MIRA INFORM REPORT

 

 

Report No. :

346998

Report Date :

24.10.2015

 

IDENTIFICATION DETAILS

 

Name :

IAC INTERNATIONAL INC

 

 

Registered Office :

401-1 Minami-Kawasecho Hikone City Shiga-Pref 522-0222

 

 

Country :

Japan

 

 

Financials (as on) :

31.08.2015

 

 

Date of Incorporation :

Oct., 1990

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, Wholesale and Retail of Automobiles, Motorcycles, Their Parts & Components.

 

 

No. of Employees :

39

 

 

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

 

IAC INTERNATIONAL INC

 

REGD NAME:               KK IAC International

 

MAIN OFFICE:              401-1 Minami-Kawasecho Hikone City Shiga-Pref 522-0222 JAPAN

                                                Tel: 0749-25-2155      Fax: 0749-25-1002

 

URL:                             http://www.jac-int.com

E-Mail address:                        info@iac-int.com

 

 

ACTIVITIES

 

Import, wholesale, retail of automobiles, motorcycles, their parts & components

 

 

STORES

 

Shiga (5)

 

 

OVERSEAS

 

USA

 

 

FACTORIES

 

Shiga (garage)

 

 

OFFICERS

 

EIJI IMAMURA, PRES               Takashi Nakashima, v pres

Yutaka Motomochi, s/mgn dir    Katsuaki Onishi, mgn dir

Akemi Imamura, dir                    Tamio Nakamura, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES                      Yen 1,823 M

      PAYMENTSNO COMPLAINTS          CAPITAL                       Yen 100 M

TREND UP                                WORTH                        Yen 219 M       

STARTED         1990                             EMPLOYES                  39

 

 

COMMENT

 

TRADING FIRM FOR IMPORT, WHOLESALE & RETAIL OF AUTOMOBILES.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS, AND GOOD FOR CREDIT ENGAGEMENTS: US$100,000 / O/A 60 DAYS TERMS.

           

MAX CREDIT LIMIT: ESTIMATED AT YEN 32.1 MILLION, ON 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company was established by Eiji Imamura in order to make most of his experience in the subject line of business.  This is a trading firm for import, wholesale and retail of automobiles, motorcycles, their parts & components, other.  Has 5 stores (attached with service stations) in Shiga-Pref.  Their USA office also offers dealership.  Suppliers are Peugeot, Ford, General Motors, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Aug/2014 fiscal term amounted to Yen 1,823 million, an 11% up from Yen 1,649 million in the previous term.  The recurring profit was posted at Yen 36 million and the net profit at Yen 19million, respectively, compared with Yen 11 million recurring profit and Yen 7 million net profit, respectively, a year ago.

 

For the term that ended Aug 2015 the recurring profit was projected at Yen 40 million and the net profit at Yen 25 million, respectively, on a 9% rise in turnover, to Yen 1,980 million.  The weaker Yen may have raised earnings in Yen terms.  Final results are yet to be released.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 32.1 million, on 30 days normal terms.  The proposed amount for 60 days terms is considered well within the firm’s financial capacities.

 

 

REGISTRATION

 

            Date Registered:  Oct 1990

            Legal Status:       Limited Company (Kabushiki Kaisha)

            Authorized:         8,000 shares

            Issued:                2,000 shares

            Sum:                   Yen 100 million

   Major shareholders (%): Eiji Imamura (86), Takashi Nakashima, Yutaka Motomochi, Katsuaki Onishi, Akemi Imamura (--each 1)

  No. of shareholders: 10

 

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

 

 

OPERATION

           

Activities: Imports, wholesales and retails automobiles, motorcycles, their parts & components, offering repairing services, other (--100%)

 

Clients: Individual consumers, automobile stores, group firms, other 

No. of accounts: 300 (wholesale div only)

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Peugeot Citroen Japan, General Motors Japan, Ford Japan, other

 

Payment record: Regular

 

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

 

Bank References:

            Shiga Chuo Shinkin Bank (Jonan)

            Shiga Bank (Hikone)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/08/2015

31/08/2014

31/08/2013

31/08/2012

Annual Sales

 

1,980

1,823

1,649

1,704

Recur. Profit

 

40

36

11

6

Net Profit

 

25

19

7

5

Total Assets

 

 

937

894

794

Current Assets

 

 

464

410

355

Current Liabs

 

 

152

91

77

Net Worth

 

 

219

199

191

Capital, Paid-Up

 

 

100

100

100

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

8.61

10.55

-3.23

8.60

    Current Ratio

 

..

305.26

450.55

461.04

    N.Worth Ratio

 

..

23.37

22.26

24.06

    R.Profit/Sales

 

2.02

1.97

0.67

0.35

    N.Profit/Sales

 

1.26

1.04

0.42

0.29

    Return On Equity

 

..

8.68

3.52

2.62

 

Notes: Forecast (or estimated) figures for the 31/08/2015 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 :

DIV

 

 

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.