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MIRA INFORM REPORT
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Report No. : |
503701 |
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Report Date : |
13.04.2018 |
IDENTIFICATION DETAILS
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Name : |
TOKYO COSMOS ELECTRIC CO LTD |
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Registered Office : |
2-12-1 Sobudai Zama City Kanagawa-Pref 252-8550 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2018 |
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Date of Incorporation : |
April, 1947 |
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Com. Reg. No.: |
0210-01-028329 (Kanagawa-Zama) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Variable Resistors, Automotive Electric Components,
Sensors. |
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No. of Employees : |
151 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Maximum Credit Limits : |
Yen 192.2 Million |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II 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 have significantly eroded under the dual pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2017 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. For three postwar decades, overall real economic growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which entailed considerable 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.
Japan enjoyed an 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. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the necessity of addressing its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to another recession, so Prime Minister ABE has twice postponed the next increase, now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Japan was the first country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP in January 2017, and in November 2017 the remaining 11 countries agreed on the core elements of a modified agreement, which they renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
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Source
: CIA |
Company
name and address
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
YOSHIKI IWASAKI,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 8,340 M
PAYMENTS REGULAR CAPITAL Yen 1,277 M
TREND STEADY WORTH Yen
3,571 M
STARTED 1947 EMPLOYES 151
COMMENT
MFR OF VARIABLE RESISTORS, SENSORS, OTHER
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 192.2 MILLION, 30 DAYS NORMAL TERMS
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. Established a new
plant in China, for in-vehicle electrical components in 2015 to concentrate
existing plants’ functions. The overseas
sales ratio including indirect exports is around 40%. Cultivating demand in Asia.
FINANCIAL
INFORMATION
The sales volume
for Mar/2017 fiscal term amounted to Yen 8,340 million, a 16.5% up from Yen
7,159 million in the previous term. The
recurring profit was posted at Yen 129 million and the net profit at Yen 87
million, respectively, compared with Yen 30 million recurring loss and Yen 217
million net loss, respectively, a year ago.
For the term that
ended Mar 2018 the recurring profit was projected at Yen 280 million and the
net profit at Yen 150 million, on a 19.9% rise in turnover, to Yen 10,000
million. Final results are yet to be
released.
The financial
situation is considered FAIR and good for ORDINARY business engagements.
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: 2,537
Listed on the S/Exchange (s) of: Tokyo
(Second section)
Managements: Hidemi
Takahashi, ch; Yoshiki Iwasaki, pres; Hiroharu Murakami, dir; Hiroyuki Ito,
dir; Kazumi Onozawa, dir; Seiji Arai, dir; Yoshinori Inose, dir; Masaaki
Iijima, dir
Nothing detrimental is known as to the
commercial morality of executives.
OPERATION
Activities: Manufactures
variable resistors (47%), automotive electrical components (sheets sensors
other) (47%), others (6%)
Overseas Sales
Ratio (36%)
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: Regular
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)
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Terms Ending: |
31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual
Sales |
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10,000 |
8,340 |
7,159 |
7,670 |
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Recur.
Profit |
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280 |
129 |
-30 |
236 |
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Net
Profit |
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150 |
87 |
-217 |
67 |
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Total
Assets |
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12,054 |
9,393 |
8,700 |
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Current
Assets |
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6,836 |
5,165 |
5,192 |
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Current
Liabs |
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4,364 |
3,184 |
2,733 |
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Net
Worth |
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3,571 |
3,462 |
3,924 |
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Capital,
Paid-Up |
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1,277 |
1,277 |
1,277 |
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Div.P.Share(¥) |
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3.00 |
3.00 |
4.50 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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19.90 |
16.50 |
-6.66 |
1.93 |
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Current Ratio |
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.. |
156.65 |
162.22 |
189.97 |
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N.Worth Ratio |
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.. |
29.63 |
36.86 |
45.10 |
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R.Profit/Sales |
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2.80 |
1.55 |
-0.42 |
3.08 |
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N.Profit/Sales |
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1.50 |
1.04 |
-3.03 |
0.87 |
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Return On Equity |
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.. |
2.44 |
-6.27 |
1.71 |
Notes: Forecast (or estimated) figures for the
31/03/2018 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.35 |
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1 |
INR 92.70 |
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Euro |
1 |
INR 80.80 |
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Yen |
1 |
INR 0.61 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIS |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.