MIRA INFORM REPORT
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Report Date : |
11.11.2014 |
IDENTIFICATION DETAILS
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Name : |
TSUDAKOMA CORPORATION |
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Registered Office : |
5-18-18 Nomachi Kanazawa Ishikawa-Pref 921-8650 |
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Country : |
Japan |
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Financials (as on) : |
30.11.2013 |
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Date of Incorporation : |
December 1939 |
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Legal Form : |
Limited Company |
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Line of Business : |
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%) |
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No of Employees : |
1,371 |
RATING & COMMENTS
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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 : |
No Complaints |
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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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
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.
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Source
: CIA |
Company
Name & 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 NO COMPLAINTS CAPITAL Yen
12,316 M
TREND UP WORTH Yen 18,006 M
STARTED 1939 EMPLOYES 1,371
COMMENT: MFR SPECIALIZING IN TEXTILE MACHINERY. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
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
(Dec/2013/Aug/2014 results); Sales Yen 26,075 million (down 7.5%), operating loss Yen 1,908 million (previously Yen 692 million loss), recurring loss Yen 1,059 million (previously Yen 742 million loss), net loss Yen 1,163 million (previously Yen775 million loss). (% & figures as compared with the corresponding period a year ago)
For the current term ending Nov 2014 the operations are projected to continue in the red to project Yen 1,450 million recurring loss and Yen 1,550 million net loss, on a 13.8% fall in turnover, to Yen 35,500 million.
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 (12.8), 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: 6,184
Listed on the S/Exchange (s) of: Tokyo
Managements: Shoji Hishinuma,
pres & CEO; Tatsuo Takehana, s/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: No Complaints
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)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
30/11/2013 |
30/11/2012 |
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INCOME STATEMENT |
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Annual Sales |
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41,177 |
32,167 |
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Cost of Sales |
37,155 |
29,720 |
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GROSS PROFIT |
4,022 |
2,447 |
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Selling & Adm Costs |
4,534 |
4,166 |
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OPERATING PROFIT |
-512 |
-1,719 |
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Non-Operating P/L |
-94 |
-55 |
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RECURRING PROFIT |
-606 |
-1,774 |
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NET PROFIT |
-698 |
-1,752 |
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BALANCE SHEET |
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Cash |
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7,816 |
10,299 |
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Receivables |
16,024 |
7,120 |
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Inventory |
4,948 |
3,696 |
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Securities, Marketable |
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Other Current Assets |
398 |
286 |
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TOTAL CURRENT ASSETS |
29,186 |
21,401 |
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Property & Equipment |
10,381 |
10,813 |
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Intangibles |
54 |
62 |
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Investments, Other Fixed Assets |
2,814 |
1,978 |
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TOTAL ASSETS |
42,435 |
34,254 |
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Payables |
4,653 |
1,994 |
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Short-Term Bank Loans |
6,452 |
6,193 |
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Other Current Liabs |
9,030 |
5,298 |
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TOTAL CURRENT LIABS |
20,135 |
13,485 |
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Debentures |
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Long-Term Bank Loans |
1,828 |
474 |
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Reserve for Retirement Allw |
4,335 |
4,211 |
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Other Debts |
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131 |
69 |
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TOTAL LIABILITIES |
26,429 |
18,239 |
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MINORITY INTERESTS |
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Common
stock |
12,316 |
12,316 |
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Additional
paid-in capital |
3,880 |
6,469 |
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Retained
earnings |
(299) |
(1,117) |
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Evaluation
p/l on investments/securities |
125 |
(379) |
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Others |
1,221 |
(38) |
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Treasury
stock, at cost |
(1,237) |
(1,237) |
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TOTAL S/HOLDERS` EQUITY |
16,006 |
16,014 |
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TOTAL EQUITIES |
42,435 |
34,254 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
30/11/2013 |
30/11/2012 |
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Cash
Flows from Operating Activities |
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-2,834 |
-412 |
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Cash
Flows from Investment Activities |
-1,529 |
-1,518 |
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Cash
Flows from Financing Activities |
1,610 |
1,018 |
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Cash,
Bank Deposits at the Term End |
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7,686 |
10,168 |
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ANALYTICAL RATIOS Terms ending: |
30/11/2013 |
30/11/2012 |
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Net
Worth (S/Holders' Equity) |
16,006 |
16,014 |
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Current
Ratio (%) |
144.95 |
158.70 |
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Net
Worth Ratio (%) |
37.72 |
46.75 |
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Recurring
Profit Ratio (%) |
-1.47 |
-5.51 |
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Net
Profit Ratio (%) |
-1.70 |
-5.45 |
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Return
On Equity (%) |
-4.36 |
-10.94 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.45 |
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|
1 |
Rs.97.76 |
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Euro |
1 |
Rs76.68 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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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 |
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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 |
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41-55 |
Ba |
Overall operation
is considered normal. Capable to meet normal commitments. |
Satisfactory |
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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.