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Report No. : |
313477 |
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Report Date : |
23.03.2015 |
IDENTIFICATION DETAILS
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Name : |
DENSO CORPORATION |
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Formerly Known as : |
Nippon Denso Co., Ltd. |
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Registered Office : |
1-1 Showacho Kariya city Aichi 448-0029 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 (Consolidated) |
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Date of Incorporation : |
December 1949 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
· Engaged as supplier of Advanced Automotive Technology, Systems and components for the major automakers. · Subject products lines are Thermal Systems, Power Train Control Systems, Electronic Systems, Electric Motors, Industrial Systems & Consumer Products |
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No of Employees : |
51,135 |
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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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
|
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.
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.
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Source
: CIA |
DENSO CORPORATION
KK DENSO
1-1 Showacho
Kariya city Aichi 448-0029 JAPAN
Tel:
0566-25-5511 Fax: no available on the
general information
URL: http://www.denso.co.jp
E-Mail address: (thru the URL)
· Engaged as supplier of Advanced Automotive Technology, Systems and components for the major automakers.
·
Subject products ranges are Thermal Systems,
Power Train Control Systems, Electronic Systems, Electric Motors, Industrial
Systems & Consumer Products
Tokyo, Utsunomiya(Tochigi),
Osaka, Hiroshima
Kariya(Aichi),
Anjou(Aichi), Nishio(Aichi), Toyohashi(Aichi), Inabe(Mie), other
NOBUAKI
KATO, PRES
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 4,095,925 M
PAYMENTSREGULAR CAPITAL Yen
187,457 M
TREND UP WORTH Yen 2,823,346 M
STARTED 1949 EMPLOYES 51,135
MANUFACTURER/DEVELOPER OF
AUTOMOTIVE COMPONENTS.
FINANCIAL SITUATION COnSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
|
Terms Ending |
Annual Sales* |
R.Profit* |
N.Profit* |
S.Growth |
Net Worth* |
|
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Results: |
31/03/2011 |
3,131,460 |
207,228 |
143,033 |
(%) |
2,072,443 |
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(Consolidated) |
31/03/2012 |
3,154,630 |
180,754 |
89,298 |
0.74 |
2,117,201 |
|
31/03/2013 |
3,580,923 |
296,017 |
181,682 |
13.51 |
2,426,861 |
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31/03/2014 |
4,095,925 |
419,571 |
287,388 |
14.38 |
2,823,346 |
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31/03/2015 |
4,270,000 |
400,000 |
264,000 |
1.08 |
3,087,346 |
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Forecast (or estimated)
figures for 2015 term. |
*..Unit: Million Yen |
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After becoming independent from Toyota Motors, the subject company was founded
as Nippon Denso Co., Ltd. in 1949. The company name was changed from Nippon
Denso Co., Ltd. to Denso Corp. in 1996. It is a leading supplier of advanced
automotive technology, systems and components for the major automakers. It’s
mainly products are thermal systems, power train control systems, electronic
systems, electric motors, industrial systems & consumer products. Since
2009, it is the world’s biggest auto-parts manufacturer by revenue.
The sales volume for March/2014 fiscal term amounted to Yen 4,095
million, a 14% up from Yen 3,580 million in the previous term. The recurring profit was posted at Yen 420
million and the net profit at Yen 287 million, respectively, compared with Yen
296 million recurring profit and Yen 182 million net profit, respectively, a
year ago.
For the current term ending March 2015 the recurring profit is projected
at Yen 400 million and the net profit at Yen 264 million, respectively, on a 1%
rise in turnover, to Yen 4,270 million.
Final results are yet to be released.
Profit is estimated to be decreased due to weak Yen trend.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
Date Registered: December 1949
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 1,500 million shares
Issued: 884 million shares
Sum: Yen 187,457 million
Major shareholders (%): Toyota Motors(22.3), Toyota
Shokki(7.9), Towa Realestate(3.8)
No. of shareholders: 51,135
Listed on the S/Exchange (s) of:
Tokyo, Nagoya
Managements:
NOBUAKI
KATO, PRES
Koichi
Fukaya, ch Masahiko Miyaki,
vp
Koji
Kobayashi, vp Akio Shikamura,
vp
Haruya
Maruyama, vp Shinji Shirasaki, dir
Akio Tajima,
dir Michio Adachi, dir
Hiroyuki
Wakabayashi, dir Satoshi Iwata, dir
Masahiko
Ito, dir Shoichiro Toyota,
dir
Nothing detrimental is known as
to the commercial morality of executives.
Related companies:
Kyosan, Anden, Hamanako and others
Activities: mfg/developing of automotive
components
Clients: [Mfrs, wholesalers] Toyota Motors
Corp, Honda Motor Corp, Mazda Motor Corp, Daihatsu Motor Corp, Fuji Heavy
Industry Corp and others
No. of accounts: Unavailable
Domestic areas of activities:
Nationwide
Suppliers: Oki
Densen, Hitachi Densen, 3M Japan and others
Payment record:
Regular
Location: Business area in Aichi. Office premises at the caption address are owned
and maintained satisfactorily.
Bank References:
MUFG
(Nagoya)
SMBC
Relations:
Satisfactory
(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 |
4,095,925 |
3,580,923 |
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Cost of Sales |
3,341,834 |
3,007,614 |
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GROSS PROFIT |
754,091 |
573,309 |
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Selling & Adm Costs |
376,395 |
310,933 |
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OPERATING PROFIT |
377,696 |
262,376 |
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Non-Operating P/L |
41,875 |
33,641 |
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RECURRING PROFIT |
419,571 |
296,017 |
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NET PROFIT |
287,388 |
181,682 |
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BALANCE SHEET |
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Cash |
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607,618 |
665,152 |
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Receivables |
644,559 |
586,312 |
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Inventory |
422,425 |
370,662 |
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Securities, Marketable |
426,490 |
430,052 |
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Other Current Assets |
240,555 |
229,708 |
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TOTAL CURRENT ASSETS |
2,341,647 |
2,281,886 |
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Property & Equipment |
1,043,676 |
886,160 |
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Intangibles |
23,941 |
15,456 |
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Investments, Other Fixed Assets |
1,033,243 |
795,591 |
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TOTAL ASSETS |
4,442,507 |
3,979,093 |
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Payables |
493,933 |
456,603 |
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Short-Term Bank Loans |
87,165 |
56,272 |
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Other Current Liabs |
449,918 |
460,671 |
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TOTAL CURRENT LIABS |
1,031,016 |
973,546 |
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Debentures |
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Long-Term Bank Loans |
228,578 |
261,248 |
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Reserve for Retirement Allw |
1,669 |
199,059 |
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Other Debts |
357,898 |
118,379 |
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TOTAL LIABILITIES |
1,619,161 |
1,552,232 |
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MINORITY INTERESTS |
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Common
stock |
187,457 |
187,457 |
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Additional
paid-in capital |
269,497 |
267,332 |
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Retained
earnings |
2,184,238 |
1,933,814 |
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Evaluation
p/l on investments/securities |
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Others |
402,274 |
262,763 |
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Treasury
stock, at cost |
(220,120) |
(224,505) |
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TOTAL S/HOLDERS` EQUITY |
2,823,346 |
2,426,861 |
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TOTAL EQUITIES |
4,442,507 |
3,979,093 |
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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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462,799 |
374,775 |
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Cash
Flows from Investment Activities |
-390,318 |
-269,183 |
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Cash
Flows from Financing Activities |
-154,976 |
-98,519 |
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Cash,
Bank Deposits at the Term End |
|
641,694 |
707,330 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
2,823,346 |
2,426,861 |
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Current
Ratio (%) |
227.12 |
234.39 |
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Net
Worth Ratio (%) |
63.55 |
60.99 |
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Recurring
Profit Ratio (%) |
10.24 |
8.27 |
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Net
Profit Ratio (%) |
7.02 |
5.07 |
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Return
On Equity (%) |
10.18 |
7.49 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.29 |
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UK Pound |
1 |
Rs.93.02 |
|
Euro |
1 |
Rs.67.36 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
MNL |
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 |
|
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 |
-- |
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.