MIRA INFORM REPORT

 

 

Report Date :

15.05.2014

 

IDENTIFICATION DETAILS

 

Name :

TOTAI CO LTD

 

 

Registered Office :

5-24-17 Ueno Taitoku Tokyo 110-0005

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

August 1928

 

 

Com. Reg. No.:

(Tokyo-Taitoku) 011330

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of flexible packaging materials (of plastic make)

 

 

No of Employees :

275

 

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

 

TOTAI CO LTD

 

 

REGD NAME

 

Totai KK

 

 

MAIN OFFICE

 

5-24-17 Ueno Taitoku Tokyo 110-0005 JAPAN

Tel: 03-3833-4608     

Fax: 03-5818-7404

                                               

URL:                             http://www.totai.com

E-Mail address:                        info@totai.com

 

 

ACTIVITIES

 

Manufacturer of flexible packaging materials (of plastic make)

 

 

BRANCHES

 

Osaka, Nagoya, Fukuoka, Numazu

 

 

OVERSEAS   

 

USA, China

 

 

FACTORIES

 

Numazu, Fujikawa, China, USA

 


OFFICERS

 

KENTARO MANO, PRES           Hikaru Oide, s/mgn dir

Haruo Kiyokawa, dir                   Chihiro Honda, dir                     

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                             A/SALES          Yen 12,337 M

PAYMENTS      No Complaints          CAPITAL           Yen 382 M

TREND             UP                                WORTH            Yen 2,566 M

STARTED                     1928                             EMPLOYES      275

 

 

COMMENT

 

MFR OF PACKAGING MATERIALS.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established originally in 1924 by Kintaro Mano for making packaging materials, on his account.  On several business trips to Europe & USA, he imported packaging materials making machinery for the first time in Japan.  Incorporated in 1928 the firm has been succeeded by his descendants.  Kentaro is the third generation master.  This is a specialized mfr of flexible packaging materials.  Has mfg base in USA and China.  Eager to expand to India and Vietnam.  Goods are exported.  Clients include major food mfrs, wholesalers, other, nationwide.

 

 

FINANCIAL INFORMATION

           

The sales volume for Dec/2013 fiscal term amounted to Yen 12,337 million, a 5% up from Yen 11,783 million in the previous term.  Production and demand increased in China, other S/E Asian countries.  The recurring profit was posted at Yen 327 million and the net profit at Yen 219 million, compared with Yen 276 million recurring profit and Yen 153 million net profit, respectively, a year ago.

 

For the current term ending Dec 2014 the recurring profit is projected at Yen 340 million and the net profit at Yen 230 million, respectively, on a 5% rise in turnover, to Yen 13,000 million. Business is seen expanding steadily.

 

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

 

REGISTRATION

 

Date Registered:          Aug 1928

Regd No.:                                 (Tokyo-Taitoku) 011330

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                 30 million shares

Issued:                        7.6 million shares

Sum:                            Yen 382.1 million

Major shareholders (%): Kentaro Mano (47), Employees’ S/Holding Assn (20), Hikaru Oide (5), Hikaru Oide (4),

Shinsei Pulp & Paper (3)

No. of shareholders:    15

 

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

 

 

OPERATION

 

Activities: Manufactures flexible packaging materials (of plastic make), other (--100%)

 

Clients: [Mfrs, wholesalers] Totai America (10%), Nippon Meat Packers Inc (5%), UHA Mikakuto Co (5%), Meiji Seika Pharma (5%), Morinaga & Co (3%), other

 

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Shinsei Pulp & Paper Co (29%), Inabata & Co (19%), Totai China (17%), DNP Trading Co (4%), other

 

Payment record: No Complaints

 

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

 

Bank References:

SMBC (Ueno)

Mizuho Bank (Ueno)

Relations: Satisfactory


 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/12/2014

31/12/2013

31/12/2012

31/12/2011

Annual Sales

 

13,000

12,337

11,783

12,292

Recur. Profit

 

340

327

276

269

Net Profit

 

230

219

153

100

Total Assets

 

 

10,736

10,632

10,705

Current Assets

 

 

6,537

6,309

6,240

Current Liabs

 

 

3,457

3,574

3,750

Net Worth

 

 

2,566

2,380

2,259

Capital, Paid-Up

 

 

382

382

382

Div.Ttl in Million (¥)

 

 

32.8

32.8

32.8

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

5.37

4.70

-4.14

9.19

    Current Ratio

 

..

189.09

176.52

166.40

    N.Worth Ratio

..

23.90

22.39

21.10

    R.Profit/Sales

 

2.62

2.65

2.34

2.19

    N.Profit/Sales

1.77

1.78

1.30

0.81

    Return On Equity

..

8.53

6.43

4.43

 

Notes: Forecast (or estimated) figures for the 31/12/2014 fiscal term.

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.88

UK Pound

1

Rs.100.98

Euro

1

Rs.82.40

 

 

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.