MIRA INFORM REPORT

 

 

Report Date :

20.06.2014

 

IDENTIFICATION DETAILS

 

Name :

TOSHIBA MACHINE CO LTD

 

 

Registered Office :

2068-3 Ohka Numazu City Shizuoka-Pref 410-8510

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

March, 1949

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of molding machines, machine tools

 

 

No. of Employees :

3,482

 

 

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 :

Good

 

 

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. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. 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 exceeds 225% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

Source : CIA


Company name and address

 

TOSHIBA MACHINE CO LTD

REGD NAME:   Toshiba Kikai KK

MAIN OFFICE:  2068-3 Ohka Numazu City Shizuoka-Pref410-8510 JAPAN

                        Tel: 055-926-8510    

Fax: 055-926-6501

 

                        * Tokyo Head Office at: 2-2-2 Uchisaiwaicho Chiyodaku Tokyo, as given

 

URL:                 Error! Hyperlink reference not valid.

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

 

 

ACTIVITIES  

 

Mfg of molding machines, machine tools

 

 

BRANCH (ES)

 

Tokyo, Osaka, Nagoya, Sendai, Fukuoka, Takasaki, Shizuoka, Fukuyama

 

 

OVERSEAS   

 

USA (4 offices), Canada, Germany, Singapore, China (10 offices), India,             Thailand, other (Tot: 9 subsidiaries)

 

 

FACTORIES

 

At the caption address, Zama, Gotemba (--Kanagawa); Shanghai (China), Thailand (Tot 4)

 

 

CHIEF EXEC

 

YUKIO IINUMA, PRES

 

 

Yen Amount

 

In million Yen, unless otherwise stat

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 120,859 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 12,484 M

TREND             UP                                WORTH            Yen 79,399 M

STARTED         1949                             EMPLOYES      3,482

 

 

COMMENT    

 

MFR SPECIALIZING IN MOLDING MACHINES & MACHINE TOOLS. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

                       

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

74,694

-2,112

-4,531

(%)

63,372

(Consolidated)

31/03/2011

95,653

3,834

3,280

28.06

65,325

31/03/2012

119,519

8,948

222

24.95

71,101

31/03/2013

120,859

9,823

2,500

1.12

79,399

31/03/2014

115,000

6,000

3,500

-4.85

..

Notes: Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2014 fiscal term

 

 

HIGHLIGHTS

 

This is large-sized machine tool mfr set up in 1949 as industrial machinery mfr.  In 1961, merged with Toshiba group machine tool firm to integrate & strengthen operations.    Manufactures injection molding machines and die-casting machines, as two pillar products, plastic extrusion machines, semiconductor mfg equipment, other.  Injection molding machines and die-casting machines are its leading export products.  Injection molding machines account for          55% of the group sales.  4% of the products are exported to Asia, principally China, USA & Europe.  Shanghai subsidiary is also engaged in production.  The firm set up an additional sales base in the inland China, aiming for cooperating with local suppliers to improve the local procurement ratio.  In Sept 2012 it turned an injection machine maker in India, L&T Machinery Ltd, into its subsidiary by acquire all its shares.  Completed production base in Thailand in Jan 2014.  The company will start full-scale cultivation of Japanese-affiliated and European customers, mainly in the automobile industry in Latin America, using the Mexico Branch of the US subsidiary and the local subsidiary in Brazil that started up in 2013.

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 120,859 million, a 1.1% up from Yen 119,519 million in the previous term.  The recurring profit was posted at Yen 9,823 million and the net profit at Yen 7,891 million, respectively, compared with Yen 8,948 recurring profit and Yen 6,721 million net profits, respectively, a year ago.

(Apr/Dec/2013 results): Sales Yen 78,624 million (down 11.2%), operating profit Yen 2,914 million (down 56.0%), recurring profit Yen 4,122 million (down 48.3%), net profit Yen 2,126 million (down 67.8%).  (% compared with the corresponding period a year ago).

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 6,000 million and the net profit at Yen 3,500 million, on a 4.8% fall in turnover, to Yen 115,000 million.  Orders for molding machines and machine tools are recovering, led by demand from automakers, making a contribution in the second half.  But the operating profit will recede, hit by sharp drop of sales in the first half. 

 

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

 

 

REGISTRATION

 

Date Registered:         Mar 1949

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                 360 shares

Issued:                       166,885,530 shares

Sum:                          Yen 12,484 million

           

Major shareholders (%): Toshiba Corp (20.1), Company’s Treasury Stock (8.9), Japan Trustee Services T (6.4), Master Trust Bank of Japan T (5.4), Chase London SL Omnibus Acct (3.7), Shizuoka Bank (1.7), SMBC (1.6), Customers’ S/Holding Assn (1.5), Toyota Motor (1.4); foreign owners (16.7).

           

No. of shareholders: 11,132

 

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

 

Managements: Yukio Iimura, pres; Yoshihiro Kishimato, s/mgn dir; Satoshi Hironaa mgn dir; Shigetomo Saamoto, mgn dir; Masayuki Yagi, mgn dir; Makoto Tsuji, dir; Kazuo Takamura, dir; Katsuo Ito, dir; Hiroshi Aiyama, dir; Yoshihiro Ogura, dir

           

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

 

Related companies: (Domestic): Toshiba Machine Machinery, Hyest Corp, Toshiba Machine Plastic & Diecast Engineering, other;  (Overseas): Toshiba Machine Co America, Toshiba Machine Europe GmbH, Toshiba Machine South East (Singapore), other

 

           

OPERATION

           

Activities: Manufactures machine tools & industrial equipment:

 

(Sales Breakdown by Divisions):

 

Molding Machines (61%): Injection molding machines, plastic extrusion machines, die-casting machines, printing presses, other;

Machine Tools (24%): high precision machines, semiconductor mfg equipment, castings,            other;

Oil Hydraulic Equipment (8%): hydraulic equipment, high precision machines,

electronic controls, industrial robots, waste water treatment units, others;

Others (7%).

Overseas Sales Ratio (52%)

 

Clients: [Mfrs, wholesalers] Toshiba Machine America other.

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

            Suppliers: [Mfrs, wholesalers] IBJL Toshiba Leasing, Toshiba Machine, other

 

Payment record: No complaints

 

Location: Business area in Numazu City, Shizuoka-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

                        SMBC (H/O)

                        Shizuoka Bank (Tokyo)

                        Relations: Satisfactory

 

 

FINACIALS

 

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

  Annual Sales

 

120,859

119,519

  Cost of Sales

87,294

88,311

      GROSS PROFIT

33,565

31,207

  Selling & Adm Costs

25,526

23,796

      OPERATING PROFIT

8,038

7,411

  Non-Operating P/L

1,785

537

      RECURRING PROFIT

9,823

8,948

 

      NET PROFIT

2,500

222

BALANCE SHEET

  Cash

 

21,327

20,689

  Receivables

40,006

45,730

  Inventory

23,843

26,374

  Securities, Marketable

17,000

13,500

  Other Current Assets

4,664

4,881

      TOTAL CURRENT ASSETS

106,840

111,174

  Property & Equipment

19,829

21,120

  Intangibles

400

434

  Investments, Other Fixed Assets

20,170

9,569

      TOTAL ASSETS

147,239

142,297

  Payables

21,995

30,675

  Short-Term Bank Loans

16,859

12,110

 

 

 

  Other Current Liabs

14,133

13,570

      TOTAL CURRENT LIABS

52,987

56,355

  Debentures

 

 

  Long-Term Bank Loans

 

6,100

  Reserve for Retirement Allw

8,411

8,237

  Other Debts

 

1,441

504

      TOTAL LIABILITIES

62,839

71,196

      MINORITY INTERESTS

Common stock

12,484

12,484

Additional paid-in capital

19,600

19,600

Retained earnings

56,306

49,408

Evaluation p/l on investments/securities

2,221

1,530

Others

(1,173)

(1,882)

Treasury stock, at cost

(10,039)

(10,039)

      TOTAL S/HOLDERS` EQUITY

79,399

71,101

 

      TOTAL EQUITIES

142,239

142,297

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2013

31/03/2012

Cash Flows from Operating Activities

 

7,435

368

Cash Flows from Investment Activities

-2,195

-947

Cash Flows from Financing Activities

-3,003

-1,094

 

Cash, Bank Deposits at the Term End

 

38,327

34,189

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

Net Worth (S/Holders' Equity)

79,399

71,101

Current Ratio (%)

201.63

197.27

Net Worth Ratio (%)

55.82

49.97

Recurring Profit Ratio (%)

8.13

7.49

Net Profit Ratio (%)

2.07

0.19

Return On Equity (%)

3.15

0.31

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.00

UK Pound

1

Rs.102.04

Euro

1

Rs.81.71

 

 

INFORMATION DETAILS

 

Report Prepared by :

DPT

 

 

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.