MIRA INFORM REPORT

 

 

 

Report Date :

07.08.2014

 

IDENTIFICATION DETAILS

 

Name :

TOKYO STEEL MFG CO LTD

 

 

Registered Office :

Kasumigaseki-Tokyu Bldg 15F, 3-7-1 Kasumigaseki Chiyodaku Tokyo 100-0013

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

November, 1934

 

 

Com. Reg. No.:

0100-01-008819 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Electric furnace steel maker

 

 

No. of Employees :

959

 

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 :

Slow but correct

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 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

 

Source : CIA

 

 

 

 

Company name and address

 

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

 

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 139,031 M

PAYMENTS      SLOW BUT CORRECT               CAPITAL           Yen 30,894 M

TREND             UP                                            ORTH               Yen 76,330 M

STARTED         1934                                         EMPLOYES      959

 

 

COMMENT    

 

ELECTRIC FURNACE STEEL MAKER. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

148,956

-2,910

-10,425

(%)

235,781

(Consolidated)

31/03/2012

166,791

-11,193

-14,273

11.97

220,637

 

31/03/2013

137,261

-16,265

-146,609

-17.70

73,452

 

31/03/2014

139,031

3,170

2,315

1.29

76,330

 

31/03/2015

152,000

8,000

7,000

9.33

..

Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2015 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/2014 fiscal term amounted to Yen 139,031 million, a 1.3% up from Yen 137,261 million in the previous term.  The operations came to profitability to post Yen 3,170 recurring profit and Yen 2,315 million net profit, respectively, compared with Yen 16,265 million recurring loss and Yen 146,609 million net losses, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 9,000 million and net profit at Yen 7,000 million, on a 9.3% rise in turnover, to 152,000 million.  Operating profit will expand, on recovering sales volume, backed by brisk construction demand.  .

 

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: 19,477

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Toshikazu Nishimoto, pres; Kiyoshi Imamura, mgn dir; Kazufumi Yamada, dir; Toshio Adachi, 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: 9%).

 

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 but correct

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)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

 

  Annual Sales

　

139,031

137,261

 

  Cost of Sales

124,036

140,796

 

      GROSS PROFIT

14,995

-3,534

 

  Selling & Adm Costs

12,561

-13,176

 

      OPERATING PROFIT

2,434

-16,710

 

  Non-Operating P/L

736

445

 

      RECURRING PROFIT

3,170

-16,265

　

      NET PROFIT

2,315

-146,609

BALANCE SHEET

 

 

 

 

  Cash

　

1,577

6,914

 

  Receivables

 

16,150

10,153

 

  Inventory

 

26,724

16,356

 

  Securities, Marketable

24,000

25,000

 

  Other Current Assets

5,058

4,477

 

      TOTAL CURRENT ASSETS

73,509

62,900

 

  Property & Equipment

65,377

68,171

 

  Intangibles

 

26

46

 

  Investments, Other Fixed Assets

9,738

8,871

 

      TOTAL ASSETS

148,650

139,988

 

  Payables

 

19,253

13,855

 

  Short-Term Bank Loans

21,000

　

 

　

 

　

　

 

  Other Current Liabs

13,118

13,501

 

      TOTAL CURRENT LIABS

53,371

27,356

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

21,000

　

 

  Reserve for Retirement Allw

4,440

4,245

 

  Other Debts

　

(6,491)

34,935

 

      TOTAL LIABILITIES

72,320

66,536

 

      MINORITY INTERESTS

 

 

 

Common stock

30,894

30,894

 

Additional paid-in capital

28,844

28,844

 

Retained earnings

18,292

15,977

 

Evaluation p/l on investments/securities

4,761

4,199

 

Others

 

2

1

 

Treasury stock, at cost

(6,463)

(6,463)

 

      TOTAL S/HOLDERS` EQUITY

76,330

73,452

　

      TOTAL EQUITIES

148,650

139,988

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

　

-2,601

-3,174

 

Cash Flows from Investment Activities

-7,775

10,482

 

Cash Flows from Financing Activities

-1

-5,598

　

Cash, Bank Deposits at the Term End

　

25,577

31,914

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

 

Net Worth (S/Holders' Equity)

76,330

73,452

 

 

Current Ratio (%)

137.73

229.93

 

 

Net Worth Ratio (%)

51.35

52.47

 

 

Recurring Profit Ratio (%)

2.28

-11.85

 

 

Net Profit Ratio (%)

1.67

33.96

 

 

Return On Equity (%)

3.03

63.46

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.34

UK Pound

1

Rs.103.44

Euro

1

Rs.81.96

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.