MIRA
INFORM REPORT
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Report Date : |
30.11.2013 |
IDENTIFICATION DETAILS
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Name : |
TOKYO STEEL MFG CO LTD |
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Registered Office : |
Kasumigaseki-Tokyu Bldg 15F, 3-7-1 Kasumigaseki Chiyodaku Tokyo 100-0013 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
November 1934 |
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Com. Reg. No.: |
0100-01-008819
(Tokyo-Chiyodaku) |
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Legal Form : |
Limited Company |
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Line of Business : |
Electric furnace steelmaker manufacturing steel products |
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No. of Employees : |
983 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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 – September 30th, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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.
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Source : CIA |
Company name
TOKYO STEEL MFG CO LTD
REGD NAME
Tokyo Seitetsu KK
MAIN OFFICE
Kasumigaseki-Tokyu
Bldg 15F, 3-7-1 Kasumigaseki Chiyodaku Tokyo 100-0013 JAPAN
Tel:
03-3501-7721 Fax: 03-3580-8859
*.. Moved to the caption address from the one as given
URL: http://www.tokyosteel.co.jp/
E-Mail address: somu@tokyosteel.co.jp
ACTIVITIES
Electric
furnace steel maker
BRANCHES
Osaka,
Kitakyushu, Nagoya, Utsunomiya
FACTORIES
Okayama,
Kitakyushu, Utsunomiya, Aichi, Takamatsu (Steel Center)
CHIEF EXEC
TOSHIKAZU
NISHIMOTO, PRES & CEO
Yen
Amount: In million Yen, unless otherwise
stated
SUMMARY
FINANCES FAIR A/SALES Yen 137,261 M
PAYMENTS Slow CAPITAL Yen 30,894 M
TREND SLOW ORTH Yen
73,452 M
STARTED 1934 EMPLOYES 983
COMMENT
ELECTRIC FURNACE STEEL MAKER.
FINANCIAL SITUATION CONSIDERED FAIR
AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast
(or estimated) figures for 31/03/2014 fiscal term
HIGHLIGHTS
The subject company is the largest independent electric furnace steelmaker, established before the WWII. After the war, restarted operations with ordinary steel production. Resumed to top-ranked maker of H-beams. Expanding into surface treatment and cold rolling areas. Produces a variety of products, including H-beams, sheet piles, etc. First among electric furnace firms to advance into hot-rolling, and looking to diversify earnings sources. The firm started sales of H-shaped steel for outdoor use, in hope to boost sales for support structure of photovoltaic power systems. Known for good financial position with debt-free management. Goods are exported briskly to China, Korea, other. Exports are handled by general trading houses.
FINANCIAL INFORMATION
The sales volume for Mar/2013 fiscal term amounted to Yen 137,261 million, a 17.7% down from Yen 166,791 million in the previous term. Prices of steel plates fell sharply, reflecting flagging market prices. Operating account deficit expanded rapidly. The operations continued in the deficit to post Yen 16,265 million recurring loss and Yen 146,609 million net losses, respectively, compared with Yen 11,193 million recurring loss and Yen 14,273 million net losses, respectively, a year ago.
(Apr/Sept/2013 results): Sales 61,728 million (down 25.3%), operating profit Yen 698 million (previously Yen 10,462 million loss), recurring profit Yen 1,151 million (previously Yen 10,175 million loss), net profit Yen 876 million (previously Yen 10,074 million loss). (% & figures compared with the corresponding period a year ago)
For the current term ending Mar 2014 the recurring profit is projected at Yen 3,000 million and net profit at Yen 2,500 million, on a 0.2% rise in turnover, to 137,500 million. Sales of H-shaped steel will recover in the second half, on strong demand related to quake damage restoration and expanding public works. Demand of steel plate will also rebound. Operating profit will emerge. The company focuses on profit margin to secure profit, rather than increase in sales volume. .
The financial situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Nov 1934
Regd No.: 0100-01-008819 (Tokyo-Chiyodaku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
603 million shares
Issued:
155,064,249 shares
Sum: Yen 30,894 million
Major shareholders (%): TOS LLC (11.8), Iketani Science & Tech Found (8.3), Company’s Treasury Stock (3.9), Japan Trustee Services T (3.1), Toshiko Iketani (2.9), Masanari Iketani (2.9), Yoshihiro Iketani (2.9), Master Trust Bank of Japan T (2.6), Yoshimoto Kosan (2.2), CBNYDFA Int’l Small Cap Value P (2.0); foreign owners (23.3)
No of shareholders: 19,905
Listed on the S/Exchange (s) of: Tokyo
Managements: Toshikazu Nishimoto, pres; Kiyoshi Imamura, mgn dir; Kazufumi Yamada, dir; Toshio Adachi, dir; Hiromi Kawamoto, dir; Nobuaki Nara, dir
Nothing detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Electric furnace steelmaker manufacturing steel products (--100%):
(Mfg items):
Long Products: H-beams, sheet piles (U-shaped steel-sheet piles), I beams, checkered H beams, channels, reinforcing bars;
Flat Products: heavy plates, hot rolled coils, pickled & oiled cells, hot-dip galvanized cells, checkered cells, steel sheets, other.
(Export: 12%).
Clients: General trading house, steel wholesalers, specialty traders, other.
Exports to China, Korea, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers: General trading houses, steel traders, wholesalers, other.
Payment record: Slow
Location: Business area in Tokyo. Office premises at the caption address are leased and maintained satisfactorily.
Bank References:
SMBC (Ningyocho)
Mizuho Corporate Bank (Uchisaiwaicho)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
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137,261 |
166,791 |
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Cost of Sales |
140,796 |
164,223 |
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GROSS PROFIT |
-3,534 |
2,568 |
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Selling & Adm Costs |
13,175 |
13,831 |
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OPERATING PROFIT |
-16,710 |
-11,263 |
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Non-Operating P/L |
445 |
70 |
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RECURRING PROFIT |
-16,265 |
-11,193 |
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NET PROFIT |
-146,609 |
-14,273 |
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BALANCE SHEET |
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Cash |
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6,914 |
8,148 |
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Receivables |
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10,153 |
14,905 |
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Inventory |
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16,327 |
24,580 |
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Securities, Marketable |
25,000 |
37,000 |
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Other Current Assets |
4,506 |
7,605 |
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TOTAL CURRENT ASSETS |
62,900 |
92,238 |
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Property & Equipment |
68,171 |
207,380 |
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Intangibles |
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46 |
1,053 |
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Investments, Other Fixed Assets |
8,871 |
8,827 |
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TOTAL ASSETS |
139,988 |
309,498 |
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Payables |
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13,855 |
27,573 |
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Short-Term Bank Loans |
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9,000 |
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Other Current Liabs |
13,501 |
17,202 |
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TOTAL CURRENT LIABS |
27,356 |
53,775 |
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Debentures |
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Long-Term Bank Loans |
30,000 |
26,000 |
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Reserve for Retirement Allw |
4,245 |
4,207 |
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Other Debts |
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4,935 |
4,879 |
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TOTAL LIABILITIES |
66,536 |
88,861 |
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MINORITY INTERESTS |
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Common
stock |
30,894 |
30,894 |
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Additional
paid-in capital |
28,844 |
28,844 |
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Retained
earnings |
15,977 |
163,183 |
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Evaluation
p/l on investments/securities |
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Others |
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4,200 |
4,179 |
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Treasury
stock, at cost |
(6,463) |
(6,463) |
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TOTAL S/HOLDERS` EQUITY |
73,452 |
220,637 |
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TOTAL EQUITIES |
139,988 |
309,498 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2013 |
31/03/2012 |
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Cash
Flows from Operating Activities |
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-3,174 |
8,942 |
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Cash
Flows from Investment Activities |
10,482 |
-12,527 |
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Cash
Flows from Financing Activities |
-5,598 |
4,106 |
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Cash,
Bank Deposits at the Term End |
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31,914 |
30,148 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
73,452 |
220,637 |
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Current
Ratio (%) |
229.93 |
171.53 |
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Net Worth
Ratio (%) |
52.47 |
71.29 |
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Recurring
Profit Ratio (%) |
-11.85 |
-6.71 |
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Net
Profit Ratio (%) |
-106.81 |
-8.56 |
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Return
On Equity (%) |
-199.60 |
-6.47 |
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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.62.39 |
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UK Pound |
1 |
Rs.102.06 |
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Euro |
1 |
Rs.84.98 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
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.