MIRA INFORM REPORT

 

 

Report Date :

19.12.2014

 

IDENTIFICATION DETAILS

 

Name :

TAKACHIHO KOHEKI CO., LTD.

 

 

Registered Office :

1-2-8, Yotsuya, Shinjuku-ku, Tokyo 160-0004

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

13.03.1952

 

 

Com. Reg. No.:

0111-01-012356

 

 

Legal Form :

Listed company 

 

 

Line of Business :

Trader of System-related equipment

 

 

No of Employees :

453

 

 

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

 

Maximum Credit Limit :

US$ 5.7 million

 

 

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 Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

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

 

TAKACHIHO KOHEKI CO., LTD.

 

 

OUTLINE

 

Country:                                    Japan

Company name:                        TAKACHIHO KOHEKI CO., LTD.

Name in local language:             TAKACHIHO KOHEKI K.K.  (高千穂交易株式会社)

Office address:                         1-2-8, Yotsuya, Shinjuku-ku, Tokyo 160-0004

Office tel:                                             30-3355-1111

Website:                                   www.takachiho-kk.co.jp

Business type:                          Trader  

Industry:                                               Equipment and devices

Established:                              March 13, 1952

Capital:                                                 Jp. 1,206,284,000 yen

Employees:                              453

Corporate formation:                 Listed 

Corporation No.:                       0111-01-012356 (Tokyo Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

As of March 31, 2014:

Paid in capital :                         Jp. 1,197,482,000 yen

Number of authorized shares :   36,000,000 shares

Shares issued :                         10,147,800 shares

Number of shareholder :                        12,649

 

Name of shareholders                          Number of thousand shares (%)

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

Mars Engineering Inc.                                        804 (7.92)

Secom Co., Ltd.                                                450 (4.43)

Japan Trustee Services Bank, Ltd.                      433 (4.26)

Hitachi Automotive Systems Ltd.                                   380 (3.74)

Mizuho Bank, Ltd.                                              300 (2.96)

 

 

Record of change of capital

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

After March 31, 2014:

Date               Number outstanding shares    Capital paid in (JPY)

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

May 31, 2014                10,153,800                      1,200,416,000

June 30, 2014                10,156,800                      1,201,883,000

August 31, 2014            10,161,300                      1,204,083,500

September 30, 2014      10,165,800                      1,206,284,000

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

Activity             Product/Service Description

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

Trading                         System-related equipment

Trading                         Devices

Service                         Customer service

 

 

COMPANY MANAGEMENT

 

President                      Mr. Hideo Toda

Nationality:                    Japan

 

Director                        Mr. Keiichi Obara

Nationality:                    Japan

 

Director                        Mr. Hideki Hirayama

Nationality:                    Japan

 

Director                                    Mr. Yoshiaki Hirata

Nationality:                    Japan

 

Director                                    Mr. Masazumi Uematsu

Nationality:                    Japan

 

Director                                    Mr. Tsutomu Hayano

Nationality:                    Japan

 

Director                                    Mr. Tetsuo Wasano

Nationality:                    Japan

 

Auditor                                     Mr. Yoshiyasu Takechi

Nationality:                    Japan

 

Auditor                                     Mr. Nobuo Shibasaki

Nationality:                    Japan

 

Auditor                                     Mr. Masakatsu Koumi

Nationality:                    Japan

 

Auditor                                     Mr. Ryoichi Ishihara

Nationality:                    Japan

 

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

 

*Key Personnel*

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

Mr. Hideo Toda

President and representative director

Born on February 1, 1950

Business career:

Apr. 1974: Employed by the subject.

Jun. 1998: Director.

Apr. 2006: Representative director and president.

Home address: 4-46-6, Izumi, Suginami-ku, Tokyo

 

 

FINANCIALS

 

Currency: (local currency - Jp. yen)

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

 Year |          Sales                 |      Net Income    

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

2009

26,167,969,000

176,441,000

2010

17,308,368,000

148,913,000

2011

18,200,759,000

419,511,000

2012

16,689,161,000

344,445,000

2013

18,149,527,000

557,253,000

2014

19,581,242,000

565,547,000

 

 

FINANCIAL DESCRIPTION

 

*Book Closing*

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

March 31st

 

*Financials*

==========

Consolidated Balance Sheet

 

 

 

Unit: millions of JP yen

 

 

 

                          

3/31/2012

3/31/2013

3/31/2014

Current assets  

15,458

15,558

16,261

 Cash & deposits      

6,492

7,207

7,212

 Account receivables   

5,346

5,385

5,821

 Inventories          

2,026

2,013

2,372

 Others

1,594

953

856

Fixed assets           

2,831

3,040

3,036

 Tangible assets      

499

496

499

 Intangible assets    

1,170

1,177

896

 Investments & others  

1,160

1,366

1,639

Total Assets       

18,290

18,599

19,297

　

　

　

　

Current liabilities     

3,894

3,891

4,199

 Account payables  

2,563

2,572

2,863

 Outstanding taxes    

261

265

356

 Others

1,070

1,054

980

Fixed liabilities      

894

840

754

 Retirement benefits    

741

752

671

 Others

153

88

83

 

 

Shareholders' equity    

13,409

13,682

14,020

 Paid up capital      

1,193

1,193

1,197

 Capital reserves      

1,156

1,156

1,160

 Retained earnings    

11,357

11,630

11,960

 Treasury stock        

-298

-298

-298

Valuation & adjustment 

-37

118

242

Minority Interest    

114

42

53

Warrants

16

23

27

Total Net Assets       

13,501

13,867

14,343

Total Liabilities & Net Assets     

18,290

18,599

19,297

 

 

 

 

 

 

 

 

Consolidated Income Statement

 

 

 

Unit : millions of JP yen

 

 

 

                          

3/31/2012

3/31/2013

3/31/2014

Sales          

16,689

18,149

19,581

Cost of goods sold      

12,053

12,943

14,220

Gross profit(loss)    

4,632

5,205

5,360

Sales/administrative expenses  

3,877

4,379

4,330

Operating profit(loss)    

757

826

1,030

Non operating income        

73

184

106

Non operating expenses       

3

3

3

Ordinary profit(loss)      

827

1,007

1,133

Special profits                

0

48

4

Special losses             

26

0

20

Pretax profit                

800

1,055

1,117

Taxes & adjustment           

460

468

537

Minority interest   

-4

30

13

Net profit      

344

557

565

 

*Latest Financials *

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

On November 7, 2014, the subject released the following business results and forecast:

As of September 30, 2014:

Unit: millions of JPY

 

Year term

Sales

Operating profit

Ordinary profit

Net profit

2Q 2014      

9,341

349

371

165

2Q 2015   

8,632

238

330

314

FY 2015(F)   

20,500

1,150

1,160

630

 

 

Current assets;

16,056

Non-current assets;

2,690

Total assets;

18,747

Current liabilities;

3,486

Non-current liabilities;

603

Shareholders’ equity;

14,324

  Retained earnings;

12,247

Total net assets;

14,657

Total liabilities and net assets;

18,747

 

*Bank Details*

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

Bank Name :     Mizuho Bank, Ltd.

Branch :            Otemachi business banking department

 

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

Branch :            Yotsuya

 

Bank Name :     Sumitomo Mitsui Banking Corp.

Branch :            Kojimachi

 

 

*Credit Opinion*

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

The subject is a Tokyo-based non-affiliated firm specializing in trading system-related equipment and devices as well as customer service business with over 60-year business history.

 

While the business for the first half of Mar. 2015 term was slow, IP camera, RFID tags and systems for major supermarkets have been pushing the performance for the 2nd half.

 

The M&As carried out in USA and Thailand are expected to boost its overseas business next fiscal term.

Negative factors are not observed in particular at present.

 

Our standard suggestion would be up to US$ 5.7 million on terms of 90 days.

 

 

LOCAL BRANCHES & MANAGEMENT

 

Branch name:                Osaka branch

Branch address:            Umeda, Kita-ku, Osaka-shi

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

Branch name:                Nagoya branch

Branch address:            Mei-eki-minami, Nakamura-ku, Nagoya-shi

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

 

Branch name:                Kyushu sales office

Branch address:            Ten-ya-machi, Hakata-ku, Fukuoka-shi

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

Branch name:                Sapporo sales office

Branch address:           Kita 1-jo-higashi, Chuo-ku, Sapporo-shi

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

 

Overseas office: San Mateo, CA, USA

 

Besides, more than 300 service stations are situated across the nation.

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

 

*Main Products & Services*

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

For Mar. 2014 term:

-       System (41%)

-       Devices (46%)

-       Customer service (12%)

 

Overseas business (17%)

 

 

ORGANIZATION STRUCTURE

 

*Address*

=========

Registered address is the same as the operational address.

 

 

*Company History*

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

Date                             Development

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

March 13, 1952              Incorporated under the name of “Kobe Ganite Co., Ltd.” in Kobe City.

June 1952                     Became an agent for Burroghs Adding Machine Inc.(USA).

February 1954               Renamed as the current company name.

January 1973                 Founded “Takachiho Burroughs Co., Ltd.”(now Unisys Corp.).

February 1975               Acquired the business assets of MDS Japan K.K. for system business.

December 1975             Assigned the shares of Takachiho Burroughs to Burroughs USA Inc.

June 1983                     Relocated the head office to the current address.

 

 

November 2000             Listed on the TSE(#2676).

March 2003                   ISO14001 certified.

July 2005                      Capital and business alliance with Secom Co., Ltd.

September 2005            ISO9001 certified.

August 2008                  ISO27001 certified.

March 2012                   Acquired “Mighty Card Inc.” to start selling RFID.

 

 

TRADE REFERENCES

 

*Suppliers*

==========

Sky Corp.

Tyco Fire & Security Service K.K.

Knoulds Electronics Japan K.K.

Fuji Electronics Co., Ltd.

Fuji Latex Corp.

 

 

*Customers*

==========

Aeon Daylight Co., Ltd.

Heiwa Corp.

OKI Electric Industry Co., Ltd.

Nippon Pachinko Parts Co., Ltd.

Seiyu Inc.

 

 

MAJOR SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

 

Company name:            S-Cube Inc.

Country:                        Japan

Status:                                      Subsidiary   

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

Company name:            Mighty Card Inc.

Country:                        Japan

Status:                                      Subsidiary   

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

Company name:            Takachiho Koheki (H.K.) Ltd.

Country:                        Hong Kong

Status:                                      Subsidiary  

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

 

 

RELATED PARTIES DESCRIPTION

 

*Subsidiaries & Affiliates*

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

As of March 31, 2014 the subject owns and controls a total of eight subsidiaries and one affiliate at home and abroad.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 63.31

UK Pound

1

Rs. 98.67

Euro

1

Rs. 78.10

 

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

Report Prepared by :

DPT

 

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.