MIRA INFORM REPORT

 

 

Report Date :

12.09.2013

 

IDENTIFICATION DETAILS

 

Name :

CORNES & CO LTD

 

 

Registered Office :

Cornes House, 3-5-1 Shiba Minatoku Tokyo 105-0014

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

May 1947

 

 

Com. Reg. No.:

0104-03-004073 (Tokyo-Minatoku)

 

 

Legal Form :

Branch Office

 

 

Line of Business :

Trading firm for import, export and wholesale of: electronics & industrial equipment, agricultural machinery, maritime survey & charts, biogas plants, insurance brokerage, ship agency

 

 

No. of Employees :

125

 

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 and address

 

CORNES & CO LTD

REGD NAME:    Cornes & Co Ltd

MAIN OFFICE:  Cornes House, 3-5-1 Shiba Minatoku Tokyo 105-0014 JAPAN

                        Tel: 03-5730-1660     

Fax: 03-5730-1128

 

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

E-Mail address:sales@cornes.co.jp

 

 

ACTIVITIES  

 

Trading firm

 

 

BRANCHES   

 

Yokohama, Kobe, Sapporo

 

 

OVERSEAS

 

Hong Kong (Parent Office)

 

 

OFFICERS

 

KENSAKU WATARI, PRES        Shin’ichiro Watari, ch

Takao Watanabe, s/mgn dir        Kenji Kato, dir

Tatsunobu Narita, dir     

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 3,500 M

PAYMENTS      REGULAR         CAPITAL           HK$ 2,500 M

TREND             SLOW              WORTH            Yen 10,300 M

STARTED         1947                 EMPLOYES      125

 

 

COMMENT    

 

TRADING FIRM, OWNED BY CORNES & CO, HONG KONG.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 136.4 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established originally in 1861 by Frederick Cornes & his partner. as a Japan branch.  This is a trading firm, owned by Cornes & Co, Hong Kong, for import, export and wholesale of motorcars, electronics & industrial equipment, maritime charts, others.  In Apr 2012 separated the motorcars sales operations to a sister company, Cornes Motors Ltd.  Clients include public agencies, business firms, other

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2013 fiscal term amounted to Yen 3,500 million, an 82% down from Yen 19,824 million in the previous term.  This is referred to the said transfer of mainstay automobile business to a group subsidiary firm.  The recurring profit was posted at Yen 1,000 million and the net profit at Yen 970 million, respectively, compared with Yen 171 million recurring profit and Yen 277 million net losses, respectively, a year ago.

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 500 million and the net profit at Yen 1200 million, respectively, on a 6% rise in turnover, to Yen 3,700 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 136.4 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:          May 1947

Regd No.:                                 0104-03-004073 (Tokyo-Minatoku)

Legal Status:                Branch Office

Capital:                                    HK$ 2,500 million

Major shareholders (%): Cornes Holdings Overseas, Hong Kong (100)

 

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

 


 

OPERATION

           

Activities: Trading firm for import, export and wholesale of: electronics & industrial equipment, agricultural machinery, maritime survey & charts, biogas plants, insurance brokerage, ship agency, other (--100%)

Clients: Public agencies, business firms, consumers, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Supplied by the Hong Kong parents and group firms

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)

                                    Hong Kong & Shanghai Bank (Tokyo)

                                    Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

3,700

3,500

19,824

24,700

Recur. Profit

 

500

1,000

171

 

Net Profit

 

200

970

-277

263

Total Assets

 

 

16,300

17,112

22,449

Current Assets

 

 

4,300

4,919

9,962

Current Liabs

 

 

2,800

4,906

6,935

Net Worth

 

 

10,300

9,333

9,681

Capital, Paid-Up

 

 

 

 

 

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

5.71

-82.34

-19.74

-3.91

    Current Ratio

 

..

153.57

100.26

143.65

    N.Worth Ratio

..

63.19

54.54

43.12

    R.Profit/Sales

 

13.51

28.57

0.86

..

    N.Profit/Sales

5.41

27.71

-1.40

1.06

    Return On Equity

..

9.42

-2.97

2.72

 

Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.90

UK Pound

1

Rs.100.47

Euro

1

Rs.84.65

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.