MIRA INFORM REPORT

 

 

 

 

Report Date :

12.12.2014

 

IDENTIFICATION DETAILS

 

Name :

GECOSS CORPORATION

 

 

Registered Office :

Hamacho Center Bldg. 11F., 2-31-1, Nihonbashi-hamacho, Chuo-ku

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

01.08.1946

 

 

Com. Reg. No.:

0100-01-069981

 

 

Legal Form :

Listed Company

 

 

Line of Business :

·         Subject is engaged in Steel products for construction work

·         Leasing and rental service of construction machines and facilities

·         Design and contract work for civil engineering

 

 

No. of Employees :

1,116

 

 

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 :

Satisfactory

Payment Behaviour :

No complaints

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy

 

Source : CIA

 

Company name

 

GECOSS CORPORATION

 

 

Company summary

 

Country:                                    Japan

Company name:            GECOSS CORPORATION

Name in local language: GECOSS K.K.  (ジェコス株式会社)

Office address:              Hamacho Center Bldg. 11F., 2-31-1, Nihonbashi-hamacho, Chuo-ku,

Tokyo 103-0007

Office tel:                     03-3660-0777

Office fax:                      03-3660-0792/0788

Website:                       www.gecoss.co.jp

Business type:              Service

Industry:                       Facility leasing

Established:                  August 1, 1946

Capital:                                     Jp. 4,397,500,000  yen

Employees:                   1,116

Corporate formation:       Listed

Corporation No.:             0100-01-069981 (Tokyo Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

Paid in capital :                          Jp. 4,397,500,000 yen

Number of authorized shares :     97,500,000 shares

Shares issued :                         36,436,125 shares

Number of shareholder :              11,227

 

Name of shareholders                                     Number of thousand shares (%)

JFE Steel Corp.                                                 14,298 (39.24)

JFE Trading Corp.                                               7,195 (19.75)

Japan Trustee Services Bank, Ltd.                         1,919 ( 5.27)

Business partners shareholder fund                                  1,025 ( 2.81)

Employees shareholders fund                                            560 ( 1.54)

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

Activity             Product/Service Description

-------------------------------------------------------------------------------

Trading                          Steel products for construction work

Service              Leasing and rental service of construction machines and facilities

Service              Design and contract work for civil engineering

 

 

 

COMPANY MANAGEMENT

 

President                      Mr. Tsutomu Yuhba (*)

Nationality:                    Japan

 

Director                         Mr. Yasuo Ishibashi (*)

Nationality:                    Japan

 

Director                            Mr. Chikara Yokose

Nationality:                    Japan

 

Director                         Mr. Masuo Tanaka

Nationality:                    Japan

 

Director                        Mr. Tomoaki Abe

Nationality:                    Japan

 

Director                         Mr. Tatsuya Kurachi

Nationality:                    Japan

 

Director                                     Mr. Akio Suzuki

Nationality:                    Japan

 

Director                           Mr. Makoto Fujita

Nationality                      Japan

 

Auditor                          Mr. Kazuyuki Suzuki

Nationality:                    Japan

 

Auditor                          Mr. Koji Kawano

Nationality:                    Japan

 

Auditor                                      Mr. Motoo Kanoh

Nationality:                    Japan

 

Auditor                                      Ms. Yoko Yamaguchi

Nationality:                                Japan

 

 

Note: The names of director(s) and auditor(s) are phonetically spelt.

      (*): Representative directors

 

 

*Key Personnel*

 

Mr. Tsutomu Yuhba

President and representative director

Born on May 10, 1949

Business career:

Apr. 1974: Employed by Kawasaki Steel, Ltd.

Apr. 2003: General manager, sales of Construction Materials Div. of JFE Steel.

Apr. 2011: Advisor of the subject.

Jun. 2011: Representative director and president of the subject.

Home address: 4-7-1, Hanazono, Hanamigawa-ku, Chiba-shi

 

 

FINANCIALS

 

Currency: (local currency - Jp. yen)

-------------------------------------------------------------------------------------

 Year |         Sales            |       Net Income    

-------------------------------------------------------------------------------------

2009

100,259,000,000

324,000,000

2010

81,459,000,000

loss 4,380,000,000

2011

78,635,000,000

1,092,000,000

2012

79,015,000,000

998,000,000

2013

79,787,000,000

2,776,000,000

2014

83,379,000,000

3,105,000,000

 

 

FINANCIAL DESCRIPTION

 

*Book Closing*

============

March 31st

 

*Financials*

==========

Consolidated Balance Sheet

 

 

 

Unit: millions of JP yen

 

 

 

                          

3/31/2012

3/31/2013

3/31/2014

Current assets  

64,957

65,939

67,304

 Cash & deposits      

3,064

3,525

4,038

 Account receivables   

30,324

31,537

33,529

 Inventories          

30,545

27,827

28,585

 Others

1,024

3,050

1,152

Fixed assets           

25,909

24,219

23,837

 Tangible assets      

21,073

19,771

19,217

 Intangible assets    

571

540

473

 Investments & others  

4,265

3,909

4,147

Total Assets       

90,867

90,159

91,142

　

　

　

　

Current liabilities     

52,378

50,304

50,684

 Account payables  

29,034

25,422

28,208

 Short term loans    

18,900

20,400

17,900

 Outstanding taxes    

328

367

664

 Others

4,116

4,115

3,912

 

 

Fixed liabilities      

11,510

10,339

7,404

 Long term loans     

6,350

6,350

3,850

 Retirement benefits    

370

386

320

 Others

4,790

3,603

3,234

Shareholders' equity    

27,919

30,249

33,064

 Paid up capital      

4,398

4,398

4,398

 Capital reserves      

4,596

4,596

4,596

 Retained earnings    

18,941

21,271

24,087

 Treasury stock        

-15

-15

-16

Valuation & adjustment 

-941

-734

-10

Total Net Assets       

26,978

29,516

33,054

Total Liabilities & Net Assets     

90,867

90,159

91,142

 

 

 

 

 

 

 

 

Consolidated Income Statement

 

 

 

Unit : millions of JP yen

 

 

 

                          

3/31/2012

3/31/2013

3/31/2014

Sales          

79,015

79,787

83,379

Cost of goods sold      

65,371

64,941

67,197

Gross profit(loss)    

13,644

14,846

16,182

Sales/administrative expenses  

11,900

11,210

11,304

Operating profit(loss)    

1,744

3,637

4,878

Non operating income        

322

314

267

Non operating expenses       

431

431

270

Ordinary profit(loss)      

1,634

3,520

4,875

Special profits                

0

51

0

Special losses             

6

660

102

Pretax profit                

1,628

2,910

4,773

Taxes & adjustment           

630

134

1,668

Net profit      

998

2,776

3,105

 

 

*Latest Financials *

================

On October 28, 2014, the subject released the following business results and forecast:

As of September 30, 2014(2Q 2015 term)

Unit: millions of JPY

 

Year term 

Sales 

Operating profit

Ordinary profit 

Net profit

2Q 2014       

39,054

1,903

1,880

1,236

2Q 2015       

42,009

3,245

3,323

2,604

FY 2015(F)    

92,000

7,000

7,000

4,900

 

Current assets;

64,047

Fixed assets;

25,107

Total assets;

89,153

Current liabilities;

45,897

Fixed liabilities;

7,439

Shareholders’ equity;

35,545

  Retained earnings;

26,570

Total net assets;

35,817

Total liabilities and net assets;

89,153

 

 

*Bank Details*

 

Bank Name :     Mizuho Bank, Ltd.

Branch :            Head office

 

Bank Name :     Sumitomo Mitsui Banking Corp.

Branch :            Head office

 

Bank Name :     Bank of Tokyo-Mitsubishi UFJ, Ltd.

Branch :            Head office

 

Credit Opinion

 

The subject is a subsidiary of JFE Trading Corp., specializing in lease and rental business of steel frame and construction machines.

Currently the subject is keeping the top market share in this field.

A rapid growth is expected in recent years as reconstruction and remodeling work is getting busy nationwide.

Sourcing and customers network has been firmly established.

Financial background is stable.

Negative factors are not observed in particular at this moment.

 

 

LOCAL BRANCHES & MANAGEMENT

 

Branch name:                Tohoku branch

Branch address:            Aoba-ku, Sendai-shi, Miyagi pref.

----------------------------------------------------------------------------------------------------

Branch name:                Chiba branch

Branch address:            Inage-ku, Chiba-shi, Chiba pref.

 

 

----------------------------------------------------------------------------------------------------

Branch name:                Kita-Kanto branch

Branch address:            Omiya-ku, Saitama-shi, Saitama pref.

----------------------------------------------------------------------------------------------------

 

Nine other branches are in Yokohama, Niigata, Nagoya, Kanazawa, Osaka, Hiroshima, Kagoshima cities and Kagawa and Fukuoka prefectures.

14 other local sales offices are in Ohfunato, Aomori, Takizawa, Akita, Tendoh, Koriyama, Mito, Iwaki, Chiba, Okayama, Fukuyama, Matsuyama, Kumamoto and Miyazaki cities.

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

 

*Main Products & Services*

======================

For Mar. 2014 term:

Leasing and rental service of steel frame for preparatory & scaffolding work(86%)

Leasing and rental service of construction machines(14%)

 

Sales of some products may be small since it is not specified in the financial report.

 

 

FACTORY FACILITIES & MANUFACTURING CAPABILITIES

 

Processing and preparation sites:

Sendai site: Kurokawa-gun, Miyagi pref.

Tokyo site: Shirai-shi, Chiba pref.

Naganuma site: Chiba-shi, Chiba pref.

Tomisato machine center: Tomisato-shi, Chiba pref.

Nihonkai site: Niigata-shi, Niigata pref.

Nagoya site: Hand-shi, Aichi pref.

Osaka site: Osaka-shi, Osaka pref.

Chugoku site: Miyoshi-shi, Hiroshima pref.

Shikoku site: Aayauta-gun, Kagawa pref.

Fukuoka site: Kasuya-gun, Fukuoka pref.

Kagoshima site: Kagoshima-shi, Kagoshima pref.

 

 

ORGANIZATION STRUCTURE

 

*Address*

=========

Registered address is the same as the operational address.

 

 

*Company History*

================

Date                             Development

-----------------------------------------------------------------------------------------------

August 1, 1946              Incorporated under the name of “Fuji Kogyo K.K.”(had been dormant

until June 1968)

June 20, 1968                Started its business operation with an investment of JPY 100 million.

August 30, 1974            Renamed as “Yamamoto Kenzai Lease Co., Ltd.”

April 1990                      Renamed as “Kawasho Lease System Co., Ltd.” after merging

“Kawasho Kenzai Lease Ltd.”

August 1994                  Went public on the TSE(#9991).

September 1996            Renamed as “Kawasho Gecoss Co., Ltd.”

June 2000                     Relocated the head office to the current address.

July 2004                      Took the current company name.

August 2005                  ISO9001 certified.

 

 

TRADE REFERENCES

 

*Suppliers*

==========

JFE Trading Corp.

 

 

*Customers*

==========

Shimizu Corp.

Kajima Corp.

Taisei Corp.

Obayashi Corp.

Toda Corp.

 

 

MAJOR SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

 

Company name:            Rental System Tohoku Co., Ltd.

Country:                        Japan

Status:                         Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            Rental System Fuyo Co., Ltd.

Country:                        Japan

Status:                          Subsidiary 

----------------------------------------------------------------------------------------------------

Company name:            Rental System Nishi-Nippon Co., Ltd.

Country:                        Japan

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.21

UK Pound

1

Rs.97.80

Euro

1

Rs.77.48

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

 

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