MIRA INFORM REPORT

 

 

Report Date :

24.02.2014

 

IDENTIFICATION DETAILS

 

Name :

Tokyo Cosmos Electric Co Ltd

 

 

Registered Office :

2-12-1 Sobudai Zama City Kanagawa-Pref 252-0011

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

April 1947

 

 

Com. Reg. No.:

0210-01-028329 (Kanagawa-Zama)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is specializes in variable resistors to hybrid ICs, automobile-use flexible heating sheets & sensor part

 

 

No. of Employees

966

 

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

 

Maximum Credit Limit :

Yen 176.8 Million

 

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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

 

TOKYO COSMOS ELECTRIC CO LTD

 

 

REGD NAME

 

Tokyo Cosmos Denki KK

 

 

MAIN OFFICE

 

2-12-1 Sobudai Zama City Kanagawa-Pref 252-0011 JAPAN

Tel: 046-253-2111     Fax: 046-253-3640-     -

 

URL:                 http://www.tokos-j.cl.jp

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Mfg of variable resistors, automotive electric components, sensors

 

BRANCHES   

 

Kanagawa, Tokyo

 

 

FACTORIES

 

At the caption address; Yantai (China)

 

 

CHIEF EXEC

 

HIDEMI TAKAHASHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

SUMMARY    

 

FINANCES        FAIR                                         A/SALES          Yen 6,740 M

PAYMENTSNo Complaints                CAPITAL           Yen 1,277 M

TREND SLOW                                      WORTH            Yen 3,528 M

STARTED         1947                                         EMPLOYES      966

 

 

COMMENT

 

MFR OF VARIABLE RESISTORS, SENSORS, OTHER 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 176.8 MILLION, 30 DAYS NORMAL TERMS

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

6,757

424

215

(%)

3,696

(Consolidated)

31/03/2011

8,784

704

389

30.00

3,080

 

31/03/2012

7,588

386

58

-13.62

3,148

 

31/03/2013

7,122

498

334

-6.14

3,528

 

31/03/2014

7,600

650

270

6.71

..

                        Unit: In Million Yen

Forecast figures for the 31/03/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is a major mfr of variable resistors, mainly for industrial machinery.  Diversifying  from the specialization in variable resistors to hybrid ICs, automobile-use flexible heating sheets & sensor parts.  The company started operation of new lines for motorcycle sensors at its plant in Yantai, Chine in January 2014, aiming to strengthen marketing of these products in China & Taiwan.  It will promote newly-launched small wireless modules, appealing its ease of use and energy-saving performances.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 7,122 million, a 6.1% down from Yen 7,588 million in the previous term.   The recurring profit was posted at Yen 498 million and the net profit at Yen 334 million, respectively, compared with Yen 386 million recurring profit and Yen 58 million net profit, respectively, a year ago. 

 

(Apr/Dec/2013 results): Sales Yen 5,996 million (up 3.6%), operating profit Yen 556 million (u 20.7%), recurring profit Yen 503 million (up 10.3%), net profit Ye 357 million (up 26.5%).  (% compared with the corresponding period a year ago).

           

For the current term ending Mar 20143 the recurring profit is projected at Yen 650 million and the net profit at Yen 370 million, on a 6.7% rise in turnover, to Yen 7,600 million.  Sales of variable resistors for amusement equipment are holding steady. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 176.8 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered: Apr 1947

Regd No.:         0210-01-028329 (Kanagawa-Zama)

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       42 million shares

Issued:                15,812,500 shares

Sum:                   Yen 1,277 million

 

Major shareholders (%): Customers’ S/Holding Assn (4.6), Mitsubishi Corp (4.3), SECOM General Ins (3.0), MUFG (2.7), Okasan Security Group (2.5), Toshio Shimizu (2.0), Tsuneo Maru (1.7), other

 

No. of shareholders: 1,931

 

Listed on the S/Exchange (s) of: Tokyo (second section)

 

Managements: Hidemi Takahashi, pres; Yoshinori Inose, mgn dir; Akira Yanagida, dir; Minoru Terada, dir; Hiroharu Murakami, dir

 

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

 

 

OPERATION

           

Activities: Manufactures variable resistors (45%), automotive electrical components (sheets sensors other) (48%), others (7%)

 

Overseas Sales Ratio (20%)

 

Clients: [Mfrs, wholesalers] Hitachi Automotive Systems, Hiramatsu, Cosmos Electronic

Sales, Mahle Filter Systems, other

Exports to China, Taiwan, other

No. of accounts: 500

Domestic areas of activities: Nationwide


Suppliers: [Mfrs, wholesalers] Mitsubishi Shoji Plastic, Tokuriki Honten, Shin-Etsu Precision, other

 

Payment record: No Complaints 

 

Location: Business area in Zama City, Kanagawa-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

MUFG (Jinbocho)

Resona Bank (Kanda)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

 

7,122

7,588

 

  Cost of Sales

5,384

5,929

 

      GROSS PROFIT

1,738

1,659

 

  Selling & Adm Costs

1,249

1,248

 

      OPERATING PROFIT

488

410

 

  Non-Operating P/L

10

-24

 

      RECURRING PROFIT

498

386

 

      NET PROFIT

334

58

BALANCE SHEET

 

 

 

 

  Cash

 

2,038

1,856

 

  Receivables

 

1,906

2,023

 

  Inventory

 

1,415

1,386

 

  Securities, Marketable

 

 

 

  Other Current Assets

369

224

 

      TOTAL CURRENT ASSETS

5,728

5,489

 

  Property & Equipment

2,515

2,796

 

  Intangibles

 

8

14

 

  Investments, Other Fixed Assets

697

777

 

      TOTAL ASSETS

8,948

9,076

 

  Payables

 

897

1,078

 

  Short-Term Bank Loans

240

340

 

 

 

 

 

 

  Other Current Liabs

1,351

1,363

 

      TOTAL CURRENT LIABS

2,488

2,781

 

  Debentures

 

112

187

 

  Long-Term Bank Loans

1,536

1,729

 

  Reserve for Retirement Allw

701

636

 

  Other Debts

 

582

594

 

      TOTAL LIABILITIES

5,419

5,927

 

      MINORITY INTERESTS

 

 

 

Common stock

1,277

1,277

 

Additional paid-in capital

 

 

 

Retained earnings

1,625

1,310

 

Evaluation p/l on investments/securities

52

13

 

Others

 

592

566

 

Treasury stock, at cost

(18)

(18)

 

      TOTAL S/HOLDERS` EQUITY

3,528

3,148

 

      TOTAL EQUITIES

8,948

9,075

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

 

656

53

 

Cash Flows from Investment Activities

-33

-353

 

Cash Flows from Financing Activities

-431

152

 

Cash, Bank Deposits at the Term End

 

1,591

1,356

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

3,528

3,148

 

 

Current Ratio (%)

230.23

197.38

 

 

Net Worth Ratio (%)

39.43

34.69

 

 

Recurring Profit Ratio (%)

6.99

5.09

 

 

Net Profit Ratio (%)

4.69

0.76

 

 

Return On Equity (%)

9.47

1.84

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.16

UK Pound

1

Rs.103.44

Euro

1

Rs.85.27

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.