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Report Date : |
15.05.2014 |
IDENTIFICATION DETAILS
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Name : |
TOTOKU ELECTRIC CO LTD |
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Registered Office : |
Davinci Onarimon 3F, 6-1-11 Shimbashi Minatoku Tokyo 105-0004 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
November 1940 |
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Com. Reg. No.: |
0104-01-084377 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacture of wires, cables,
coils, other |
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No. of Employees |
242 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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 |
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Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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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 |
TOTOKU ELECTRIC CO LTD
REGD NAME: Tokyo
Tokushu Densen KK
MAIN OFFICE: Davinci
Onarimon 3F, 6-1-11 Shimbashi Minatoku Tokyo 105-0004 JAPAN
Tel:
03-5860-2121 Fax: 03-5860-2134 -
URL: http://www.totoku.co.jp
E-Mail
address: (thru the URL)
Mfg of
wires, cables, coils, other
Osaka,
Nagoya
China,
Indonesia, Hong Kong (--subsidiaries)
Nagano
(2)
NAOOMI
TACHIKAWA, PRES
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 18,275 M
PAYMENTS SLOW BUT CORRECT CAPITAL Yen
1,925 M
TREND UP WORTH Yen 6,422 M
STARTED 1940 EMPLOYES 242
MFR OF ELECTRIC WIRES, CABLES, COILS, OTHER
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 |
33,062 |
-917 |
-1,204 |
(%) |
3,431 |
|
(Consolidated) |
31/03/2012 |
26,899 |
-314 |
-3,192 |
-18.64 |
4,424 |
|
|
31/03/2013 |
20,638 |
329 |
290 |
-23.28 |
5,235 |
|
|
31/03/2014 |
18,276 |
1,665 |
1,455 |
-11.44 |
6,422 |
|
|
31/03/2015 |
16,000 |
1,000 |
800 |
-12.45 |
.. |
Unit: In Million Yen
Forecast figures for the 31/03/2015 fiscal term.
This is
a midsize wire producer. Began in 1940
as resistance wire firm, expanded into secondary wire products, including
heating wires for blankets/carpets, coils for electronic equipment, and optical
units. Also makes electronic equipment,
such as deflection yokes, displays and monitors. Furukawa Electric group firm. Facilities and personnel are in a complete
utilization. The company may resume
mid-career recruit. Profits will be
secured at the Chinese business unit, which was set up 11 years ago. The Indonesian unit is struggling
somewhat. In July 2013, the firm sold
its information equipment operations totally to JVC Kenwood Corp.
The sales
volume for Mar/2014 fiscal term amounted to Yen 18,276 million, an 11.4% down from
Yen 20,638 million in the previous term.
This is referred to the said transfer of the whole information equipment
operations to JVC Kenwood Corp. The
recurring profit was posted at Yen 1,665 million and the net profit at Yen
1,455 million, respectively, compared with Yen 329 million recurring profit and
Yen 290 million net profit, respectively, a year ago.
For the
current term ending Mar 2014 the recurring profit is projected at Yen 1,000
million and the net profit at Yen 800 million, on a 12.5% fall in turnover, to
Yen 16,000 million.
The
financial situation is considered FAIR and good for ORDINARY business
engagements.
Date Registered: Nov 1940
Regd No.: 0104-01-084377
Legal Status:
Limited Company (Kabushiki Kaisha
Authorized: 196 million shares
Issued:
68,089,733 shares
Sum: Yen 1,925
million
Major shareholders (%): Furukawa Electric (56.5),
Mizuho Bank (2.9), Resona Bank (2.1), Japan Securities Finance (1.1), Sumitomo Life
Ins (0.8), SBI Securities (0.7), Asahi Life Ins (0.6), Totoku Toryo (0.6),
Master Trust Bank of Japan T (0.6), Kenzo Morikawa (0.6); foreign owners (0.9)
No. of shareholders: 3,672
Listed on the S/Exchange (s) of:
Tokyo
Managements: Naoomi Tachikawa, pres; Hisashi
Kosozawa, dir; Kin Maki, dir; Takahiro Kashiwagi, dir; Hidetoshi Komiyama, dir
Toshikichi Kitazawa, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies:
Tokuden Prosell Co, Totoku Nagaoka Co, Totoku China, other.
Activities: Manufactures optics, electric wires
& devices (85%), information equipment (13%), others (2%)
Overseas Sales Ratio (39%)
(Mfg Items): wire devices, cables, coils, cables
with connectors, displays, heater products, suspension wires, other electric
components, other
Clients: [Mfrs, wholesalers] Furukawa
Electric, Toshiba Corp, Panasonic Corp, Sony
Corp, Hitachi Ltd, NTT, other
No. of
accounts: 500
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Furukawa Electric, Koei Electric Wire, Nanboku Shindosho,
Shinko Shoji Co, other
Payment record: slow
but correct
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactorily.
Bank References:
Resona
Bank (Tokyo)
Mizuho
Bank (Marunouchi)
Relations:
Satisfactory
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
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|||
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME STATEMENT |
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Annual Sales |
|
18,276 |
20,638 |
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Cost of Sales |
14,722 |
17,418 |
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GROSS PROFIT |
3,553 |
3,220 |
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Selling & Adm Costs |
2,122 |
2,839 |
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OPERATING PROFIT |
1,431 |
380 |
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Non-Operating P/L |
234 |
-51 |
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RECURRING PROFIT |
1,665 |
329 |
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NET PROFIT |
1,455 |
290 |
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BALANCE SHEET |
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Cash |
|
3,207 |
3,493 |
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Receivables |
|
3,838 |
4,660 |
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Inventory |
|
1,358 |
1,779 |
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Securities, Marketable |
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Other Current Assets |
367 |
391 |
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TOTAL CURRENT ASSETS |
8,770 |
10,323 |
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Property & Equipment |
5,305 |
6,043 |
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Intangibles |
|
90 |
100 |
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Investments, Other Fixed Assets |
2,183 |
2,224 |
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TOTAL ASSETS |
16,348 |
18,690 |
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Payables |
|
2,046 |
3,050 |
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Short-Term Bank Loans |
2,215 |
4,424 |
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|
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Other Current Liabs |
1,410 |
2,640 |
|
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TOTAL CURRENT LIABS |
5,671 |
10,114 |
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Debentures |
|
90 |
|
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Long-Term Bank Loans |
303 |
963 |
|
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Reserve for Retirement Allw |
0 |
1,095 |
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Other Debts |
|
3,862 |
1,283 |
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TOTAL LIABILITIES |
9,926 |
13,455 |
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MINORITY INTERESTS |
|
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|
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Common
stock |
1,925 |
1,925 |
|
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Additional
paid-in capital |
901 |
901 |
|
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Retained
earnings |
3,601 |
2,158 |
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Evaluation
p/l on investments/securities |
121 |
(44) |
|
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Others |
|
(105) |
316 |
|
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Treasury
stock, at cost |
(21) |
(21) |
|
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TOTAL S/HOLDERS` EQUITY |
6,422 |
5,235 |
|
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TOTAL EQUITIES |
16,348 |
18,690 |
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CONSOLIDATED CASH FLOWS |
|
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||
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Terms ending: |
31/03/2014 |
31/03/2013 |
|
|
Cash
Flows from Operating Activities |
|
1,627 |
1,487 |
|
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Cash Flows
from Investment Activities |
957 |
-20 |
|
|
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Cash
Flows from Financing Activities |
-3,245 |
-2,062 |
|
|
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Cash,
Bank Deposits at the Term End |
|
2,738 |
3,265 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
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Net
Worth (S/Holders' Equity) |
6,422 |
5,235 |
|
|
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Current
Ratio (%) |
154.65 |
102.07 |
|
|
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Net
Worth Ratio (%) |
39.28 |
28.01 |
|
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Recurring
Profit Ratio (%) |
9.11 |
1.59 |
|
|
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Net
Profit Ratio (%) |
7.96 |
1.41 |
|
|
|
Return
On Equity (%) |
22.66 |
5.54 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.87 |
|
|
1 |
Rs.100.98 |
|
Euro |
1 |
Rs.82.40 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
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Report Prepared
by : |
PDT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
|
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.