MIRA INFORM REPORT
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Report Date : |
07.10.2013 |
IDENTIFICATION DETAILS
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Name : |
TSUGAMI CORPORATION |
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Registered Office : |
12-20 Nihombashi-Tomizawacho Chuoku Tokyo
103-0006 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
March 1937 |
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Com. Reg. No.: |
0100-01-101264 (Tokyo-Chuoku) |
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Legal Form : |
Limited Company (Kabushiki
Kaisha) |
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Line of Business : |
Manufacturer of precision
machine tools |
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No. of Employees : |
1,420 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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
Source
: CIA
Company name and address
TSUGAMI CORPORATION
REGD NAME: KK
Tsugami
MAIN OFFICE: 12-20
Nihombashi-Tomizawacho Chuoku Tokyo 103-0006 JAPAN
Tel:
03-3808-1711
Fax: 03-3808-1511
URL: http://www.tsugami.co.jp/
E-Mail
address: webmaster@tsugami.co.jp
ACTIVITIES
Mfg of
precision machine tools
BRANCHES
Nil
OVERSEAS
USA,
Germany, France, Italy (3), Switz, UK, Hungary, Poland, China (2),
Korea,
Singapore, Malaysia, Thailand, Hong Kong, Taiwan, India
FACTORYIES
Niigata
(3); China, India
CHIEF EXEC
TAKAO
NISHIJIMA, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 52,812 M
PAYMENTSNO
COMPLAINTS CAPITAL Yen 10,599 M
TREND UP WORTH Yen 31,998 M
STARTED 1937 EMPLOYES 1,420
COMMENT
MFR OF PRECISION MACHINE TOOLS. FINANCIAL SITUATION COSIDERED 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 was established by Taisuke Tsugami in
order to make working tools, on his account.
Incorporated in 1937, the firm has been succeeded by his
descendants. This is a medium-sized
precision machine tool mfr, with computerized numerical control (CNC) lathe and
grinding machines as mainline. Reputed
for strong technological edge in precision machinery, and highly competitive in
products for IT-related makers & automakers. The company intends to launch new models of
automobile-use lathes having fewer functions in summer 2013 to compete with
low-prices models in China, with an aim to foster this business as a growing
pillar after equipment for smartphones.
It is considering expanding facilities at its plant in India in view of
growing demand in future.
FINANCIAL INFORMATION
The sales volume for Mar 2013 fiscal term amounted to Yen
52,812 million, a 47.8% rise from Yen 35,739 million in the previous term. This was thanks to orders associated with
reconstruction demand after the Thai flooding and an aggressive approach to the
smartphone market. A breakdown of net
sales by machinery category shows that sales of mainstay automobile lathes
increased 21.4% to Yen 34,034 million, sales of grinding machines rose 33.8% to
Yen 3,922 million, sales of machining centers fell 19.6% to Yen 835 million,
and reflecting increased sales related to smartphones, sales of rolling
machines and other specialized machines grew 358.2% to Yen 13,696 million. The recurring profit was posted at Yen 6,800
million and the net profit at Yen 4,207 million, respectively, compared with
Yen 3,875 million recurring profit and Yen 2,281 million net profit,
respectively, a year ago.
(Apr/Jun/2013 results): Sales Yen 6,992 million (down
64.3%), operating profit Yen 415 million (down 87.5%), recurring profit Yen
1,119 million (down 60.6%), net profit Yen 834 million (down 54.2%). (% compared with the corresponding period a
year ago)
For the current term ending Mar 2014 the recurring profit is
projected at Yen 4,900 million and the net profit at Yen 3,200 million, on an
18.6 fall in turnover, to Yen 43,000 million.
In Japan, business sentiment is expected to improve thanks to positive
developments such as the correction to the strong Yen and economic stimulus
measures. Nevertheless, the outlook is
unpredictable, given electricity rate hikes and rising prices of crude oil and
raw materials due to a weaker Yen.
Meanwhile, overseas, the outlook is mixed. Although the North America is on the mend,
Europe remains generally weak and China is unlikely to fully recover until the
summer.
The financial situation is considered FAIR and good for
ORDINARY business engagements.
REGISTRATION
Date Registered: Mar 1937
Regd No.: 0100-01-101264 (Tokyo-Chuoku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
320 shares
Issued:
74,919,379 shares
Sum: Yen 12,345
million
Major shareholders (%): TCSB (Tokyo Seimitsu) (6.1),
Chase Manhattan GTS Escrow (4.4), Goldman Sachs International (3.0), Dai-ichi
Life Ins (2.8), Mori Seiki (2.6), SMBC (2.9), Hokuetsu Bank (1.9), Japan
Trustee Services T9 (1.9), Japan Trustee Services T (1.8), Company’s Treasury
Stock (1.7); foreign owners (16.9)
No. of shareholders:
10,425
Listed on the S/Exchange (s) of:
Tokyo
Managements: Takao Nishijima, ch & pres;
Toshio Honma, dir; Kiyoshi Tauchi, dir; Toshiharu Niijima, dir; Byun Jae-Hyun,
dir; Donglei Tang, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies:
Tsugami Machinery, Tsugami Precision, Precision Tsugami (China)
Corp,
Tsugami Thai Co, Tsugami GmbH, other
OPERATION
Activities: Manufactures and exports precision
machine tools (99%), specialty equipment & others (1%).
Overseas Sales Ratio (85%)
(Mfg items):
Automatic Lathe: opposed gang-tool type, gang tool slide
& turret, turret, chuck work, turning & machining center:
Machining Center: vertical machining type, horizontal
machining center;
Grinding Machine: CNC cylindrical grinding machine, CNC
OD & ID grinding machine;
Rolling Machine: CNC thread rolling machine, thread
rolling machine, other.
Clients:
[Mfrs, wholesalers] Yamazen Corp, Yuasa Trading, Rem Sales Japan, Taiyo
Shokai,
other
Imports
from China (subsidiary factories)
No. of
accounts: 1,000
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Fanuc Ltd, THK, Alps Steel, Kantoh Ltd, Ikura Tools Mfg,
Alps
Tool, other.
Payment record: No
complaints
Location:
Business area in Tokyo. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References: SMBC (Hibiya)
MUFG
(Ginzadori)
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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52,812 |
35,739 |
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Cost of Sales |
38,113 |
27,388 |
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GROSS PROFIT |
14,699 |
8,350 |
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Selling & Adm Costs |
6,251 |
4,264 |
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OPERATING PROFIT |
8,447 |
4,086 |
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Non-Operating P/L |
-1,647 |
-211 |
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RECURRING PROFIT |
6,800 |
3,875 |
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NET PROFIT |
4,207 |
2,281 |
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BALANCE SHEET |
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Cash |
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5,467 |
5,314 |
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Receivables |
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5,303 |
10,536 |
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Inventory |
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18,363 |
37,170 |
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Securities, Marketable |
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Other Current Assets |
1,414 |
(15,912) |
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TOTAL CURRENT ASSETS |
30,547 |
37,108 |
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Property & Equipment |
9,322 |
7,234 |
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Intangibles |
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320 |
149 |
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Investments, Other Fixed Assets |
5,730 |
6,266 |
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TOTAL ASSETS |
45,919 |
50,757 |
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Payables |
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6,759 |
16,503 |
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Short-Term Bank Loans |
3,619 |
2,107 |
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Other Current Liabs |
2,430 |
2,866 |
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TOTAL CURRENT LIABS |
12,808 |
21,476 |
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Debentures |
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|
300 |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
737 |
774 |
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Other Debts |
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375 |
490 |
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TOTAL LIABILITIES |
13,920 |
23,040 |
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MINORITY INTERESTS |
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Common
stock |
12,345 |
12,345 |
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Additional
paid-in capital |
5,884 |
5,884 |
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Retained
earnings |
11,956 |
8,538 |
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Evaluation
p/l on investments/securities |
1,092 |
1,114 |
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Others |
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1,192 |
335 |
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Treasury
stock, at cost |
(471) |
(499) |
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TOTAL S/HOLDERS` EQUITY |
31,998 |
27,717 |
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TOTAL EQUITIES |
45,919 |
50,757 |
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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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1,914 |
499 |
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Cash
Flows from Investment Activities |
-2,381 |
-1,915 |
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Cash Flows
from Financing Activities |
303 |
2,808 |
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Cash,
Bank Deposits at the Term End |
|
5,296 |
5,264 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
31,998 |
27,717 |
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Current
Ratio (%) |
238.50 |
172.79 |
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Net
Worth Ratio (%) |
69.68 |
54.61 |
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Recurring
Profit Ratio (%) |
12.88 |
10.84 |
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Net
Profit Ratio (%) |
7.97 |
6.38 |
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Return
On Equity (%) |
13.15 |
8.23 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.41 |
|
|
1 |
Rs.99.29 |
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Euro |
1 |
Rs.83.68 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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 |
|
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 |
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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.