MIRA INFORM REPORT

 

 

Report Date :

14.09.2012

 

IDENTIFICATION DETAILS

 

Correct Name :

TOSHIBA-MITSUBISHI ELECTRIC INDUSTRIAL SYSTEMS CORP

 

 

Registered Office :

Mita 43 MT Bldg, 3-13-16 Mita Minatoku Tokyo 108-0073

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

October 2003

 

 

Com. Reg. No.:

0104-01-041839 (Tokyo-Minatoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of industrial electric & automation systems, power electronic apparatus

 

 

No. of Employees :

1,811

 

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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-MITSUBISHI ELECTRIC INDUSTRIAL SYSTEMS CORP

 

 

REGD NAME

 

Toshiba Mitsubishi Denki Sangyo System KK

 

 

MAIN OFFICE

 

Mita 43 MT Bldg, 3-13-16 Mita Minatoku Tokyo 108-0073 JAPAN

Tel: 03-5441-9100    Fax: 03-5441-9140

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Mfg of industrial electric & automation systems, power electronic apparatus

 

 

BRANCHES

 

Sapporo, Chiba, Shizuoka, Toyama, Nagoya, Osaka, Himeji, Okayama, Hiroshima, Yamaguchi, Takamatsu, Kitakyushu, Fukuoka, Nagasaki

 

OVERSEAS   

 

USA, China (4 including Hong Kong), UK, Germany, Italy, Poland, India (2)

 

 

FACTORIES

 

Fuchu, Yokohama, Kobe, Nagasaki

 

 

OFFICERS

 

JUN’ICHI ICHIHARA, PRES        Kiyotaka Machida, v pres

Ken’ichi Nakagawa, mgn dir        Toshiaki Matsuura, mgn dir

Shinji Tatara, dir             Hiroo Kikuchihara, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 180,652 M

PAYMENTS REGULAR  CAPITAL           Yen 15,000 M

TREND STEADY           WORTH                        Yen 87,667 M

STARTED         2003                 EMPLOYES      1,811

 

 

COMMENT    

 

MFR OF INDUSTRIAL ELECTRIC & AUTOMATION SYSTEMS, JOINTLY OWNED BY TOSHIBA CORP AND MITSUBISHI ELECTRIC CORP.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

 

The subject company was established jointly by Toshiba Corp & Mitsubishi Electric Corp in order to utilize the most of each other’s technologies in each field.  This firm specializes in mfg industrial electric & automation systems for plants in the mfg industry, including iron & steel industry.  Total 3 overseas subsidiaries in USA, Europe & China, with 9 branch offices.  Major clients are steel mills & mfrs, nationwide.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 180,652 million, an 8% up from Yen 166,524 million in the previous term.  Overseas operations rose on the back of robust demand for iron & steel, particularly in China & S/E Asian countries.  The recurring profit was posted at Yen 14,643 million and the net profit at Yen 8,834 million, respectively, compared with Yen 11,384 million recurring profit and Yen 6,834 million net profit, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 14,800 million and the net profit at Yen 8,900 million, respectively, on a 3% rise in turnover, to Yen 86,000 million.  Business is seen expanding steadily.

 

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

 

 

REGISTRATION

 

Date Registered:  Oct 2003

Regd No.:         0104-01-041839 (Tokyo-Minatoku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         300,000 shares

Issued:                300,000 shares

Sum:                   Yen 15,000 million

 

Major shareholders (%): Toshiba Corp*(50), Mitsubishi Corp** (50)

 

No. of shareholders:  2

*  One of largest comprehensive electrical machinery mfrs, Tokyo, founded 1904, listed Tokyo, Osaka, Nagoya, London S/E’s, capital Yen 439,801 million, sales Yen 6,100,262 million, operating profit Yen 206,649 million, recurring profit Yen 152,405 million, net profit Yen 73,705 million, total assets Yen 5,731,246 million, net worth Yen 11,236,522 million, employees 209,784, pres Norio Sasaki.

Consolidated Financials are attached (See SUPPLEMENTS).

 

** Mitsubishi Electric Corp, Tokyo, founded 1921, listed Tokyo, Osaka, Amsterdam, Frankfurt, London S/E’s, capital Yen 175,820 million, sales Yen 3,639,468 million, operating profit Yen 225,444 million, recurring profit Yen 224,080 million, net profit Yen 112,063 million, total assets Yen 3,391,651 million, net worth Yen 1,132,465 million, employees 114,443, pres Ken’ichiro Yamanishi

 

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

 

 

OPERATION

 

Activities: Engineering, installation & servicing of industrial electric & automation systems for industrial mfg plants (61%); development & mfg of power electronic apparatus, large capacity electric motors and automation systems for industrial application (23%), rotary machines, others (16%)

 

Exports (32%)

 

(Handling items):

 

Power Electronics: uninterruptible power supply, drive equipment, power converters devices;

 

Electric Motors: motors, generators;

 

Others: Ozone-Gas Generating Systems/Ozone Water Producing Systems, other.

 

Clients: [Steel mills, mfrs, wholesalers] Nippon Steel, Mitsubishi Heavy Ind, JFE Steel, IHI, Asahi Beer, Mitsubishi Corp, other 

            No. of accounts: 2,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs] Supplied wholly from the JV owners, Toshiba Corp & Mitsubishi Electric Corp.

 

Payment record: Regular

 

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

 

Bank References:

SMBC (H/O)

MUFG (H/O)

Relations: Satisfactory.

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

　

186,000

180,652

166,524

194,789

Recur. Profit

　

14,800

14,643

11,384

13,685

Net Profit

　

8,900

8,624

6,834

13,685

Total Assets

　

　

158,083

144,175

150,792

Current Assets

　

　

140,781

126,565

　

Current Liabs

　

　

66,912

58,401

　

Net Worth

　

　

87,667

82,032

84,004

Capital, Paid-Up

　

　

15,000

15,000

15,000

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.96

8.48

-14.51

-12.22

    Current Ratio

 

..

210.40

216.72

..

    N.Worth Ratio

..

55.46

56.90

55.71

    R.Profit/Sales

 

7.96

8.11

6.84

7.03

    N.Profit/Sales

4.78

4.77

4.10

7.03

    Return On Equity

..

9.84

8.33

16.29

 

Note: Forecast (or estimated) for the 31/03/2013 fiscal term.

 

 

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE OWNER, TOSHIBA CORP

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

6,100,262

6,398,505

 

  Cost of Sales

4,633,568

4,897,547

 

      GROSS PROFIT

1,466,694

1,500,958

 

  Selling & Adm Costs

1,260,055

1,260,685

 

      OPERATING PROFIT

206,639

240,273

 

  Non-Operating P/L

-54,234

-44,724

 

      RECURRING PROFIT

152,405

195,549

　

      NET PROFIT

73,705

137,845

BALANCE SHEET

 

 

 

 

  Cash

　

214,305

258,840

 

  Receivables

 

1,307,634

1,124,150

 

  Inventory

 

884,264

864,382

 

  Securities, Marketable

　

　

 

  Other Current Assets

595,214

552,296

 

      TOTAL CURRENT ASSETS

3,001,417

2,799,668

 

  Property & Equipment

851,365

900,205

 

  Intangibles

 

711,665

559,246

 

  Investments, Other Fixed Assets

1,166,799

1,120,200

 

      TOTAL ASSETS

5,731,246

5,379,319

 

  Payables

 

　

　

 

  Short-Term Bank Loans

119,515

152,348

 

　

 

　

　

 

  Other Current Liabs

2,539,745

2,346,061

 

      TOTAL CURRENT LIABS

2,659,260

2,498,409

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

909,620

769,544

 

  Reserve for Retirement Allw

778,580

734,309

 

  Other Debts

　

147,264

197,441

 

      TOTAL LIABILITIES

4,494,724

4,199,703

 

      MINORITY INTERESTS

 

 

 

Common stock

439,901

439,901

 

Additional paid-in capital

401,125

399,552

 

Retained earnings

595,583

551,523

 

Evaluation p/l on investments/securities

(567,843)

(521,396)

 

Others

 

369,254

311,497

 

Treasury stock, at cost

(1,498)

(1,461)

 

      TOTAL S/HOLDERS` EQUITY

1,236,522

1,179,616

　

      TOTAL EQUITIES

5,731,246

5,379,319

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

334,997

374,084

 

Cash Flows from Investment Activities

-377,227

-214,700

 

Cash Flows from Financing Activities

-240

-154,716

　

Cash, Bank Deposits at the Term End

　

214,305

258,840

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

1,236,522

1,179,616

 

 

Current Ratio (%)

112.87

112.06

 

 

Net Worth Ratio (%)

21.58

21.93

 

 

Recurring Profit Ratio (%)

2.50

3.06

 

 

Net Profit Ratio (%)

1.21

2.15

 

 

Return On Equity (%)

5.96

11.69

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.44

UK Pound

1

Rs.89.31

Euro

1

Rs.71.62

 

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.