MIRA INFORM REPORT

 

 

Report Date :

09.08.2013

 

IDENTIFICATION DETAILS

 

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) :

31.03.2013

 

 

Date of Incorporation :

Oct 2003

 

 

Com. Reg. No.:

0104-01-041839 (Tokyo-Minatoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject engaged in engineering, installation & servicing of industrial electric & automation systems for industrial mfg plants; development & mfg of power electronic apparatus, large capacity electric motors and automation systems for industrial application, rotary machines,

 

 

No. of Employees :

1,811

 

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

 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 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

 

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 (2), China (5 including Hong Kong), UK, Germany, Italy, Poland, India (2),

Singapore, UAE, Taiwan

 

 

FACTORIES

           

Fuchu, Yokohama, Kobe, Nagasaki

 

OFFICERS

 

JUN’ICHI ICHIHARA, PRES        Yasutaka 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 188,819 M

PAYMENTSREGULAR   CAPITAL           Yen 15,000 M

TREND STEADY           WORTH            Yen 94,056 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.  Major clients are steel mills & mfrs, nationwide.

 

 

FINANCIAL INFORMATION

           

            The sales volume for Mar/2013 fiscal term amounted to Yen 188,819 million, a 5% up from Yen 180,652 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 14,475 million and the net profit at Yen 9,130 million, respectively, compared with Yen 14,648 million recurring profit and Yen 8,624 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 15,000 million and the net profit at Yen 9,500 million, respectively, on a 5% rise in turnover, to Yen 198,000 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, Nagoya, London S/E’s, capital Yen 439,901 million, sales Yen 5,800,281 million, operating profit Yen 194,316 million, recurring profit Yen 155,553 million, net profit Yen 77,533 million, total assets Yen 6,106,732 million, net worth Yen 1,034,456 million, employees 206,087, pres Hisao Tanaka.

           

** Mitsubishi Electric Corp, Tokyo, founded 1921, listed Tokyo, Amsterdam, Frankfurt, London S/E’s, capital Yen 175,820 million, sales Yen 3,567,184 million, operating profit Yen 152,095 million, recurring profit Yen 65,141 million, net profit Yen 69,517 million, total assets Yen 3,410,410 million, net worth Yen 1,300,070 million, employees 120,958, 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:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

198,000

188,819

180,652

166,524

Recur. Profit

 

15,000

14,475

14,643

11,384

Net Profit

 

9,500

9,130

8,624

6,834

Total Assets

 

 

161,973

158,083

144,175

Current Assets

 

 

144,404

140,781

126,565

Current Liabs

 

 

63,872

66,912

58,401

Net Worth

 

 

94,056

87,667

82,032

Capital, Paid-Up

 

 

15,000

15,000

15,000

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.86

4.52

8.48

-14.51

    Current Ratio

 

..

226.08

210.40

216.72

    N.Worth Ratio

..

58.07

55.46

56.90

    R.Profit/Sales

 

7.58

7.67

8.11

6.84

    N.Profit/Sales

4.80

4.84

4.77

4.10

    Return On Equity

..

9.71

9.84

8.33

 

Note: Forecast (or estimated) for the 31/03/2014 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.11

UK Pound

1

Rs.94.77

Euro

1

Rs.81.54

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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.