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Report No. : |
338047 |
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Report Date : |
08.09.2015 |
IDENTIFICATION DETAILS
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Name : |
HITACHI SOLUTIONS LTD |
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Registered Office : |
Hitachi Solutions Tower A, 4-12-7 Higashishinagawa Shinagawaku Tokyo
140-0002 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
September, 1970 |
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Com. Reg. No.: |
0107-01-019462 |
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Legal Form : |
Limited Company |
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Line of Business : |
Development of software, information processing services, other |
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No. of Employee : |
5,122 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
|
Maximum Credit Limit: |
Yen 12,307.8 million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
HITACHI SOLUTIONS LTD
REGD NAME: KK Hitachi Solutions
MAIN OFFICE: Hitachi Solutions Tower
A, 4-12-7 Higashishinagawa Shinagawaku Tokyo 140-0002 JAPAN
Tel:
03-5780-2111 Fax: 03-5780-6509
URL: http://www.hitachi-solutions.co.jp
E-Mail address: (thru the URL)
Development of software, information processing services, other
Tokyo, Yokohama, Osaka, other (Tot 5)
UK (2), Germany, China, India, Singapore
(subsidiaries, subcontracted)
KAICHIRO SAKUMA, PRES Ryoichi
Nakazato, v pres
Hideji Yamazaki, s/mgn dir Masayuki
Inoue, mgn dir
Kazuhiro Sunayama, dir Yoshitaka
Tsuda, dir
Yen Amount: In million Yen,
unless otherwise stated
FINANCES FAIR A/SALES Yen 295,496 M
PAYMENTS REGULAR CAPITAL Yen
20,000 M
TREND UP WORTH Yen
144,131 M
STARTED 1970 EMPLOYES 5,122
MFR OF SOFTWARE, INFORMATION PROCESSING, OTHER, OWNED BY HITACHI LTD.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT: ESTIMATED AT YEN 12,307.8 MILLION, ON 30 DAYS NORMAL
TERMS.
The subject company is a specialized mfr and processor of software,
information processing services, other, wholly owned by Hitachi Ltd (See
REGISTRATION). Goods are exported. Has overseas offices in Europe, Asia,
Americas, other. Clients include the
parent and Group firms.
The sales volume for Mar/2015 fiscal term amounted to Yen 295,496
million, a 4% up from
Yen 285,458 million in the previous term. The recurring profit was posted at Yen 27,391
million and the net profit at Yen 17,479 million, respectively, compared with
Yen 19,451 million recurring profit and Yen 10,875 million net profit,
respectively, a year ago.
For the current term ending Mar 2016 the recurring profit is projected
at Yen 28,000 million and the net profit at Yen 18,000 million, respectively,
on a 3% rise in turnover, to Yen 304,500 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 12,307.8 million, on 30 days normal terms.
Date Registered: Sept
1970
Regd No.: 0107-01-019462
(Tokyo-Shinagawaku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 160
million shares
Issued: 40
million shares
Sum: Yen
20,000 million
Major shareholders (%): Hitachi Ltd* (100)
*.. Comprehensive electric machinery mfr,
Tokyo, founded 1920, listed Tokyo & Nagoya S/E’s,
capital Yen 458,790 million, sales Yen 9,761,970 million, operating profit Yen 600,479 million, recurring profit Yen
535,612 million, net profit Yen 241,301 million, total assets Yen 12,395,379 million, net worth Yen 2,930,309 million,
employees 333,150, pres Hiroaki Nakanishi
Nothing detrimental is known as to the
commercial morality of executives.
Activities: Manufactures and
processes software, information processing, consultancy, other (--100%)
Clients: [Mfrs,
wholesalers] Hitachi Ltd (50%), other
No. of accounts: 500
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Hitachi Ltd,
Hitachi Solutions Kuwait, other
Payment
record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank
References:
MUFG (H/O)
Mizuho Bank (H/O)
Relations: Satisfactory
(In Million Yen)
|
Terms Ending: |
31/03/2016 |
31/03/2015 |
31/03/2014 |
31/03/2013 |
|
|
Annual Sales |
|
304,500 |
295,496 |
285,458 |
277,092 |
|
Recur. Profit |
|
28,000 |
27,391 |
19,451 |
19,482 |
|
Net Profit |
|
18,000 |
17,479 |
10,875 |
10,932 |
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Total Assets |
|
|
235,112 |
219,105 |
229,240 |
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Current Assets |
|
|
160,289 |
137,071 |
142,902 |
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Current Liabs |
|
|
70,901 |
60,740 |
67,051 |
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Net Worth |
|
|
144,131 |
135,471 |
135,741 |
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Capital, Paid-Up |
|
|
20,000 |
20,000 |
20,000 |
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Div.Ttl in Million (¥) |
|
|
7,570 |
8,153 |
3,615 |
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<Analytical
Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
3.05 |
3.52 |
3.02 |
7.83 |
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Current Ratio |
|
.. |
226.07 |
225.67 |
213.12 |
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N.Worth Ratio |
|
.. |
61.30 |
61.83 |
59.21 |
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R.Profit/Sales |
|
9.20 |
9.27 |
6.81 |
7.03 |
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N.Profit/Sales |
|
5.91 |
5.92 |
3.81 |
3.95 |
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Return On Equity |
|
.. |
12.13 |
8.03 |
8.05 |
Notes: Forecast (or estimated) figures for the 31/03/2016 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.74 |
|
|
1 |
Rs.101.36 |
|
Euro |
1 |
Rs.74.27 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.