MIRA INFORM REPORT

 

 

Report Date :

30.06.2014

 

IDENTIFICATION DETAILS

 

Name :

TOYOTA TSUSHO CORPORATION

 

 

Registered Office :

Century Toyota Bldg, 4-9-8 Meieki Nakamuraku Nagoya 400-8575

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014 (Consolidated)

 

 

Date of Incorporation :

01.07.1948

 

 

Com. Reg. No.:

1800-01-031731 (Nagoya-Nakamuraku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Subject is a General Trading House specializing in Automobile-Related Products, Steel, Machinery & Chemical Products.

 

Subject operates through following division:-

 

Metals Division

(Special Steel Products, Unwrought Nonferrous & Precious Metals,         Rolled Light Metal Products, Copper, Copper Alloy Products, Scrap Iron & Scrap Nonferrous Metals, Ferro-Alloy Products, Recycling & Disposable Catalysts)

 

Machinery & Electronics Division

(Machine Tools, Industrial & Textile Machinery, Testing & Measuring Instruments, Environmental Equipment, Information & Telecommunications Equipment, Electronic Devices & Parts, Pc’s & Peripherals, Software, Automotive Parts, Forklifts, Intelligence Transport Equipment)

 

 

Automotive Division

(Passenger Cars, Commercial Cars, Light Vehicles, Trucks & Buses, Automotive Parts)

 

Energy & Chemicals Division

(Petroleum Products & Lpg, Coal, Petroleum Chemicals, Synthetic Resin, Fat & Oil Products, Chemical Additives, Natural & Synthetic Rubbers)

 

Consumer Products, Services & Materials Division

(Agricultural & Livestock Products, Foods, Condominium & Commercial Buildings, Construction & Housing Materials, Furniture, Textile Products & Materials, Jewelry, Automotive Interior Parts & Materials, Packaging Materials, Paper & Pulp, Life & Health Insurance & Property & Casualty Insurance)

 

 

No of Employees :

50,483

 

 

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 :

Slow But Correct 

 

 

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

 

TOYOTA TSUSHO CORPORATION

 

 

REGD NAME

 

Toyota Tsusho KK

 

 

MAIN OFFICE

 

Century Toyota Bldg, 4-9-8 Meieki Nakamuraku Nagoya 400-8575 JAPAN

 

Tel: 052-584-5000     Fax: 052-584-5663

 

*.. The is its Tokyo Office

 

Tokyo Head Office

3-13, Konan 2-chome, Minato-ku, Tokyo 108-8208, Japan

 

 

URL:                 http://www.toyota-tsusho.co.jp/

E-Mail address:            info@toyota-tsusho.co.jp

 

 

ACTIVITIES

 

Subject is a General Trading House specializing in Automobile-Related Products, Steel, Machinery & Chemical Products.

 

Subject operates through following division:-

 

Metals Division

(Special Steel Products, Unwrought Nonferrous & Precious Metals,         Rolled Light Metal Products, Copper, Copper Alloy Products, Scrap Iron & Scrap Nonferrous Metals, Ferro-Alloy Products, Recycling & Disposable Catalysts)

 

Machinery & Electronics Division

(Machine Tools, Industrial & Textile Machinery, Testing & Measuring Instruments, Environmental Equipment, Information & Telecommunications Equipment, Electronic Devices & Parts, Pc’s & Peripherals, Software, Automotive Parts, Forklifts, Intelligence Transport Equipment)

 

Automotive Division

(Passenger Cars, Commercial Cars, Light Vehicles, Trucks & Buses, Automotive Parts)

 

Energy & Chemicals Division

(Petroleum Products & Lpg, Coal, Petroleum Chemicals, Synthetic Resin, Fat & Oil Products, Chemical Additives, Natural & Synthetic Rubbers)

 

Consumer Products, Services & Materials Division

(Agricultural & Livestock Products, Foods, Condominium & Commercial Buildings, Construction & Housing Materials, Furniture, Textile Products & Materials, Jewelry, Automotive Interior Parts & Materials, Packaging Materials, Paper & Pulp, Life & Health Insurance & Property & Casualty Insurance)

 

BRANCHES   

 

Tokyo, Osaka, Toyoda, Kariya, Sendai, Niigata, Fukuoka, other (Tot 19)

 

 

OVERSEAS   

 

Asia (32), Oceania (3), Europe (15), Mid East (2), Africa (3), North America (24), Central/South America (7)

 

 

CHIEF EXEC

 

JUN KARUBE, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                                         A/SALES          Yen 7,743,237 M

PAYMENTS      Slow But Correct  CAPITAL           Yen 64,936 M

TREND             UP                                            WORTH            Yen 1,156,080 M

STARTED         1948                                         EMPLOYES      50,483

 

COMMENT    

 

GENERAL TRADING HOUSE AFFILIATED WITH TOYOTA MOTOR CORP. 

 

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

5,743,649

104,218

47,169

(%)

667,378

(Consolidated)

31/03/2012

5,916,759

115,110

66,205

3.01

751,747

31/03/2013

6,304,354

124,814

19,553

6.55

920,043

31/03/2014

7,743,237

163,438

6,312

22.82

1,156,080

31/03/2015

8,600,000

177,000

80,000

11.06

..

                        Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is the sole general trading house in Toyota Motor group.  Established originally in 1936 as an auto loan firm for Toyota automobiles.  Incorporated in 1948 on the basis of a spin-off from Toyoda Sangyo Kaisha in order to engage in foreign trading, as Nisshin Tsusho Kaisha Ltd.  Renamed as captioned in 1987.  This is a general trading house specializing in automobile-related products, steel, machinery & chemical products.  Steel & nonferrous metals account for about 50% of total sales.  Active in overseas operations with offices in China, USA, Europe, Thailand, Australia, etc.  In April 2000, merged Kasho Co Ltd, then a mid-size trading firm.  In Mar 2000, went into capital investment and business tie-up with Tomen Corp, followed by the merger of the firm in Apr 2006.  The merger benefited the firm by expanded operations into other sectors which the subject was less competitive: Toyota excels in auto-related products, while Tomen in chemicals, food and non-automotive sectors.  The firm exports Toyota cars chiefly to S/E Asia, China, Middle/East & Latin America.  Growing into comprehensive trading company with strong growth of overseas trading.  The company will invest a glass materials mining and refining business in Malaysia, aiming to expand glass materials supply sources.  It is building a natural gas thermal energy plant in North America, and will start sales from 2016.  On the domestic market, it will advance into the hydrogen station business.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 7,743,237 million, a 22.8% up from Yen 6,304,354 million in the previous term.  The buyout of a French trading firm contributed to sales.  Automobile sales expanded overseas, and trading in related parts was also robust.  Sales of non-automobile products, including chemicals and foods, also grew.  The recurring profit was posted at Yen 163,438 million and the net profit at Yen 73,034 million, respectively, compared with Yen 124,814 million recurring profit and Yen 67,432 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 177,000 million and the net profit at Yen 80,000 million, on an 11.1% rise in turnover, to Yen 8,600,000 million.  Domestic automobile-related sales will inch down, but overseas sales will continue growing.

 

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

 

 

REGISTRATION

 

Date Registered:  1 Jul 1948

Regd No.:         1800-01-031731 (Nagoya-Nakamuraku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         1,000 million shares

Issued:                354,056,576 shares

Sum:                   Yen 64,936 million

 

Major shareholders (%): Toyota Motor Corp (21.5), Toyota Industries (11.1), Master Trust Bank of Japan T (5.2), Japan Trustee Services Bank (3.5), MUFG (2.2), Mitsui Sumitomo Ins (1.6), Aioi Nissay Dowa Ins (1.1), Nippon Life Ins (1.1), Tokio Marine Nichido Fire Ins (1.1); foreign owners (20.5)

 

No. of shareholders: 35,171

 

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

 

Managements: Junzo Shimizu, ch; Yoshio Shirai, v ch; Jun Karube, pres Mikio Asano, v pres; Yasuhiko Yokoi, v pres; Hiroki Sawayama, s/mgn dir; Takumi Shirai, mgn dir; Kuniaki Yamagiwa, mgn dir; Soichiro Matsudaira, mgn dir; Takeshi Hattori, mgn dir; Yoshiki Miura, mgn dir; Yuichi Oi, mgn dir; Hideki Yanase, mgn dir

 

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

 

Related companies: Toyota Tsusho America Inc, other

           

 

OPERATION

 

Activities: A general trading house for import, export, wholesale operations:

 

(Sales Breakdown by Divisions):

 

Metals Division (27%): special steel products, unwrought nonferrous & precious metals,             rolled light metal products, copper, copper alloy products, scrap iron & scrap nonferrous metals, Ferro-alloy products, recycling & disposable catalysts, other;

 

Machinery & Electronics Division (20%): machine tools, industrial & textile machinery, testing & measuring

instruments, environmental equipment, information & telecommunications equipment, electronic devices & parts, PC’s & peripherals, software, automotive parts, forklifts, intelligence transport equipment, other;

 

Automotive Division (12%): passenger cars, commercial cars, light vehicles, trucks & buses, automotive parts, other;

Energy & Chemicals Division (21%): petroleum products & LPG, coal, petroleum chemicals, synthetic resin, fat & oil products, chemical additives, natural & synthetic rubbers, other;

 

Consumer Products, Services & Materials Division (11%): agricultural & livestock products, foods, condominium & commercial buildings, construction & housing materials, furniture, textile products & materials, jewelry, automotive interior parts & materials, packaging materials, paper & pulp, life & health insurance & property & casualty insurance, other.

 

Others (9%)

 

Overseas Sales Ratio (59%):

 

Clients: [Car makers, wholesalers, other mfrs] Toyota Motor, Toyota Tsusho America, Toyota Steel Center, Crown Motors, Denso Corp, Toyota Motor China, JX Nippon Oil & Minerals Corp, other.

            No. of accounts: 2,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Toyota Motor, JFE Steel, Nippon Steel, Toyota Steel Center, Toyota Industries, Denso Corp, Toyota Tsusho America, other.

 

Payment record: Slow But Correct 

 

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

 

Bank References:

MUFG (Nagoya)

SMBC (Nagoya)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

  Annual Sales

 

7,743,237

6,304,354

  Cost of Sales

7,160,738

5,900,465

      GROSS PROFIT

582,498

403,888

  Selling & Adm Costs

421,177

288,013

      OPERATING PROFIT

161,321

115,875

  Non-Operating P/L

2,117

8,939

      RECURRING PROFIT

163,438

124,814

 

      NET PROFIT

6,312

19,553

BALANCE SHEET

  Cash

 

412,089

391,409

  Receivables

1,268,331

1,106,604

  Inventory

628,758

593,155

  Securities, Marketable

 

 

  Other Current Assets

211,707

202,983

      TOTAL CURRENT ASSETS

2,520,885

2,294,151

  Property & Equipment

504,104

445,370

  Intangibles

429,500

364,729

  Investments, Other Fixed Assets

618,239

488,118

      TOTAL ASSETS

4,072,728

3,592,368

  Payables

950,852

876,595

  Short-Term Bank Loans

520,337

420,002

 

 

 

  Other Current Liabs

464,143

468,475

      TOTAL CURRENT LIABS

1,935,332

1,765,072

  Debentures

95,000

65,000

  Long-Term Bank Loans

720,813

727,244

  Reserve for Retirement Allw

30,915

21,037

  Other Debts

 

134,588

93,971

      TOTAL LIABILITIES

2,916,648

2,672,324

      MINORITY INTERESTS

Common stock

64,936

64,936

Additional paid-in capital

154,781

154,539

Retained earnings

584,591

531,049

Evaluation p/l on investments/securities

78,553

44,637

Others

277,727

130,227

Treasury stock, at cost

(4,508)

(5,345)

      TOTAL S/HOLDERS` EQUITY

1,156,080

920,043

 

      TOTAL EQUITIES

4,072,728

3,592,368

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2014

31/03/2013

Cash Flows from Operating Activities

 

133,937

124,156

Cash Flows from Investment Activities

-135,587

-323,389

Cash Flows from Financing Activities

5,356

223,374

 

Cash, Bank Deposits at the Term End

 

412,032

391,352

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

Net Worth (S/Holders' Equity)

1,156,080

920,043

Current Ratio (%)

130.26

129.97

Net Worth Ratio (%)

28.39

25.61

Recurring Profit Ratio (%)

2.11

1.98

Net Profit Ratio (%)

0.08

0.31

Return On Equity (%)

0.55

2.13

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.102.40

Euro

1

Rs.81.88

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

MNL

 

 

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.