Sanko Co, other
No. of accounts: 300
Domestic areas of activities: Nationwide
Suppliers: [Mfrs] For exports, supplied from Murata Machinery, Toyoda Automatic Loom Works, Tsudakoma Corp, Happy Ind, TMT Machinery, Plastic Research Laboratory of Plastic Technology Co, other.
Partially imports from: Van de Wiele, Bonas Textile Machinery, CF Scheer & Cie GmbH, other from Germany, Switz, Belgium, Korea, etc.
Payment record: No Complaints
Location: Business
area in Osaka. Office premises at the
caption address are leased and maintained satisfactorily.
Mizuho Bank (Semba)
Hachijuni Bank (Osaka)
Relations: Satisfactory
(In Million Yen)
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Terms Ending: |
31/03/2015 |
31/03/2014 |
31/03/2013 |
31/03/2012 |
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Annual
Sales |
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24,600 |
23,301 |
14,875 |
13,007 |
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Recur.
Profit |
|
500 |
470 |
256 |
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Net
Profit |
|
300 |
208 |
300 |
185 |
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Total
Assets |
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8,218 |
6,106 |
5,801 |
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Current
Assets |
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|
7,596 |
5,357 |
5,079 |
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Current
Liabs |
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6,556 |
4,476 |
4,343 |
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Net
Worth |
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1,524 |
1,496 |
1,307 |
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Capital,
Paid-Up |
|
|
480 |
480 |
490 |
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Div.Ttl
in Million |
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0.00 |
0.00 |
84 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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5.57 |
56.65 |
14.36 |
-6.73 |
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Current Ratio |
|
.. |
115.86 |
119.68 |
116.95 |
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N.Worth Ratio |
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.. |
18.54 |
24.50 |
22.53 |
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R.Profit/Sales |
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2.03 |
2.02 |
1.72 |
.. |
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N.Profit/Sales |
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1.22 |
0.89 |
2.02 |
1.42 |
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Return On Equity |
|
.. |
13.65 |
20.05 |
14.15 |
Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal
term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.65.22 |
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UK Pound |
1 |
Rs.99.93 |
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Euro |
1 |
Rs.71.67 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.