MIRA INFORM REPORT

 

 

Report Date :

06.10.2012

 

IDENTIFICATION DETAILS

 

Name :

TORAY ENGINEERING CO LTD

 

 

Registered Office :

Nihombashi Muromachi Bldg, 3-3-16 Nihombashi-Hongokucho Chuoku Tokyo

103-0021

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

Aug 1960

 

 

Com. Reg. No.:

0100-01-051561 (Tokyo-Chuoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Plant engineering, electronics business

 

 

No. of Employees :

880

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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 a technologically 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. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - 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 after effects 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. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. 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 in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy

Source : CIA

Company name

 

TORAY ENGINEERING CO LTD

REGD NAME:    Toray Engineering KK

MAIN OFFICE:  Nihombashi Muromachi Bldg, 3-3-16 Nihombashi-Hongokucho Chuoku Tokyo

                                    103-0021 JAPAN

Tel: 03-3241-1541      Fax: 03-3241-1553

 

                        *.. The is its Seta Plant in Shiga-Pref

 

URL:                 http://www.toray-eng.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Plant engineering, electronics business

 

 

BRANCHES   

 

Tokyo, Shiga

 

 

OVERSEAS   

 

Korea, Shanghai, Taipei, Malaysia

 

 

FACTORIES

 

Seta (as given), Numazu, Shiga

 

 

OFFICERS

 

RYOICHI KAWAMURA, PRES    Osamu Nakatani, ch

Nobutaka Kaku, s/mgn dir                      Toshiaki Tsuchida, mgn dir

Masatoshi Horie, mgn dir                        Shin’ichi Okuda, dir       

           

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 61,212 M

PAYMENTS                  REGULAR         CAPITAL           Yen 1,500 M

TREND             UP                    WORTH            Yen 30,699 M

STARTED                     1960                 EMPLOYES      880

 

 

COMMENT    

 

ENGINEERING FIRM, OWNED BY TORAY INDUSTRIES INC.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                       

 

Notes: Unit: In Million Yen

Forecast (or estimated) figures for the 31/03/2013 fiscal term

 

 

HIGHLIGHTS

           

            The subject company was established on the basis of a plant engineering division separated from Toray Industries Inc (See REGISTRATION).  Originally named as Toray Construction Co Ltd and in 1962 renamed as captioned.  This is an engineering firm for industrial plants & equipment, and electronics division (See OPERATION).  Active in solar power generation, secondary battery systems, other.  Clients include major mfrs, electronic makers, other, nationwide 

 

 

FINANCIAL INFORMATION

           

            The sales volume for Mar/2012 fiscal term amounted to Yen 61,212 million, a 17% up from Yen 48,117 million in the previous term.  Active in winning orders for various water treatment membranes including reverse osmosis membrane around the world.  The recurring profit was posted at Yen 2,780 million and the net profit at Yen 1,205 million, respectively, compared with Yen 2,201 million recurring profit and yen 1,470 million net profit, respectively, a year ago.

 

            For the current term ending Mar 2013 the recurring profit is projected at Yen 3,000 million and the net profit at Yen 1,400 million, respectively, on a 6% rise in turnover, to Yen 65,000 million.  Water treatment membranes sales will perform well, thanks to expanding orders in Asia. 

 

The financial situation is considered FAIR and good for ORDINARY business

engagements. 

 

 

REGISTRATION

 

Date Registered:  Aug 1960

Regd No.:         0100-01-051561 (Tokyo-Chuoku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         12 million shares

Issued:                3 million shares

Sum:                   Yen 1,500 million

Major shareholders (%): Toray Industries Inc (99.9%

No. of shareholders: 2

 

*.. Largest Mfr of synthetic fibers, Tokyo, founded 1926, listed Tokyo, Osaka, Nagoya, Fukuoka, Sapporo, London, Luxemburg S/E’s, capital Yen 147,873 million, sales Yen 1,588,604 million, operating profit Yen 107,721 million, recurring profit Yen 109,849 million, net profit Yen 64,218 million, total assets Yen1,581,501 million, net worth Yen 674,149 million, employees 40,227, pres Akihiro Nikkaku

 

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

 

 

OPERATION

           

Activities: Engineering works: Engineering Division (58%), Electronics Division (42%)

 

(Handling works):

Engineering Division: (1). General plant engineering business: synthetic fibers, chemicals, IT-related fine chemicals, pharmaceuticals, battery materials, micro chemical plants, energy conservation & CO2 emissions reduction; (2). Equipment business: design and fabrication of deposition equipment, film processing equipment & other industrial machinery; (3). FA business: FA equipment, systems, electronic component production/assembly lines, FPC/TAB mfg equipment/devices, OPC related equipment, production data central management systems, parts supply systems; (4). Total systems for secondary battery mfg: slit die coaters, roll press equipment, slitting machine, sheeting cutting machine, stacking equipment, TAB welding, blending equipment, liquid filling equipment, heat sealing equipment, vacuum dryers, charge/discharge equipment; (5). Services: environmental impact assessment, high-level engineering computation, production rationalization consulting, development of various types of industrial software, CAE software business, etc;

Electronics Division: (1). Bonders & vacuum printing encapsulators for LCDs & semiconductors, exposers & other high accuracy fine patterning equipment; (2). Coaters for FPD & solar panel substrates (Toray Slit-nozzle Coater); (3). ID tilters, and inspection equipment to inspect appearance, foreign matter, film thickness, aberrations, surface profile and stress in LCDs, semiconductors, solar cells & secondary batteries; (4). High-speed printers, water quality analyzers, oxygen analyzers, process measurement equipment, fiber measurement equipment, various types of inspection equipment, production management control and MES systems, etc.

 

Clients: [Mfrs, wholesalers] Toray Industries Inc, Chimei Opto Electronics, Panasonic Plasma Display, Samsung Japan, Toray International Inc, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Toray Precision Inc, Meiko Electronics Co, Numata Corp, Kanaden Corp, other

 

Payment record: Regular

 

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

 

Bank References:

SMBC (Osaka-Chuo)

Mizuho Corporate Bank (Osaka)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

61,212

48,177

 

  Cost of Sales

51,014

38,356

 

      GROSS PROFIT

10,197

9,821

 

  Selling & Adm Costs

7,861

7,987

 

      OPERATING PROFIT

2,336

1,834

 

  Non-Operating P/L

444

367

 

      RECURRING PROFIT

2,780

2,201

　

      NET PROFIT

1,205

1,470

BALANCE SHEET

 

 

 

 

  Cash

　

5

　

 

  Receivables

 

16,141

11,295

 

  Inventory

 

10,122

14,736

 

  Securities, Marketable

　

　

 

  Other Current Assets

31,023

24,147

 

      TOTAL CURRENT ASSETS

57,291

50,178

 

  Property & Equipment

14,592

14,716

 

  Intangibles

 

286

329

 

  Investments, Other Fixed Assets

4,634

5,072

 

      TOTAL ASSETS

76,803

70,295

 

  Payables

 

12,057

8,680

 

  Short-Term Bank Loans

　

　

 

　

 

　

　

 

  Other Current Liabs

24,796

22,333

 

      TOTAL CURRENT LIABS

36,853

31,013

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

842

939

 

  Reserve for Retirement Allw

8,247

8,337

 

  Other Debts

　

161

217

 

      TOTAL LIABILITIES

46,103

40,506

 

      MINORITY INTERESTS

 

 

 

Common stock

1,500

1,500

 

Additional paid-in capital

1,932

1,932

 

Retained earnings

27,250

26,345

 

Evaluation p/l on investments/securities

17

11

 

Others

 

0

1

 

Treasury stock, at cost

　

　

 

      TOTAL S/HOLDERS` EQUITY

30,699

29,789

　

      TOTAL EQUITIES

76,803

70,295

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

30,699

29,789

 

 

Current Ratio (%)

155.46

161.80

 

 

Net Worth Ratio (%)

39.97

42.38

 

 

Recurring Profit Ratio (%)

4.54

4.57

 

 

Net Profit Ratio (%)

1.97

3.05

 

 

Return On Equity (%)

3.93

4.93

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.51.61

UK Pound

1

Rs.83.57

Euro

1

Rs.67.17

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.