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MIRA INFORM REPORT
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Report No. : |
499004 |
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Report Date : |
20.03.2018 |
IDENTIFICATION DETAILS
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Name : |
HITACHI LTD |
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Registered Office : |
1-6-6 Marunouchi Chiyodaku Tokyo 100-8280 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
February 1920 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of Electrical Machinery |
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No. of Employees : |
35,631 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A++ |
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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Status : |
Excellent |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work
ethic, mastery of high technology, and a comparatively small defense allocation
(slightly less than 1% of GDP) have helped Japan develop an advanced economy.
Two notable characteristics of the post-World War II 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 have significantly eroded under the dual
pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price
differences, Japan in 2017 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. For three postwar decades, overall real economic
growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in
the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely
because of the aftereffects of inefficient investment and the collapse of an
asset price bubble in the late 1980s, which entailed considerable 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.
Japan enjoyed an 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. Led by
the Bank of Japan’s aggressive monetary easing, Japan is making modest progress
in ending deflation, but demographic decline – a low birthrate and an aging,
shrinking population – poses a major long-term challenge for the economy. The
government currently faces the quandary of balancing its efforts to stimulate
growth and institute economic reforms with the necessity of addressing its
sizable public debt, which stands at 235% of GDP. To help raise government
revenue, Japan adopted legislation in 2012 to gradually raise the consumption
tax rate. However, the first such increase, in April 2014, led to another
recession, so Prime Minister ABE has twice postponed the next increase, now
scheduled for October 2019. Structural reforms to unlock productivity are seen
as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on
imported energy and raw materials. After the complete shutdown of Japan’s
nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's
industrial sector has become even more dependent than before on imported fossil
fuels. However, ABE’s government is seeking to restart nuclear power plants
that meet strict new safety standards and is emphasizing nuclear energy’s
importance as a base-load electricity source. In August 2015, Japan
successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in
Kagoshima prefecture, and several other reactors around the country have since
resumed operations; however, opposition from local governments has delayed
several more restarts that remain pending. Reforms of the electricity and gas
sectors, including full liberalization of Japan’s energy market in April 2016
and gas market in April 2017, constitute an important part of Prime Minister
Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the
Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's
economy to increased foreign competition and create new export opportunities
for Japanese businesses. Japan was the first country to ratify the TPP in
December 2016; the United States signaled its withdrawal from the TPP in
January 2017, and in November 2017 the remaining 11 countries agreed on the
core elements of a modified agreement, which they renamed the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership (CPTPP).
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Source
: CIA |
Company
name & address
HITACHI LTD
REGD NAME: Hitachi
Seisakusho KK
MAIN OFFICE: 1-6-6
Marunouchi Chiyodaku Tokyo 100-8280 JAPAN
Tel:
03-3258-1111 Fax: 03-3258-5480
*.. The given address is
one of its Tokyo Branch Divisions.
URL: http://www.hitachi.co.jp/
E-Mail address: webmaster@hitachi.com
ACTIVITIES: Mfg
of electrical machinery
BRANCHES: Osaka,
Nagoya, Yokohama, other (Tot 77, nationwide)
OVERSEAS: Worldwide
in 68 countries
FACTORIES: 17
factories (subsidiaries)
OFFICERS: TOSHIAKI HIGASHIHARA, PRES Hiroaki Nakanishi, ch
Sadamasa Sakakibara, dir Harufumi
Mochizuki, dir
Takatoshi Yamamoto, dir Hiroaki
Yoshiwara, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 9,162,264 M
PAYMENTS REGULAR CAPITAL Yen 458,790 M
TREND SLOW WORTH Yen
2,967,085 M
STARTED 1920 EMPLOYES 35,631
COMMENT: MFR OF COMPREHENSIVE ELECTRICAL MACHINERY. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
HIGHLIGHTS
Largest comprehensive mfr of electrical products, with heavy electric machinery and social infrastructure systems. In process of returning to social innovation business such as power systems, shifting away from existing general electric machinery business. Has a number of listed subsidiaries including Hitachi Chemical, Hitachi Metals and Hitachi Construction Machinery, but in an accelerated move to reorganize the Group through consolidating subsidiaries. Putting great efforts on governance reform by proactively appointing foreigners as outside directors.
FINANCIAL
INFORMATION
The sales volume for Mar/2017 fiscal term amounted to Yen 9,162,264 million, an 8.69% down from Yen 10,034,305 million. The recurring loss was posted at Yen 469,091 million and the net profit at Yen 231,261 million, respectively, compared with Yen 517,040 million recurring profit and Yen 172,155 million net profit, respectively, a year ago.
.
For the current term ending Mar 2018 the recurring profit is projected at Yen 600,000 million and the net profit at Yen 310,000 million, respectively, on a 1.50% rise in turnover, to Yen 9,300,000 million.
The financial situation is considered FAIR and good for ORDIANARY business engagements.
REGISTRATION
Date Registered Feb 1920
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 10,000
million shares
Issued: 4,833,463.387
shares
Sum: Yen
458,790 million
Major shareholders
(%):
Master Trust Bank of Japan T (6.1), Japan Trustee Services Bank (5.4), Group Employees’ S/Holding Assn
(2.1), Nippon Life Ins (1.9), other; foreign owners
(44.4)
No. of shareholders: 283,645
Listed
on the S/Exchange (s) of: Tokyo & Nagoya
Nothing
detrimental is known as to the commercial morality of executives.
Related
companies: Hitachi Chemical Co, Hitachi Cable, Hitachi Metals, other
OPERATION
Activities: Manufactures comprehensive electrical machinery (Sales breakdown by divisions): Information & Communications (20%); electric power plants (4%), infrastructure system (14%), electronic equipment (12%), construction machinery (7%), others (47%)
Overseas
Sales Ratio (48%)
Clients: [Mfrs, wholesalers] Hitachi GE Nuclear Energy, Hitachi Capital, Hitachi Computer System, other.
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] Hitachi Solutions, Hitachi Systems, Mitsubishi Hitachi Power Systems, Hitachi Power Solutions, other.
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
Mizuho Bank (H/O)
MUFG (H/O)
Relations:
Satisfactory
FINANCES
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Terms Ending: |
31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual
Sales |
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9,300,000 |
9,162,264 |
10,034,305 |
9,774,930 |
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Recur.
Profit |
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600,000 |
469,091 |
517,040 |
518,994 |
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Net
Profit |
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310,000 |
231,261 |
172,155 |
217,482 |
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Total
Assets |
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9,663,917 |
12,551,005 |
12,433,727 |
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Current
Assets |
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5,002,606 |
5,872,555 |
5,882,412 |
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Current
Liabs |
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3,720,859 |
4,994,216 |
4,779,478 |
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Net
Worth |
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2,967,085 |
2,735,078 |
2,942,281 |
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Capital,
Paid-Up |
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458,790 |
458,790 |
458,790 |
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Div.P.Share(¥) |
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13.00 |
12.00 |
12.00 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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1.50 |
-8.69 |
2.65 |
1.65 |
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Current Ratio |
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.. |
134.45 |
117.59 |
123.08 |
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N.Worth Ratio |
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.. |
30.70 |
21.79 |
23.66 |
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R.Profit/Sales |
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6.45 |
5.12 |
5.15 |
5.31 |
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N.Profit/Sales |
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3.33 |
2.52 |
1.72 |
2.22 |
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Return On Equity |
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.. |
7.79 |
6.29 |
7.39 |
Notes: Forecast (or estimated)
figures for the 31/03/2018 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.04 |
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1 |
INR 90.55 |
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Euro |
1 |
INR 79.77 |
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YEN |
1 |
INR 0.61 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
VIV |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.