MIRA INFORM REPORT

 

 

Report Date :

27.02.2012

 

IDENTIFICATION DETAILS

 

Name :

TOYO DENKI SEIZO KK

 

 

Registered Office :

No.1 Nurihiko Bldg, 2-9-2 Kyobashi Chuoku Tokyo 104-0031

 

 

Country :

Japan

 

 

Financials (as on) :

31.05.2011

 

 

Date of Incorporation :

June 1918

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of driving gear units & pantographs for railway cars

 

 

No. of Employees :

1,150

 

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 Limit :

Yen 893.6 Million

Status :

Satisfactory

Payment Behaviour :

Regular

Litigation :

--

 

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name and address

 

TOYO DENKI SEIZO KK

REGD NAME:    Toyo Denki Seizo KK

MAIN OFFICE:  No.1 Nurihiko Bldg, 2-9-2 Kyobashi Chuoku Tokyo 104-0031 JAPAN

Tel: 03-3535-0631     Fax: 03-3535-0640-

 

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

E-Mail address: contact@toyodenki.co.jp

 

 

ACTIVITIES  

 

Mfg of driving gear units & pantographs for railway cars

 

BRANCHES

 

Osaka, Nagoya, Fukuoka Sapporo, other (Tot 11)

 

OVERSEAS   

 

USA (2), China (4)

 

FACTORIES  

 

Yokohama, Shiga

 

 

CHIEF EXEC 

 

HIROSHI TSUCHIDA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 　A/SALES       Yen 37,893 M

PAYMENTS                  REGULAR         　CAPITAL        Yen 4,998 M

TREND             UP                    　WORTH         Yen 14,268 M

STARTED                     1918                 　EMPLOYES   1,150

 

 

COMMENT

 

MFR OF DRIVING GEAR UNITS FOR RAILWAY CARS 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 893.6 MILLION, 30 DAYS NORMAL TERMS

 

                        Forecast figures for the 31/05/2012 fiscal term.

 

 

HIGHLIGHTS

 

The subject company was established in 1918 for mfg control equipment and traction motors for delivery direct to Keihin Electric Railway Co.  This is a leading mfr of driving gear units & pantographs for railway cars.  The firm is engaged in three main areas of business: transportation systems, industrial systems an information systems.  More emphasis is placed on car testing equipment for use in automobile development.  Also makes other industrial equipment including inverters & motors.  The firm established a new local sales subsidiary in China in Dec/2011, to develop infrastructure for promoting industrial products, in addition to railway-related products.

 

 

FINANCIAL INFORMATION

 

            The sales volume for May/2011 fiscal term amounted to Yen 37,893 million, a 7.0% up from Yen 35,429 million in the previous term.  Economic conditions in Japan followed a modest recovery path.  This was largely supported by growth in emerging countries and particularly in China, and led by exports, investment and p0roduction activities.  By Divisions, Transportation Systems Div up 8.2% to Yen 25,657 million, due mainly to robust growth overseas; Industrial Systems Div up 23.3% to Yen 11,095 million, for the same reason as the upswing in orders received; Information Systems Div down 48.3% to Yen 1,133 million, due to the downturn in orders.   The recurring profit was posted at Yen 1,577 million and the net profit at Yen 678 million, respectively, compared with Yen 982 million recurring profit and Yen 512 million net profit, respectively, a year ago. 

 

            ((Jun/Nov/2011 results): Sales Yen 18,830 million (down 0.5%), operating profit Yen 515 million (down 19.8%), recurring profit Yen 525 million (down 8.6%), net profit Yen 303 million (up 54.5%).  (% compared with the corresponding period a year ago).

           

            For the current term ending May 2012 the recurring profit is projected at Yen 1,800 million and the net profit at Yen 750 million, on a 5.6% rise in turnover, to Yen 40,000 million.  Sales of mainstay railway-related products will remain at a high level, led by those in the overseas market, such as products for subways in China.  Demand for industrial products will stagnate hit by delay in capital investment by automakers due to the stronger Yen and the floods in Thailand. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 893.6 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:　Jun 1918

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       180 million shares

Issued:                48,675,000 shares

Sum:                   Yen 4,998 million

 

Major shareholders (%): Nippon Life Ins (6.1), MUFG (4.4), Toyota Indsutries (4.3), Hitachi Ltd (4.3), Master Trust Bank of Japan T (3.9), Employees’ S/Holding Assn (2.7), Japan Trustee Services T (2.1), Bank of Yokohama (2.1), Ookuraya Jyutaku Co (2.1), Tsukishima Kikai (1.6); foreign owners (2.9)

 

No. of shareholders: 6,842

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

 

Managements: Hiroshi Tsuchida, pres; Hirosuke Tanaka, v pres; Kenzo Terashima, s/mgn dir; Yoshio Hosoda, mgn dir; Kiyoyuki Doi, dir; Kenji Ueda, dir; Hiroshi Shimotakahara, dir; Masami Tsuchiya, dir

 

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

 

 

OPERATION

           

Activities: Manufactures driving gear units and pantographs for railway cars:

 

(Sales Breakdown by Divisions):

Transportation Systems (68%): traction motor, driving gear unit, propultion inverter, TD coupling, auxiliary power supply, pantograph, total train communication system, doo operating equipment, slope and stem for train, railway power storage system, solution system, other;

Industrial Systems (29%): FA systems: intelligent inverters, eco-drive motor, sine-wave converters, DC drive system, programmable controller, high-speed operation controller, current-limiting fuse, distributed power source, FA system products, power generating equipment system, water supply equipment system, sewage equipment system, other:

Information Systems (3%): commuter pass vending machines, automatic commuter pass vending machines, handheld ticket vending machines, multifunction fare adjustment machines, automatic fare adjustment machines, compact fare adjustment machines, smart card vending machines, other

           

Clients: [Railways, mfrs] JR (Japan Railway),Toyota Motor, Tokyo Metro (Subway),Tobu railway, Ministry of Defense, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsubishi Electric, Kubotec, NK Company, Sumisho Tekko

Hambai, other

 

Payment record: Regular

 

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

 

Bank References:

            MUFG (Tokyo)

            Bank of Yokohama (Tokyo)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/05/2011

31/05/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

37,893

35,429

 

  Cost of Sales

29,229

28,026

 

      GROSS PROFIT

8,663

7,403

 

  Selling & Adm Costs

7,160

6,438

 

      OPERATING PROFIT

1,503

965

 

  Non-Operating P/L

74

17

 

      RECURRING PROFIT

1,577

982

　

      NET PROFIT

678

512

BALANCE SHEET

 

 

 

 

  Cash

　

2,410

2,456

 

  Receivables

 

10,332

9,619

 

  Inventory

 

7,078

7,646

 

  Securities, Marketable

　

　

 

  Other Current Assets

1,801

976

 

      TOTAL CURRENT ASSETS

21,621

20,697

 

  Property & Equipment

4,675

4,844

 

  Intangibles

 

389

263

 

  Investments, Other Fixed Assets

12,207

8,581

 

      TOTAL ASSETS

38,892

34,385

 

  Payables

 

5,683

5,107

 

  Short-Term Bank Loans

4,420

4,420

 

　

 

　

　

 

  Other Current Liabs

7,016

6,402

 

      TOTAL CURRENT LIABS

17,119

15,929

 

  Debentures

 

280

480

 

  Long-Term Bank Loans

1,635

2,075

 

  Reserve for Retirement Allw

3,208

2,981

 

  Other Debts

　

381

334

 

      TOTAL LIABILITIES

22,623

21,799

 

      MINORITY INTERESTS

 

 

 

Common stock

4,998

4,482

 

Additional paid-in capital

3,177

2,661

 

Retained earnings

6,226

5,909

 

Evaluation p/l on investments/securities

124

470

 

Others

 

(97)

(36)

 

Treasury stock, at cost

(160)

(901)

 

      TOTAL S/HOLDERS` EQUITY

14,268

12,585

　

      TOTAL EQUITIES

38,892

34,385

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/05/2011

31/05/2010

 

Cash Flows from Operating Activities

　

2,475

673

 

Cash Flows from Investment Activities

-3,345

-1,643

 

Cash Flows from Financing Activities

836

468

　

Cash, Bank Deposits at the Term End

 

2,410

2,456

ANALYTICAL RATIOS            Terms ending:

31/05/2011

31/05/2010

 

 

Net Worth (S/Holders' Equity)

14,268

12,585

 

 

Current Ratio (%)

126.30

129.93

 

 

Net Worth Ratio (%)

36.69

36.60

 

 

Recurring Profit Ratio (%)

4.16

2.77

 

 

Net Profit Ratio (%)

1.79

1.45

 

 

Return On Equity (%)

4.75

4.07

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.06

UK Pound

1

Rs.77.19

Euro

1

Rs.65.57

 

 

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.