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MIRA INFORM REPORT
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Report No. : |
512427 |
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Report Date : |
30.05.2018 |
IDENTIFICATION DETAILS
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Name : |
ITOCHU SYSTECH CORPORATION |
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Registered Office : |
Ito Bldg 9F, 3-6-14 Minami-Honmachi Chuoku Osaka 541-0054 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
April, 1969 |
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Com. Reg. No.: |
1200-01-074630 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, Export and Wholesale of Textile
Machinery. |
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No. of Employees : |
120 |
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+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Maximum Credit Limit : |
Yen 532.0 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
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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 - averaging 10% 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 resulted in several years of economic stagnation as firms sought 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 since 2013, supported by 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 need to address 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 a sharp contraction, so Prime Minister ABE has twice postponed the next increase, which is 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.
Under the Abe Administration, Japan’s government sought to open the country’s economy to greater foreign competition and create new export opportunities for Japanese businesses, including by joining 11 trading partners in the Trans-Pacific Partnership (TPP). Japan became the first country to ratify the TPP in December 2016, but the United States signaled its withdrawal from the agreement in January 2017. 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). Japan also reached agreement with the European Union on an Economic Partnership Agreement in July 2017, and is likely seek to ratify both agreements in the Diet this year.
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Source
: CIA |
Company
Name And Address
ITOCHU SYSTECH CORPORATION
REGD NAME: Itochu
Systech KK
MAIN OFFICE: Ito Bldg 9F, 3-6-14 Minami-Honmachi
Chuoku Osaka 541-0054 JAPAN
Tel:
06-6282-1114 Fax: 06-6282-1109
URL: http://www.itochu-systech.co.jp/
E-Mail address: (thru the URL)
ACTIVITIES
Import, export,
wholesale of textile machinery
BRANCHES
Tokyo, Nagoya,
Imabari, Higashi-Osaka (Technical Center)
OVERSEAS
China, Pakistan, India, Thailand, Bangladesh, Taiwan, Vietnam, Indonesia, USA, Shanghai, Jakarta,
Karachi, Germany, France, Italy (--subsidiaries)
OFFICER(S)
HIROYUKI SONODA,
PRES Masami Ikehata, dir
Shoichi Murakami,
dir Kazunori Iwaki, dir
Hajime Imamura,
dir Masao Morita, dir
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 24,454 M
PAYMENTS REGULAR CAPITAL Yen 480 M
TREND STEADY WORTH Yen
1,806 M
STARTED 1969 EMPLOYES 120
COMMENT
TRADING FIRM SPECIALIZING IN TEXTILE MACHINERY, OWNED BY ITOCHU CORP
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 532.0 MILLION, 30 DAYS NORMAL TERMS.
HIGHLIGHTS
The subject company
was established on the basis of a machinery export division separated from
Itochu Corp, a leading general trading house, Tokyo (See REGISTRATION), as Itochu Texmac Corp. In Apr 2008, merged a sister company, Itochu
Plamac Corp, and renamed as captioned.
This is a trading firm for export, and partially import, of textile
machinery & peripheral equipment in the main, hi-tic polymer processing
machinery, including their parts & attachments. Also offers installation, maintenance and
engineering services. Export
destinations are China, Pakistan, Thailand, Turkey, Indonesia, India,
Bangladesh, Europe, USA, etc. In Apr
2011, merged three sister firms to make them consolidated subsidiaries in order
to streamline & strengthen business activities in the Asian markets. Clients include major textile makers, apparel
makers, other.
FINANCIAL
INFORMATION
The sales volume
for Mar/2017 fiscal term amounted to Yen 24,099 million, an 18% up from Yen
20,454 million in the previous term. The recurring profit was posted at Yen 523 million and the net at Yen
282 million, respectively, compared with Yen 421 million recurring profit and
Yen 282 million net profit, respectively, a year ago.
For the current
term ending Mar 2018 the recurring profit is projected at Yen 550 million and
the net profit at Yen 430 million, respectively, on a 5% rise in turnover, to
Yen 25,300 million.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit is
estimated at Yen 532.0 million, on 30 days normal terms
REGISTRATION
Date
Registered: Apr 1969
Regd
No.: 1200-01-074630
(Osaka-Chuoku)
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized: 38,400 shares
Issued:
9,600 shares
Sum:
Yen 480 million
Major shareholders (%): Itochu Corp* (100)
*.. One of big 5 general trading houses, at the caption address, founded
1949, listed Tokyo S/E, capital Yen 253,448 million, turnover Yen 4,838,464
million, operating profit Yen 288,399 million, recurring profit Yen 374,593
million, net profit Yen 352,221 million, total assets Yen 8,122,395 million,
net worth Yen 2,662,811 million, employees 99,288, pres Masahiro Okafuji
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Exports, imports
and wholesales textile machinery/equipment: spinning machinery, dyeing &
finishing machinery, synthetic fiber machines, high-tech polymer processing
machinery, automatic side hemming machines for towels, automatic towel slitting
machines, cross hemming machines, their parts & components, offering
installation, maintenance & engineering services (--100%).
Clients: [Textile mfrs,
wholesalers] Exports to Texmac Inc (USA), Texmac Europe Spa (Italy), Weiqiao
Tex, Colony Tex, Sheikh Spinning, Crescent Steel, other to China, India,
Indonesia, Turkey, Bangladesh, Pakistan, Thailand, other.
Domestic clients: Kawashima Selcon Textiles, Sato Pharmaceutical, Tokyo Neo
Print, Unitika, Daifuku Co, Kaihara Co, Toyota Automatic Loom Works, Kuraray,
CI Kasei Co, Sumitomo Chemical, Sanko Co, other
No. of accounts: 300
Domestic areas of activities: Nationwide
Suppliers: [Mfrs] For
exports, supplied from Murata Machinery, Toyoda Automatic Loom Works, Tsudakoma
Corp, Happy Ind, TMT Machinery, Plastic Research Laboratory of Plastic
Technology Co, other.
Imports from Germany, Belgium, Korea, other.
Payment
record: Regular
Location: Business area in Osaka. Office premises at the caption address are
leased and maintained satisfactorily.
Bank
References:
Mizuho
Bank (Semba)
Hachijuni
Bank (Osaka)
Relations: Satisfactory
FINANCES
(In
Million Yen)
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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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25,300 |
24,099 |
20,454 |
20,790 |
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Recur.
Profit |
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550 |
523 |
421 |
599 |
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Net
Profit |
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430 |
417 |
282 |
361 |
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Total
Assets |
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6,459 |
7,277 |
7,697 |
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Current
Assets |
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5,867 |
6,606 |
6,998 |
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Current
Liabs |
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4,507 |
5,497 |
5,897 |
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Net
Worth |
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1,806 |
1,629 |
1,657 |
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Capital,
Paid-Up |
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480 |
480 |
480 |
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Div.Ttl
in Million (¥) |
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272.169 |
301.017 |
182.534 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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4.98 |
17.82 |
-1.62 |
-10.78 |
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Current Ratio |
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130.18 |
120.17 |
118.67 |
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N.Worth Ratio |
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27.96 |
22.39 |
21.53 |
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R.Profit/Sales |
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2.17 |
2.17 |
2.06 |
2.88 |
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N.Profit/Sales |
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1.70 |
1.73 |
1.38 |
1.74 |
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Return On Equity |
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.. |
23.09 |
17.31 |
21.79 |
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 67.82 |
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1 |
INR 90.17 |
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Euro |
1 |
INR 78.70 |
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Yen |
1 |
INR 0.62 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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VIV |
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Report Prepared
by : |
TRU |
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
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Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
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Industry
scenario / competitor analysis
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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.