MIRA INFORM REPORT

 

 

Report No. :

347594

Report Date :

28.10.2015

 

IDENTIFICATION DETAILS

 

Name :

GECOSS CORPORATION

 

 

Registered Office :

Hamacho Center Bldg, 2-31-1 Nihombashi-Hamacho Chuoku Tokyo 103-0007

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

June 1968

 

 

Com. Reg. No.:

0100-01-069981

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Leasing of construction steel scaffolding materials, construction machinery

 

 

No. of Employees :

1,110

 

 

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

 

Status :

Good

 

 

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 – 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 name

 

GECOSS CORPORATION

 

 

REGD NAME 

 

Gecoss KK

 

 

MAIN OFFICE

 

Hamacho Center Bldg, 2-31-1 Nihombashi-Hamacho Chuoku Tokyo 103-0007 JAPAN

Tel: 03-3660-0777     Fax: 03-3660-0788     -

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Leasing of construction steel scaffolding materials, construction machinery

 

 

BRANCHES   

 

Nationwide (Tot 29)

 

 

OVERSEAS   

 

China, Asia, other (-- Business partners)

 

 

FACTORIES  

 

(--subsidiaries)

 

 

 

CHIEF EXEC 

 

TSUTOMU YUBA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 89,887 M

PAYMENTSREGULAR   CAPITAL           Yen 4,398 M

TREND UP                    WORTH        Yen 39,125 M

STARTED         1968                 EMPLOYES      1,110

 

 

COMMENT    

 

LEASING OF CONSTRUCTION SCAFFOLDING MATERIALS

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

                        Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is the top-ranked leasing firm for construction scaffolding materials, belonging to the JFE Group.  Also involved in temporary house installation, construction machine leasing, design and works.  Maintains high marketing efficiency and solid profit by direct sales without selling agencies in the markets.  Known for a wide range of customers, irrespective of affiliation, backed by its comprehensive nature and solid sales strengths based on the motto, “what we cannot provide at works sites with scaffolding materials, we will supplement with heavy machinery and works.”  Proactive in the development of new works methods, and has strength in urban works, including large-scale developments.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 89,887 million, a 7.8% up from Yen 83,379 million in the previous term.  Leasing and sales of scaffolding steel materials fared well.  The recurring profit was posted at Yen 7,628 million and the net profit at Yen 5,420 million, respectively, compared with Yen 4,875 million recurring profit and Yen 3,105 million net profit, respectively, a year ago.

 

(Apr/Jun/2025 results): Sales Yen 20,476 million (down 1.7%), operating profit Yen 1,562 million (down 2.5%), recurring profit Yen 1,650 million (up 0.9%), net profit Yen 1,119 million (down 25.5%).  (% as compared with the corresponding period a year ago).

 

            For the current term ending Mar 2016 the recurring profit is projected at Yen 7,500 million and the net profit at Yen 5,000 million, respectively, on a 0.1% rise in turnover, to Yen 90,000 million.  Scaffolding steel materials and construction machine leasing will remain at steady level.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

           

Date Registered:　                   Jun 1968

Regd No.:                                 0100-01-069981 (Tokyo-Chuoku)

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              97.5 million shares

Issued:                         36,436,125 shares

Sum:                            Yen 4,398 million

 

Major shareholders (%): JFE Steel (50.8), JFE Shoji Trade (8.1), Japan Trustee Services T (4.8), Customers’ S/Holding Assn (2.3), Employees’ S/Holding Assn (1.4), JFE SHOJI Sekiyuhanbai Corp (1.4), JFE SHOJI Coil Center (1.4), Japan Trustee Services T4 (1.3), SMBC (1.1), CBNYDFA Int’l Small Cap Value P (0.8); foreign owners (4.1)

 

No. of shareholders: 12,560

 

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

 

Managements: Tsutomu Yuba, pres; Yasuo Ishibashi, s/mgn dir; Tatsuya Kurachi, mgn dir; Akio Suzuki, mgn dir; Makoto Fujita, mgn dir; Yoshinari Iwamoto, mgn dir; Masahito Nishiguchi, dir

 

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

 

Related companies: Rechnos Co, Rental System Tohoku, other.

 

 

OPERATION

           

Activities: Leases and sales construction scaffolding materials (87%), construction machinery (13%)

           

Clients: [Mfrs, wholesalers] Shimizu Corp, Obayashi Corp, Taisei Corp, Kumagai Gumi    Co, Rental System Tohoku, Sumitomo Mitsui Construction, other

            No. of accounts: 500

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Shimizu Corp, Hanwa Corp, Obayashi Gumi Co, Kyoyu Leasing, Kyoritsu Yuso,

Metal One Mitsui Bussan Resources & Structural Steel Corp, Okaya & Co, other

 

Payment record: Regular

 

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

 

Bank References:

                        Mizuho Bank (Uchisaiwaicho)

                        SMBC (H/O)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

89,887

83,379

　

  Cost of Sales

71,298

67,197

　

      GROSS PROFIT

18,588

16,182

　

  Selling & Adm Costs

11,172

11,304

　

      OPERATING PROFIT

7,416

4,878

　

  Non-Operating P/L

212

-3

　

      RECURRING PROFIT

7,628

4,875

　

      NET PROFIT

5,420

3,105

BALANCE SHEET

　

　

  Cash

　

1,924

4,038

　

  Receivables

36,690

33,529

　

  Inventory

29,571

28,585

　

  Securities, Marketable

　

　

　

  Other Current Assets

542

1,152

　

      TOTAL CURRENT ASSETS

68,727

67,304

　

  Property & Equipment

19,734

19,217

　

  Intangibles

466

473

　

  Investments, Other Fixed Assets

5,822

4,148

　

      TOTAL ASSETS

94,749

91,142

　

  Payables

23,154

22,777

　

  Short-Term Bank Loans

11,750

17,900

　

　

　

　

　

  Other Current Liabs

11,869

10,007

　

      TOTAL CURRENT LIABS

46,773

50,684

　

  Debentures

　

　

　

  Long-Term Bank Loans

5,500

3,850

　

  Reserve for Retirement Allw

140

128

　

  Other Debts

　

3,212

3,426

　

      TOTAL LIABILITIES

55,625

58,088

　

      MINORITY INTERESTS

　

　

Common stock

4,398

4,398

　

Additional paid-in capital

4,596

4,596

　

Retained earnings

29,204

24,087

　

Evaluation p/l on investments/securities

927

539

　

Others

20

(550)

　

Treasury stock, at cost

(20)

(16)

　

      TOTAL S/HOLDERS` EQUITY

39,125

33,054

　

      TOTAL EQUITIES

94,749

91,142

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

5,115

6,162

　

Cash Flows from Investment Activities

-1,265

-1,167

　

Cash Flows from Financing Activities

-5,964

-6,482

　

Cash, Bank Deposits at the Term End

　

1,924

4,038

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

39,125

33,054

　

Current Ratio (%)

146.94

132.79

　

Net Worth Ratio (%)

41.29

36.27

　

Recurring Profit Ratio (%)

8.49

5.85

　

Net Profit Ratio (%)

6.03

3.72

　

　

Return On Equity (%)

13.85

9.39

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.95

UK Pound

1

Rs.99.73

Euro

1

Rs.71.84

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

DPT

 

               

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.