MIRA INFORM REPORT

 

 

Report Date :

18.06.2014

 

IDENTIFICATION DETAILS

 

Name :

TOKAI RIKA CO LTD

 

 

Registered Office :

3-260 Toyota Ohguchicho Niwa Gun Aichi-Pref 480-0195

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

August, 1948

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of automotive parts

 

 

No. of Employees :

16,565

 

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

 

TOKAI RIKA CO LTD

 

REGD NAME:   KK Tokai Rika Denki Seisakusho

MAIN OFFICE:  3-260 Toyota Ohguchicho Niwa Gun Aichi-Pref 480-0195 JAPAN

                        Tel: 0587-95-5211    

Fax: 0587-95-1917     -

 

URL:                 http://www.tokai-rika.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of automotive parts

 

 

BRANCHES   

 

Tokyo, Saitama, Osaka, Hiroshima, Yamagata

 

 

OVERSEAS

 

USA (4), Canada, Brazil, China (3), Taiwan, Thailand (3), Philippines,

Indonesia (2), India, UK, Czech (--subsidiaries)

 

 

FACTORIES  

 

At the caption address, Toyota, Aichi (3)

 

 

CHIEF EXEC 

 

YUZO USHIYAMA, PRES

 

 

Yen Amount

 

In million Yen, unless otherwise stated

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 437807 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 22,856 M

TREND             UP                                WORTH              Yen 206,667 M

STARTED         1948                             EMPLOYES      16,565

 

 

COMMENT    

 

MFR OF AUTOMOTIVE PARTS 

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

327,622

20,058

5,234

(%)

161,125

(Consolidated)

31/03/2012

319,577

14,977

8,123

-2.46

165,198

31/03/2013

371,932

24,505

5,187

16.38

183,875

31/03/2014

437,807

32,323

17,258

17.71

206,667

31/03/2015

444,000

29,000

19,000

1.41

..

Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is an automotive parts mfr having association with Toyota Motor, and leading maker of switches, key locks and seat belts.  Increasing weight of electronic parts.  80% of products bound for Toyota group firms.  Has production and distribution centers overseas.  In Indonesia, a plant for switches and key locks started full-scale operations in autumn 2013.  The plant has begun deliveries to Daihatsu and in preparation for supply to Toyota.  The payout ratio is yet to be determined, but will be at the 20% level.  The company plans to raise the ratio gradually.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 437,807 million, a 17.7% up from Yen 371,932 million in the previous term.  In parts of automobiles, sales in North America fared well, and demand in China was also on the recovery track.  The recurring profit was posted at Yen 32,323 million and the net profit at Yen 17,256 million, respectively, compared with Yen 24,505 million recurring profit and Yen 5,187 million net profit, respectively, a year ago. 

           

For the current term ending Mar 2015 the recurring profit is projected at Yen 29,000 million and the net profit at Yen 19,000 million, on a 1.4% rise in turnover, to Yen 444,000 million.  Domestic sales will decrease, but the drop will be covered with increased overseas sales.  Operating profit will rise.

 

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

 

 

REGISTRATION

           

Date Registered: Aug 1948

Legal Status:        Limited Company (Kabushiki Kaisha

Authorized:          200 million shares

Issued:                94,234,171 shares

Sum:                   Yen 22,856 million

 

Major shareholders (%): Toyota Motor (31.1), Denso Corp (9.3), Master Trust Bank of Japan T (4.0), Company’s Treasury Stock (3.9), Japan Trustee Services T (3.4), Dai-ichi Life Ins (2.4), Northern Trust (AVFC) British (1.8), Japan Trustee Services T9 (1.2), Employees’ S/Holding Assn (1.2), Chase London SL Omnibus Acct (1.0); foreign owners (19.7)

 

No. of shareholders: 9,678

 

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

 

Managements: Yuzo Ushiyama, pres; Kenji Miura, v pres; Yoshihiro Obayashi, v pres; Shoji Ishida, s/mgn dir; Tadanao Hamamoto, s/mgn dir; Kenji Kawaguchi, s/mgn dir; Tadashi Wakiya, s/mgn dir; Hiroyuki Nakamura, s/mgn dir; Masaharu Tanino, s/mgn dir

 

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

 

Related companies: Tokai Rika Electrc, NSK Co, TRMAC Engineering, other.

 

 

OPERATION

           

Activities: Manufactures automotive parts: switches (40%), key locks (19%), seat belts (18%), sift levers (8%), car mirrors (3%), steering wheels (3%), jewels, others (10%)

Overseas Sales Ratio (40%).

           

Clients: [Mfrs, wholesalers] Toyota Motor, TRAM, Daihatsu Motor, Toyota Tsusho Corp,

TRQSS, Fuji Heavy Ind, Volvo Car Corp, Denso Corp, General Motors, Ford Motor, other

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

            Suppliers: [Mfrs, wholesalers] Toyota Tsusho Corp, Matsuda Denki Co, NBC Corp, Tokai Rika Create, Kasai Works Corp, Tokyo Tokushu Glass, Inaguma Press Inc, other

 

Payment record: No complaints

 

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

 

Bank References:

                        MUFG (Nagoya)

                        SMBC (Nagoya-Ekimae)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

  Annual Sales

 

437,807

371,932

  Cost of Sales

373,146

320,269

      GROSS PROFIT

64,661

51,663

  Selling & Adm Costs

34,546

28,424

      OPERATING PROFIT

30,115

23,239

  Non-Operating P/L

2,208

-1,734

      RECURRING PROFIT

32,323

24,505

 

      NET PROFIT

17,258

5,187

BALANCE SHEET

  Cash

 

25,840

27,143

  Receivables

58,446

50,658

  Inventory

31,674

26,842

  Securities, Marketable

46,191

47,089

  Other Current Assets

26,970

26,853

      TOTAL CURRENT ASSETS

189,121

178,585

  Property & Equipment

88,322

82,279

  Intangibles

1,701

1,617

  Investments, Other Fixed Assets

59,791

45,558

      TOTAL ASSETS

338,935

308,039

  Payables

39,018

52,575

  Short-Term Bank Loans

4,138

5,640

 

 

 

  Other Current Liabs

67,510

41,459

      TOTAL CURRENT LIABS

110,666

99,674

  Debentures

 

 

  Long-Term Bank Loans

2,615

5,755

  Reserve for Retirement Allw

17,447

587

  Other Debts

 

1,540

18,148

      TOTAL LIABILITIES

132,268

124,164

      MINORITY INTERESTS

Common stock

22,856

22,856

Additional paid-in capital

26,225

25,135

Retained earnings

147,302

133,479

Evaluation p/l on investments/securities

3,158

1,805

Others

13,695

7,639

Treasury stock, at cost

(6,569)

(7,039)

      TOTAL S/HOLDERS` EQUITY

206,667

183,875

 

      TOTAL EQUITIES

338,935

308,039

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2014

31/03/2013

Cash Flows from Operating Activities

 

31,312

32,767

Cash Flows from Investment Activities

-40,255

-18,487

Cash Flows from Financing Activities

-3,200

-5,005

 

Cash, Bank Deposits at the Term End

 

56,385

68,110

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

Net Worth (S/Holders' Equity)

206,667

183,875

Current Ratio (%)

170.89

179.17

Net Worth Ratio (%)

60.98

59.69

Recurring Profit Ratio (%)

7.38

6.59

Net Profit Ratio (%)

3.94

1.39

Return On Equity (%)

8.35

2.82

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.37

UK Pound

1

Rs.102.48

Euro

1

Rs.81.87

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.