MIRA INFORM REPORT

 

 

Report No. :

345866

Report Date :

17.10.2015

 

IDENTIFICATION DETAILS

 

Name :

JEPICO CORPORATION

 

 

Registered Office :

Shinjuku Front Tower 34F, 2-21-1 Kita-Shinjuku Shinjukuku Tokyo 169-0074

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

November  1972

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Subject is fables manufacturer of LSI products; import, export and wholesale of LSI & products, system integration, semiconductors, electronic parts & components, board computers & integration, system level products, module, board of system integration

 

 

No. of Employee :

99

 

 

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 98.7 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

 

JEPICO CORPORATION

 

REGD NAME:   KK JEPICO

 

 

Address

 

Shinjuku Front Tower 34F, 2-21-1 Kita-Shinjuku Shinjukuku Tokyo 169-0074, JAPAN

Tel: 03-6386-0611      Fax: 03-6386-8234

                                               

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg (fables) of LSI & products; import, export, wholesale of electronics devices

 

 

BRANCHES

 

Osaka, Nagoya

 

 

OVERSEAS

 

Taipei, Hong Kong, USA, Germany (--subsidiaries)

 

 

FACTORIES

 

(subsidiaries)

 

 

OFFICERS

 

KIN’ICHI OHNO, PRES              

Koki Yamakawa, mgn dir

Kazuo Adachi, dir                                                         

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 5,896 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 252 M

TREND UP                                WORTH            Yen 1,140 M

STARTED         1972                             EMPLOYES      99

 

 

COMMENT


FABLES MFR OF LSI & PRODUCTS, ELECTRONIC DEVICES.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 98.7 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established by Kin’ichi Ohno in order to make most of his experience in the subject line of business.  This is a fables mfr of system integration & LSI products, also imports, exports and wholesales LSI products, semiconductors, electronics parts & components, board computer & integration, system level products, module, other.  Operates four overseas offices: Taipei, Hong Kong, Germany & USA.  Clients include major electronics mfrs, heavy machinery mfrs, other, nationwide.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2015 fiscal term amounted to Yen 5,896 million, a 25% up from Yen 5,118 million in the previous term.  Sales increased for defense & aerospace industries.  The recurring profit was posted at Yen 112 million and the net profit at yen 37 million, respectively, compared with Yen 95 million recurring profit and Yen 40 million net profit, respectively, a year ago.

 

For the current term ending mar 2016 the recurring profit is projected at Yen 125 million and the net profit at Yen 40 million, respectively, on a 5% rise in turnover, to Yen 6,200 million.  Business is seen expanding steadily. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 98.7 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:                Nov 1972

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:                      2 million shares

Issued:                5,035,882 shares

Sum:                   Yen 252.76 million

Major shareholders (%): Yuko Tanabe (11.4), Kin’ichi Ohno (10), Sisters Labo (7.9), MUFG (2.6), Employees’ S/Holding Assn (2)

No. of shareholders: 81

           

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

 

 

OPERATION

           

Activities: Fables mfr of LSI products; import, export and wholesale of LSI & products, system integration, semiconductors, electronic parts & components, board computers & integration, system level products, module, board of system integration, other (--100%)

 

Clients: [Mfrs, wholesalers] Mitsubishi Electric group, Mitsubishi Heavy Ind, NEC group, Hitachi Ltd group, Toshiba group, Fujitsu group, Sinfonia Technology Co, Furuno Electric Co, Japan Aviation Electronics, Japan Aerospace Exploration Agency, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Actel Corp, Alter Technology group Spain, Avnet Electronics Marketing, Eon Silicon Solution Inc, Dialight Corp, Kontron Modular Comp, SAXA Techno Inc, other.  

 

Payment record: No complaints

 

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

 

Bank References:

 

MUFG (Shinjuku-Nishi)

SMBC (Shinjuku-Nishiguchi)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2016

31/03/2015

31/03/2014

31/03/2013

Annual Sales

 

6,200

5,896

5,118

5,753

Recur. Profit

 

125

112

95

 

Net Profit

 

40

37

40

137

Total Assets

 

 

4,990

3,989

4,428

Current Assets

 

 

4,406

3,426

 

Current Liabs

 

 

3,274

2,257

 

Net Worth

 

 

1,315

1,304

1,297

Capital, Paid-Up

 

 

252

252

252

Div.Ttl in Million (¥)

 

 

31.6

31.6

31.6

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.16

15.20

-11.04

8.44

    Current Ratio

 

..

134.58

151.79

..

    N.Worth Ratio

 

..

26.35

32.69

29.29

    R.Profit/Sales

 

2.02

1.90

1.86

..

    N.Profit/Sales

 

0.65

0.63

0.78

2.38

    Return On Equity

 

..

2.81

3.07

10.56

 

Notes: Forecast (or estimated) figures for the 31/03/2016 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.97

UK Pound

1

Rs.100.55

Euro

1

Rs.73.99

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.