MIRA INFORM REPORT
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Report No. : |
316660 |
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Report Date : |
20.04.2015 |
IDENTIFICATION DETAILS
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Name : |
NEW COSMOS ELECTRIC CO LTD |
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Registered Office : |
2-5-4 Mitsuyanaka Yodogawaku Osaka 532-0036 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
June, 1960 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Gas Warning Devices. |
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No. of Employees : |
547 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limits : |
Yen 695.0 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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. Since the complete
shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster
in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to
contract during the 2nd and 3rd quarters of 2014. The economy has largely
recovered in the three years since the disaster, but reconstruction in the
Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a longstanding debate on
restructuring the economy and reining in Japan's huge government debt, which
amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the
final phase of the increase until 2017 to give the economy time to recover from
the 2014 increase. 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.
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Source
: CIA |
Company
Name and address
NEW COSMOS ELECTRIC CO LTD
REGD NAME: Shin
Cosmos Denki KK
MAIN OFFICE: 2-5-4
Mitsuyanaka Yodogawaku Osaka 532-0036 JAPAN
Tel: 06-6308-3112 Fax: 06-6303-1295 -
URL: http://www.new-cosmos.co.jp
E-Mail address: e-info@new-cosmos.co.jp
ACTIVITIES
Mfg of gas warning
devices
BRANCHES
Tokyo, Nagoya,
Sapporo, Sendai, Niigata, Shizuoka, other (Tot 17)
OVERSEAS
Taiwan, China,
Korea, and Netherlands
FACTORIES
Osaka (2)
CHIEF
EXEC
TESSI SHIGEMORI,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 18,941 M
PAYMENTSREGULAR CAPITAL Yen
1,460 M
TREND UP WORTH Yen
23,755 M
STARTED 1960 EMPLOYES 547
COMMENT
MFR OF GAS WARNING DEVICES
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 695.0 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast
figures for the 31/03/2015 fiscal term.
HIGHLIGHTS
This is the
top-ranked mfr of gas warning devices.
Has strengths in sensors for home and industrial use.
Stressing R&D
based on original gas sensor technology.
FINANCIAL
INFORMATION
The sales volume
for Mar/2014 fiscal term amounted to Yen 18,941 million, a 0.4% up from Yen
18,874 million in the previous term. The
recurring profit was posted at Yen 2,143 million and the net profit at Yen
1,354 million, respectively, compared with Yen 1,971 million recurring profit
and Yen 1,270 million net profit, respectively, a year ago.
For the term that
ended Mar 2015 the recurring profit was projected at Yen 2,033 million and the
net profit at Yen 1,330 million, respectively, on a 2.2% rise in turnover, to
Yen 19,362 million. Final results are yet to be released.
The financial
situation is considered FAIR and good for ORDINARY business engagements. Max credit
limit is estimated at Yen 695.0 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Jun 1960
Legal Status: Limited
Company (Kabushiki Kaisha
Authorized:
50 million shares
Issued: 12,561,000
shares
Sum: Yen
1,460 million
Major
shareholders (%): Iwatani Corp (20.7), RK Co (4.5), Consumers’ S/Holding Assn (4.2),
Tadashi Hatta (4.0), Mitsuko Kasahara (3.7), other; foreign owners (0.0)
No.
of shareholders: 740
Listed on the S/Exchange (s) of: JASDAQ (TOKYO)
Managements: Tesshi
Shigemori, pres; Tamio Kamidokoro, v pres; Yoshiyuki Matsubara, v pres;
Yoshinori Takahashi, v pres; Tatsushi Iimori, mgn dir; Takao Kanai, dir;
Katsunosuke Aikawa, dir; Tatsuhito Beppu, dir
Nothing detrimental
is known as to the commercial morality of executives.
OPERATION
Activities: Manufactures home
use gas warning devices (46%), industrial fixed-type gas detectors (29%),
commercial portable gas detectors (24%), others (1%)
Clients: [Mfrs, wholesalers]
Iwatani Corp, Osaka Gas (14.3%), Toho Gas, Nippon Air Liquid, other
No. of accounts:
500
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] New Cosmos Electric
Maintenance, Cosmos Service, other
Payment record: Regular
Location: Business area in
Osaka. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
MUFG (Juso)
Mizuho Bank (Osaka)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME STATEMENT |
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Annual Sales |
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18,941 |
18,874 |
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Cost of Sales |
10,182 |
10,502 |
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GROSS PROFIT |
8,759 |
8,372 |
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Selling & Adm Costs |
6,729 |
6,476 |
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OPERATING PROFIT |
2,029 |
1,895 |
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Non-Operating P/L |
14 |
76 |
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RECURRING PROFIT |
2,143 |
1,971 |
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NET PROFIT |
1,354 |
1,270 |
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BALANCE SHEET |
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Cash |
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10,784 |
11,356 |
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Receivables |
5,855 |
6,314 |
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Inventory |
3,201 |
3,118 |
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Securities, Marketable |
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Other Current Assets |
286 |
201 |
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TOTAL CURRENT ASSETS |
20,126 |
20,989 |
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Property & Equipment |
4,936 |
3,918 |
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Intangibles |
648 |
444 |
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Investments, Other Fixed Assets |
3,292 |
3,050 |
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TOTAL ASSETS |
29,002 |
28,401 |
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Payables |
2,267 |
2,857 |
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Short-Term Bank Loans |
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Other Current Liabs |
1,751 |
1,929 |
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TOTAL CURRENT LIABS |
4,018 |
4,786 |
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Debentures |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
1,042 |
1,107 |
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Other Debts |
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186 |
175 |
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TOTAL LIABILITIES |
5,246 |
6,068 |
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MINORITY INTERESTS |
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Common
stock |
1,460 |
1,460 |
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Additional
paid-in capital |
934 |
934 |
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Retained
earnings |
20,923 |
19,809 |
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Evaluation
p/l on investments/securities |
517 |
313 |
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Others |
206 |
101 |
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Treasury
stock, at cost |
(285) |
(285) |
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TOTAL S/HOLDERS` EQUITY |
23,755 |
22,332 |
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TOTAL EQUITIES |
29,002 |
28,401 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash
Flows from Operating Activities |
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1,531 |
2,034 |
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Cash
Flows from Investment Activities |
-1,932 |
-1,330 |
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Cash
Flows from Financing Activities |
-272 |
-273 |
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Cash,
Bank Deposits at the Term End |
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10,674 |
11,246 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
23,755 |
22,332 |
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Current
Ratio (%) |
500.90 |
438.55 |
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Net
Worth Ratio (%) |
81.91 |
78.63 |
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Recurring
Profit Ratio (%) |
11.31 |
10.44 |
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Net
Profit Ratio (%) |
7.15 |
6.73 |
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Return
On Equity (%) |
5.70 |
5.69 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.35 |
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1 |
Rs.93.10 |
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Euro |
1 |
Rs.67.13 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.