MIRA INFORM REPORT

 

 

Report No. :

350245

Report Date :

16.11.2015

 

IDENTIFICATION DETAILS

 

Name :

TESS ENGINEERING CO LTD

 

 

Registered Office :

Shin-Osaka Prime Tower 17F, 6-1-1 Nishi-Nakajima Yodogawaku Osaka 531-0011

 

 

Country :

Japan

 

 

Financials (as on) :

30.06.2015

 

 

Date of Incorporation :

May, 1979

 

 

Com. Reg. No.:

1200-01-056993 (Osaka-Yodogawaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Engineering of energy-saving systems (photovoltaic power systems, Cogeneration systems)

 

 

No. of Employees :

164

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

 

 

Company Name and Address

 

TESS ENGINEERING CO LTD

 

REGD NAME:               Tess Engineering KK

 

MAIN OFFICE:              Shin-Osaka Prime Tower 17F, 6-1-1 Nishi-Nakajima Yodogawaku Osaka

                                                531-0011 JAPAN

                                                Tel: 06-6308-2073      Fax: 06-6308-0948

 

URL:                             http://www.tess-eng.co.jp

E-Mail address:                        (Thru the URL)

 

 

ACTIVITIES

 

Engineering of energy-saving systems (photovoltaic power systems, Cogeneration systems)

 

 

LICENSES

 

Osaka Governor #75638 (construction works/machinery installation works), #23366 (architectural firm)

 

 

BRANCHES

 

Tokyo, Nagoya, Hiroshima, Fukuoka, Sendai, Sapporo (Tot 6)

 

 

FACTORIES

 

(Subcontracted to subsidiary firm)

 

 

OFFICERS

           

HIDEO ISHIWAKI, PRES            Katrsushige Fujii, mgn dir

Kazuki Yamamoto, dir                Tsutomu Watari, dir

Toyoharu Iida, dir         

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

           

FINANCES        FAIR                             A/SALES                      Yen 48,408 M

PAYMENTSNO COMPLAINTS    CAPITAL                       Yen 100 M

TREND UP                                WORTH                        Yen 7,557 M

STARTED         1979                             EMPLOYES                  164

 

 

COMMENT

 

ENGINEERING COMPANY OF SOLAR SYSTEMS.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established originally in 1973 by Masayuki Ishiwaki, on his account, and was incorporated in 1979. Hideo is his son, who took the pres office in July 2009. This is an engineering company specializing in energy-saving systems: cogeneration systems, biomass power systems, photovoltaic (PV) power systems, solar shells, solar power systems, other (See OPERATION). In Apr 2014 the firm founded a subsidiary, Intelligent Solar System Co Ltd, to concentrate on solar generation systems. The firm expanded its operations by the recently enacted system of electric power. Products are exported thru general trading houses.  Clients include major general trading houses for import/export businesses.

 

 

FINANCIAL INFORMATION

           

The sales volume for Jun/2015 fiscal term amounted to Yen 48,408 million, a 16% up from Yen 41,822 million in the previous term.  Solar power systems & solar shells were in much demand and sales expanded.  The weaker Yen also contributed to the growth.  The recurring profit was posted at Yen 2,232 million and the net profit at Yen 1,502 million, respectively, compared with Yen 2,622 million recurring profit and Yen 1,866 million net profit, respectively, a year ago.

 

For the current term ending Jun 2016 the recurring profit is projected at Yen 2,350 million and the net profit at Yen 1,600 million, respectively, on a 5% rise in turnover, to Yen 50,800 million.  Business is seen expanding steadily. 

 

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

 

REGISTRATION

 

            Date Registered:  May 1979

            Regd No.:           1200-01-056993 (Osaka-Yodogawaku)

            Legal Status:       Limited Company (Kabushiki Kaisha)

            Authorized:         800,000 shares

            Issued:                200,000 shares

            Sum:                   Yen 100 million

Major shareholders (%): Tess Techno Service Co (81.7), Founder’s family, Executives’ S/Holding Assn, other (--18.3)

            No. of shareholders: 6

 

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

 

 

OPERATION

           

Activities: Engineering of energy-saving systems: solar power system, biomass power system, fuel conversion system, gas cogeneration system (diesel, gas, gas turbine, boiler turbine), carbon management, waste water treatment system, RPF boiler, anti-air pollution system, air-conditioning systems, uninterruptible power supply (UPS), micro gas turbine, 24-hour watch systems, other (--100%)

 

Clients: [Mfrs, wholesalers] Creative Techno Solution, Orix Corp, Sumitomo Corp, Mitsui & Co, Toyota Tsusho Corp, Sojitz Corp, ENE-Vision Co, Mitsui Bussan Plant Systems, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsubishi Heavy Ind, Yanmar Energy System Co, Daihatsu Diesel, Takuma Co, Niigata Power Systems Co, Kyocera Corp, Terasaki Electric Co, Miura Co, Minatohama Co, Main Marine Co, Takuma Co, Niigata Power Systems Co, Onamba Co, other

 

Payment record: No Complaints

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

 

Bank References:

            MUFG (Juso)

            Resona Bank (Shin-Osaka-Ekimae)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

30/06/2016

30/06/2015

30/06/2014

30/06/2013

Annual Sales

 

50,800

48,408

41,822

22,586

Recur. Profit

 

2,350

2,232

2,622

950

Net Profit

 

1,600

1,502

1,866

809

Total Assets

 

 

22,750

19,979

14,704

Current Assets

 

 

15,760

14,357

12,682

Current Liabs

 

 

13,001

11,904

9,616

Net Worth

 

 

7,557

6,039

4,173

Capital, Paid-Up

 

 

100

100

100

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.94

15.75

85.17

52.44

    Current Ratio

 

..

121.22

120.61

131.88

    N.Worth Ratio

 

..

33.22

30.23

28.38

    R.Profit/Sales

 

4.63

4.61

6.27

4.21

    N.Profit/Sales

 

3.15

3.10

4.46

3.58

    Return On Equity

 

..

19.88

30.90

19.39

 

Notes: Forecast (or estimated) figures for the 30/06/2016 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.14

UK Pound

1

Rs.100.55

Euro

1

Rs.71.26

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIT

 

               

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.