MIRA
INFORM REPORT
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Report Date : |
30.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
PALOMA CO LTD |
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Registered Office : |
6-23 Momozonochi Mizuhoku Nagoya 467-0855 |
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Country : |
Japan |
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Financials (as on) : |
29.02.2008 |
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Date of Incorporation : |
August 1958 |
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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 : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
YEN 1,322.8 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name & address
PALOMA CO LTD
REGD NAME: KK Paloma
MAIN OFFICE: 6-23 Momozonochi Mizuhoku Nagoya 467-0855
JAPAN
Tel:
052-824-5111 Fax: 052-822-1175
E-Mail address: info@paloma.co.jp
ACTIVITIES
Mfg of gas appliances
BRANCHES
Tokyo, Osaka, Sapporo, Sendai, Saitama, Chiba, Niigata, Shizuoka, Kanazawa, Hiroshima, Takamatsu, Fukuoka, other (Tot 74)
FACTORY(IES)
At the caption address, Hokkaido, other;
OVERSEAS
Rheem Mfg Co (USA) (See REGISTRATION); Rheem Mfg Co
(Singapore)
OFFICER(S)
HIROAKI KOBAYASHI, PRES
Toshihiro Kobayashi, ch
Jiro Kawase, v pres
Kyuzo Kobayashi, mgn dir
Eiichi Yonezawa, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 32,921 M
PAYMENTS REGULAR CAPITAL Yen 86 M
TREND STEADY WORTH Yen 25,388 M*
STARTED 1958 EMPLOYES 528
*
Of the Mar/2007 term figures
COMMENT
MFR OF GAS APPLIANCES.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 1,322.8 MILLION, 30 DAYS NORMAL TERMS
HIGHLIGHTS
The subject company was
established by Toshihiro Kobayashi in order to make most of his experience in the
subject line of business. Hiroaki is
his son, who took the pres office in Sept 2005. This is a specialized mfr of gas appliances: gas water heater,
gas cooking stove, gas rice cooker, bath heating systems, other, as nationally
renowned by “Paloma” brand. The firm is
known as debt-free (no loans, other), sound and solid management company. In 2007, death accidents occurred by killing
15 persons in 17 cases due to the incomplete CO2 protection of some of the
firm’s appliances, which lead to legal affair.
The firm called for recalling of the appliances in question and the
incident is now understood subdued. Has
mfg subsidiaries in USA and Singapore (See REGISTRATION)
FINANCIAL INFORMATION
The
sales volume for Feb/2008 fiscal term amounted to Yen 32,921 million, a 13%
down from Yen 33,438 million in the previous term. The fire/explosion accidents hurt the sales. The net profit was posted at Yen 685
million, down from Yen 707 million a year ago.
For
the current term ending Feb 2009 the net profit is projected at Yen 680
million, on an almost similar turnover, at Yen 33,000. Overseas sales are reported solid.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 1,322.8 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Aug 1958
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized:
688,000 shares
Issued:
172,000 shares
Sum: Yen 86 million
Major shareholders (%)
Oh’e Seisakusho*(26), Hiroaki Kobayashi (12), Employees’ S/Holding Assn (11), Masakazu Kobayashi (10)
No. of shareholders: 30 (Approximately)
Related companies
Rheem Mfg Company (USA), headquartered at New York, with mfg branches at: Alabama, California, Arkansas, Georgia (--USA), Ontario (Canada), Nuevo Laredo (Mexico), Rheem (Australia), Rheem (New Zealand), Paloma Industries, other
Nothing detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Manufactures, exports & wholesales gas appliances; gas stoves (45), gas water heaters, hot water supplier, bath-room & floor heating systems (--30%), gas rice cookers, others (--20%).
(Products lineups): Gas water heater, gas cooking stove, gas rice cooker, gas space heater, bath heating system, road heating system, industrial & commercial use gas appliances, swimming pool heater, others
Clients
[Mfrs, wholesalers] Iwatani Corp, Mitsuuroko Co, Seibu Gas, Toho Gas Co, Tokyo Gas Co, Daimaru Enawin, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Paloma Industries, Paloma Nohgata, Paloma Ena, other subsidiaries factories.
Payment record
Regular
Location
Business area in Nagoya. Office premises at the caption address are owned and maintained satisfactorily.
Bank References
SMBC (Nagoya)
MUFG (Nagoya-Chuo)
Relations: Satisfactory
FINANCES: (In Million Yen)
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Terms Ending: |
29/02/2008 |
29/02/2007 |
29/02/2006 |
29/02/2005 |
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Annual
Sales |
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32,921 |
33,438 |
38,518 |
35,318 |
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Recur.
Profit |
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Net
Profit |
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685 |
707 |
94 |
9 |
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Total
Assets |
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43,652 |
44,219 |
42,202 |
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Current
Assets |
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10,770 |
12,060 |
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Current
Liabs |
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17,405 |
18,851 |
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Net
Worth |
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25,388 |
24,585 |
24,084 |
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Capital,
Paid-Up |
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86 |
86 |
86 |
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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 |
-1.55 |
-13.19 |
9.06 |
2.02 |
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Current Ratio |
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.. |
61.88 |
63.98 |
.. |
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N.Worth Ratio |
.. |
58.16 |
55.60 |
57.07 |
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R.Profit/Sales |
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.. |
.. |
.. |
.. |
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N.Profit/Sales |
2.08 |
2.11 |
0.24 |
0.03 |
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Return On Equity |
.. |
2.78 |
0.38 |
0.04 |
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Notes: Confirmed figures for the 29/02/2008 fiscal term,
with other figures remaining unavailable.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.43.79 |
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UK Pound |
1 |
Rs.80.05 |
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Euro |
1 |
Rs.64.56 |
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%)