MIRA INFORM REPORT

 

 

Report No. :

346938

Report Date :

24.10.2015

 

IDENTIFICATION DETAILS

 

Name :

AIEI SANGYO INC

 

 

Registered Office :

2-4-32 Kita-Shinbo Sanjo City Niigata-Pref 955-0861

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

November, 1944

 

 

Com. Reg. No.:

1100-01-013810 (Niigata-Sanjo)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Mfg of stamped metal automotive parts & components

 

 

No. of Employee :

65

 

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 29.5 million

 

Status :

Satisfactory

Payment Behaviour :

Slow but correct

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

 

REGD NAME:   AIEI SANGYO INC

Aiei Sangyo KK

MAIN OFFICE:  2-4-32 Kita-Shinbo Sanjo City Niigata-Pref 955-0861 JAPAN

                        Tel: 0256-33-0551      Fax: 0256-34-7261

 

URL:                 http://www.aiei-sangyo.co.jp

E-Mail address: sanjo@aiei-sangyo.co.jp

 

 

ACTIVITIES

 

Mfg of stamped metal automotive parts & components

 

 

BRANCHES

 

Tokyo

 

 

OVERSEAS

 

Indonesia

 

 

FACTORIES

 

At the caption address

 

 

OFFICERS

 

MIEKO AIBA, PRES

Shogo Aiba, dir

Nobuyuki Fukasawa, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 966 M

PAYMENTS      SLOW BUT CORRECT   CAPITAL           Yen 85 M

TREND STEADY                       WORTH            Yen 1,026 M     

STARTED         1944                             EMPLOYES      65

 

 

COMMENT

 

MFR OF STAMPED METAL AUTOMOTIVE PARTS & COMPONENTS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR

ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: ESTIMATED AT YEN 29.5 MILLION, ON 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company is a specialized mfr of stamped metal parts & components for automobiles and other transportation machinery.  The firm is now construction a factory in Indonesia, completing early 2016.  Clients include auto makers, heavy machinery mfrs, other.

 

 

FINANCIAL INFORMATION

           

Financials are disclosed only partially.

 

The sales volume for Dec/2014 fiscal term amounted to Yen 966 million, a 4% up from

Yen 933 million in the previous term.  The operations plunged into the deficit to post Yen 39 million net losses for the term, compared with Yen 41 million net profit a year ago.  The deficit this term include extraordinary losses coming from the heavy investments into a new factory in Indonesia as aforesaid.

 

For the current term ending Dec 2015 the net profit is projected at Yen 45 million, on a 5% rise in turnover, to Yen 1,015 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 29.5 million, on 30 days normal terms.

 

 

REGISTRATION

    

Date Registered:           Nov 1944

Regd No.:                     1100-01-013810 (Niigata-Sanjo)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  680,000 shares

Issued:                         170,000 shares

Sum:                            Yen 85 million

Major shareholders (%): Mieko Aiba (19.6), Shoji Aiba (19.4), Tatsuo Aiba (5.5), Naoko   Aiba (5.2), Company’s  Treasury Stock (4.9), other

No. of shareholders:     40

 

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

 

 

OPERATION

           

Activities:                     Manufactures stamped metal parts & components for automobiles and transportation machinery, other (--100%)

 

Clients:                        [Mfrs, wholesalers] UD Trucks, Fukoku Co, Ohkuma Seisakusho, Nabtesco Automotive, Nissan Kohki Co, Saitama Kiki Co, Ohara Corp, Japan Dresser, Daiichi Kogyo Co, other

            No. of accounts: 300

            Domestic areas of activities: Nationwide

Suppliers:                    [Mfrs, wholesalers] JFE Shoji Trading, Niigata Steel, Niigata Kanpoh Steel Group, UD Trucks, Mitsuike Corp, Matsunawa Bungoro Shoten Co, Aiba Shoji, Fujita Metal, other

 

Payment record:           Slow but Correct

 

Location:                      Business area in Sanjo City, Niigata-Pref.  Office premises at the caption address are owned and maintained satisfactory.

 

Bank References:

                                    Daishi Bank (Sanjo)

                                    Sanjo Shinkin Bank (Chuo)

 

Relations:         Satisfactory

 

 

FINANCES

 

 (In Million Yen)

Terms Ending:

 

31/12/2015

31/12/2014

31/12/2013

31/12/2012

Annual Sales

 

1,015

966

933

1,001

Recur. Profit

 

..

..

..

..

Net Profit

 

45

-39

41

41

Total Assets

 

 

N/A

N/A

N/A

Net Worth

 

 

1,026

1,065

1,036

Capital, Paid-Up

 

 

85

85

85

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.07

3.54

-6.79

-0.10

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

 

..

..

..

    N.Profit/Sales

 

4.43

-4.04

4.39

4.10

 

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.64.88

UK Pound

1

Rs.99.89

Euro

1

Rs.72.06

 

INFORMATION DETAILS

 

Analysis Done by :

HEE

 

 

Report Prepared by :

SDA

 

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.