MIRA INFORM REPORT

 

 

Report Date :

11.06.2014

 

IDENTIFICATION DETAILS

 

Name :

TSUBAKIMOTO CHAIN CO LTD

 

 

Registered Office :

Mitsui Bldg, 3-3-3 Nakanoshima Kitaku Osaka 530-0005

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

January 1941

 

 

Com. Reg. No.:

1200-01-002188

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of chains, conveyors

 

 

No. of Employees

6,972

 

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 and address

 

TSUBAKIMOTO CHAIN CO LTD

 

REGD NAME:   KK Tsubakimoto Chain KK

MAIN OFFICE:  Mitsui Bldg, 3-3-3 Nakanoshima Kitaku Osaka 530-0005JAPAN

Tel: 06-6441-0011     Fax: 06-6441-0469 

 

*.. The is its Kyotanabe Factory, Kyoto   -

 

URL:                 http://www.tsubakimoto.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of chains, conveyors

 

 

BRANCHES   

 

Tokyo, Osaka, Nagoya, other (Tol22)

 

 

OVERSEAS

 

USA (5), Europe (15), Brazil, Asia (13), Brazil, China (11), Mexico, Canada, etc

 

 

FACTORIES

 

Kyoto (2), Saitama, Hyogo

 

 

CHIEF EXEC

 

ISAMU OSA, PRED

 

Yen Amount:     In million Yen, unless otherwise stated

 


 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 178,022 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 17,076 M

TREND             UP                                WORTH            Yen 121,628 M

STARTED         1941                             EMPLOYES      6,972

 

 

COMMENT    

 

MFR OF CHAINS & CONVEYOER 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

138,243

11,111

6,093

(%)

89,877

(Consolidated)

31/03/2012

144,896

12,140

6,814

4.81

96,335

31/03/2013

150,002

12,813

7,428

3.52

108,597

31/03/2014

178,022

17,993

10,213

18.68

121,628

31/03/2015

186,000

18,600

11,700

4.48

..

Unit: In Million Yen

Forecast figures for the 31/03/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is the world’s largest mfr of chains and conveyors, founded 1917 as bicycle chain mfr, and advanced into machinery-use roller chains in 1923, and incorporated in 1941.  Second-ranked maker of automobile chains.  Also major producer of material-handling systems for auto, newspaper paper/pulp and distribution industries.  The company will switch from a product based to a sales-area based structure.  It is considering market research in Myanmar and Laos with the aim of market development in Southeast Asia.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 178,022 million, an 18.7% up from Yen 150,002 million in the previous term.   Earthquake-ridden Tohoku (Northern Japan) reconstruction-related demand rose throughout the second half.  Conveyance equipment sales benefitted from brisk domestic and overseas sales of LCD-related equipment.  The recurring profit was posted at Yen 17,993 million and the net profit at Yen 10,213 million, respectively, compared with Yen 12,813 million recurring profit and Yen 7,428 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 18,600 million and the net profit at Yen 11,700 million, on a 4.5% rise in turnover, to Yen 186,000 million.  Sales of transmissions for automobiles will improve, and operating profit will rise.

 

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

 

 

REGISTRATION

 

Date Registered: Jan 1941

Legal Status:       Limited Company (Kabushiki Kaisha

Regd No.:         1200-01-002188 (Osaka-Kitaku)

Authorized:       299 million shares

Issued:                191,406,969 shares

Sum:                   Yen 17,076 million

 

Major shareholders (%): Taiyo Life Ins (9.6), Japan Trustee Services T9 (8.1), Master Trust Bank of Japan T (6.4), Nippon Life Ins (5.4), Japan Trustee Services T (4.7), Toyota Motor (4.1), MBC (3.6), Company’s Kyoeikai Assn (3.3), Tsubakimoto Kogyo (2.7), Nomura Trust Inv T (2.4); foreign owners (10.9)

 

No. of shareholders: 7,861

 

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

 

Managements: Isamu Osa, pres; Tohru Fujiwara, dir; Takashi Suzuki, dir; tetsuya Yaamoto, dir; Hideaki Haruna, dir; Hidetoshi Yajima, dir; Shuji Abe, dir

 

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

 

Related companies: Tsubaki Emerson, Tsubakimoto Bulk Systems, other.

 

 

OPERATION

           

Activities: Manufactures chains (33%), precision machinery (13%), automobile parts (33%), material handling machines (20%), others (1%)

Overseas Sales Ratio (44%)

           

Clients: [Makers wholesalers] Tsubakimoto Kogyo, Toyota Motor, US Tsubaki Holdings In, Tubakimoto Machiney, Nichiden, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Metal One Specialty Steel, Tsubakimoto Custom Chain, other

 

Payment record: No complaints

 

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

 

Bank References:

SMBC (Osaka-Chuo)

MUFG (Osaka)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

  Annual Sales

 

178,022

150,002

  Cost of Sales

126,130

107,396

      GROSS PROFIT

51,891

42,606

  Selling & Adm Costs

34,536

30,027

      OPERATING PROFIT

17,354

12,579

  Non-Operating P/L

639

234

      RECURRING PROFIT

17,993

12,813

 

      NET PROFIT

10,213

7,428

BALANCE SHEET

  Cash

 

13,518

19,678

  Receivables

44,337

41,844

  Inventory

29,624

29,297

  Securities, Marketable

7,877

560

  Other Current Assets

5,270

5,403

      TOTAL CURRENT ASSETS

100,626

96,782

  Property & Equipment

96,852

90,481

  Intangibles

5,807

5,381

  Investments, Other Fixed Assets

25,555

23,193

      TOTAL ASSETS

228,840

215,837

  Payables

25,269

26,488

  Short-Term Bank Loans

8,422

8,305

 

 

 

  Other Current Liabs

28,312

22,750

      TOTAL CURRENT LIABS

62,003

57,543

  Debentures

 

 

  Long-Term Bank Loans

17,690

24,638

  Reserve for Retirement Allw

213

9,508

  Other Debts

 

27,306

15,550

      TOTAL LIABILITIES

107,212

107,239

      MINORITY INTERESTS

Common stock

17,076

17,076

Additional paid-in capital

12,658

12,657

Retained earnings

92,072

83,318

Evaluation p/l on investments/securities

6,427

4,724

Others

(4,568)

(7,161)

Treasury stock, at cost

(2,037)

(2,017)

      TOTAL S/HOLDERS` EQUITY

121,628

108,597

 

      TOTAL EQUITIES

228,840

215,837

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2014

31/03/2013

Cash Flows from Operating Activities

 

19,761

15,350

Cash Flows from Investment Activities

-17,166

-18,401

Cash Flows from Financing Activities

-3,196

8,325

 

Cash, Bank Deposits at the Term End

 

21,291

20,194

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

Net Worth (S/Holders' Equity)

121,628

108,597

Current Ratio (%)

162.29

168.19

Net Worth Ratio (%)

53.15

50.31

Recurring Profit Ratio (%)

10.11

8.54

Net Profit Ratio (%)

5.74

4.95

Return On Equity (%)

8.40

6.84

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.26

UK Pound

1

Rs.99.63

Euro

1

Rs.80.59

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIS

 

               

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.