MIRA INFORM REPORT

 

 

Report Date :

26.06.2013

 

IDENTIFICATION DETAILS

 

Name :

BOSCH CORPORATION

 

 

Registered Office :

3-6-7 Shibuya Shibuyaku Tokyo 150-8360

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

July, 1939

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of diesel engine fuel injection systems, car air-conditioning equipment, other

 

 

No. of Employees :

5,692

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

Payment Behaviour :

Regular

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, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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 a technologically 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. Japan's industrial sector is heavily dependent on imported raw materials and 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 spectacular - 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 after effects 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 three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan into recession. 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 disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. The new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

Source : CIA

 


Company name

 

BOSCH CORPORATION

 

 

REGD NAME

 

Bosch KK

 

 

MAIN OFFICE

 

3-6-7 Shibuya Shibuyaku Tokyo 150-8360 JAPAN

Tel: 03-3400-1551     Fax: 03-3499-4116

 

URL:                 http://www.bosch.co.jp/

E-Mail address: info@bosch.co.jp

 

 

ACTIVITIES

 

Mfg of diesel engine fuel injection systems, car air-conditioning equipment, other

 

 

BRANCHES   

 

Osaka, Sapporo, Nagoya, Hiroshima, Yokohama, other (Tot 17); Taiwan

 

 

FACTORIES

 

Saitama (3), Gunma, Tochigi, Okazaki, Hiroshima, Tomioka

 

 

OFFICERS

 

H HEMING, PRES                     Hideaki Oda, ch

Noriko Morikawa, v pres              C Honma, v pres

Shigeo Komatsu, s/mgn dir         Ryuichi Mitsuoka, s/mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 264,019 M

PAYMENTS      REGULAR         CAPITAL           Yen 36,800 M

TREND             SLOW              WORTH            Yen 73,822 M

STARTED         1939                 EMPLOYES      5,692

 

 

COMMENT    

 

MFR OF DIESEL ENGINE FUEL INJECTION SYSTEMS, CLOSELY TIED WITH ROBERT BOSCH GmbH, GERMANY. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established originally in 1939 as Diesel Kiki (Kiki means equipment), renamed Zexel in 1990), before renamed as captioned, by engine manufacturers including Isuzu Motor, for making fuel pumps under license from Bosch (Germany).  Isuzu Motor sold most of its shares to Bosch in 1997.  The subject is the largest producer of fuel injection pumps for diesel engines.  Automobile air-condition units are also a mainstay, as the firm formed tie-up with Valeo (France) in the air-conditioner area.  In Jul 2005 merged Bosch KK, wholly owned by Robert Bosch GmbH, and renamed from Bosch Automotive Systems Corp to Bosch Corporation.  By this merger the whole operations of the Bosch group in Japan have been integrated into the subject firm..  Clients are major carmakers nationwide.  

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2012 fiscal term amounted to Yen 264,019 million, a 3% down from Yen 272,026 million in the previous term.  The recurring profit was posted at Yen 19,520 million and the net profit at Yen 10,374 million, respectively, compared with Yen 15,505 million recurring profit and Yen 7,560 million net profit, respectively, a year ago. 

 

For the current term ending Dec 2013 the recurring profit is projected at Yen 20,000 million and the net profit at Yen 10,500 million, respectively, on a 3% rise in turnover, to Yen 272,000 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.

 

 

REGISTRATION

 

Date Registered:                      Jul 1939

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              600 million shares

Issued:                                     423,095,930 shares

Sum:                                        Yen 36,800 million

Major shareholders (%):           Robert Bosch Invest Nederland (65.5), Robert Bosch LLC (17.2)                

No. of shareholders:                5

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

 

Activities: Manufactures fuel injection systems for controlling diesel engine fuel (48%), automobile brake systems (23%), automobile electronics, power trains (17%), imports automotive aftermarket equipment, work-shop testing equipment, power tools, security systems, others (12%).  Overseas sales ratio (25%)  (Breakdowns are all about).

 

Clients: [Carmakers] Isuzu Motors, Mazda Motor, Nissan Motors, Toyota Motor, Nissan Diesel, Mitsubishi Fuso Truck & Bus, Mitsubishi Motor, Hyundai Motor, Robert Bosch GmbH, Jatco Ltd, other.

            No. of accounts: 500

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Robert Bosch group firms, Gunma Seiki Co, Tokyo Foundry, other.

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Mizuho Corporate Bank (H/O)

Mitsubishi Trust Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

       Terms Ending:

31/12/2013

31/12/2012

31/12/2011

31/12/2010

Annual Sales

 

272,000

264,019

272,025

278,596

Recur. Profit

 

20,000

19,520

15,505

20,910

Net Profit

 

10,500

10,374

7,560

8,392

Total Assets

 

 

189,002

196,535

190,668

Current Assets

 

 

125,636

125,551

120,132

Current Liabs

 

 

52,120

62,669

59,701

Net Worth

 

 

73,822

76,562

69,079

Capital, Paid-Up

 

 

36

36

36

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.02

-2.94

-2.36

39.63

    Current Ratio

 

..

241.05

200.34

201.22

    N.Worth Ratio

..

39.06

38.96

36.23

    R.Profit/Sales

 

7.35

7.39

5.70

7.51

    N.Profit/Sales

3.86

3.93

2.78

3.01

    Return On Equity

..

14.05

9.87

12.15

 

Notes: Forecast (or estimated) figures for the 31/12/2013 fiscal term.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.70

UK Pound

1

Rs.92.25

Euro

1

Rs.78.38

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.