MIRA INFORM REPORT

 

 

Report Date :

12.02.2013

 

IDENTIFICATION DETAILS

 

Name :

TMT MACHINERY INC

 

 

Registered Office :

Osaka Green Bldg 6F, 2-6-26 Kitahama Chuoku Osaka 541-0041

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

April 2002

 

 

Com. Reg. No.:

(Osaka-Chuoku) 101171

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of synthetic fiber machinery

 

 

No. of Employees :

313

 

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

(31.03.2011)

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 and address

 

TMT MACHINERY INC

REGD NAME:    TMT Machinery KK

MAIN OFFICE:  Osaka Green Bldg 6F, 2-6-26 Kitahama Chuoku Osaka 541-0041 JAPAN

Tel: 06-6204-8370     Fax: 06-6204-8371

                       

URL:                 http://www.tmt-mc.jp

E-Mail address: info@tmt-mc.jp

 

 

ACTIVITIES

 

Mfg of synthetic fiber machinery

 

BRANCHES

 

Osaka, Kyoto

 

FACTORIES

 

Inuyama (Shiga), Matsuyama; Kyoto (Tech Center)

 

OVERSEAS

 

Shanghai (2); Seoul (2), Daegue, Gumi (--Korea), Taipei, USA (2), Mumbai,

Istanbul, Milan, Sao Paulo

 

 

OFFICERS

 

Jun’ichi Murata, ch*                    SHOSAKU MIKI, PRES

Kazuo Kikkawa, v pres               Ryugo Ogasawara, v pres

 

*.. Chairman of Murata Machinery Ltd

                                                           

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 53,665 M

PAYMENTS                  REGULAR         CAPITAL           Yen 450 M

TREND             STEADY           WORTH            Yen 11,777 M

STARTED                     2002                 EMPLOYES      313

 

 

COMMENT

 

MFR OF SYNTHETIC FIBER MACHINERY.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

            The subject company was established as a tripartite JV by Toray Engineering Co Ltd, Murata Machinery Ltd and Teijin Seiki Co Ltd (now Nabtesco Corp), on the basis of their textile machinery business units merged.  The merger was prompted by ever fiercer competition in the textile machinery    business.  The first stage merger started in Apr 2002 when the new firm succeeded sales and R&D operations from each of the three parties, followed by the second stage where mfg function including three mfg factories were transferred to this new venture in Apr 2003.  By this transfer the new outfit started its full-scale operations as from Apr 2003.  In Nov 2006 took over Shanghai TMT.  In Feb 2012 acquired ordinary shares of Kimitsu Seisakusho and went into business tie-up.  Its main product lines are centering on spinning machines & take-up machines, and texturing machines for synthetic fiber (See OPERATION).  Goods are exported to China, India, Taiwan, other.  Domestic clients include major textile machinery mfrs, general trading houses, other, nationwide.

 

 

FINANCIAL INFORMATION

           

            The sales volume for Mar/2012 fiscal term amounted to Yen 53,665 million, a 13% up from Yen 47,414 million in the previous term.  This is attributed to the said business tie-up with Kimitsu Seisakusho.  Exports were robust into China, India, other.  The net profit was posted at Yen 2,829 million, compared with Yen 3,675 million a year ago.

 

For the current term ending Mar 2013 the net profit is projected at Yen 2,900 million, on a 3% rise in turnover, to Yen 55,200 million.  Exports continue rising.

 

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

 

 

 

 

 

 

 

REGISTRATION

 

Date Registered:  Apr 2002

Regd No.:        (Osaka-Chuoku) 101171

Legal Status:     Limited Company (Kabushiki Kaisha)

Authorized:        18,000 shares

Issued:               18,000 shares

Sum:                  Yen 450 million

Major shareholders (%): Murata Machinery Ltd (34), Toray Engineering Co Ltd (33), Nabtesco  Corp (ex Teijin Seiki Machinery) (33)

No. of shareholders:  3

 

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

 

 

OPERATION

 

Activities: Manufactures synthetic fiber producing machinery & systems, other associated components & accessories (--100%):

 

(Breakdown):

Spinning Systems: macro filament spinning, PA6/66 spinning, industrial yarn spinning;

Take-up Machines: for PET/PA, for spandex, for heavy denier yarn, other;

Texturing Machines: draw-texturing, other.

 

Clients: [Textile mfrs] Exports to India, China, Taiwan, other, directly and thru traders.

Domestic clients: Marubeni Tekmatex, Sojitz Corp, Toray Engineering, Itochu SysTech Corp, other 

No. of accounts: 500 (Domestically)

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Supplied from Murata Machinery, Toray Engineering & Nabtesco      Corp and their subsidiary mfrs, TMT Shanghai, other.

 

Payment record: Regular

 

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

 

Bank References:

SMBC (Kyoto)

Mizuho Bank (Kyoto-Chuo)

Relations: Satisfactory

 

 


FINANCES

 (In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

55,200

53,665

47,414

23,659

Recur. Profit

 

 

 

5,691

1,311

Net Profit

 

2,900

2,829

3,675

852

Total Assets

 

 

30,099

28,711

19,683

Current Assets

 

 

27,026

26,538

18,003

Current Liabs

 

 

16,635

18,695

12,907

Net Worth

 

 

11,777

9,398

6,172

Capital, Paid-Up

 

 

450

450

450

Div.Ttl in Million(¥)

 

 

450

450

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.86

13.18

100.41

-12.95

    Current Ratio

 

..

162.46

141.95

139.48

    N.Worth Ratio

..

39.13

32.73

31.36

    R.Profit/Sales

 

..

..

12.00

5.54

    N.Profit/Sales

5.25

5.27

7.75

3.60

    Return On Equity

..

24.02

39.10

13.80

 

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


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.68

UK Pound

1

Rs.84.84

Euro

1

Rs.71.87

 

 

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.