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MIRA INFORM REPORT
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Report No. : |
504528 |
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Report Date : |
19.04.2018 |
IDENTIFICATION DETAILS
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Name : |
BOSCH CORPORATION |
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Registered Office : |
3-6-7 Shibuya Shibuyaku Tokyo 150-8360 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
July, 1939 |
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Com. Reg. No.: |
0110-01-012340 (Tokyo-Shibuyaku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of diesel engine fuel injection systems, car air-conditioning equipment, other. |
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No. of Employees : |
5,228 |
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+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Maximum Credit Limit : |
Yen 9,299.7 Million |
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Status : |
Excellent |
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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
BOSCH CORPORATION
REGD NAME: Bosch
KK
MAIN OFFICE: 3-6-7
Shibuya Shibuyaku Tokyo 150-8360 JAPAN
Tel:
03-3400-1551 Fax: 03-3499-4116
*.. The is its Shiki Branch Office in Saitama-Pref
E-Mail address: info@bosch.co.jp
ACTIVITIES
Mfg of diesel engine
fuel injection systems, car air-conditioning equipment, other
BRANCHES
Osaka, Sapporo,
Nagoya, Hiroshima, Yokohama, other (Tot 12); Taiwan
FACTORIES
Saitama (3),
Gunma, other (Tot 5)
OFFICERS
U VOLTZ, PRES Noriko
Morikawa, v pres
Shigeo Komatsu,
s/mgn dir Ryuichi
Mitsuoka, s/mgn dir
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 264,623 M
PAYMENTS REGULAR CAPITAL Yen 17,000 M
TREND SLOW WORTH Yen
89,814 M
STARTED 1939 EMPLOYES 5,228
COMMENT
MFR OF DIESEL
ENGINE FUEL INJECTION SYSTEMS, CLOSELY TIED WITH ROBERT BOSCH GMBH,
GERMANY.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 9,299.7 MILLION, 30 DAYS NORMAL TERMS
HIGHLIGHTS
The subject
company was established originally in 1939 as Diesel Kiki (Kiki means
equipment), renamed Zexel in 1990), before renamed as captioned, by engine
manufacturers including Isuzu Motor, for making fuel pumps under license from
Bosch (Germany). Isuzu Motor sold most
of its shares to Bosch in 1997. The
subject is the largest producer of fuel injection pumps for diesel
engines. Automobile air-condition units
are also a mainstay, as the firm formed tie-up with Valeo (France) in the
air-conditioner area. In Jul 2005 merged
Bosch KK, wholly owned by Robert Bosch GmbH, and renamed from Bosch Automotive
Systems Corp to Bosch Corporation. By this merger the whole operations of the
Bosch group in Japan have been integrated into the subject firm. Clients
include major carmakers nationwide.
FINANCIAL
INFORMATION
The sales volume
for Dec/2016 fiscal term amounted to Yen 264,623 million, a 1% down from Yen
267,335 million in the previous term.
The recurring profit was posted at Yen 25,861 million and the net profit
at Yen 21,279 million, respectively, compared with Yen 31,806 million recurring
profit and Yen 21,532 million net profit, respectively, a year ago.
For the term that
ended Dec 2017 the recurring profit was projected at Yen 26,000 million and the
net profit at Yen 21,800 million, respectively, on a 3% rise in turnover, to
Yen 272,560 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 9,299.7
million, on normal 30 days terms.
REGISTRATION
Date
Registered: Jul 1939
Regd
No.: 0110-01-012340
(Tokyo-Shibuyaku)
Legal
Status: Limited
Company (Kabushiki Kaisha)
Authorized: 136,000 shares
Issued: 34,000
shares
Sum:
Yen17
million
Major shareholders
(%):
Robert Bosch Invest Nederland (65.5), Robert Bosch LLC (17.2)
No. of
shareholders: 5
Nothing detrimental is known as to the
commercial morality of executives.
OPERATION
Activities: Manufactures fuel injection systems for
controlling diesel engine fuel (48%), automobile brake systems (23%),
automobile electronics, power trains (17%), imports automotive aftermarket
equipment, work-shop testing equipment, power tools, security systems, others
(12%).
Overseas sales
ratio (25%) (Breakdowns are all
about).
Clients: [Carmakers] Isuzu
Motors, Mazda Motor, Nissan Motors, Toyota Motor, Nissan Diesel, Mitsubishi
Fuso Truck & Bus, Mitsubishi Motor, Hyundai Motor, Robert Bosch GmbH, Jatco
Ltd, Mitsubishi Heavy Ind, Fuji Heavy Ind, other.
No. of accounts: 500
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Robert Bosch group firms, Gunma Seiki Co, Tokyo Foundry, other.
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)
MUFG Trust Bank (H/O)
Relations: Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
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31/12/2017 |
31/12/2016 |
31/12/2015 |
31/12/2014 |
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Annual
Sales |
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272,560 |
264,623 |
267,335 |
279,335 |
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Recur.
Profit |
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26,000 |
25,861 |
31,806 |
28,712 |
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Net
Profit |
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21,800 |
21,279 |
21,532 |
19,559 |
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Total
Assets |
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153,552 |
205,105 |
221,501 |
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Net
Worth |
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89,814 |
88,126 |
84,284 |
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Capital,
Paid-Up |
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17,000 |
36,800 |
36,800 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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3.00 |
-1.01 |
-4.30 |
7.42 |
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Current Ratio |
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.. |
.. |
.. |
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N.Worth Ratio |
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58.49 |
42.97 |
38.05 |
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N.Profit/Sales |
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8.00 |
8.04 |
8.05 |
7.00 |
Notes: Forecast (or estimated) figures for the
31/12/2017 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 65.68 |
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1 |
INR 93.98 |
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Euro |
1 |
INR 81.30 |
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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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PRA |
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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
·
Company
background and operations size
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Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
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Industry
scenario / competitor analysis
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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.