MIRA INFORM REPORT

 

 

Report Date :

30.07.2014

 

IDENTIFICATION DETAILS

 

Name :

CXS CORPORATION

 

 

Registered Office :

Yamashitacho SSK Bldg, 22 Yamashitacho Nakaku Yokohama 231-0023

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

March, 1995

 

 

Com. Reg. No.:

0100-01-149026 (Yokohama-Nakaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Mfg of cleaning waxes, detergents, cleaners for business-use

 

 

No. of Employees

373

 

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 212.4 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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 and adress

 

CXS CORPORATION (Renamed in July 2014 from Diversey Co Ltd)

REGD NAME:    CxS KK.

MAIN OFFICE:  Yamashitacho SSK Bldg, 22 Yamashitacho Nakaku Yokohama 231-0023 JAPAN

                        Tel: 045-640-2200      Fax: 045-640-2230

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of cleaning waxes, detergents, cleaners for business-use

 

 

BRANCHES

 

Tokyo, Osaka, Sendai, Nagoya, Kyoto, Fukuoka, other (Tot 10)

 

 

FACTORIES

 

Kakegawa (Shizuoka-Pref)

 

 

OFFICERS

 

TOSHIRO MISUMI, PRES         

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 25,309 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 490 M

TREND UP                                WORTH            Yen 8,105 M

STARTED         1995                             EMPLOYES      373

 

 

COMMENT    

 

MFR OF CLEANING WAXES, DETERGENTS FOR BUSINESS-USE.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 212.4 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established originally in 1962 by Sealed Air Corp as Jonson Japan Inc for mfg cleaning, sanitation & hygiene products and solutions to institutional customers.  In 1995 merged group firms and restarted.  In Oct 2012 Sealed Air Corp sold the firm to Carlyle Group, and then the firm merged with the Group’s subsidiary DC Corp.  In Jan 2013 the firm changed the corporate style to Limited Company from the Godo Kaisha (GK), and in July 2014 by MBO the firm went under the subsidiary of CJP DC Holdings and renamed as captioned.  This is a specialized mfr of cleaning waxes, cleaners, detergents, others for business-use.  Clients include supermarkets, carmakers, food stores, and other, nationwide.

 

 

FINANCIAL INFORMATION

           

The sales volume for Dec/2013 fiscal term amounted to Yen 25,309 million.  The recurring profit was posted at Yen 1,025 million and the net profit at Yen 727 million.

 

For the current term ending Dec 2014 the recurring profit is projected at Yen 1,050 million and the net profit at Yen 750 million, respectively on a 5% rise in turnover, to Yen 26,600 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen212.4 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:                      Mar 1995

Regd No.:                                             0100-01-149026 (Yokohama-Nakaku)

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                               86,760 shares

Issued:                                      86,760 shares

Sum:                                        Yen 4,338 million

Major shareholders (%):           CJP DC Holdings Inc (100)

 

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

 

 

OPERATION

           

Activities: Manufactures cleaning, sanitation and hygiene products and solutions to institutional customers: cleaning waxes, cleaners, detergents, others (--100%)

 

Clients: [Mfrs, wholesalers, restaurants, hotels] Ito-Yokado, Toyota Motor, Seven & I Food Systems, Skylark group, Lotteria Co, Hakuyosha Japan, other 

            No. of accounts: 400

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Solutia Japan, KF Trading, BASF Japan, Shoei Yakuhin Co, Toa Gosei Co, other

 

Payment record: No Complaints

 

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

 

Bank References:

Mizuho Bank (H/O)

SMBC (Marunouchi)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/12/2014

31/12/2013

Annual Sales

　

26,600

25,309

Recur. Profit

　

1,050

1,025

Net Profit

　

750

727

Total Assets

　

　

45,389

Current Assets

　

　

12,455

Current Liabs

　

　

6,720

Net Worth

　

　

8,105

Capital, Paid-Up

　

　

4,338

Div.P.Share(¥)

　

　

0.00

<Analytical Data>

(%)

(%)

    S.Growth Rate

5.10

- - -

    Current Ratio

 

..

185.34

    N.Worth Ratio

..

17.86

    R.Profit/Sales

 

3.95

4.05

    N.Profit/Sales

2.82

2.87

    Return On Equity

..

8.97

 

Notes: Forecast (or estimated) figures for the 31/12/2014 fiscal term.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.102.04

Euro

1

Rs.80.74

                

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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%)

 

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