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Report Date : |
10.06.2014 |
IDENTIFICATION DETAILS
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Name : |
TOKYO STEEL MFG CO LTD |
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Registered Office : |
Kasumigaseki-Tokyu Bldg 15F, 3-7-1 Kasumigaseki Chiyodaku Tokyo 100-0013 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
November, 1934 |
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Com. Reg. No.: |
0100-01-008819 (Tokyo-Chiyodaku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Electric furnace steel maker |
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No. of Employees : |
959 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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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 |
TOKYO STEEL MFG CO
LTD
REGD NAME: Tokyo Seitetsu KK
MAIN OFFICE: Kasumigaseki-Tokyu
Bldg 15F, 3-7-1 Kasumigaseki Chiyodaku Tokyo 100-0013 JAPAN
Tel:
03-3501-7721
Fax: 03-3580-8859
URL: http://www.tokyosteel.co.jp/
E-Mail address: somu@tokyosteel.co.jp
Electric furnace steel maker
Osaka, Kitakyushu, Nagoya, Utsunomiya
Okayama, Kitakyushu, Utsunomiya, Aichi, Takamatsu (Steel Center)
TOSHIKAZU NISHIMOTO, PRES & CEO
In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen
139,031 M
PAYMENTS SLOW BUT CORRECT CAPITAL Yen 30,894 M
TREND UP ORTH Yen
76,330 M
STARTED 1934 EMPLOYES 959
ELECTRIC FURNACE STEEL MAKER.
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 |
148,956 |
-2,910 |
-10,425 |
(%) |
235,781 |
|
(Consolidated) |
31/03/2012 |
166,791 |
-11,193 |
-14,273 |
11.97 |
220,637 |
|
31/03/2013 |
137,261 |
-16,265 |
-146,609 |
-17.70 |
73,452 |
|
|
31/03/2014 |
139,031 |
3,170 |
2,315 |
1.29 |
76,330 |
|
|
31/03/2015 |
152,000 |
8,000 |
7,000 |
9.33 |
.. |
Unit: In Million
Yen
Forecast (or estimated) figures for 31/03/2015 fiscal term
The subject company is the largest independent electric furnace
steelmaker, established before the WWII.
After the war, restarted operations with ordinary steel production. Resumed to top-ranked maker of H-beams. Expanding into surface treatment and cold
rolling areas. Produces a variety of
products, including H-beams, sheet piles, etc.
First among electric furnace firms to advance into hot-rolling, and looking
to diversify earnings sources. The firm
started sales of H-shaped steel for outdoor use, in hope to boost sales for
support structure of photovoltaic power systems. Known for good financial position with
debt-free management. Goods are exported
briskly to China, Korea, other. Exports
are handled by general trading houses.
The sales volume for Mar/2014 fiscal term amounted to Yen 139,031 million,
a 1.3% up from Yen 137,261 million in the previous term. The operations came to profitability to post
Yen 3,170 recurring profit and Yen 2,315 million net profit, respectively,
compared with Yen 16,265 million recurring loss and Yen 146,609 million net
losses, respectively, a year ago.
For the current term ending Mar 2015 the recurring profit is projected
at Yen 9,000 million and net profit at Yen 7,000 million, on a 9.3% rise in
turnover, to 152,000 million. Operating
profit will expand, on recovering sales volume, backed by brisk construction
demand. .
The financial situation is considered FAIR and good for ORDINARY
business engagements.
Date Registered: Nov 1934
Regd No.: 0100-01-008819 (Tokyo-Chiyodaku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 603 million shares
Issued: 155,064,249 shares
Sum: Yen 30,894 million
Major shareholders (%): TOS LLC (11.8), Iketani Science & Tech Found
(8.3), Company’s Treasury Stock (3.9), Japan Trustee Services T (3.1), Toshiko
Iketani (2.9), Masanari Iketani (2.9), Yoshihiro Iketani (2.9), Master Trust
Bank of Japan T (2.6), Yoshimoto Kosan (2.2), CBNYDFA Int’l Small Cap Value P
(2.0); foreign owners (23.3)
No of shareholders: 19,477
Listed on the S/Exchange (s) of: Tokyo
Managements: Toshikazu Nishimoto, pres; Kiyoshi Imamura, mgn dir;
Kazufumi Yamada, dir; Toshio Adachi, dir;; Nobuaki Nara, dir
Nothing detrimental is known as to the commercial morality of
executives.
Activities: Electric furnace steelmaker manufacturing steel products
(--100%):
(Mfg items):
Long Products: H-beams, sheet piles (U-shaped steel-sheet piles), I
beams, checkered H beams, channels, reinforcing bars;
Flat Products: heavy plates, hot rolled coils, pickled & oiled
cells, hot-dip galvanized cells, checkered cells, steel sheets, other.
(Export: 9%).
Clients: General trading house, steel wholesalers, specialty traders,
other.
Exports to China, Korea, other.
No. of accounts: 2,000
Domestic areas of activities:
Nationwide
Suppliers: General
trading houses, steel traders, wholesalers, other.
Payment record: Slow but correct
Location: Business area in Tokyo.
Office premises at the caption address are leased and maintained satisfactorily.
Bank References:
SMBC
(Ningyocho)
Mizuho
Corporate Bank (Uchisaiwaicho)
Relations:
Satisfactory
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FINANCES: (Consolidated in million yen) |
||||
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME
STATEMENT |
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Annual Sales |
|
139,031 |
137,261 |
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Cost of Sales |
124,036 |
140,796 |
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GROSS PROFIT |
14,995 |
-3,534 |
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Selling & Adm Costs |
12,561 |
-13,176 |
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OPERATING PROFIT |
2,434 |
-16,710 |
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Non-Operating P/L |
736 |
445 |
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RECURRING PROFIT |
3,170 |
-16,265 |
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NET PROFIT |
2,315 |
46,609 |
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BALANCE
SHEET |
||||
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Cash |
|
1,577 |
6,914 |
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Receivables |
16,150 |
10,153 |
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Inventory |
26,724 |
16,356 |
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Securities, Marketable |
24,000 |
25,000 |
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Other Current Assets |
5,058 |
4,477 |
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TOTAL CURRENT ASSETS |
73,509 |
62,900 |
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Property & Equipment |
65,377 |
68,171 |
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Intangibles |
26 |
46 |
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Investments, Other Fixed Assets |
9,738 |
8,871 |
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TOTAL ASSETS |
148,650 |
139,988 |
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Payables |
19,253 |
13,855 |
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Short-Term Bank Loans |
21,000 |
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Other Current Liabs |
13,118 |
13,501 |
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TOTAL CURRENT LIABS |
53,371 |
27,356 |
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Debentures |
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Long-Term Bank Loans |
21,000 |
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Reserve for Retirement Allw |
4,440 |
4,245 |
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Other Debts |
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(6,491) |
34,935 |
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TOTAL LIABILITIES |
72,320 |
66,536 |
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MINORITY INTERESTS |
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Common stock |
30,894 |
30,894 |
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Additional paid-in capital |
28,844 |
28,844 |
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Retained earnings |
18,292 |
15,977 |
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Evaluation p/l on
investments/securities |
4,761 |
4,199 |
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Others |
2 |
1 |
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Treasury stock, at cost |
(6,463) |
(6,463) |
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TOTAL S/HOLDERS` EQUITY |
76,330 |
73,452 |
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TOTAL EQUITIES |
148,650 |
139,988 |
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CONSOLIDATED
CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash Flows from Operating Activities |
|
-2,601 |
-3,174 |
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Cash Flows from Investment
Activities |
-7,775 |
10,482 |
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Cash Flows from Financing Activities |
-1 |
-5,598 |
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Cash, Bank Deposits at the Term End |
|
25,577 |
31,914 |
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ANALYTICAL
RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net Worth (S/Holders' Equity) |
76,330 |
73,452 |
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Current Ratio (%) |
137.73 |
229.93 |
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Net Worth Ratio (%) |
51.35 |
52.47 |
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Recurring Profit Ratio (%) |
2.28 |
-11.85 |
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Net Profit Ratio (%) |
1.67 |
33.96 |
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Return On Equity (%) |
3.03 |
63.46 |
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FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.06 |
|
|
1 |
Rs.99.35 |
|
Euro |
1 |
Rs.80.62 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
NNA |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.