MIRA INFORM REPORT

 

 

Report Date :

19.07.2014

 

IDENTIFICATION DETAILS

 

Name :

TOSHIBA CORPORATION

 

 

Registered Office :

1-1-1 Shibaura Minatoku Tokyo 105-8001

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

June, 1904

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of digital products, electronic devices, home appliances

 

 

No. of Employees :

200,260

 

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

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately 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 and address

 

TOSHIBA CORPORATION

 

REGD NAME:    KK Toshiba

MAIN OFFICE:  1-1-1 Shibaura Minatoku Tokyo 105-8001 JAPAN

Tel: 03-3457-4511     Fax: 03-3456-1632

 

                        *.. The is its Kawasaki Office/Plant

 

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

E-Mail address: info@toshiba.co.jp

 

 

ACTIVITIES

 

Mfg of digital products, electronic devices, home appliances

 

 

BRANCHES

 

Sapporo, Sendai, Chiba, Yokohama, Nagoya, Osaka, Hiroshima, other (Tot 58)

 

 

OVERSEAS   

 

Asia/Pacific (69), Europe/Mid East/Africa (46), North & South America (31)

 

 

FACTORIES

 

Fuchu, Ohme, Oita, Kawasaki, Himeji, Saitama, other (Tot 16)

 

 

CHIEF EXEC 

 

HISAO TANAKA, PRES

 

 

Yen Amount

 

In million Yen, unless otherwise stated

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 6,502,543 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 439,901 M

TREND UP                                WORTH            Yen 1,652,327 M

STARTED         1904                             EMPLOYES      200,260

 

 

COMMENT

 

ELECTRIC MACHINERY PRODUCER. 

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

6,270,684

238,676

137,845

(%)

1,179,616

(Consolidated)

31/03/2012

5,994,347

202,628

70,054

-4.41

1,230,211

 

31/03/2013

5,726,986

159,629

77,366

-4.46

1,416,077

 

31/03/2014

6,502,543

280,938

50,826

13.54

1,652,327

 

31/03/2015

6,700,000

250,000

120,000

3.04

..

Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2015 fiscal term

 

 

HIGHLIGHTS

 

This is one of the largest comprehensive electrical machinery mfrs, with NAND flash memory devices & social infrastructure systems as mainline.  Also strong in heavy electric machinery, and note-type personal computers.  Has con sub Westing House (US).  Maintains many technological tie-ups with foreign firms.  Top ranked in semiconductors and digital equipment in Japan and leading producer of note-type PC’s.  In order to streamline operations, the firm reduced divisions into three major domains: Digital products, Electronic devices & components, infrastructure systems and home electronics.  It has established a transmission & distribution equipment JV with a heavy electric machinery maker in India. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term was amounted to Yen 6,502,543 million, a 13.5% up from Yen 5,726,986 million in the previous term.  Profits & earnings returned to a normal level, buoyed by increased demand.  The lifestyle business, including TV7s and PC’s was profitable.  The recurring profit was posted at Yen 180,936 million and the net profit at Yen 50,826 million, respectively, compared with Yen 159,629 million recurring profit and Yen 77,366 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 250,000 million and the net profit at Yen 120,000 million, respectively, on a 3.0% rise in turnover, to Yen 6,700,000 million.  Sales of NAND devices will remain at a high level.  Demand for power systems will recover.  Profitability in the P business will improve.

 

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

 

 

REGISTRATION

 

Date Registered:       Jun 1904

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         10,000 million shares

Issued:                4,237,602,026 shares

Sum:                   Yen 439,901 million

 

Major shareholders (%): Master Trust Bank of Japan T (5.3), Japan Trustee Services Bank T (4.4), Dai-ichi Life Ins (2.7), Company’s Treasury Stock (2.6), Nippon Life Ins (2.6), JP Morgan Chase Bank 380072 (1.9), Japan Trustee Services T4 (1.4), Mizuho Bank (1.3), SMBC (1.2), Japan Trustee Services T1 (1.1); foreign owners (27.3)

 

No. of shareholders: 383,080

 

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

 

Managements: Masashi Muromachi, ch; Hisao Tanaka, pres; Hidejiro Shimomitsu, v pres; Masahiko Fukakushi, v pres; Kiyoshi Kobayashi, v pres; Toshio Masaki, v pres; Hiroshi Saito, s/mgn dir; Shigenori Shiga, s/mgn dir; Yasuo Naruke, s/mgn dir; Naoto Nishida, s/mgn dir; Keizo Maeda, mgn dir

 

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

 

Related companies: Toshiba Plant System, Toshiba Tec, other

 

 

OPERATION

 

Activities: Manufactures comprehensive electric machinery (sales breakdown by divisions): Energy & infrastructure (26%), community solutions (19%), health care (6%), electronic devices & components (24%), lifestyle (18%), others (7%)

Overseas Sales Ratio (58%).

 

Clients: [Electric powers, wholesalers] Tokyo Electric Power, Tohoku Electric Power, Chubu Electric Power, Toshiba America Information Systems, Toshiba Digital Media Network, Toshiba System Europe, other

            No. of accounts: 3,000

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Toshiba Information Equipment Philippines, Iwate Toshiba Electronics, Intel, Toshiba LSI Package Solution, Toshiba Media Equipment, Toshiba Taiwan, Toshiba Plant System, Toshiba Lease, other.


Payment record: No complaints

 

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

 

Bank References:

                        SMBC (Tokyo)

                        Mizuho Bank (H/O)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

 

  Annual Sales

 

6,502,543

5,726,986

 

  Cost of Sales

 

4,854,349

4,313,956

 

      GROSS PROFIT

1,648,194

1,413,030

 

  Selling & Adm Costs

1,357,430

1,215,289

 

      OPERATING PROFIT

290,764

197,741

 

  Non-Operating P/L

-9,826

-38,112

 

      RECURRING PROFIT

280,938

159,629

 

      NET PROFIT

50,826

77,366

BALANCE SHEET

 

 

 

 

  Cash

 

171,340

209,169

 

  Receivables

 

1,506,400

1,372,307

 

  Inventory

 

934,018

1,003,108

 

  Securities, Marketable

 

 

 

  Other Current Assets

597,466

575,856

 

      TOTAL CURRENT ASSETS

3,209,224

3,160,440

 

  Property & Equipment

960,035

884,680

 

  Intangibles

 

 

 

 

  Investments, Other Fixed Assets

2,072,364

2,054,882

 

      TOTAL ASSETS

6,241,623

6,100,002

 

  Payables

 

1,199,539

1,190,201

 

  Short-Term Bank Loans

203,523

433,128

 

 

 

 

 

 

  Other Current Liabs

1,188,984

1,114,110

 

      TOTAL CURRENT LIABS

2,592,046

2,737,439

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

1,386,658

1,231,036

 

  Reserve for Retirement Allw

610,592

715,450

 

  Other Debts

 

0

0

 

      TOTAL LIABILITIES

4,589,296

4,683,925

 

      MINORITY INTERESTS

 

 

 

Common stock

 

439,901

439,901

 

Additional paid-in capital

404,564

404,430

 

Retained earnings

652,367

635,419

 

Evaluation p/l on investments/securities

423,261

381,809

 

Others

 

(266,079)

(443,940)

 

Treasury stock, at cost

(1,687)

(1,542)

 

      TOTAL S/HOLDERS` EQUITY

1,652,327

1,416,077

 

      TOTAL EQUITIES

6,241,623

6,100,002

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

286,586

132,316

 

Cash Flows from Investment Activities

-246,555

-196,347

 

Cash Flows from Financing Activities

-89,309

41,772

 

Cash, Bank Deposits at the Term End

171,340

209,169

ANALYTICAL RATIOS           Terms ending:

31/03/2014

31/03/2013

 

 

Net Worth (S/Holders' Equity)

1,652,327

1,416,077

 

 

Current Ratio (%)

123.81

115.45

 

 

Net Worth Ratio (%)

26.47

23.21

 

 

Recurring Profit Ratio (%)

4.32

2.79

 

 

Net Profit Ratio (%)

0.78

1.35

 

 

Return On Equity (%)

3.08

5.46

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.33

UK Pound

1

Rs.103.18

Euro

1

Rs.81.58

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.