MIRA INFORM REPORT

 

 

Report No. :

326431

Report Date :

15.06.2015

 

IDENTIFICATION DETAILS

 

Name :

CORNES & CO LTD

 

 

Registered Office :

Cornes House, 3-5-1 Shiba Minatoku Tokyo 105-0014

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

May, 1947

 

 

Com. Reg. No.:

0104-03-004073 (Tokyo-Minatoku)

 

 

Legal Form :

Branch Office

 

 

Line of Business :

Trading Firm.

 

 

No. of Employees :

136

 

 

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 138.5 Million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

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 and address

 

CORNES & CO LTD

 

REGD NAME:               Cornes & Co Ltd

 

MAIN OFFICE:              Cornes House, 3-5-1 Shiba Minatoku Tokyo 105-0014 JAPAN

                                                Tel: 03-5730-1660      Fax: 03-5730-1128

 

                                                *.. The given address is its Hokkaido Branch

 

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

E-Mail address:                        sales@cornes.co.jp

 

 

ACTIVITIES

 

Trading firm

 

 

BRANCHES

 

Yokohama, Kobe, Hokkaido

 

 

OVERSEAS

 

Hong Kong (Parent Office)

 

 

OFFICERS

 

KENSAKU WATARI, PRES        Shin’ichiro Watari, ch

Takao Watanabe, s/mgn dir        Hideto Nambutani, dir

Tatsunobu Narita, dir    

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

           

FINANCES        FAIR                 A/SALES                      Yen 3,780 M

PAYMENTSREGULAR   CAPITAL                       HK$ 2,500 M

TREND UP                    WORTH                        Yen 10,837 M

STARTED         1947                 EMPLOYES                  136

 

 

COMMENT

 

TRADING FIRM, OWNED BY CORNES & CO, HONG KONG.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 138.5 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established originally in 1861 by Frederick Cornes & his partner. as a Japan branch. This is a trading firm, owned by Cornes & Co, Hong Kong, for import, export and wholesale of motorcars, electronics & industrial equipment, maritime charts, others. In Apr 2014, the firm’s profits increased due to the extra dividend payment received from group companies.  Clients include public agencies, business firms, other

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 3,780 million, an 8% up from Yen 3,500 million in the previous term.  The recurring profit was posted at Yen 1,227 million and the net profit at Yen 1,963 million, respectively, compared with Yen 1,000 million recurring profit and Yen 970 million net losses, respectively, a year ago.  The Apr/2014 profits increased extra dividend payment from group firms.

 

For the term that ended Mar 2015 the recurring profit was projected at Yen 1,300 million and the net profit at Yen 980 million, respectively, on a 5% rise in turnover, to Yen 3,970 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 138.5 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:                       May 1947

Regd No.:                                 0104-03-004073 (Tokyo-Minatoku)

Legal Status:                Branch Office

Capital:                                    HK$ 2,500 million

Major shareholders (%):           Cornes Holdings Overseas, Hong Kong (100)

 

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

 

 

 

 

OPERATION

           

Activities: Trading firm for import, export and wholesale of: electronics & industrial equipment, agricultural machinery, maritime survey & charts, biogas plants, insurance brokerage, ship agency, other (--100%)

 

Clients: Public agencies, business firms, consumers, ship owners, food makers, insurance companies, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Supplied by the Hong Kong parents and group firms

 

Payment record: Regular

 

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

 

Bank References:

            Mizuho Bank (H/O)

            Hong Kong & Shanghai Banking (Tokyo)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

3,970

3,780

3,500

19,824

Recur. Profit

 

1,300

1,227

1,000

171

Net Profit

 

980

1,963

970

-277

Total Assets

 

 

19,194

16,300

17,112

Current Assets

 

 

5,584

4,300

4,919

Current Liabs

 

 

3,007

2,800

4,906

Net Worth

 

 

10,837

10,300

9,333

Capital, Paid-Up

 

 

 

 

 

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.03

8.00

-82.34

-19.74

    Current Ratio

 

..

185.70

153.57

100.26

    N.Worth Ratio

 

..

56.46

63.19

54.54

    R.Profit/Sales

 

32.75

32.46

28.57

0.86

    N.Profit/Sales

 

24.69

51.93

27.71

-1.40

    Return On Equity

 

..

18.11

9.42

-2.97

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.03

UK Pound

1

Rs.99.27

Euro

1

Rs.71.90

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

 

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.