MIRA INFORM REPORT

 

 

Report Date :

02.05.2014              

 

IDENTIFICATION DETAILS

 

Name :

TSUDAKOMA CORPORATION

 

 

Registered Office :

5-18-18 Nomachi Kanazawa Ishikawa-Pref 921-8650

 

 

Country :

Japan

 

 

Financials (as on) :

30.11.2012

 

 

Date of Incorporation :

December 1939

 

 

Com. Reg. No.:

004330

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of textile machinery, machine tools

 

 

No. of Employees

1,380

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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 and address

 

TSUDAKOMA CORPORATION

 

REGD NAME:   Tsudakoma Kogyo KK

MAIN OFFICE:  5-18-18 Nomachi Kanazawa Ishikawa-Pref 921-8650 JAPAN

                        Tel: 076-242-1111    

                        Fax: 076-242-4172

 

URL:                 http://www.tsudakoma.co.jp/

E-Mail address:            info1@tsudakoma.co.jp

 

 

ACTIVITIES

 

Mfg of textile machinery, machine tools

 

 

BRANCHES

 

Hamamatsu, Fukuoka

 

 

OVERSEAS   

 

USA, France, Germany, Italy, Spain, Sweden, Indonesia, Thailand, Pakistan, India, Brazil, China & Korea (--agent dealers)

 

 

FACTORIES

 

At the caption address (area 81,490 m2), Nonoichi (area 73,357 m2), Hakusan (area 61,619 m2) (--Ishikawa)

 

 

CHIEF EXEC 

 

SHOJI HISHINUMA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated


 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 41,177 M

PAYMENTS      SLOW BUT CORRECT   CAPITAL           Yen 12,316 M

TREND             UP                                WORTH            Yen 18,006 M

STARTED         1939                             EMPLOYES      1,380

 

 

COMMENT

 

MFR SPECIALIZING IN TEXTILE MACHINERY. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

32,688

-1,131

-1,151

(%)

17,012

(Consolidated)

30/11/2011

42,409

825

895

29.74

17,917

30/11/2012

32,167

-1,774

-1,752

-24.15

16,014

30/11/2013

41,177

-606

-698

28.01

16,006

30/11/2014

45,600

800

800

10.74

..

Notes: Unit: In Million Yen

Forecast (or estimated) figures for 30/11/2014 fiscal term

 

 

HIGHLIGHTS

 

The subject company was established originally in 1909 by Komajiro Tsuda for mfg silk & artificial silk loom, on his account.  Incorporated in 1939 as Tsudakoma Ind Co and the firm has been succeeded by his descendants.  Renamed as captioned in 1982.  This is a major mfr of textile machinery.  Now world’s largest maker of water/air jet looms, with customers over 60 countries, distributed through agent dealers.  Export ratio exceeds 80%.  Established Tsudakoma (Shanghai) Co in 2002.  Branching into machine tools and peripheral equipment including rotary tables for MCs and other machine tools.  The company will exhibit the latest models at International Exhibition of Textile and Textile Machinery held in Shanghai in Jun 2014, aiming for sales promotion.  In India, it will actively leverage the government’s strategy of equipment modernization.

 

 

FINANCIAL INFORMATION

 

The sales volume for Nov/2013 fiscal term amounted to Yen 41,177 million, a 28.0% up from Yen 32,167 million in the previous term.  Sales of mainstay textile machinery grew in China & India.  The operations continued in the red to post Yen 606 million recurring loss and Yen 698 million net losses, respectively, compared with Yen 1,774 million recurring loss and Yen 1,752 million net losses, respectively, a year ago

 

For the current term ending Nov 2014 the operations are projected to come back to profitability to post Yen 800 million recurring profit and Yen 800 million net profit, respectively, on a 10.7% rise in turnover, to Yen 45,600 million.  Sales of mainstay textile machinery are continuing recovery in China, a main market, thanks to active demand for modernization of production equipment, and startup of the JV plant for air-jet rooms in Xianyang, China on Aug 2013.  Orders are growing in India, buoyed by the positive impact of the Yen depreciation.  Demand for machine tool-related project will take an upturn.  Operating profit will surface.

 

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

 

 

REGISTRATION

 

Date Registered:  Dec 1939

Regd No.:         (Ishikawa-Kanazawa) 004330

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         199,003,000 shares

Issued:                68,075,552 shares

Sum:                   Yen 12,316 million

 

Major shareholders (%): Customers’ S/Holding Assn (12.5), Company’s Treasury Stock (6.1), Meiji Yasuda Life Ins (5.1), Hokuriku Bank (3.7), Hokkoku Bank (3.4), Mitsui Sumitomo Ins (2.6), Tokio Marine & Nichido Fire Ins (2.6), Employees’ S/Holding Assn (2.2), Nomura Trust Inv T (1.9), Master Trust Bank of Japan T (1.6); foreign owners (3.7)

 

No. of shareholders: 5,936

 

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

 

Managements: Shoji Hishinuma, pres & CEO; Tatsuo Takehana, s/mgn dir; Yuji Tomii, mgn dir; Jun’ichi Nishino, mgn dir; Susumu Nakamura, dir; Mitsuru Suwa, dir; Nobuhiro Kano, dir

 

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

 

Related companies: Kyowa Electronics & Machinery Ind, Tsudakoma Transportation, Tsudakoma General Service, Tsudakoma (Shanghai) Co, other

 

 

OPERATION

 

Activities: Manufactures textile machinery (84%): air jet looms, water jet looms,               conversion kits, rapier looms, doffing systems, filament sizing machines, preparatory machinery, part stock information, product data download, others; machine tools & attachments (16%):

Overseas sales ratio (81%)

 

Clients: [Mfrs, wholesalers] Marubeni Techmatex, Sojitz Corp, Koma Precision, Itochu Systech Corp, NTC Toyama, Diamond Textile Mills, other. 

Exports to: China, India, Pakistan, Thailand, Indonesia, Korea, Brazil, France, Germany, Italy, Spain, Sweden, USA, other.  Exports into Europe through Tekmatex Europe SA, and into USA through Tekmatex Inc.

No. of accounts: 3,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Kyowa Electronics & Machinery Ind, Kanazawa Kiko, Hokuryo Denko, Hikida Sangyo, Higashiyama Ind, Staubli, Fanuc Corp, other.

 

Payment record: Slow but correct

 

Location: Light industrial area in Kanazawa City.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Hokuriku Bank (Kanazawa)

Hokkoku Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

30/11/2013

30/11/2012

INCOME STATEMENT

  Annual Sales

 

41,177

32,167

  Cost of Sales

37,155

29,720

      GROSS PROFIT

4,022

2,447

  Selling & Adm Costs

4,534

4,166

      OPERATING PROFIT

-512

-1,719

  Non-Operating P/L

-94

-55

      RECURRING PROFIT

-606

-1,774

 

      NET PROFIT

-698

-1,752

BALANCE SHEET

  Cash

 

7,816

10,299

  Receivables

16,024

7,120

  Inventory

4,948

3,696

  Securities, Marketable

 

 

  Other Current Assets

398

286

      TOTAL CURRENT ASSETS

29,186

21,401

  Property & Equipment

10,381

10,813

  Intangibles

54

62

  Investments, Other Fixed Assets

2,814

1,978

      TOTAL ASSETS

42,435

34,254

  Payables

4,653

1,994

  Short-Term Bank Loans

6,452

6,193

 

 

 

  Other Current Liabs

9,030

5,298

      TOTAL CURRENT LIABS

20,135

13,485

  Debentures

 

 

  Long-Term Bank Loans

1,828

474

  Reserve for Retirement Allw

4,335

4,211

  Other Debts

 

131

69

      TOTAL LIABILITIES

26,429

18,239

      MINORITY INTERESTS

Common stock

12,316

12,316

Additional paid-in capital

3,880

6,469

Retained earnings

(299)

(1,117)

Evaluation p/l on investments/securities

125

(379)

Others

1,221

(38)

Treasury stock, at cost

(1,237)

(1,237)

      TOTAL S/HOLDERS` EQUITY

16,006

16,014

 

      TOTAL EQUITIES

42,435

34,254

CONSOLIDATED CASH FLOWS

Terms ending:

30/11/2013

30/11/2012

Cash Flows from Operating Activities

 

-2,834

-412

Cash Flows from Investment Activities

-1,529

-1,518

Cash Flows from Financing Activities

1,610

1,018

 

Cash, Bank Deposits at the Term End

 

7,686

10,168

ANALYTICAL RATIOS            Terms ending:

30/11/2013

30/11/2012

Net Worth (S/Holders' Equity)

16,006

16,014

Current Ratio (%)

144.95

158.70

Net Worth Ratio (%)

37.72

46.75

Recurring Profit Ratio (%)

-1.47

-5.51

Net Profit Ratio (%)

-1.70

-5.45

Return On Equity (%)

-4.36

-10.94

 

 

           

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.34

UK Pound

1

Rs.101.45

Euro

1

Rs.83.31

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

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.