MIRA INFORM REPORT

 

 

Report Date :

31.08.2013

 

IDENTIFICATION DETAILS

 

Name :

TOYO ADVANCED TECHNOLOGIES CO LTD

 

 

Registered Office :

5-3-38 Ujina-Higashi Minamiku Hiroshima 734-8501

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

July 1950

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of machine tools, auto components, hard coating tools

 

 

No. of Employees :

692

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit:

Yen 1,134.8 Million

Status :

Moderate

Payment Behaviour :

Unknown

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 AND ADDRESS

 

TOYO ADVANCED TECHNOLOGIES CO LTD

REGD NAME:    Toyo A-Tech KK

MAIN OFFICE:  5-3-38 Ujina-Higashi Minamiku Hiroshima 734-8501 JAPAN

Tel: 082-262-5202     Fax: 082-505-1163

 

URL:                 http://www.toyo-at.co.jp/

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of machine tools, auto components, hard coating tools

 

BRANCHES

 

Tokyo, Saitama (2), Nagoya, Kanagawa, Osaka, Fukuoka

 

OVERSEAS

 

USA, China (--sales offices)

 

FACTORY(IES)

 

At the caption address; Tokyo, Nagoya (--hard coating)

 

 

OFFICER(S)

 

YASUTO TATSUTA, PRES         Nariaki Uchida, v pres

Tatsutoshi Mizuma, v pres          Kozo Yoneda, s/mgn dir

Kunio Osawa, mgn dir                Masahiro Sumimura, mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 35,106 M

PAYMENTS      UNKNOWN       CAPITAL           Yen 3,000 M

TREND STEADY           WORTH            Yen 14,097 M

STARTED         1950                 EMPLOYES      692

 

 

COMMENT

 

MFR OF MACHINE TOOLS, AUTO PARTS, HARD COATING, OTHER,

WHOLLY OWNED BY MAZDA MOTOR CORP. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 1,134.8 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

            The subject company was established on the basis of a division separated from Tokyo Kogyo Co Ltd (now Mazda Motor Corp) for mfg grinding machines.  Specializes in mfg machine tools, semiconductor-related materials, hard coating tools, auto components, other.  Has two overseas sales offices: USA and China.  Domestically enjoys top share in internal grinding machines.

 

 

FINANCIAL INFORMATION

 

            Financials are consolidated by the parent, Mazda Motor Corp.

 

The sales volume for Mar/2008 fiscal term amounted to Yen 35,106 million, a 5.4% up from Yen 33,300 million in the previous term.  Exports were robust including cars.  The recurring profit was posted at Yen 3,308 million and the net profit at Yen 1,990 million, respectively, compared with Yen 3,336 million recurring profit and Yen 1,990 million net profit, respectively, a year ago.

 

For the current term ending Mar 2009 the recurring profit is projected at Yen 2,900 million and the net profit at Yen 1,700 million, respectively, on a 15% fall in turnover, to Yen 30,000 million.  Mazda Motor’s domestic production plummeted 66.2% from a year earlier, making the third consecutive month of decline.  Domestic sales fell by 20.1% and overseas production plunged 52.5%, both down for the fourth straight month.  The carmaker expects its first loss in eight years for the fiscal year ending Mar/2009, the loss amount expected to reach Yen 13 billion.  The subject firm’s sales will be hurt.  The yen’s upswing is adding further downward pressure on profits by cutting deeply into dollar-nominated earnings.

           

            The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,134.8 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Jul 1950

Legal Status:   　Limited Company (Kabushiki Kaisha)

Authorized:      　24 million shares

Issued:             　6 million shares

Sum:                　Yen 3,000 million

 

Major shareholders (%): Mazda Motor Corp*(100)

 

* Medium-ranked automaker based in Hiroshima, under aegis of Ford Motor (US), founded 1920, listed Tokyo S/E, capital Yen150,068 million, turnover Yen 3,475,789 million, operating profit Yen 162,147 million, recurring profit Yen 148,461 million, net profit Yen 91,835 million, total assets Yen 2,040,622 million, net worth Yen 570,152 million, employees 40,458, pres Hisakazu Imaki

Consolidated Financials are as attached (See SUPPLEMENTS)

 

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

 

 

OPERATION

 

Activities: Manufactures machine tools (semiconductor-related equipment, machine tool numerical control & servo system technology, other) (--69%); automotive components (22%); hard coating tools, die equipment, other (--9%)

Exports (22%).

 

Clients: [Mfrs, wholesalers] Mazda Motor, N]TN, SUMCO, Hyundai Motor, Nissan Motor, Denso Corp, Shin-Etsu Semiconductor, JATCO Ltd, JTEKT Corp, other

No. of accounts: 800

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsubishi Electric, NTN, Mazda Motor, THK, Noritake

Co, Tokyo Seimitsu, Inaba Denki Sangyo, Tokyo Keiki Inc, other.

 

Payment record: Unknown

 

Location: Light industrial area in Hiroshima.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Momiji Bank (H/O)

Bank of Hiroshima (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2009

31/03/2008

31/03/2007

31/03/2006

Annual Sales

　

30,000

35,106

33,300

30,262

Recur. Profit

　

2,900

3,308

3,336

3,694

Net Profit

　

1,700

1,990

1,990

1,517

Total Assets

　

　

24,609

23,032

21,759

Current Assets

　

　

17,005

15,819

　

Current Liabs

　

　

9,891

9,795

　

Net Worth

　

　

14,097

12,711

11,252

Capital, Paid-Up

　

　

3,000

3,000

3,000

Div.P.Share(¥)

　

　

47.00

49.30

37.00

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

-14.54

5.42

10.04

19.94

       Current Ratio

 

..

171.92

161.50

..

       N.Worth Ratio

..

57.28

55.19

51.71

       R.Profit/Sales

 

9.67

9.42

10.02

12.21

       N.Profit/Sales

5.67

5.67

5.98

5.01

     Return On Equity

..

14.12

15.66

13.48

 

Notes: Forecast (or estimated) figures for the 31/03/2009 fiscal term. 

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, MAZDA MOTOR CORP

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2008

31/03/2007

INCOME STATEMENT

 

 

 

  Annual Sales

　

3,475,789

3,247,485

 

  Cost of Sales

2,485,905

2,322,644

 

      GROSS PROFIT

989,884

924,841

 

  Selling & Adm Costs

827,737

766,309

 

      OPERATING PROFIT

162,147

158,532

 

  Non-Operating P/L

-13,686

-30,779

 

      RECURRING PROFIT

148,461

127,753

　

      NET PROFIT

91,835

73,844

BALANCE SHEET

 

 

 

 

  Cash

　

120,961

247,566

 

  Receivables

 

201,259

172,958

 

  Inventory

 

287,716

282,432

 

  Securities, Marketable

103,003

　

 

  Other Current Assets

182,373

152,966

 

      TOTAL CURRENT ASSETS

895,312

855,922

 

  Property & Equipment

898,368

857,154

 

  Intangibles

 

33,951

28,871

 

  Investments, Other Fixed Assets

157,935

165,805

 

      TOTAL ASSETS

1,985,566

1,907,752

 

  Payables

 

336,731

300,577

 

  Short-Term Bank Loans

69,851

70,340

 

　

 

　

　

 

  Other Current Liabs

438,353

494,319

 

      TOTAL CURRENT LIABS

844,935

865,236

 

  Debentures

 

85,000

85,000

 

  Long-Term Bank Loans

261,599

255,849

 

  Reserve for Retirement Allw

99,844

113,025

 

  Other Debts

　

140,034

108,760

 

      TOTAL LIABILITIES

1,431,412

1,427,870

 

      MINORITY INTERESTS

 

 

 

Common stock

150,068

149,513

 

Additional paid-in capital

133,838

133,393

 

Retained earnings

167,332

90,024

 

Evaluation p/l on investments/securities

545

1,034

 

Others

 

106,920

109,256

 

Treasury stock, at cost

(4,549)

(3,338)

 

      TOTAL S/HOLDERS` EQUITY

554,154

479,882

　

      TOTAL EQUITIES

1,985,566

1,907,752

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2008

31/03/2007

 

Cash Flows from Operating Activities

　

102,969

116,358

 

Cash Flows from Investment Activities

-92,760

-95,363

 

Cash Flows from Financing Activities

-24,095

9,346

　

Cash, Bank Deposits at the Term End

　

223,894

242,505

ANALYTICAL RATIOS            Terms ending:

31/03/2008

31/03/2007

 

 

Net Worth (S/Holders' Equity)

554,154

479,882

 

 

Current Ratio (%)

105.96

98.92

 

 

Net Worth Ratio (%)

27.91

25.15

 

 

Recurring Profit Ratio (%)

4.27

3.93

 

 

Net Profit Ratio (%)

2.64

2.27

 

 

Return On Equity (%)

16.57

15.39

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.57

UK Pound

1

Rs.103.34

Euro

1

Rs.88.16

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.