MIRA INFORM REPORT
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Report Date : |
18.10.2014 |
IDENTIFICATION DETAILS
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Name : |
TSUGAMI CORPORATION |
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Registered Office : |
12-20 Nihombashi-Tomizawacho Chuoku Tokyo 103-0006 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
March 1937 |
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Com. Reg. No.: |
0100-01-101264 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturing of precision machine tools |
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No. of Employees : |
1,832 |
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 : |
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 – 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 and address
TSUGAMI CORPORATION
REGD NAME: KK
Tsugami
MAIN OFFICE: 12-20
Nihombashi-Tomizawacho Chuoku Tokyo 103-0006 JAPAN
Tel:
03-3808-1711 Fax: 03-3808-1511
URL: http://www.tsugami.co.jp/
E-Mail address: webmaster@tsugami.co.jp
ACTIVITIES
Manufacturing of
precision machine tools
BRANCHES
Nil
OVERSEAS
USA, Germany,
France, Italy (3), Switz, UK, Hungary, Poland, China (2),
Korea, Singapore,
Malaysia, Thailand, Hong Kong, Taiwan, India
FACTORYIES
Niigata (3);
China, India
CHIEF
EXEC
TAKAO NISHIJIMA,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 32,225 M
PAYMENTSSLOW BUT
CORRECTCAPITAL Yen 12,345 M
TREND UP WORTH Yen 31,587 M
STARTED 1937 EMPLOYES 1,832
COMMENT
MFR OF PRECISION MACHINE TOOLS.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast
(or estimated) figures for 31/03/2015 fiscal term
HIGHLIGHTS
The subject company was established by Taisuke Tsugami in order to make working
tools, on his account. Incorporated in
1937, the firm has been succeeded by his descendants. This is a medium-sized precision machine tool
mfr, with computerized numerical control (CNC) lathe and grinding machines as
mainline. Reputed for strong
technological edge in precision machinery, and highly competitive in products
for IT-related makers & automakers.
Focusses emphasis on expanding production in Asia including China &
India.
FINANCIAL
INFORMATION
The sales volume for Mar 2014 fiscal term amounted to Yen 32,225
million, a 39.0% down from Yen 52,812 million in the previous term. Sales of mainstay automatic lathes stagnated,
hit by slower-than-expected recovery in China, despite increase in newly emerging
countries with newly launched products.
Special demand from smartphone makers in the preceding term faded
out. The recurring profit was posted at
Yen 1,932 million and the net profit at Yen 344 million, respectively, compared
with Yen 6,800 million recurring profit and Yen 4,207 million net profit,
respectively, a year ago.
(Apr/Jun/2014 results): Sales Yen 12,670 million (up 81.2%), operating
profit Yen 1,903 million (up 358.6%), recurring profit Yen 1,676 million (up
49.8%), net profit Yen 1,084 million (up 31.1%). (% as compared with the corresponding period
a year ago)
For the current term ending Mar 2015 the recurring profit is projected
at Yen 5,800 million and the net profit at Yen 4,000 million, on a 42.7% rise
in turnover, to Yen 46,000 million.
Sales of automatic lathes bound for newly emerging countries will make a
full-scale contribution
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date
Registered: Mar 1937
Regd
No.: 0100-01-101264 (Tokyo-Chuoku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 320 shares
Issued: 74,919,379 shares
Sum: Yen 12,345 million
Major
shareholders (%): TCSB (Tokyo Seimitsu) (6.1), Master Trust Bank of Japan T (5.8), Japan
Trustee Services T (5.4), Company’s Treasury Stock (3.4), Goldman Sachs
International (3.3), Dai-ichi Life Ins (2.8), DMG Mori Seiki (2.6), Chase
London SL Omnibus Acct (2.5), SMBC (2.0), Hokuetsu Bank (1.9); foreign owners
(23.1)
No. of shareholders: 7,345
Listed on the S/Exchange (s) of: Tokyo
Managements: Takao Nishijima,
ch & pres; Toshio Honma, dir; Kiyoshi Tauchi, dir; Toshiharu Niijima, dir;
Byun Jae-Hyun, dir; Donglei Tang, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Tsugami Machinery, Tsugami Precision,
Precision Tsugami (China)
Corp, Tsugami Thai
Co, Tsugami GmbH, other
OPERATION
Activities: Manufactures and
exports automatic lathes (80%), grinding machines (10%), machining centers (5%),
thread-rolling machine and others (4%), others (1%)
Overseas
Sales Ratio (77%)
(Mfg
items):
Automatic
Lathe: opposed gang-tool type, gang tool slide & turret, turret, chuck
work, turning & machining center:
Machining
Center: vertical machining type, horizontal machining center;
Grinding
Machine: CNC cylindrical grinding machine, CNC OD & ID grinding machine;
Rolling
Machine: CNC thread rolling machine, thread rolling machine, other.
Clients: [Mfrs,
wholesalers] Yamazen Corp, Yuasa Trading, Rem Sales Japan, Taiyo
Shokai, other
Imports from China (subsidiary
factories)
No. of accounts: 1,000
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs, wholesalers] Fanuc Ltd, THK, Alps
Steel, Kantoh Ltd, Ikura Tools Mfg,
Alps Tool, other.
Payment record: Slow but correct
Location: Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
SMBC (Ningyocho)
MUFG (Ohdenmacho)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME STATEMENT |
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Annual Sales |
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32,225 |
52,812 |
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Cost of Sales |
25,122 |
38,113 |
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GROSS PROFIT |
7,102 |
14,699 |
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Selling & Adm Costs |
5,918 |
6,251 |
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OPERATING PROFIT |
1,184 |
8,447 |
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Non-Operating P/L |
748 |
-1,647 |
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RECURRING PROFIT |
1,932 |
6,800 |
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NET PROFIT |
344 |
4,207 |
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BALANCE SHEET |
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Cash |
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6,227 |
5,467 |
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Receivables |
6,686 |
5,303 |
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Inventory |
20,958 |
18,363 |
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Securities, Marketable |
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Other Current Assets |
2,082 |
1,414 |
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TOTAL CURRENT ASSETS |
35,953 |
30,547 |
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Property & Equipment |
10,420 |
9,322 |
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Intangibles |
328 |
320 |
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Investments, Other Fixed Assets |
5,549 |
5,730 |
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TOTAL ASSETS |
52,250 |
45,919 |
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Payables |
10,630 |
6,759 |
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Short-Term Bank Loans |
6,075 |
3,619 |
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Other Current Liabs |
2,611 |
2,430 |
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TOTAL CURRENT LIABS |
19,316 |
12,808 |
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Debentures |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
946 |
737 |
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Other Debts |
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401 |
375 |
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TOTAL LIABILITIES |
20,663 |
13,920 |
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MINORITY INTERESTS |
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Common
stock |
12,345 |
12,345 |
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Additional
paid-in capital |
5,889 |
5,884 |
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Retained
earnings |
11,424 |
11,956 |
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Evaluation
p/l on investments/securities |
1,391 |
1,092 |
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Others |
1,617 |
1,192 |
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Treasury
stock, at cost |
(1,079) |
(471) |
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TOTAL S/HOLDERS` EQUITY |
31,587 |
31,998 |
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TOTAL EQUITIES |
52,250 |
45,919 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash
Flows from Operating Activities |
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714 |
1,914 |
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Cash Flows
from Investment Activities |
-713 |
-2,281 |
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Cash
Flows from Financing Activities |
445 |
303 |
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Cash,
Bank Deposits at the Term End |
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6,044 |
5,296 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
31,587 |
31,998 |
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Current
Ratio (%) |
186.13 |
238.50 |
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Net
Worth Ratio (%) |
60.45 |
69.68 |
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Recurring
Profit Ratio (%) |
6.00 |
12.88 |
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Net
Profit Ratio (%) |
1.07 |
7.97 |
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Return
On Equity (%) |
1.09 |
13.15 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.62 |
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1 |
Rs.99.12 |
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Euro |
1 |
Rs.78.89 |
INFORMATION DETAILS
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Analysis Done by
: |
SUM |
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Report Prepared
by : |
NIS |
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 |
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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.