MIRA INFORM REPORT

 

 

Report No. :

319943

Report Date :

30.04.2015

 

IDENTIFICATION DETAILS

 

Name :

JAPAN CASH MACHINE CO LTD

 

 

Registered Office :

2-3-15 Nishiwaki Hiranoku Osaka 547-0035

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

January 1955

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures money processing terminals (69%), game parlor equipment (31%).

 

 

No. of Employees :

643

 

 

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 1,208.6 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 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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. 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.

 

Source : CIA

 

 

Company name

 

JAPAN CASH MACHINE CO LTD

 

 

REGD NAME

 

Nihon Kinsen Kikai KK

 

 

MAIN OFFICE

 

2-3-15 Nishiwaki Hiranoku Osaka 547-0035 JAPAN

Tel: 06-6703-8400    Fax: 06-6707-0348

 

URL:                 http://www.jcm-hq.co.jp/

E-Mail address: (thru the URL)

 

ACTIVITIES:     Mfg electronic cash register, money processing terminals

 

BRANCHES:     Tokyo, Sendai, Shizuoka, Nagoya, Osaka, Kagawa, Hiroshima, Fukuoka

OVERSEAS:     USA, Hong Kong (2), Germany, UK, Bulgaria, Thailand (--subsidiaries)

FACTORIES:    Nagahama; Kofu, Sagamihara (--laboratories)

 

CHIEF EXEC:   YOJIRO KAMIHIGASHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 27,806 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 2,216 M

TREND             UP                                WORTH            Yen 27,223 M

STARTED         1955                             EMPLOYES      643

 

COMMENT:      MFR OF ELECTRONIC CASH REGISTER AND OTHER MONEY PROCESSING TERMINALS. FINANCIAL SITUATION COSIDERED FARI AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 1,208.6 MILLION, 30 DAYS NORMAL TERMS

 

 

 

 

Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2015 fiscal term

 

 

HIGHLIGHTS

 

This is major mfr of coin counters and other money processing terminals, ranking top in US dollar bill validators for casinos and game arcades.  Also produces cash registers, medal-dispensing machines for pachinko parlors, etc.  Ratio of exports mainly to the US and Europe.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 27,806 million, an 18.6% up from Yen 23,441 million in the previous term.  The recurring profit was posted at Yen 2,114 million and the net profit at Yen 1,418 million, respectively, compared with Yen 1,852 million recurring profit and Yen 1,432 million net profit, respectively, a year ago. 

 

(Apr/Dec/2014 results): Sales Yen 20,589 million (down 3.3%), operating profit Yen 1,124 million (down 27.2%), recurring profit Yen 2,145 million (up 11.6%), net profit Yen 1,730 million (up 28.9%).  (% as compared with the corresponding period a year ago). 

 

For the term that ended Mar 2015 the recurring profit was projected at Yen 1,750 million and the net profit at Yen 1,350 million, on a 0.3% rise in turnover, to Yen 27,900 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 1,208.6 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　    Jan 1955

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  118 million shares

Issued:                         29,662,851 shares

Sum:                            Yen 2,216 million

 

Major shareholders (%): Joto Kosan Co (15.7), Koichiro Kamihigashi (9.1), Company’s Treasury Stock (9.0), Yojiro Kamihigashi (4.9), Tamotsu Kamhigashi (2.9), Resona Bank (2.1), others; foreign owners (1.6)

           

No. of shareholders: 20,921

 

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

 

Managements: Koichiro Kamihigashi, ch; Yojiro Kamihigashi, pres; Hisashi Maki, mgn dir; Akiyoshi Isoi, mgn dir; Hikaru Izawa, mgn dir; Hideji Naruo, dir; Tsuyoshi Takagaki, dir; Yasuhiko Yoshimura, dir; Brian Andrew Smith, dir; Koji Yoshikawa, dir

 

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

 

Related companies: JAC, JCMG, JCM (HK), JTS, JCM Meiho, other.

 

 

OPERATION

           

Activities: Manufactures money processing terminals (69%), game parlor equipment (31%).

 

Overseas Sales Ratio (62%)

 

Clients: [Electronic mfrs, game centers] JCM Systems, JCM Gold, Fujitsu Ltd, JCM Europe, NEC Corp, other.

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] JCM Hong Kong Ltd, Tachibana Eletech, Fish M Advance, Wada Seiko Toyo Networks & System Integration, other.

 

Payment record: No Complaints

 

 

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

 

Bank References:

Resona Bank (Namba)

SMBC (Abeno)

Relations: Satisfactory

 

 

FINANCES

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

　

　

  Annual Sales

　

27,806

23,441

　

  Cost of Sales

17,945

14,484

　

      GROSS PROFIT

9,861

8,957

　

  Selling & Adm Costs

8,099

7,627

　

      OPERATING PROFIT

1,761

1,330

　

  Non-Operating P/L

353

522

　

      RECURRING PROFIT

2,114

1,852

　

      NET PROFIT

1,418

1,432

BALANCE SHEET

　

　

  Cash

　

9,813

7,810

　

  Receivables

6,559

5,071

　

  Inventory

9,727

9,069

　

  Securities, Marketable

107

135

　

  Other Current Assets

729

812

　

      TOTAL CURRENT ASSETS

26,935

22,897

　

  Property & Equipment

5,112

4,831

　

  Intangibles

69

78

　

  Investments, Other Fixed Assets

1,567

1,643

　

      TOTAL ASSETS

33,683

29,449

　

  Payables

3,767

2,515

　

  Short-Term Bank Loans

　

　

　

　

　

　

　

  Other Current Liabs

2,190

1,994

　

      TOTAL CURRENT LIABS

5,957

4,509

　

  Debentures

　

　

　

  Long-Term Bank Loans

　

　

　

  Reserve for Retirement Allw

　

　

　

  Other Debts

　

502

645

　

      TOTAL LIABILITIES

6,459

5,154

　

      MINORITY INTERESTS

　

　

Common stock

2,216

2,216

　

Additional paid-in capital

2,068

2,068

　

Retained earnings

25,520

24,614

　

Evaluation p/l on investments/securities

62

76

　

Others

(315)

(2,355)

　

Treasury stock, at cost

(2,328)

(2,325)

　

      TOTAL S/HOLDERS` EQUITY

27,223

24,294

　

      TOTAL EQUITIES

33,683

29,449

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

2,098

918

　

Cash Flows from Investment Activities

-545

-166

　

Cash Flows from Financing Activities

-626

-537

　

Cash, Bank Deposits at the Term End

　

8,488

6,982

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

27,223

24,294

　

Current Ratio (%)

452.16

507.81

　

Net Worth Ratio (%)

80.82

82.50

　

Recurring Profit Ratio (%)

7.60

7.90

　

Net Profit Ratio (%)

5.10

6.11

　

　

Return On Equity (%)

5.21

5.89

 

 

           

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.20

UK Pound

1

Rs.97.00

Euro

1

Rs.69.34

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TPT

 

               


 

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.