MIRA INFORM REPORT

 

 

Report No. :

348601

Report Date :

05.11.2015

 

IDENTIFICATION DETAILS

 

Name :

TOKYO COSMOS ELECTRIC CO LTD

 

 

Registered Office :

2-12-1 Sobudai Zama City Kanagawa-Pref 252-8550

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

April 1947

 

 

Com. Reg. No.:

0210-01-028329

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures variable resistors (49%), automotive electrical components (sheets sensors other) (44%), others (6%)

 

 

No. of Employees :

966

 

 

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 Limits :

YEN 233.3 Million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

 

Company SUMMARY

 

TOKYO COSMOS ELECTRIC CO LTD

 

REGD NAME:   Tokyo Cosmos Denki KK

MAIN OFFICE:  2-12-1 Sobudai Zama City Kanagawa-Pref 252-8550 JAPAN

                                    Tel: 046-253-2111     Fax: 046-253-3640-     -

 

URL:                 http://www.tokos-j.cl.jp

E-Mail address: (thru the URL)

 

ACTIVITIES:     Mfg of variable resistors, automotive electric components, sensors

BRANCHES:     Kanagawa, Tokyo

OVERSEAS:     Worldwide

FACTORIES:    At the caption address; China (2)

 

CHIEF EXEC:   HIDEMI TAKAHASHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY       FINANCES        FAIR                                         A/SALES          Yen 7,670 M

PAYMENTS      SLOW BUT CORRECT               CAPITAL           Yen 1,277 M

TREND STEADY                                   WORTH            Yen 3,924 M

STARTED         1947                                         EMPLOYES      966

 

 

COMMENT    

 

MFR OF VARIABLE RESISTORS, SENSORS, OTHER 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 233.3 MILLION, 30 DAYS NORMAL TERMS

 

 

Unit: In Million Yen

Forecast figures for the 31/03/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is a major mfr of variable resistors, mainly for industrial machinery.  Diversifying from the specialization in variable resistors to hybrid ICs, and automobile-use flexible heating sheets & sensor parts.  The company started operation of new lines for motorcycle sensors at its plant in Yantai, Chine in January 2014, aiming to strengthen marketing of these products in China & Taiwan.  It will promote newly-launched small wireless modules, appealing its ease of use and energy-saving performances.  The overseas sales ratio including direct export is around 20%.  In 2010, it consolidated its three plants in Aizu, Fukushima, selling the site for construction of post-earthquake housing.  The company merged with the subsidiary Cosmos Kosan in October 2015.

 

 

FINANCIAL INFORMATION:

 

The sales volume for Mar/2015 fiscal term amounted to Yen 7,670 million, a 1.9% up from Yen 7,525 million in the previous term.   The recurring profit was posted at Yen 236 million and the net profit at Yen 67 million, respectively, compared with Yen 544 million recurring profit and Yen 363 million net profit, respectively, a year ago. 

 

(Apr/Jun/2015 results): Sales Yen 1,793 million (up 2.4%), operating profit Yen 13 million (down 39.3%), recurring profit Yen 33 million (up 48.8%), net profit Yen 47 million (up 515.4%).  (% as compared with the corresponding period a year ago).

           

For the current term ending Mar 2016 the recurring profit is projected at Yen 350 million and the net profit at Yen 230 million, on a 1.7% rise in turnover, to Yen 7,800 million.  Demand for variable resistors for power supplies will be strong.  Sales of automotive electrical components will hold firm, backed by start of mass production. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 233.3 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　          Apr 1947

Regd No.:                                 0210-01-028329 (Kanagawa-Zama)

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              42 million shares

Issued:                         15,812,500 shares

Sum:                            Yen 1,277 million

 

Major shareholders (%): Customers’ S/Holding Assn (4.3), Mitsubishi Corp (4.3), SECOM General Ins (3.0), Toshio Shimizu (2.7), MUFG (2.7), Okasan Security Group (2.5), Izumi Toda (2.3), ITJ Law Office (1.7), Matsui Securities (1.4), Company’s S/Holding Assn (1.4); foreign owners (0.3)

 

No. of shareholders: 2,045

 

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

 

Managements: Hidemi Takahashi, pres; Yoshinori Inose, mgn dir; Hiroharu Murakami, dir; Hiroyuki Ito, dir; Masanori Ono, dir

 

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

 

 

OPERATION

           

Activities: Manufactures variable resistors (49%), automotive electrical components (sheets sensors other) (44%), others (6%)

Overseas Sales Ratio (28%)

           

Clients: [Mfrs, wholesalers] Hitachi Automotive Systems, Hiramatsu, Cosmos Electronic

Sales, Mahle Filter Systems, other

Exports to China, Taiwan, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsubishi Shoji Plastic, Tokuriki Honten, Shin-Etsu

Precision, other

 

Payment record: Slow but correct

 

Location: Business area in Zama City, Kanagawa-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

 

Bank References

            MUFG (Jinbocho)

            Resona Bank (Kanda)

            Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

7,670

7,525

　

  Cost of Sales

6,206

5,737

　

      GROSS PROFIT

1,463

1,787

　

  Selling & Adm Costs

1,363

1,286

　

      OPERATING PROFIT

100

501

　

  Non-Operating P/L

136

43

　

      RECURRING PROFIT

236

544

　

      NET PROFIT

67

363

BALANCE SHEET

　

　

  Cash

　

1,427

1,637

　

  Receivables

1,847

1,972

　

  Inventory

1,298

1,524

　

  Securities, Marketable

　

　

　

  Other Current Assets

620

337

　

      TOTAL CURRENT ASSETS

5,192

5,470

　

  Property & Equipment

2,670

2,569

　

  Intangibles

13

7

　

  Investments, Other Fixed Assets

825

731

　

      TOTAL ASSETS

8,700

8,777

　

  Payables

485

1,051

　

  Short-Term Bank Loans

582

120

　

　

　

　

　

  Other Current Liabs

1,666

1,303

　

      TOTAL CURRENT LIABS

2,733

2,474

　

  Debentures

22

57

　

  Long-Term Bank Loans

455

966

　

  Reserve for Retirement Allw

1,011

870

　

  Other Debts

　

555

602

　

      TOTAL LIABILITIES

4,776

4,969

　

      MINORITY INTERESTS

　

　

Common stock

1,277

1,277

　

Additional paid-in capital

3

3

　

Retained earnings

1,910

1,925

　

Evaluation p/l on investments/securities

116

63

　

Others

638

558

　

Treasury stock, at cost

(20)

(19)

　

      TOTAL S/HOLDERS` EQUITY

3,924

3,807

　

      TOTAL EQUITIES

8,700

8,777

 

 

 

 

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

444

718

　

Cash Flows from Investment Activities

-257

120

　

Cash Flows from Financing Activities

-350

-1,059

　

Cash, Bank Deposits at the Term End

　

1,277

1,401

 

 

 

 

 

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

3,924

3,807

　

Current Ratio (%)

189.97

221.10

　

Net Worth Ratio (%)

45.10

43.37

　

Recurring Profit Ratio (%)

3.08

7.23

　

Net Profit Ratio (%)

0.87

4.82

　

　

Return On Equity (%)

1.71

9.54

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.57

UK Pound

1

Rs.101.13

Euro

1

Rs.71.80

 

INFORMATION DETAILS

 

Analysis Done by :

AMR

 

 

Report Prepared by :

TRU

 

               

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.