MIRA INFORM REPORT

 

 

Report Date :

16.12.2014

 

IDENTIFICATION DETAILS

 

Name :

TATSUNO CORPORATION 

 

 

Registered Office :

Tatsuno Minami-Honmachi Bldg., 2-2-9, Minami-Honmachi, Chuo-Ku,  Osaka-Shi, Osaka pref. 541-0054

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

04.05.1948

 

 

Com. Reg. No.:

1200-01-077462 (Osaka)

 

 

Legal Form :

Private Company

 

 

Line of Business :

Subject operates through following divisions :-

 

·         Textile Division

Manufacturing and marketing garments such as uniforms, business wear, working wear, men’s suits, rain coats, underwear

 

·         Real Estate Division

Management of office buildings, condominiums, warehouses, parking lots in and around Osaka City. Development of real estate in Japan. Construction of buildings, warehouses, condominiums, steel-framing houses

 

·         Materials Divisions

Marketing of materials for electric transmission such as cable supporters, pipes, concrete products

 

·         Overseas Divisions

Export and import of garments, textiles, machinery, tools, chemicals, construction equipment, cosmetics. Joint venture investment in real estate overseas.

 

 

No of Employees :

124 ( Including 13 Non-Regular Workers)

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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  

 

TATSUNO CORPORATION

 

Company OUTLINE

 

Company name:            TATSUNO CORPORATION

Name in local language: TATSUNO K.K.

Office address:             Tatsuno Minami-honmachi Bldg., 2-2-9, Minami-honmachi, Chuo-ku,  Osaka-shi, Osaka

pref. 541-0054

Country:                        Japan

Office tel:                                 06-6263-2331

Office fax:                    06-6263-7471

Website:                       www.tatuno.co.jp 

Business type:              Trader/Service  

Industry:                                   Real estate leasing, uniform

Established:                  May 4, 1948

Capital:                                     Jp. 100,000,000 yen

Employees:                  124 (Including 13 Non-Regular Workers)

Corporate formation:     Private  

Corporation No.:           1200-01-077462 (Osaka Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

Paid in capital :                         Jp. 100,000,000 yen

Number of authorized shares :   12,000,000 shares

Shares issued :                         3,000,000 shares

Number of shareholder :                        17

 

Name of shareholders                           Number of shares (%)

--------------------------------------------------------------------------------------------------------------

Mr. Katsuhiko Tatsuno, President             495,078 shares (16.5)

Mr. Kohei Tatsuno                                   297,785 shares ( 9.9)

Mr. Teppei Tatsuno                                  297,784 shares ( 9.9)

Mr. Mitsuhiko Tatsuno, Director               254,500 shares ( 8.5)

Mr. Motonobu Tatsuno                            236,385 shares ( 7.9)

--------------------------------------------------------------------------------------------------------------

Total                                                     1,581,532 shares (52.7)

 

 


DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

Activity                         Product/Service Description

-------------------------------------------------------------------------------

Trading                         Outer garments

Trading                         Electric materials

Manufacturing               Uniforms

Service                         Real estate leasing

 

 

COMPANY MANAGEMENT

 

President                      Mr. Katsuhiko Tatsuno

Nationality:                    Japan

 

Director                        Mr. Morihiko Tatsuno

Nationality:                    Japan

 

Director                                    Mr. Yutaka Sasaki

Nationality:                    Japan

 

Director                                    Mr. Mitsuhiko Tatsuno

Nationality:                    Japan

 

Auditor                         Ms. Shigemi Tatsuno

Nationality:                    Japan

 

Note: The names of director(s) and auditor(s) are phonetically spelt.

 

*Key Personnel*

==============

Mr. Katsuhiko Tatsuno

President and representative director

Born on in September 1941

Education: Graduated from The University of Tokyo in March 1964

Business career:

Apr. 1964: Employed by the subject.

Dec. 1991: Representative director and president of the subject.

Home address: 4-10-16, Minami-azabu, Minato-ku, Tokyo

 

 

FINANCIALS

 

Currency: (local currency - Jp. yen)

-------------------------------------------------------------------------------------

 Year |         Sales            |       Net Income    

-------------------------------------------------------------------------------------

2010

12,634,577,000

1,041,000

2011

13,296,788,000

889,566,000

2012

12,985,085,000

1,060,894,000

2013

13,281,582,000

1,083,205,000

2014

16,655,783,000

1,589,085,000

 

 

FINANCIAL DESCRIPTION

 

*Book Closing*

============

March 31st

 

*Financials*

==========

Balance Sheet

 

 

 

Unit: millions of JP yen

 

 

 

                          

3/31/2012

3/31/2013

3/31/2014

Current assets  

10,784

11,038

11,522

 Cash & deposits      

3,293

3,039

2,845

 Account receivables   

1,956

2,515

2,860

 Inventories          

608

624

1,030

 Others

4,927

4,860

4,787

Fixed assets           

58,408

57,338

56,842

 Tangible assets      

52,004

51,222

50,638

 Intangible assets    

252

248

247

 Investments & others  

6,150

5,868

5,956

Total Assets       

69,192

68,377

68,364

 

 

 

 

Current liabilities     

6,320

10,934

6,643

 Account payables  

1,373

1,605

1,578

 Short term loans    

1,331

1,473

1,491

 Long term loans due   

2,248

6,768

2,285

 Outstanding accounts  

97

12

2

 Outstanding taxes    

650

503

511

 Others

621

573

776

Fixed liabilities       

52,801

46,182

48,914

 Long term loans     

41,310

34,739

39,532

 Retirement benefits    

133

123

110

 Others

11,358

11,320

9,272

Total Net Assets       

10,070

11,260

12,806

 Paid up capital      

100

100

100

 Capital reserves      

245

245

245

 Retained earnings    

6,349

7,424

8,887

 Valuation & adjustment 

3,376

3,491

3,574

Total Liabilities & Net Assets     

69,192

68,377

68,364

 

 

 

 

 

 

 

 

Income Statement

 

 

 

Unit : millions of JP yen

 

 

 

                          

3/31/2012

3/31/2013

3/31/2014

Sales          

12,985

13,281

16,655

Cost of goods sold      

9,328

9,737

12,749

Gross profit(loss)    

3,657

3,543

3,906

Sales/administrative expenses  

1,184

1,171

1,174

Operating profit(loss)    

2,472

2,371

2,731

 

 

Non operating income        

189

425

470

Non operating expenses       

734

739

610

Ordinary profit(loss)      

1,927

2,057

2,591

Special profits                

35

0

0

Special losses             

542

252

7

Pretax profit                

1,420

1,804

2,583

Taxes & adjustment           

360

721

985

Net profit      

1,060

1,083

1,598

 

 

Bank Details

 

Bank Name :     Sumitomo Mitsui Banking Corp.

Branch :            Bingo-machi

 

Bank Name :     Bank of Tokyo-Mitsubishi UFJ, Ltd.

Branch :            Senba

 

Bank Name :     Mizuho Bank, Ltd.

Branch :            Osaka

 

 


Credit Opinion

 

The subject is an Osaka-based time-honored firm, which originally started with trading of garments, but now diversified into various business spheres.

 

Currently running four major business segments.

 

Performance has been picking up thanks to boosted trading business of garments recently.

 

A record high performance was posted for Mar. 2014 term.

 

The shareholders’ equity has been enhanced accordingly.

 

Negative factors are not observed in particular at present though w weaker currency may be unfavorable.

 

 

LOCAL BRANCHES & MANAGEMENT

 

Branch name:                Tokyo business headquarters

Branch address:            Nishi-shinbashi, Minato-ku, Tokyo

Branch tel:                    03-3581-6611

Branch fax:                   03-3580-3167

----------------------------------------------------------------------------------------------------

 

Branch name:                Fukuoka sales office

Branch address:            Hakata-ekimae, Hakata-ku, Fukuoka-shi

Branch tel:                    092-451-9515

Branch fax:                   092-451-9516

----------------------------------------------------------------------------------------------------

 

One overseas office in Milan, Italy

 

 

Activity

 

Subject operates through following divisions :-

 

·         Textile Division

Manufacturing and marketing garments such as uniforms, business wear, working wear, men’s suits, rain coats, underwear

 

·         Real Estate Division

Management of office buildings, condominiums, warehouses, parking lots in and around Osaka City. Development of real estate in Japan. Construction of buildings, warehouses, condominiums, steel-framing houses


 

·         Materials Divisions

Marketing of materials for electric transmission such as cable supporters, pipes, concrete products

 

·         Overseas Divisions

Export and import of garments, textiles, machinery, tools, chemicals, construction equipment, cosmetics. Joint venture investment in real estate overseas.

 

 

ORGANIZATION STRUCTURE

 

*Address*

=========

Registered address is the same as the operational address.

 

 

Company History

           

Date                             Development

-----------------------------------------------------------------------------------------------

October 1934                Started business of trading garments in Osaka.

May 4, 1948                  Incorporated under the current name.

1956                             Acquired “Nippon Concrete Kogyo Co., Ltd.”(now Nichico Corp.)

1967                             Started dealing with electric materials.

2000                             ISO14001 certified.

2002                             ISO9001 certified.

May 2006                      Opened an office in Milan, Italy.

August 2009                  Relocated the head office to the current address within Osaka City.

 

 

TRADE REFERENCES

 

*Suppliers*

==========

Mitsui Bussan Inter Fashion Co., Ltd.

Kuraray Co., Ltd.

Nakahiro Corp.

Daido International Ltd.

Shimada Shoji Co., Ltd.

AGC Matex Co., Ltd.

Kurimoto Iron Works Co., Ltd.

Kubota C.I. Corp.

Global Alliance Inc.

Imports from European countries


 

*Customers*

==========

Haseko Corp.

Hitachi Systems Ltd.

Sumitomo Forestry Residential Co., Ltd.

Mitsui Bussan Inter Fashion Co., Ltd.

Isetan Mitsukoshi Ltd.

Nakahiro Corp.

Woolen Shokai Co., Ltd.

TEPCO (Tokyo Electric Power Co.)

J Power Systems Co., Ltd.

 

MAJOR SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

 

Company name:            Nichico Corp.

Country:                        Japan

Status:                          Subsidiary   

----------------------------------------------------------------------------------------------------

Company name:            Heisei Corp.

Country:                        Japan

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            Shanghai Tatsuno Trading Co., Ltd.

Country:                        China

Status:                          Subsidiary  

 

 

RELATED PARTIES DESCRIPTION

 

*Subsidiaries & Affiliates*

=====================

As of March 31, 2014 the subject owns and controls a total of 11 subsidiaries and affiliates at home and abroad.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.65

UK Pound

1

Rs.98.53

Euro

1

Rs.78.02

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

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