MIRA INFORM REPORT
|
Report Date : |
13.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
TOKAI RUBBER INDUSTRIES LTD |
|
|
|
|
Registered Office : |
3-1 Higashi Komaki City Aichi-Pref
485-8550 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
December 1929 |
|
|
|
|
Com. Reg. No.: |
1800-01-076207 (Aichi-Komaki) |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer of shock
absorbent rubber for motor vehicles |
|
|
|
|
No. of Employees : |
14189 |
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 |
|
Maximum Credit Limit : |
Yen 9,941.1 Million |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
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
TOKAI RUBBER INDUSTRIES LTD
REGD NAME
Tokai Gomu Kogyo
KK
MAIN OFFICE
3-1 Higashi Komaki
City Aichi-Pref 485-8550 JAPAN
Tel:
0569-77-2121 Fax: 0568-72-4537
URL: http://www.tokai.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Mfg of
shock absorbent rubber for motor vehicles, other
BRANCHES
Tokyo,
Osaka, Hiroshima, Sendai, Fukuoka
OVERSEAS
China
(18), Thailand (5), India (3), Korea, Indonesia (3), USA (3), Mexico, Poland,
Germany
FACTORIES
Komaki,
Matsuzaka, Shizuoka
CHIEF EXEC
YOSHIAKI
NISHIMURA, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 263,725 M
PAYMENTSNo
Complaints CAPITAL Yen
12,145 M
TREND UP WORTH Yen 172,918 M
STARTED 1929 EMPLOYES 14,189
COMMENT
MFR OF ANTI-VIBRATION RUBBEERS & HOSES, OTHER
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 9,941.1 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast figures for the 31/03/2014
fiscal term.
HIGHLIGHTS
This is the major producer of shock-absorbent rubber for motor vehicles. Started in 1929 as rubber belt maker. Advanced into rubber for cushioning vibration in 1954. Supplying most rubber parts, including hoses, to Toyota, Nissan and other carmakers. Emphasizing non-auto lines such as OA equipment parts. The company has acquired an anti-vibration automobile rubber mfr in Germany and a hose mfr in Italy for 190 million Euros, aiming at the expansion of production in Europe. In India, it will also start a JV on production and distribution of high-pressure rubber hose for construction machinery.
FINANCIAL INFORMATION
The sales volume for Mar/2013 fiscal term amounted to Yen 263,725 million, a 4.5% up from Yen 252,008 million in the previous term. Sales of mainstay automobile parts fell, as affected by the end of domestic eco-car subsidy and production cut in China. Sales of printer parts were also sluggish. Operating profit decreased. The recurring profit was posted at Yen 9,226 million and the net profit at Yen 3,003 million, respectively, compared with Yen 13,041 million recurring profit and Yen 6,089 million net profit, respectively, a year ago.
For the current term ending Mar 2014 the recurring profit is projected at Yen 11,000 million and the net profit at Yen 5,000 million, on a 36.5% rise in turnover, to Yen 360,000 million. Acquisition of companies in Germany and Italy will significantly swell sales. Business in Japan & China will rebound. Industrial supplies sales will recover.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 9,941.1 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Dec
1929
Regd
No.: 1800-01-076207 (Aichi-Komaki)
Legal Status:
Limited Company (Kabushiki Kaisha
Authorized: 400
million shares
Issued:
104,042,806
Sum: Yen 12,145
million
Major shareholders (%): Sumitomo Electric Industries (49.5), Maruyasu Industries (10.4), Fukoku Bussan (2.6), Japan Trustee Services T (2.5), Master Trust Bank of Japan T (2.3), Zenkyoren (1.8), Company’s Kyoei Mochikabukai (1.5), Employees’ S/Holding Assn (1.3), Northern Trust (AVFC) American (1.2), RBC Investor LUX Non Resi DR (0.8); foreign owners (7.8)
No. of shareholders: 4,920
Listed on the S/Exchange (s) of: Tokyo, Nagoya
Managements: Tetsuo Naruse, ch; Yoshiaki Nishimura, pres; Toshihiko Ozaki, v pres; Mitsuru Watanabe, s/mgn dir; Tsutomu Kodama, mgn dir; Masahiro Shibata, mgn dir; Tetsu Mitsui, mgn dir; Katsunori Kanaoka, mgn dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies: DTR America, TER (Thailand), Tokai Kasei Inc, other
OPERATION
Activities:
Manufactures car goods (automotive parts including anti-vibration rubbers &
hoses, interior equipment made of urethane & sound insulation products)
(77%), general industrial products (IT-related products such as cleaning blades
& precision rolls) (23%).
Overseas
Sales Ratio (34%)
Clients:
[Mfrs, wholesalers] Sumitomo Electric Ind, Maruyasu Kikai Co, Canon Chemicals
Inc, Nissan Motor, Fukoku Bussan Co, Oita Cannon Materials, other
No. of
accounts: 500
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Maruyasu Kikai
Co, Sahashi Kogyo, Tokai Kasei Inc, Tokyo Zairyo Co, TRI Metex Co, other
Payment record: No
Complaints
Location:
Business area in Komaki City, Aichi-Pref.
Office premises at the caption address are owned and maintained
satisfactorily.
Bank References:
Mitsui
Sumitomo Trust Bank (Nagoya)
MUFG
(Nagoya-Chuo)
Relations:
Satisfactory
FINANCES
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
|
|||||
|
|
|
Terms Ending: |
31/03/2013 |
31/03/2012 |
||
|
INCOME STATEMENT |
|
|
||||
|
|
Annual Sales |
|
263,725 |
252,008 |
||
|
|
Cost of Sales |
223,615 |
211,700 |
|||
|
|
GROSS PROFIT |
40,110 |
40,308 |
|||
|
|
Selling & Adm Costs |
30,906 |
27,493 |
|||
|
|
OPERATING PROFIT |
9,204 |
12,815 |
|||
|
|
Non-Operating P/L |
22 |
226 |
|||
|
|
RECURRING PROFIT |
9,226 |
13,041 |
|||
|
|
NET PROFIT |
3,003 |
6,089 |
|||
|
BALANCE SHEET |
|
|
|
|||
|
|
Cash |
|
58,005 |
33,880 |
||
|
|
Receivables |
|
65,582 |
66,511 |
||
|
|
Inventory |
|
30,661 |
23,041 |
||
|
|
Securities, Marketable |
|
12,000 |
|||
|
|
Other Current Assets |
15,842 |
12,318 |
|||
|
|
TOTAL CURRENT ASSETS |
170,090 |
147,750 |
|||
|
|
Property & Equipment |
120,918 |
91,121 |
|||
|
|
Intangibles |
|
10,339 |
2,537 |
||
|
|
Investments, Other Fixed Assets |
22,787 |
19,192 |
|||
|
|
TOTAL ASSETS |
324,134 |
260,600 |
|||
|
|
Payables |
|
47,666 |
47,018 |
||
|
|
Short-Term Bank Loans |
15,993 |
3,148 |
|||
|
|
|
|
|
|
||
|
|
Other Current Liabs |
36,904 |
21,757 |
|||
|
|
TOTAL CURRENT LIABS |
100,563 |
71,923 |
|||
|
|
Debentures |
|
35,000 |
20,000 |
||
|
|
Long-Term Bank Loans |
4,347 |
2,780 |
|||
|
|
Reserve for Retirement Allw |
4,257 |
3,103 |
|||
|
|
Other Debts |
|
7,049 |
5,862 |
||
|
|
TOTAL LIABILITIES |
151,216 |
103,668 |
|||
|
|
MINORITY INTERESTS |
|
|
|||
|
|
Common
stock |
12,145 |
12,145 |
|||
|
|
Additional
paid-in capital |
10,867 |
10,867 |
|||
|
|
Retained
earnings |
136,064 |
134,879 |
|||
|
|
Evaluation
p/l on investments/securities |
2,245 |
1,430 |
|||
|
|
Others |
|
11,891 |
(2,124) |
||
|
|
Treasury
stock, at cost |
(294) |
(265) |
|||
|
|
TOTAL S/HOLDERS` EQUITY |
172,918 |
156,932 |
|||
|
|
TOTAL EQUITIES |
324,134 |
260,600 |
|||
|
CONSOLIDATED CASH FLOWS |
|
|
||||
|
|
|
Terms ending: |
31/03/2013 |
31/03/2012 |
||
|
|
Cash
Flows from Operating Activities |
|
19,692 |
12,421 |
||
|
|
Cash
Flows from Investment Activities |
-36,814 |
-23,771 |
|||
|
|
Cash
Flows from Financing Activities |
24,557 |
1,883 |
|||
|
|
Cash,
Bank Deposits at the Term End |
|
58,005 |
45,880 |
||
|
ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
||||
|
|
|
Net
Worth (S/Holders' Equity) |
172,918 |
156,932 |
||
|
|
|
Current
Ratio (%) |
169.14 |
205.43 |
||
|
|
|
Net
Worth Ratio (%) |
53.35 |
60.22 |
||
|
|
|
Recurring
Profit Ratio (%) |
3.50 |
5.17 |
||
|
|
|
Net
Profit Ratio (%) |
1.14 |
2.42 |
||
|
|
|
Return
On Equity (%) |
1.74 |
3.88 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.54 |
|
UK Pound |
1 |
Rs.84.19 |
|
Euro |
1 |
Rs.71.11 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.