MIRA INFORM REPORT
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Report Date : |
23.04.2011 |
IDENTIFICATION DETAILS
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Name : |
TOYO KNIFE CO Ltd |
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Registered Office : |
1-3-6 Nihombashi-Hamacho Chuoku Tokyo
103-0007 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
August 1925 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturer of industrial cutlery |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
Yen 47.3 Million |
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Status : |
Moderate |
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Payment
Behaviour : |
Regular |
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Litigation : |
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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, 2010
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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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 |
Company name
TOYO KNIFE CO Ltd
REGD NAME
Toyo Hamono KK
MAIN OFFICE
1-3-6
Nihombashi-Hamacho Chuoku Tokyo 103-0007 JAPAN
Tel:
03-5822-2112 Fax: 03-5822-2117
*.. Registered at: 4-15-1 Minato Miyaginoku Sendai
URL: http://www.toyoknife.co.jp
E-Mail
address: itd@toyoknife.co.jp
ACTIVITIES
Mfg of
industrial cutlery
BRANCHES
Tokyo,
Osaka, Nagoya, Sendai, Hiroshima, Fukuoka
OVERSEAS
Kuala
Lumpur, Hong Kong, Sibu (Malaysia), Shanghai
FACTORIES
Tomigaya,
Tagaya (Miyagi), Osaka
CHIEF EXEC
MASAYUKI
SHOJI, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES R/WEAK A/SALES Yen 5,335 M
PAYMENTS REGULAR CAPITAL Yen 500 M
TREND SLOW WORTH Yen 955 M
STARTED 1925 EMPLOYES 333
COMMENT
MFR OF INDUSTRIAL CUTLERY
FINANCIAL SITUATION COSIDERED RATHER
WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 47.3 MILLION, 30 DAYS NORMAL TERMS
Forecast figures for the 31/03/2011
fiscal term.
HIGHLIGHTS
The subject company
was established by Dr Kotaro Honda’s advocate, who was the president of the
Tohoku University Metal Materials Laboratory, with idea of industrializing the
research results of the laboratory in August 1925. This is the largest specialized mfr of
industrial cutlery for steel, paper, plywood, and other industries. Also makes machine knives. Also engaged in greenery business. Operates sales subsidiaries in Thailand, Hong
Kong, Malaysia and China. The sales
subsidiary in Shanghai is faced with keen price competition with local
companies. Amid a slump in the housing
market, the Kuala Lumpur branch is seeking the way-out of stagnation in sales
of cutters for plywood.
Damage by the Northeast Japan Earthquake:
The firm’s Sendai
Office and Tagaya Factory were damaged seriously by the earthquake and tsunami
that followed. Tagaya Factory operation
was shifted to Tomigaya Factory.
Resumption of operation/production needs considerable time and not
envisaged at this time, says the firm.
FINANCIAL INFORMATION
The sales volume for
Mar/2010 fiscal term amounted to Yen 5,335 million, a 25.1% down from Yen 7,120
million in the previous term. Global
economic downturn affected the sales.
Demand declined substantially from iron & steel, plywood,
paper/pulp, film & tapes, printed materials, book binding and information
industries. By Divisions, Industrial
Machinery-use Div down 25.0% to Yen 4,026 million, as demand continued to
decline from the previous term and exports decreased; Industrial Machinery
& Parts Div 30.7% to Yen 844 million, due to weak capital spending and
demand decrease for machine tools, added to exports decline. Exports were hurt by the high Yen, reducing
its earnings & profits in Yen terms.
The operations continued in the red to register Yen 499 million
recurring loss and Yen 640 million net losses, respectively, compared with Yen
201 recurring loss and Yen 173 million net losses, respectively, a year ago. The firm
carried out restructuring: reduced operation of production, executive’s bonus cuts,
reduced overtime work, temporary layoffs of the staff, other.
(Apr/Dec/2010
results): Sales Yen 4,810 million (up 26.6%), operating profit Yen 8 million
(previously Yen 431 million loss), recurring loss Yen 96 million (previously
Yen 436 million loss), net loss Yen 430 million (previously Yen 649 million
loss). (% & figures compared with
the corresponding period a year ago.)
For the term that
ended Mar 2011 the operations were projected to continue in the red to post Yen
10 million recurring loss and Yen 350 million net losses, respectively, on a
21.8% rise in turnover, to Yen 6,500 million.
Sales of industrial-use cuttings slowed both at home and abroad. Material prices rose. Due to the reduction of deferred tax asset,
net account deficit emerged. Final
results are yet to be released. Damages
by the earthquake have not been precisely assessed. Final results are yet to be released.
The financial
situation is considered RATHER WEAK but should be good for MODERATE business
engagements. Max credit limit is
estimated at Yen 47.3 million, on 30 days normal terms.
REGISTRATION
Date Registered: Aug
1925
Legal Status: Limited Company (Kabushiki Kaisha
Authorized: 40
million shares
Issued: 10 million shares
Sum: Yen 500 million
Major shareholders (%): 77 Bank (4.9), Joyo Bank (4.9), Employees’
S/Holding Assn (4.6), Mizuho Trust Bank (2.8), Hiroaki Okabe (2.5), Sendai
Building (2.0), Yoshiyuki Michiba (2.1), Sa Co (2.1), Daido Steel (2.0), Sendai
Broadcasting (2.0)
No. of shareholders: 1,224
Listed on the S/Exchange (s) of: Tokyo (Second Section)
Managements: Masayuki Shoji, pres; Mitsuru Takahashi, s/mgn dir; Kunio Kato, mgn
dir; Shuichi Watanabe, mgn dir; Jiro Hayakawa, dir; Masahito Wagatsuma, dir;
Tsutomu Konno, dir; Kazuyuki Akamatsu, dir; Yoshiaki Kiyono, dir
Nothing detrimental
is known as to the commercial morality of executives.
Related companies: Toyo Greenery, Nekken Kogyo, other.
OPERATION
Activities: Manufactures cutlery: industrial-use cutters (75%), industrial
machinery & parts (16%), greenery business (9%).
Overseas Sales Ratio (21.6%): S/E Asia 19.6%, others 2.0%
(Mfg items): micro slitter knife, cutter unit, shear
blade, slitter knife, chipper knife, flaker knife, turning knife, paper
trimming knife, veneer rotary knife, slicer knife, veneer clipper knife, fax
paper cutter, knife, grinding machinery & wear parts, other.
Clients: [Mfrs, wholesalers] THK, Sony Chemical, Mitsui & Co, Sumitomo
Metal Ind, Wud Tools, Tokyo Ohka Kogyo, Iwata Tekkosho, Amita Mfg Co, Nishimura
Mfg, Hayashi Plywood Ind, other
No. of accounts: 500
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs, wholesalers] Daido Kogyo Co, Metal One Structural Steel &
Resource Co, Laplace Co, Hitachi Metals Tool Co, Dijet Co, Koshuha All Metal
Service Co, other
Payment record: Regular
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactorily.
Bank References:
77
Bank (H/O)
Joyo
Bank (Sendai)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2010 |
31/03/2009 |
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INCOME STATEMENT |
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Annual Sales |
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5,335 |
7,120 |
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Cost of Sales |
4,469 |
5,532 |
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GROSS PROFIT |
865 |
1,587 |
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Selling & Adm Costs |
1,346 |
1,653 |
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OPERATING PROFIT |
-480 |
-66 |
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Non-Operating P/L |
-19 |
-135 |
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RECURRING PROFIT |
-499 |
-201 |
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NET PROFIT |
-640 |
-173 |
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BALANCE SHEET |
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Cash |
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1,478 |
1,531 |
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Receivables |
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1,836 |
1,813 |
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Inventory |
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1,724 |
2,150 |
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Securities, Marketable |
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Other Current Assets |
192 |
162 |
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TOTAL CURRENT ASSETS |
5,230 |
5,656 |
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Property & Equipment |
1,559 |
1,647 |
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Intangibles |
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113 |
146 |
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Investments, Other Fixed Assets |
616 |
1,077 |
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TOTAL ASSETS |
7,518 |
8,526 |
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Payables |
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603 |
936 |
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Short-Term Bank Loans |
2,697 |
2,396 |
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Other Current Liabs |
527 |
491 |
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TOTAL CURRENT LIABS |
3,827 |
3,823 |
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Debentures |
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Long-Term Bank Loans |
2,016 |
2,293 |
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Reserve for Retirement Allw |
184 |
265 |
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Other Debts |
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536 |
549 |
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TOTAL LIABILITIES |
6,563 |
6,930 |
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MINORITY INTERESTS |
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Common
stock |
500 |
500 |
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Additional
paid-in capital |
194 |
194 |
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Retained
earnings |
270 |
911 |
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Evaluation
p/l on investments/securities |
27 |
40 |
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Others |
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(33) |
(46) |
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Treasury
stock, at cost |
(3) |
(3) |
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TOTAL S/HOLDERS` EQUITY |
955 |
1,596 |
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TOTAL EQUITIES |
7,518 |
8,526 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2010 |
31/03/2009 |
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Cash
Flows from Operating Activities |
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-152 |
4 |
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Cash Flows
from Investment Activities |
38 |
-137 |
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Cash
Flows from Financing Activities |
-16 |
139 |
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Cash,
Bank Deposits at the Term End |
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1,207 |
1,335 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2010 |
31/03/2009 |
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Net
Worth (S/Holders' Equity) |
955 |
1,596 |
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Current
Ratio (%) |
136.66 |
147.95 |
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Net
Worth Ratio (%) |
12.70 |
18.72 |
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Recurring
Profit Ratio (%) |
-9.35 |
-2.82 |
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Net
Profit Ratio (%) |
-12.00 |
-2.43 |
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Return
On Equity (%) |
-67.02 |
-10.84 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.30 |
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UK Pound |
1 |
Rs.72.92 |
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Euro |
1 |
Rs.64.69 |
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 |
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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 |
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.