MIRA INFORM REPORT

 

 

Report No. :

345024

Report Date :

14.10.2015

 

IDENTIFICATION DETAILS

 

Name :

FUSOH AVIATION CO LTD

 

 

Registered Office :

Sasazuka Soei Bldg 3F, 1-56-10 Sasazuka Shibuyaku Tokyo 151-0073

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

July 1976

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Subject is engaged in Imports and wholesales stainless/special metal parts and components for aircrafts, aerospace, helicopters, other vehicles.

 

 

No. of Employee :

16

 

 

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 35.6 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 – 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

 

FUSOH AVIATION CO LTD

 

REGD NAME:   Fusoh Aviation KK

 

 

Address

 

Sasazuka Soei Bldg 3F, 1-56-10 Sasazuka Shibuyaku Tokyo 151-0073 JAPAN

Tel: 03-5371-0411     Fax: 03-5371-0415

URL:                 http://www.fusoh-aviation.co.jp/

E-Mail address: tanabe@fusoh-aviation.co.jp

 

 

ACTIVITIES

 

Import, wholesale of special metal parts & components for aircrafts

 

 

BRANCHES

 

Osaka; Frankfurt (--rep office)

 

 

OVERSEAS

 

Fusoh Aviation USA, Fusoh Aviation Europe (Germany) (--subsidiary purchasing companies)

 

 

OFFICER(S)

 

MAKIKO MARUYAMA, PRES

Akira Tanabe, dir

Naofumi Machida, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                                         A/SALES          Yen 1,092 M

PAYMENTSNO COMPLAINTS                CAPITAL           Yen 50 M

TREND STEADY                                   WORTH            Yen 524 M

STARTED         1976                                         EMPLOYES      16

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN AIRCRAFT METAL PARTS & COMPO-NENTS. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 35.6 MILLION, 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

 

The subject company was established by father of Shoichi Mochizuki in order to import and wholesale metal parts for aircrafts.  Makiko Maruyama took the pres office in Jan 2007. This is a specialized trading FIRM, owned and managed by the Mochizuki family, for import and wholesale of stainless steel & special metal parts & components for aircrafts, aerospace, helicopters, other.  Clients include National Defense Agency, heavy machinery mfrs, & airlines, other, nationwide.

 

(Brief History):

In 1977, launched import of fertilizer spray equipment for helicopters.  In 1978, imported Bell Helicopter G4A rebuilt craft.  In 1979, started import and supply of aluminum parts and materials to Self Defense Agency.  In 1984, imports started of aluminum extrusion materials from Tiernay Metal, USA.  Opened USA office in 1989.  In 1990, started business with Ulbrich Stainless Steel & Special Metals Inc, USA. 

           

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2014 fiscal term amounted to Yen 1,092 million, a 5% up from Yen 1,043 million in the previous term.  The recurring profit was posted at Yen 56 million and the net profit at Yen 35 million, respectively, compared with Yen 26 million a year ago.  Financials are disclosed in digested form only.

 

For the current term ending Dec 2015 the recurring profit is projected at Yen 60 million and the net profit at Yen 37 million, respectively, on a 5% rise in turnover, to Yen 1,145 million. 

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 35.6 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:                       Jul 1976

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                 400,000 shares

Issued:                        100,000 shares

Sum:                            Yen 50 million

Major shareholders (%):           Mochizuki Trading KK*(75), Makiko Maruyama (10), Michishi Maruyama (7%), Takashi Nakajima (2)

*.. Holding company wholly owned by the Mochizuki family.

 

No. of shareholders: 7

 

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

 

 

OPERATION

 

Activities: Imports and wholesales stainless/special metal parts and components for aircrafts, aerospace, helicopters, other vehicles (--100%):

 

(Handling items): stainless steel, nickel, titanium, cobalt alloys, ferrite, martensite, and  other special metal plates & wires, high-intensity LED panels, edge light panels, cable as-   semblies, helmets, other. 

 

Clients: [Defense Agency, aircraft mfrs, machinery mfrs] National Defense Agency,  Synfonia Technology (11.8%), Global New Clear, Fuel Japan, Toshiba Corp, KYB Japan,  other.

No. of accounts: 300

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Custom Products (61%), Aelfric (20%), Vacuumhme Ize GmbH (11%), other.

 

Payment record: No Complaints

 

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

 

Bank References:

MUFG (Sasazuka)

Mizuho Bank (Shinjuku-Nishiguchi)

Relations: Satisfactory


FINANCES

 

(In Million Yen)

 

Terms Ending:

 

31/12/2015

31/12/2014

31/12/2013

31/12/2012

Annual Sales

 

1,145

1,092

1,043

878

Recur. Profit

 

60

56

..

13

Net Profit

 

37

35

26

8

Total Assets

 

 

984

N/A

849

Net Worth

 

 

524

493

475

Capital, Paid-Up

 

 

50

50

50

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.85

4.70

18.79

9.34

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

 

53.25

..

55.95

    N.Profit/Sales

 

3.23

3.21

2.49

0.91

 

Notes: Financials are only partially disclosed

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

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.02

UK Pound

1

Rs.99.89

Euro

1

Rs.73.92

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

ASH

 

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.