MIRA
INFORM REPORT
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Report Date : |
03.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
PALOMA INDUSTRIES LTD |
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Registered Office : |
6-23 Momozonocho Mizuhoku Nagoya 467-0855 |
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Country : |
Japan |
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Financials (as on) : |
31.01.2008 |
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Date of Incorporation : |
May 1964 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Gas Appliances |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Maximum Credit Limit : |
YEN 393.3 Million |
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Status : |
Small Company |
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Payment Behaviour : |
Regular |
name & address
PALOMA INDUSTRIES
LTD
REGD NAME: Paloma Kogyo KK
MAIN OFFICE: 6-23 Momozonocho Mizuhoku Nagoya 467-0855
JAPAN
Tel:
052-824-5151 Fax: 052-822-1175
E-Mail address:pa_gscm@paloma.co.jp
ACTIVITIES
Mfg of gas appliances
BRANCHES
Nil
FACTORY(IES)
At the caption address, Aichi (2), Mie, Gifu, other (Tot 9)
OFFICER(S)
JIRO KAWASE, PRES
Hiroaki Kobayashi, s/mgn dir
Mikio Itoh, dir
Hideeaki Yokoi, dir
Nobuyoshi Yokoyama, dir
Hideo Chikazawa, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 22,300 M
PAYMENTS REGULAR CAPITAL Yen 43 M
TREND STEADY WORTH Yen 6,158 M
STARTED 1964 EMPLOYES 1,477
COMMENT
MFR
SPECIALIZING IN GAS APPLIANCES.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARYBUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 393.3 MILLION, 30 DAYSNORMAL TERMS
HIGHLIGHTS
The
subject company was established on the basis of a gas apparatus mfg division
separated from Paloma Co Ltd, wholesaler of gas cooking apparatus at the
caption address (see REGISTRATION). The
subject is one of mfg divisions of the parent firm, specializing in mfg water
heaters, hot water supply units, gas cooking stoves, bath boilers, other gas
apparatus. 95% of the products are
shipped to the parent for distribution nationwide. The parent firm is known as debt-free (no bank loans, other),
sound and solid management company. The
firm is owned and managed essentially by the Kobayashi families. The firm does not disclose full financials
only except the following partial figures.
This also applies to the parent, Paloma Co Ltd, which does not release
full financials. In 2007, a death accident
occurred by killing 15 persons in 17 cases due to the incomplete CO2 protection
of the firm’s appliances, which lead to legal affair, leading to the resigning
of Toshihiro Kobayashi, the then pres.
The firm called for recalling of the appliances and now the incident is
understood subdued.
FINANCIAL INFORMATION
The sales
volume for Jan/2008 fiscal term amounted to Yen 22,300 million, a 6% down from
Yen 23,800 million in the previous term.
This referred to the said accident.
The net profit increased to Yen 1,400 million from Yen 850 million the
previous year.
For the
current term ending Jan 2009 the net profit is projected at Yen 1,500 million,
on a 1% rise in turnover, to Yen 22,500 million. Business is seen slow to recover after the accident.
The
financial situation is considered FAIR and good for ORDINARY business
engagements. Max credit limit is
estimated at Yen 393.3 million, on 30 days normal terms.
REGISTRATION
Date
Registered: May 1964
Legal Status:
Limited
Company (Kabushiki Kaisha)
Authorized: 344,000 shares
Issued: 87,544 shares
Sum: Yen 43.772 million
Major shareholders (%)
Paloma Co Ltd*(100)
*..
Wholesale of gas cooking apparatus, mfr’d by the subject and group mfg firms,
at the caption address, operating 73 outlets nationwide; founded 1911,
unlisted, capital Yen 77 billion,
turnover Yen 241 billion, employees 10,400, pres Hiroaki Kobayashi. The parent
firm is known as a financially sound, debt-free firm
Nothing detrimental is known as to the commercial morality
of executives.
OPERATION
Activities:
Manufactures gas appliances, such as water heaters, water supply units, rice cookers, gas cooking stoves, space
(room) heaters, bath heating systems, other gas-related
apparatus (--100%).
95% of the products are shipped
to the parent, Paloma Co Ltd.
Clients
[Wholesalers]
About 95% shipped to the parent, Paloma Co, for distribution through its 73
outlets nationwide.
No. of accounts: Limited
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Sojitz Corp, Toyota
Tsusho, Iwatani Int’l, Okaya & Co, Ichihara Co, Anjo Isuzu, other
Payment record
Regular
Location
Business
area in Nagoya. Office premises at the
caption address are owned by the parent and maintained satisfactorily.
Bank References
SMBC (Nagoya)
MUFG (Nagoya)
Relations: Satisfactory
FINANCES: (In Million Yen)
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Terms Ending: |
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31/01/2009 |
31/01/2008 |
31/01/2007 |
31/01/2006 |
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Annual
Sales |
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22,500 |
22,300 |
23,800 |
25,667 |
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Recur.
Profit |
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Net
Profit |
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1,500 |
1,400 |
850 |
360 |
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Total
Assets |
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N/A |
N/A |
N/A |
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Net
Worth |
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6,158 |
4,758 |
3,908 |
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Capital,
Paid-Up |
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43 |
43 |
43 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
0.90 |
-6.30 |
-7.27 |
11.60 |
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Current Ratio |
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.. |
.. |
.. |
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N.Worth Ratio |
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.. |
.. |
.. |
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N.Profit/Sales |
6.67 |
6.28 |
3.57 |
1.40 |
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Notes: Financials are only partially disclosed.
Forecast (or estimated) figures for the 31/01/2009 fiscal
term.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.43.21 |
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UK Pound |
1 |
Rs.85.72 |
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Euro |
1 |
Rs.67.92 |
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 |
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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 |
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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 |
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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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)