MIRA INFORM REPORT

 

 

Report Date :

03.07.2014

 

IDENTIFICATION DETAILS

 

Name :

TOA ELECTRIC INDUSTRIAL CO LTD

 

 

Registered Office :

5-1-4 Sotokanda Chiyodaku Tokyo 101-0021

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2014

 

 

Date of Incorporation :

17.06.1947

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Importer, exporter and wholesaler of Electric Equipment & Parts, Tubing, Flat Cables, Adhesives, Substrates & Modules, Keypads, Automotive Products, Optical Products as well as Connectors

 

 

No of Employees :

297

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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

 

TOA ELECTRIC INDUSTRIAL CO LTD

 

 

REGD NAME

 

Toa Denki Kogyo KK

 

MAIN OFFICE

 

5-1-4 Sotokanda Chiyodaku Tokyo 101-0021 JAPAN

Tel: 03-3834-0181      Fax: 03-3834-4526

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Importer, exporter and wholesaler of Electric Equipment & Parts, Tubing, Flat Cables, Adhesives, Substrates & Modules, Keypads, Automotive Products, Optical Products as well as Connectors

 

 

BRANCHES

 

Osaka, Akita, Sendai, other (Tot 18)

 

 

OVERSEAS

 

USA, China (9), Thailand (2), Singapore, Taiwan (3), Malaysia, Indonesia

 

 

FACTORIES

 

China (4), Thailand, Malaysia (-- subcontracted factories), and subsidiaries

           

 


OFFICERS

 

KAZUO KOBAYASHI, PRE                    Yoichi Fukasaku, s/mgn dir

Kikuo Hinuma, mgn dir                           Akio Shigeta, mgn dir

Katsuhiro Harada, dir                             Hideo Hayashi dir

           

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                                         A/SALES          Yen 44,299 M

PAYMENTSNo Complaints                CAPITAL           Yen 450 M

TREND SLOW                                       WORTH            Yen 8,793 M

STARTED         1947                                         EMPLOYES      297

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN ELECTRIC EWQUIPMENT.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company is a trading firm, with mfg division, specializing in import, export and wholesale of electric equipment, flat cables, adhesives, keypads, automotive products, connectors.  Has overseas offices in USA, China (9), Taiwan, Hong Kong, Germany, other.  Production bases (OEM) in overseas: China (4), Thailand, and Malaysia.  Clients include electric makers, auto makers, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Feb/2014 fiscal term amounted to Yen 44,299 million, a 5% down from Yen 46,748 million in the previous term.  The recurring profit was posted at Yen 786 million and the net profit at Yen 417 million, respectively, compared with Yen 403 million recurring profit and Yen 248 million net profit, respectively, a year ago.

 

For the current term ending Feb 2015 the recurring profit is projected at Yen 800 million and the net profit at Yen 430 million, respectively, on a 3% rise in turnover, to Yen 45,600 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:           17 Jun 1947

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         3.6 million shares

Issued:                9.01 million shares

Sum:                   Yen 450,687,000.-

Major shareholders (%): Employees’ S/Holding Assn (17.1), Kazuo Kobayashi (4.8), Yoichi Fukasaku (3.7), Kikuo Hinuma (3.2), Hideo Hayashi (3.0)

 

No. of shareholders: 249

 

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

 

 

OPERATION

           

Activities: Imports, exports and wholesales electric equipment & parts] tubing, flat cables, adhesives, substrates & modules, keypads, automotive products, optical products, connectors, others (--100%)

 

Clients: [Mfrs, wholesalers] Denso Corp, Cannon Oita, Mitsubishi Electric, Panasonic Corp, Hitachi Living Supply, Nissan Motor, Yazaki Corp, other 

            No. of accounts: 350

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sumitomo Electric Ind, Sumitomo 3M, Shin-Etsu Ind, Mitsubishi Shoji Chemical, Junkosha Inc, Kurabe Industrial, other

Imports from subcontracted mfrs in China, Thailand and Malaysia

 

Payment record: No Complaints

 

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

 

Bank References:

MUFG (Akihabara)

Resona Bank (Ueno)

Relations: Satisfactory

 

 

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

28/02/2015

28/02/2014

28/02/2013

29/02/2012

Annual Sales

 

45,600

44,299

46,748

49,895

Recur. Profit

 

800

786

403

775

Net Profit

 

430

417

248

329

Total Assets

 

 

24,806

22,933

24,724

Current Assets

 

 

17,042

14,917

16,820

Current Liabs

 

 

14,610

14,917

14,963

Net Worth

 

 

8,793

8,335

8,042

Capital, Paid-Up

 

 

450

450

450

Div.P.Share(¥)

 

 

15.00

15.00

15.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.94

-5.24

-6.31

-3.64

    Current Ratio

..

116.65

100.00

112.41

    N.Worth Ratio

..

35.45

36.35

32.53

    R.Profit/Sales

1.75

1.77

0.86

1.55

    N.Profit/Sales

0.94

0.94

0.53

0.66

    Return On Equity

..

4.74

2.98

4.09

 

Notes: Forecast (or estimated) figures for the 28/02/2015 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.97

UK Pound

1

Rs.102.89

Euro

1

Rs.82.02

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

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%)

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.