MIRA INFORM REPORT

 

 

Report Date :

23.05.2014

 

IDENTIFICATION DETAILS

 

Correct Name :

TAKEAKA CORPORATION

 

 

Registered Office :

4-1-13 Honmachi Chuoku Osaka 541-0053

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

September 1937

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Engaged as Civil Engineering such as Construction & Development Works

 

 

No of Employees :

7,049

 

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

 

Maximum Credit Limit :

Yen 24,749.9 Million

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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

 

TAKEAKA CORPORATION

 

REGD NAME 

 

KK Takenaka Komuten

 

 

MAIN OFFICE

 

4-1-13 Honmachi Chuoku Osaka 541-0053 JAPAN

Tel: 06-6252-1201      Fax: 06-6271-0398

 

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Engaged as Civil Engineering such as Construction & Development Works

 

 

BRANCHES

 

Nationwide (69 locations)

 

 

OFFICERS

 

MASAHIRO MIYASHITA,                        PRES   Toichi Takenaka, ch

Teruo Watanabe, v pres              Kiyoyuki Kadokawa, rep dir

Masanori Okada, rep dir             Muneyoshi Tawaratani, s/mgn dir

                       

Yen Amount:     In million Yen, unless otherwise stated


 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 786,787 M

PAYMENTSREGULAR   CAPITAL           Yen 50,000 M

TREND STEADY           WORTH            Yen 168,750 M 

STARTED         1937                 EMPLOYES      7,049

 

 

COMMENT    

 

GENERAL CONTRACTOR.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: ESTIMATED AT YEN 24,749.9 MILLION, ON 30 DAYS  NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company is a general contractor and the only unlisted companies of 5 super general contractors.  Civil engineering works represent 96.5% of total sales.  Active in advancing into overseas markets, with sales in overseas enjoy 20% of total sales.  Particularly active in the S/E Asian countries.  .

 

 

FINANCIAL INFORMATION

           

The sales volume for Dec/2013 fiscal term amounted to Yen 786,787 million, a 0.2% down from Yen 788,342 million in the previous term.  Selected really profitable works.  The recurring profit was posted at Yen 15,696 million and the net profit at Yen 4,044 million, respectively, compared with Yen 6,523 million recurring profit and Yen 3,965 million net profit, respectively, a year ago.

 

For the current term ending Dec 2014 the recurring profit is projected at Yen 16,000 million and the net profit at Yen 4,300 million, respectively, on a 5% rise in turnover, to Yen 825,000 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 24,449.9 million, on the normal 30 days terms.

 

 

REGISTRATION

 

Date Registered:  Sept 1937

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         400 million shares

Issued:                100 million shares

Sum:                   Yen 50,000 million

 

Major shareholders (%): TAK Property (42.9), Asahi Properties (22.9), Employees’ S/Holding Assn (10.3), Takenaka Foundation (4.2), MUFG (3.0), Dai-ichi Life Ins (1.7)

 

No. of shareholders: 71

 

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

 

 

OPERATION

           

Activities: Civil Engineering: construction (92%), development works (8%)

 

Overseas Sales Ratio (15%-20%)

 

Clients: [Mfrs, wholesalers] Aeon Mall, Nippon Giant Tire, Mitsubishi Warehousing, Asahi Newspaper, Kawasaki Municipal Hospital, Hanwa Corp, Kyushu Electric Works, other  

 

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] TAK Capital Service, Takasago Thermal Engineering, other

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Osaka-Chuo)

Mizuho Bank (Osaka)

Relations: Satisfactory

 

 


FINANCES

(In Million Yen)

 

       Terms Ending:

31/12/2014

31/12/2013

31/12/2012

31/12/2011

Annual Sales

 

825,000

786,787

788,342

811,197

Recur. Profit

 

16,000

15,696

6,523

 

Net Profit

 

4,300

4,044

3,965

2,856

Total Assets

 

 

958,662

864,539

809,925

Current Assets

 

 

442,036

459,554

 

Current Liabs

 

 

474,009

483,645

 

Net Worth

 

 

368,750

300,473

266,406

Capital, Paid-Up

 

 

50,000

50,000

50,000

Div.P.Share(¥)

 

 

40.00

40.00

40.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.86

-0.20

-2.82

-8.92

    Current Ratio

 

..

93.25

95.02

..

    N.Worth Ratio

..

38.47

34.76

32.89

    R.Profit/Sales

 

1.94

1.99

0.83

..

    N.Profit/Sales

0.52

0.51

0.50

0.35

    Return On Equity

..

1.10

1.32

1.07

 

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

 

 

 

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.57

UK Pound

1

Rs.98.88

Euro

1

Rs.80.05

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.