MIRA INFORM REPORT

 

 

Report Date :

27.10.2012

 

IDENTIFICATION DETAILS

 

Name :

TOSHIBA MACHINE CO LTD

 

 

Registered Office :

2068-3 Ohka Numazu City Shizuoka-Pref410-8510

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

March 1949

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of molding machines, machine tools

 

 

No. of Employees :

3,157 employees

 

 

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

 

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

 

TOSHIBA MACHINE CO LTD

 

 

REGD NAME

 

Toshiba Kikai KK

 

 

MAIN OFFICE

 

2068-3 Ohka Numazu City Shizuoka-Pref410-8510 JAPAN

Tel: 055-926-8510     Fax: 055-926-6501

 

* Tokyo Head Office at: 2-2-2 Uchisaiwaicho Chiyodaku Tokyo, as given

 

URL:                             http://www.toshiba-machine.co.jp/

E-Mail address:                        info@toshiba-machine.co.jp

 

 

ACTIVITIES  

 

Mfg of molding machines, machine tools

 

 

BRANCH (ES)

 

Tokyo, Osaka, Nagoya, Sendai, Fukuoka, Takasaki, Shizuoka, Fukuyama

 

 

OVERSEAS   

 

USA (4 offices), Canada, Germany, Singapore, China (10 offices), India,     Thailand, other (Tot: 10 subsidiaries)

 

 

FACTORIES

 

At the caption address, Zama, Gotemba (--Kanagawa); Shanghai (China), Thailand

 

CHIEF EXEC

 

YUKIO IINUMA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                 A/SALES          Yen 119,519 M

PAYMENTS                  REGULAR         CAPITAL           Yen 12,484 M

TREND             UP                    WORTH            Yen 71,101 M

STARTED                     1949                 EMPLOYES      3,157

 

 

COMMENT    

 

MFR SPECIALIZING IN MOLDING MACHINES & MACHINE TOOLS. 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

                        Notes: Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is large-sized machine tool mfr set up in 1949 as industrial machinery mfr.  In 1961,     merged with Toshiba group machine tool firm to integrate & strengthen operations.  Manufactures injection molding machines and die-casting machines, as two pillar products, plastic extrusion machines, semiconductor mfg equipment, other.  Injection molding machines and            die-casting machines are its leading export products.  Injection molding machines account for 55% of the group sales.  4% of the products are exported to Asia, principally China, USA & Europe.  Shanghai subsidiary is also engaged in production.  The firm set up an additional sales base in the inland China, aiming for cooperating with local suppliers to improve the local procurement ratio.  In Sept 2012 it turned an injection machine maker in India, L&T Machinery Ltd, into its subsidiary by acquire all its shares.

 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 119,519 million, a 25% up from Yen 95,653 million in the previous term.  Market recovered substantially against a background of firming demand in China, S/E Asia, and USA, though influenced by Europe’s financial crisis and China’s monetary policy in overseas markets.  The domestic economy was greatly influenced by the Yen’s long-term appreciation, as well as the beginnings of economic relief in the wake of the Great East Japan Earthquake.  Consolidated orders received were up 18.2% to Yen 123,075 million, particularly active from China.  By Divisions, Molding Machines up 33.3% to Yen 65,726 million; Machine Tools up 22.7% to Yen 28,968 million; Oil Hydraulic Equipment up 23.8% to Yen 14,087 million..  The recurring profit was posted at Yen 8,948 million and the net profit at Yen 6,721 million, respectively, compared with Yen 3,834 recurring profit and Yen 3,280 million net profits, respectively, a year ago.

 

(Apr/Jun/2012 results): Sales Yen 31,959 million (up 21.3%), operating profit Yen 2,888 million (up 81.4%), recurring profit Yen 3,467 million (up 87.5%), net profit Yen 2,303 million (up 76.1%).  (% compared with the corresponding period a year ago).

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 9,000 million and the net profit at Yen 5,800 million, on a 7.1% rise in turnover, to Yen 128,000 million.  Sales of diecast machines and injection molding machines for automobile and consumer electronics makers in S/E Asia and North America performed well in the first half.  Those of machine tools for general machine makers will hold steady.  The acquired L&T Machinery Ltd in India will contribute to the sales growth.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.           

 

 

REGISTRATION

 

Date Registered:　Mar 1949

Legal Status:   　Limited Company (Kabushiki Kaisha)

Authorized:      　360 shares

Issued:             　166,885,530 shares

Sum:                　Yen 12,484 million

 

Major shareholders (%): Toshiba Corp (20.1), Company’s Treasury Stock (8.9), Japan Trustee Services T (6.4), Master Trust Bank of Japan T (5.4), Chase London SL Omnibus Acct (3.7), Shizuoka Bank (1.7), SMBC (1.6), Customers’ S/Holding Assn (1.5), Toyota Motor (1.4); foreign owners (16.7).

           

No. of shareholders: 12,636

 

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

 

Managements: Yukio Iimura, pres; Akinori Ide, s/mgn dir; Hiroshi Hanai, mgn dir; Yoshihiro Kishimoto, mgn dir; Satoshi Hironaka, dir; Masayuki Yagi, dir; Shigetomo Sakamoto, dir; Makoto Tsuji, dir

           

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

 

Related companies: (Domestic): Toshiba Machine Machinery, Hyest Corp, Toshiba Machine Plastic & Diecast Engineering, other;

 

(Overseas): Toshiba Machine Co America, Toshiba Machine Europe GmbH, Toshiba Machine South East (Singapore), other

           

 

OPERATION

           

Activities: Manufactures machine tools & industrial equipment:

 

(Sales Breakdown by Divisions):

 

Molding Machines (55%): Injection molding machines, plastic extrusion machines, die-casting machines, printing presses, other;

 

Machine Tools (24%): high precision machines, semiconductor mfg equipment, castings, other;

 

Oil Hydraulic Equipment (12%): hydraulic equipment, high precision machines,  electronic controls, industrial robots, waste water treatment units, others;

 

Others (9%).

 

Overseas Sales Ratio (56%)

 

Clients: [Mfrs, wholesalers] Nittsu Shoji, Toshiba Machine Co America, Shibaura Semtek Co, Toshiba Industrial Products Sales Corp, Okura Ind, Sumitomo Construction Machinery, other.

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Toshiba Finance, Toei Electric Co, Fanuc Corp, Toshiba Machine (Shanghai) Co Ltd, Nuclear Technology Inc, Mori Machinery Corp, Itochu Machine-Technos Corp, Kanematsu Corp, Star Seiki Co, Tokimec Inc, other..

 

Payment record: Regular

 

Location: Business area in Numazu City, Shizuoka-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

SMBC (H/O)

Shizuoka Bank (Tokyo)

Relations: Satisfactory

 

 

 

FINAnCIALs

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

119,519

95,653

 

  Cost of Sales

88,311

69,997

 

      GROSS PROFIT

31,207

25,656

 

  Selling & Adm Costs

23,796

21,627

 

      OPERATING PROFIT

7,411

4,028

 

  Non-Operating P/L

1,537

-194

 

      RECURRING PROFIT

8,948

3,834

　

      NET PROFIT

6,721

3,280

BALANCE SHEET

 

 

 

 

  Cash

　

20,689

18,513

 

  Receivables

 

45,730

35,194

 

  Inventory

 

26,374

25,796

 

  Securities, Marketable

13,500

17,500

 

  Other Current Assets

4,881

4,159

 

      TOTAL CURRENT ASSETS

111,174

101,162

 

  Property & Equipment

21,120

22,240

 

  Intangibles

 

434

468

 

  Investments, Other Fixed Assets

9,569

7,333

 

      TOTAL ASSETS

142,297

131,203

 

  Payables

 

30,675

27,339

 

  Short-Term Bank Loans

12,110

11,412

 

　

 

　

　

 

  Other Current Liabs

13,550

11,492

 

      TOTAL CURRENT LIABS

56,335

50,243

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

6,100

6,800

 

  Reserve for Retirement Allw

8,237

8,438

 

  Other Debts

　

524

397

 

      TOTAL LIABILITIES

71,196

65,878

 

      MINORITY INTERESTS

 

 

 

Common stock

12,484

12,484

 

Additional paid-in capital

19,600

19,600

 

Retained earnings

49,408

43,750

 

Evaluation p/l on investments/securities

1,530

1,236

 

Others

 

(1,882)

(1,706)

 

Treasury stock, at cost

(10,039)

(10,039)

 

      TOTAL S/HOLDERS` EQUITY

71,101

65,325

　

      TOTAL EQUITIES

142,297

131,203

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

368

5,635

 

Cash Flows from Investment Activities

-947

-840

 

Cash Flows from Financing Activities

-1,094

-307

　

Cash, Bank Deposits at the Term End

　

34,189

36,013

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

71,101

65,325

 

 

Current Ratio (%)

197.34

201.35

 

 

Net Worth Ratio (%)

49.97

49.79

 

 

Recurring Profit Ratio (%)

7.49

4.01

 

 

Net Profit Ratio (%)

5.62

3.43

 

 

Return On Equity (%)

9.45

5.02

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.63

UK Pound

1

Rs.86.18

Euro

1

Rs.69.75

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.