MIRA INFORM REPORT

 

 

Report Date :

24.01.2014

 

IDENTIFICATION DETAILS

 

Name :

TORISHIMA PUMP MFG CO LTD

 

 

Registered Office :

1-1-8 Miyatacho Takatsuki City Osaka-Pref 569-8660

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

April, 1928

 

 

Com. Reg. No.:

1209-01-011562 (Osaka-Takatsuki)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha

 

 

Line of Business :

Manufacturing of industrial pumps (large, high-tech pumps)

 

 

No. of Employees :

1,612

 

 

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 :

Yen 1,557.8 million

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 & address

 

TORISHIMA PUMP MFG CO LTD

 

REGD NAME:   Torishima Seisakusho KK

MAIN OFFICE:  1-1-8 Miyatacho Takatsuki City Osaka-Pref 569-8660 JAPAN

                        Tel: 072-695-0551          -

 

URL:                 http://www.torishima.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of industrial pumps (large, high-tech pumps)

 

 

BRANCHES   

 

Osaka, Tokyo, Fukuoka, Nagoya, Sapporo, Sendai, Hiroshima, other (Tot 23)

 

 

OVERSEAS   

 

China (2), Doha, Abu Dhabi, Arab Emirates, Europe (4), Vietnam, Singapore, Indonesia (3), India, USA, Canada, other

 

 

FACTORIES  

 

At the caption address; China, Indonesia, other

 

 

CHIEF EXEC

 

KOTARO HARADA, PRES

 

 

Yen Amount

 

In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 45,974 M

PAYMENTS      SLOW BUT CORRECT   CAPITAL           Yen 1,592 M

TREND             SLOW                          WORTH            Yen 33,602 M

STARTED         1928                             EMPLOYES      1,612

 

 

COMMENT    

 

MFR OF INDUSTRIAL PUMPS 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 1,557.8 MILLION, 30 DAYS NORMAL TERMS

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

45,008

3,833

2,609

(%)

31,083

(Consolidated)

31/03/2011

49,880

3,673

1,892

10.82

30,968

 

31/03/2012

46,453

2,929

1,497

-6.87

31,775

 

31/03/2013

45,974

1,389

943

-1.03

33,602

 

31/03/2014

42,000

1,000

700

-8.64

..

Unit: In Million Yen

Forecast figures for the 31/03/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is the largest pump specialist mfr, particularly exceeding in large, high-tech pumps.  One of Japan’s “Big 3” pump mfrs.  Additionally, contractor for turnkey pump stations.  First company to succeed in domestic production of mechanical seals.  Has strength in sales to government offices and public agencies.  Placing more emphasis on overseas markets including Middle East.  The company aims to actively use its plant in China and Indonesia, in bid to reduce production costs, while urging production streamlining thru upgrading of the HQ plant.  It will increase procurement of Chinese and Korean materials and European components.  The company made FEDCO in the US having superior technology for desalination-use pumps & superchargers an equity-method applied firm by making a 50% investment.  It intends to broaden the lineup of those products, aiming for dominance in the market.  It is starting up its maintenance work plant in India in Oct 2013.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 45,974 million, a 1% down from Yen 46,453 million in the previous term.  The recurring profit was posted at Yen 1,389 million and the net profit at Yen 943 million, respectively, compared with Yen 2,929 million recurring profit and Yen 1,497 million net profit, respectively, a year ago. 

 

(Apr/Sept/2013 results): Sales Yen 17,814 million (down 7.0%), operating loss Yen 901 million (previously Yen 1,039 million loss), recurring loss Yen 721 million (previously Yen 884 million loss), net losses Yen 446 million (previously Yen 873 million losses).  (% & figures compared with the corresponding period a year ago)

           

For the current term ending Mar 2014 the recurring profit is projected at Yen 1,000 million and the net profit at Yen 700 million, on an 8.6% fall in turnover, to Yen 42,000 million.  Large-lot orders for pumps such as for products for desalination plants will in pre-harvest months for domestic and overseas markets.  Low-profit orders from overseas customers faded out in the preceding term.  Sales of high-profitable maintenance works will grow, buoyed by enhancement of bases in Asia, etc.  Operating profit will bottom out.  Forex gain will emerge in the non-operating account. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,557.8 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:  Apr 1928

Regd No.:           1209-01-011562 (Osaka-Takatsuki)

Legal Status:        Limited Company (Kabushiki Kaisha

Authorized:          60 million shares

Issued:                 29,889,079.00 shares

Sum:                   Yen 1,592 million

 

Major shareholders (%): Harada Memorial Foundation (9.0), Company’s Treasury Stock (6.1), Resona Bank (4.3), MUFG (4.2), SMBC (4.2), JPM-organ Chase Bank (4.0), Nippon Life Ins (2.5), Kurimoto Ltd (2.1), Hisaka Works (2.0), Japan Trustee Services T (2.0); foreign owners (9.5)

 

No. of shareholders: 9,662

 

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

 

Managements: Kotaro Harada, pres; Hiromichi Fujikawa, s/mgn dir;  Sadao Uchida, mgn dir; Tetsuya Kujima, mgn dir

 

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

 

Related companies: Kyushu Torishima, Torishima Pump Hong Kong, Wind Energy

Development, other.

 

 

OPERATION

           

Activities: Manufactures industrial pumps & seals (--97%), others (3%)

Overseas Sales Ratio (63%)

 

Pumps: Selected by type: end-suction pumps, double-suction pumps, multi-stage pumps, large pumps, specialized pumps; Selected by industry: seawater desalination, power industry, water & wastewater, irrigation & drainage, oil & gas, general industry;

Mechanical Seal: rubber bellows seals, rotating single-spring seals, rotating multi-spring seals, cartridge seals, split seals, stationary seals, others

           

Clients: [Mfrs, wholesalers] Products are exported.

Domestically: government & public agencies, mfrs, oil refineries, other

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

            Suppliers: [Mfrs, wholesalers] Toshiba Corp, Mitsubishi Electric, other

 

Payment record: Slow but correct

 

Location: Business area in Takatsuki City, Osaka-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

                        Resona Bank (Dojima)

                        MUFG (Osaka-Chuo)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

 

45,974

46,453

 

  Cost of Sales

37,959

37,493

 

      GROSS PROFIT

8,015

8,959

 

  Selling & Adm Costs

7,497

6,673

 

      OPERATING PROFIT

517

2,286

 

  Non-Operating P/L

872

643

 

      RECURRING PROFIT

1,389

2,929

 

      NET PROFIT

943

1,497

BALANCE SHEET

 

 

 

 

  Cash

 

11,962

7,521

 

  Receivables

 

24,260

23,795

 

  Inventory

 

6,756

8,238

 

  Securities, Marketable

 

 

 

  Other Current Assets

2,715

2,699

 

      TOTAL CURRENT ASSETS

45,693

42,253

 

  Property & Equipment

9,844

9,417

 

  Intangibles

 

2,044

493

 

  Investments, Other Fixed Assets

10,651

8,649

 

      TOTAL ASSETS

68,232

60,812

 

  Payables

 

12,014

10,843

 

  Short-Term Bank Loans

5,410

3,107

 

 

 

 

 

 

  Other Current Liabs

7,182

7,726

 

      TOTAL CURRENT LIABS

24,606

21,676

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

7,671

4,830

 

  Reserve for Retirement Allw

1,794

1,893

 

  Other Debts

 

559

638

 

      TOTAL LIABILITIES

34,630

29,037

 

      MINORITY INTERESTS

 

 

 

Common stock

1,592

1,592

 

Additional paid-in capital

7,813

7,803

 

Retained earnings

23,951

23,541

 

Evaluation p/l on investments/securities

903

(145)

 

Others

 

311

(44)

 

Treasury stock, at cost

(968)

(972)

 

      TOTAL S/HOLDERS` EQUITY

33,602

31,775

 

      TOTAL EQUITIES

68,232

60,812

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

 

 

Cash Flows from Operating Activities

 

3,513

 

 

Cash Flows from Investment Activities

-3,966

 

 

Cash Flows from Financing Activities

4,356

 

 

Cash, Bank Deposits at the Term End

 

11,962

 

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

33,602

31,775

 

 

Current Ratio (%)

185.70

194.93

 

 

Net Worth Ratio (%)

49.25

52.25

 

 

Recurring Profit Ratio (%)

3.02

6.31

 

 

Net Profit Ratio (%)

2.05

3.22

 

 

Return On Equity (%)

2.81

4.71

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.99

UK Pound

1

Rs.102.67

Euro

1

Rs.83.98

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.