MIRA INFORM REPORT

 

 

Report Date :

26.10.2013

 

IDENTIFICATION DETAILS

 

Name :

TORAY ENGINEERING CO LTD

 

 

Registered Office :

Nihombashi Muromachi Bldg, 3-3-16 Nihombashi-Hongokucho Chuoku Tokyo  103-0021

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

August 1960

 

 

Com. Reg. No.:

0100-01-051561

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Subject is engaged in engineering works, engineering division, electronics division.

 

 

No. of Employees :

852

 

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 :

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 and address

 

TORAY ENGINEERING CO LTD

 

REGD NAME:   Toray Engineering KK

MAIN OFFICE:  Nihombashi Muromachi Bldg, 3-3-16 Nihombashi-Hongokucho Chuoku Tokyo  103-0021 JAPAN

                        Tel: 03-3241-1541     

Fax: 03-3241-1553

 

URL:                 http://www.toray-eng.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Plant engineering, electronics business

 

 

BRANCHES   

 

Tokyo, Shiga

 

 

OVERSEAS   

 

Korea, Shanghai, Taipei, Malaysia

 

 

FACTORIES

 

Seta, Numazu, Shiga

 

 

OFFICERS

 

RYOICHI KAWAMURA, PRES    Teruo Gonoe, mgn dir

Masafumi Maeda, mgn dir         Taku Iwade, dir

Mutsumi Hayashi, dir                 Masaichi Matsuda, dir

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 53,567 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 1,500 M

TREND             SLOW                           WORTH            Yen 30,471 M

STARTED         1960                             EMPLOYES      852

 

 

COMMENT    

 

ENGINEERING FIRM, OWNED BY TORAY INDUSTRIES INC.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established on the basis of a plant engineering division separated from Toray Industries Inc (See REGISTRATION).  Originally named as Toray Construction Co Ltd and in 1962 renamed as captioned.  This is an engineering firm for industrial plants & equipment, and electronics division (See OPERATION).  Active in solar power generation, secondary battery systems, other.  Clients include major mfrs, electronic makers, other, nationwide 

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2013 fiscal term amounted to Yen 53,567 million, a 12% down from Yen 61,212 million in the previous term.  The recurring profit was posted at Yen 439 million and the net profit at Yen 40 million, respectively, compared with Yen 7,780 million recurring profit and yen 1,205 million net profit, respectively, a year ago.

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 790 million and the net profit at Yen 480 million, respectively, on a 3% rise in turnover, to Yen 52,300 million.  

 

The financial situation is considered FAIR and good for ORDINARY business

engagements. 

 

 

REGISTRATION

 

Date Registered:           Aug 1960

Regd No.:                                 0100-01-051561 (Tokyo-Chuoku)

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                  12 million shares

Issued:                         3 million shares

Sum:                            Yen 1,500 million

Major shareholders (%):           Toray Industries Inc (99.9%

No. of shareholders:                 2

 

*.. Largest Mfr of synthetic fibers, Tokyo, founded 1926, listed Tokyo S/E, capital Yen 147,873 million, sales Yen 1,592,270 million, operating profit Yen 83,436 million, recurring profit Yen 88,244 million, net profit Yen 48,477 million, total assets Yen 1,806,869 million, net worth Yen 760,217 million, employees 42,584, pres Akihiro Nikkaku

 

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

 

 

OPERATION

           

Activities: Engineering works: Engineering Division (58%), Electronics Division (42%)

 

(Handling works):

Engineering Division: (1). General plant engineering business: synthetic fibers, chemicals, IT-related fine chemicals, pharmaceuticals, battery materials, micro chemical plants, energy conservation & CO2 emissions reduction; (2). Equipment business: design and fabrication of deposition equipment, film processing equipment & other industrial machinery; (3). FA business: FA equipment, systems, electronic component production/assembly lines, FPC/TAB mfg equipment/devices, OPC related equipment, production data central management systems, parts supply systems; (4). Total systems for secondary battery mfg: slit die coaters, roll press equipment, slitting machine, sheeting cutting machine, stacking equipment, TAB welding, blending equipment, liquid filling equipment, heat sealing equipment, vacuum dryers, charge/discharge equipment; (5). Services: environmental impact assessment, high-level engineering computation, production rationalization consulting, development of various types of industrial software, CAE software business, etc;

 

Electronics Division: (1). Bonders & vacuum printing encapsulators for LCDs & semiconductors, exposers & other high accuracy fine patterning equipment; (2). Coaters for FPD & solar panel substrates (Toray Slit-nozzle Coater); (3). ID tilters, and inspection equipment to inspect appearance, foreign matter, film thickness, aberrations, surface profile and stress in LCDs, semiconductors, solar cells & secondary batteries; (4). High-speed printers, water quality analyzers, oxygen analyzers, process measurement equipment, fiber measurement equipment, various types of inspection equipment, production management control and MES systems, etc.

 

Clients: [Mfrs, wholesalers] Toray Industries Inc, Chimei Opto Electronics, Panasonic Plasma Display, Samsung Japan, Toray International Inc, LG Japan, Japan Display, other 

            No. of accounts: 500

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Toray Precision Inc, Meiko Electronics Co, Numata Corp, Kanaden Corp, Kansai TEK, Fujitsu Peripherals, other

 

Payment record: No complaints

 

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

 

Bank References:         SMBC (Osaka-Chuo)

                                    Mizuho Corporate Bank (Osaka)

                                    Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

　

55,000

53,567

61,212

48,177

Recur. Profit

　

460

439

7,780

3,301

Net Profit

　

50

40

1,205

1,470

Total Assets

　

　

67,799

76,803

70,395

Current Assets

　

　

48,677

57,291

50,178

Current Liabs

　

　

28,088

38,853

31,013

Net Worth

　

　

30,471

29,789

30,699

Capital, Paid-Up

　

　

1,500

1,500

1,500

Div.Ttl in Million (¥)

　

　

300

300

300

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.68

-12.49

27.06

-19.26

    Current Ratio

 

..

173.30

147.46

161.80

    N.Worth Ratio

..

44.94

38.79

43.61

    R.Profit/Sales

 

0.84

0.82

12.71

6.85

    N.Profit/Sales

0.09

0.07

1.97

3.05

    Return On Equity

..

0.13

4.05

4.79

 

Forecast (or estimated) figures for the 31/03/2014 fiscal term

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.63

UK Pound

1

Rs.99.94

Euro

1

Rs.85.14

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.