MIRA INFORM REPORT
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Report Date : |
03.08.2013 |
IDENTIFICATION DETAILS
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Name : |
TOMOE ENGINEERING CO LTD |
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Registered Office : |
Art Village Osaki C Tower, 1-2-2 Osaki Shinagawaku Tokyo 141-0032 |
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Country : |
Japan |
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Financials (as on) : |
31.10.2012 |
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Date of Incorporation : |
May 1941 |
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Com. Reg. No.: |
(Tokyo-Shinagawaku) 018429 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of centrifugal separators; import, export of petrochemical products |
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No. of Employees : |
712 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 |
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 small agricultural sector is highly subsidized and protected, with
crop yields among the highest in the world. While self-sufficient in rice
production, Japan imports about 60% of its food on a caloric basis. 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. Modest economic growth continued after 2000, but the
economy has fallen into recession three times since 2008. A sharp downturn in
business investment and global demand for Japan's exports in late 2008 pushed
Japan 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 and the ensuing tsunami in March disrupted
manufacturing. The economy has largely recovered in the two years since the
disaster, but reconstruction in the Tohoku region has been uneven.
Newly-elected Prime Minister Shinzo ABE has declared the economy his
government's top priority; he has pledged to reconsider his predecessor's plan
to permanently close nuclear power plants and is pursuing an economic
revitalization agenda of fiscal stimulus and regulatory reform and has said he
will press the Bank of Japan to loosen monetary policy. Measured on a
purchasing power parity (PPP) basis that adjusts for price differences, Japan
in 2012 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 2012. The new government will continue a longstanding debate 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 and address
TOMOE ENGINEERING CO LTD
REGD NAME: Tomoe
Kogyo KK
MAIN OFFICE: Art
Village Osaki C Tower, 1-2-2 Osaki Shinagawaku Tokyo 141-0032 JAPAN
Tel:
03-5435-6511 Fax: 03-5435-0070
E-Mail address: (thru the URL to each division)
ACTIVITIES
Mfg of centrifugal
separators; import, export of petrochemical products
BRANCHES
Sapporo, Sendai,
Nagoya, Osaka, Fukuoka
OVERSEAS
Seoul, Chicago,
Jakarta, Shanghai, Shengzhen (--China)
FACTORY (IES)
Tokyo, Yamato,
Hiratsuka (--Kanagawa-Pref); Shenzhen (China)
CHIEF EXEC
NOBORU SHIONO,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 41,575 M
PAYMENTS REGULAR CAPITAL Yen 1,061 M
TREND SLOW WORTH Yen
22,534 M
STARTED 1941 EMPLOYES 712
COMMENT
MFR OF CHEMICAL MACHINERY; TRADING OF PETROCHEMICALS.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast (or estimated) figures for 31/10/2013
fiscal term
HIGHLIGHTS
The subject
company was established in order to mfr centrifugal separators on technical tie
up with Sharpless Corp, USA. Pioneer in
this field with D-canter model holding 50% domestic market share. The firm operates in three business segments:
Machinery & Equipment segment engaged in mfg and sale of centrifuge
decanter, the provision of after service, as well as the proc-easing and sale
of components; Chemical Products segment is engaged in mfg and sale of films,
nylon insert lock nuts, plastic surface treatment machines, inorganic
materials, organic materials, ceramics, thermal insulators, metallic materials,
carbon-graphite & bonding wires, etc; Others segment is engaged in the
delivery and sore management of products.
Active in overseas operations covering China, India, Indonesia, other
S/E Asian markets, emphasizing on petrochemical, food and sewage treatment
industries. Diversified into trading of
petrochemical products, which division now accounts for 70% of total
sales. The company decreased the sales
target for centrifugal separators bound for North America from 168 units to 77
units in the October 2013 term.
FINANCIAL INFORMATION
The sales volume for
Oct/2012 fiscal term amounted to Yen 41,575 million, a 1.9% down from Yen
42,375 million in the previous term.
During the term, the Japanese economy’s shift toward recovery was sustained
throughout the first half by factors such as the gradual broadening of
restoration demand related to the Great East Japan Earthquake and a recovery in
personal consumption. Sales decline
reflects lower sales of equipment and systems for China and a decease in sales
of works for domestic public sector demand in the Machinery & Equipment
Business, and a drop in sales in the domestic advanced materials sector and
plastics sector in the Chemical Products Business. The recurring profit was posted at Yen 2,605
million and the net profit at Yen 1,616 million, respectively, compared with
Yen 2,595 million recurring profit and Yen 2,915 million net profit,
respectively, a year ago.
(Nov/2012-Apr/2013
results): Sales Yen 19,370 million (down 8.4%), operating profit Yen 998
million (down 28.7%), recurring profit Yen 1,075 million (down 28.8%), net
profit Yen 631 million (down 37.7%). (%
compared with the corresponding period a year ago).
For the current term
ending Oct 2013 the recurring profit is projected at Yen 1,700 million and the
net profit at Yen 1,010 million, respectively, on an 8.7% fall in turnover, to
Yen 38,800 million. In the machinery mfg
business, unit prices are declining, and new orders for centrifugal separators
for oil fields for North America are postponed, as correction of defects in the
parts is taking time. Sales of abrasive
grain recycle systems for solar batteries are slumping in China. In the imported chemical products sales
business, demand for multipurpose resin products and semiconductor-use products
are stagnating, and profit margin will fall under the weaker Yen. Operating profit will sag.
The financial
situation is considered FAIR and good for ORDINARY business engagements
REGISTRATION
Date Registered: May 1941
Regd No.:
(Tokyo-Shinagawaku) 018429
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
24,550,000 shares
Issued:
10,533,200 shares
Sum: Yen 1,061 million
Major
shareholders (%): Master Trust Bank of Japan T (6.1), Company’s Treasury Stock (5.2),
Customers’ S/Holding Assn (5.2), Naomi Sagara (5.1), Japan Trustee Services T
(4.2), Mariko Noda (3.8), Mizuho Bank (3.7), Tomoe Kikaku (3.3), Haruko
Yamaguchi (2.9), Sachiko Dohi (2.1),; foreign owners (3.7)
No. of shareholders: 4,306
Listed on the S/Exchange (s) of: Tokyo
Managements:
Noboru
Shiono, pres; Hitoshi Yamamoto, s/mgn dir;; Yoshito Honma, mgn dir; Akinori
Okada, dir; Tetsuo Yamada, dir; Masayoshi Fukasawa, dir; Akitomo Tamai, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Tomoe Machinery
Service, Tomoe Machinery, Tomoe Kogyo (HK), Tomoe
Kogyo Shenzhen, other
OPERATION
Activities: Manufactures centrifugal separators, other
machinery, parts & components (30%); manufactures, imports, exports and
wholesales petrochemicals raw materials, products,
others (70%).
(Sales breakdown by divisions):
Machinery Division:
Machinery : centrifugal separators with
D-Canter model, non-centrifugal type sepa-rators, shaftless conveyors,
carbonization equipment, crushing & shredding machines;
Facilities, installation works: centering on
sewage treatment facilities, dust collectors of semiconductors, plastic waste
treatment equipment, othr;Parts/components/repairs supplying spare parts & repairing parts
for over 20,000 centrifugal separators supplied domestically.
Chemicals Division:
Synthetic Resins : plastic materials &
products, films, sheets, materials for OA equipment, IT equipment, automobiles
particularly in overseas markets;
Industrial materials : ore & iron ore
products as fillers & additives for building materials, paints, adhesives,
fertilizers, agro chemicals, other;
Chemical products:
synthetic resins and additives for use in paints, adhesives, ink:
Functional
materials:: ceramics, nano-technology products, electrodes, metals for
semiconductors,
others;
Electronics-related
materials:: semiconductor tools, trays, IC chips, other.
Others: imports
wines, whiskies.
Overseas sales ratio (23%):
Clients: [Electronics
mfrs, petrochemical industries] Komatsu NTC, Tomoe Wine & Spirits, Toshiba
Electronics Asia, OM Plant, Ibiden, Shenzhen Meiyang Plastics, NGK Insulators,
Toshiba Tech, Ebara Engineering Service, Tokyo-Metrop government (Drainage
Div), Achilles Corp, Bridgestone Corp, Sei Opti Frontier, other.
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Shenzhen Meiyang Plastics, Nippon Unicar Co, Dow Chemical Japan, Showa
Denko, NSCC Asia, Japan Polyethylene Corp, Samsung Fine
Chemicals, Daiwon Semiconductor Packaging Ind, Clicke & Soffa Global
Holdings Co, Mitsubishi Engineering
Plastics, other.
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
Mizuho Bank
(Ginza-Chuo)
MUFG (Yaesudori)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/10/2012 |
31/10/2011 |
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INCOME STATEMENT |
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Annual Sales |
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41,575 |
42,375 |
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Cost of Sales |
32,855 |
33,593 |
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GROSS PROFIT |
8,720 |
8,781 |
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Selling & Adm Costs |
6,272 |
6,360 |
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OPERATING PROFIT |
2,447 |
2,421 |
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Non-Operating P/L |
158 |
174 |
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RECURRING PROFIT |
2,605 |
2,595 |
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NET PROFIT |
1,616 |
2,915 |
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BALANCE SHEET |
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Cash |
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7,463 |
7,296 |
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Receivables |
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13,303 |
12,478 |
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Inventory |
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5,201 |
5,165 |
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Securities, Marketable |
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Other Current Assets |
802 |
852 |
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TOTAL CURRENT ASSETS |
26,769 |
25,791 |
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Property & Equipment |
5,331 |
5,269 |
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Intangibles |
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225 |
65 |
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Investments, Other Fixed Assets |
1,497 |
1,577 |
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TOTAL ASSETS |
33,822 |
32,702 |
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Payables |
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6,956 |
6,485 |
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Short-Term Bank Loans |
630 |
534 |
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Other Current Liabs |
2,774 |
3,307 |
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TOTAL CURRENT LIABS |
10,360 |
10,326 |
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Debentures |
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Long-Term Bank Loans |
41 |
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Reserve for Retirement Allw |
67 |
67 |
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Other Debts |
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819 |
979 |
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TOTAL LIABILITIES |
11,287 |
11,372 |
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MINORITY INTERESTS |
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Common
stock |
1,061 |
1,061 |
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Additional
paid-in capital |
1,483 |
1,483 |
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Retained
earnings |
20,396 |
19,179 |
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Evaluation
p/l on investments/securities |
23 |
51 |
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Others |
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(66) |
(82) |
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Treasury
stock, at cost |
(363) |
(363) |
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TOTAL S/HOLDERS` EQUITY |
22,534 |
21,329 |
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TOTAL EQUITIES |
33,822 |
32,702 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/10/2012 |
31/10/2011 |
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Cash
Flows from Operating Activities |
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1,005 |
1,874 |
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Cash
Flows from Investment Activities |
-612 |
-239 |
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Cash Flows
from Financing Activities |
-244 |
-373 |
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Cash,
Bank Deposits at the Term End |
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7,463 |
7,296 |
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ANALYTICAL RATIOS Terms ending: |
31/10/2012 |
31/10/2011 |
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Net
Worth (S/Holders' Equity) |
22,534 |
21,329 |
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Current
Ratio (%) |
258.39 |
249.77 |
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Net
Worth Ratio (%) |
66.63 |
65.22 |
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Recurring
Profit Ratio (%) |
6.27 |
6.12 |
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Net
Profit Ratio (%) |
3.89 |
6.88 |
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Return
On Equity (%) |
7.17 |
13.67 |
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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.60.80 |
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|
1 |
Rs.91.95 |
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Euro |
1 |
Rs.80.36 |
INFORMATION DETAILS
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Report
Prepared by : |
PRL |
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 |
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-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.