MIRA
INFORM REPORT
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Report Date : |
05.09.2014 |
IDENTIFICATION DETAILS
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Name : |
TOAGOSEI CO LTD |
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Registered Office : |
1-14-1 Nishishimbashi Minatoku |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
March 1942 |
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Com. Reg. No.: |
0104-01-020186 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufactures industrial chemicals |
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No. of Employees : |
2,483 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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 01, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
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
TOAGOSEI CO LTD
REGD NAME: Toa
Gosei KK
MAIN OFFICE: 1-14-1
Nishishimbashi Minatoku
Tel:
03-3597-7215 Fax: 03-3597-7217
URL: http://www.toagosei.co.jp/
E-Mail
address: info@toagosei.co.jp
ACTIVITIES
Mfg of
industrial chemicals
BRANCHES
Osaka,
Nagoya, Toyama, Sakaide (Kagawa), Fukuoka
OVERSEAS
USA
(2), Korea, China (2), Hong Kong, Taiwan (2), Singapore (--subsidiaries)
FACTORIES
Nagoya,
Tokuyama, Takaoka, Sakaide, Kawasaki
CHIEF EXEC
FUTOSHI
HASHIMOTO, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 151,081 M
PAYMENTSREGULAR CAPITAL Yen
20,886 M
TREND UP WORTH Yen 148,148 M
STARTED 1942 EMPLOYES 2,483
COMMENT
MFR OF INDUSTRIAL CHEMICALS.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
Unit: Million Yen
Forecast (or estimated) figures for
31/12/2014 fiscal term
HIGHLIGHTS
This
is a medium-sized chemical mfr of Mitsui group.
Originally founded in 1933 as Yahagi Kogyo Co Ltd for mfg ammonium
sulfate, sulfuric & nitric acid using surplus electricity from the then
parent company, Mitsui Chemical Co Ltd.
In 1942, reorganized and established second Yahagi Kogyo Co Ltd. In 1944, merged 3 soda companies and became
general chemical maker, named Toagosei Chemical Industry Co Ltd, and later
renamed as captioned. Shifted mainstay
items from electrolytic process chemicals to acrylic-based products. Leads the industry in acrylic-related
products. Instant glue is another
revenue source. Known for end-product
instant glue “Aron Alpha”. Expectation
on growth of LHC, purest in Japan, for use as cleaning agent for semiconductor
wafers. Belongs to Mitsui Group.
FINANCIAL INFORMATION
The sales volume for Dec/2013 fiscal term amounted to Yen
151,081 million, a 1.9% up from Yen 148,203 million in the previous term. Sales volume of acrylic acid was steady and
market was firmer than anticipated. The
recurring profit was posted at Yen 15,346 million and the net profit at Yen
9,605 million, respectively, compared with Yen 15,250 million recurring profit
and Yen 9,699 million net profit, respectively, a year ago.
(Jan/Jun/2014 results): Sales Yen 74,954 million (up 1.8%),
operating profit Yen 6,088 million (down 17.9%), recurring profit Yen 6,410
million (down 19.6%), net profit Yen 4,253 million (down 16.8%). (% compared with the corresponding period a
year ago).
For the current term ending Dec 2014 the recurring profit is
projected at Yen 14,400 million and the net profit at Yen 9,400 million, on a
1.9% rise in turnover, to Yen 154,000 million.
Sales of adhesives, the company’s forte, will rise steadily for general
use and for smartphones, and plant integration will also make a contribution to
earnings. Sales of piping materials will
also grow.
The
financial situation is considered FAIR and good for ORDINARY business
engagements.
REGISTRATION
Date Registered: Mar 1942
Regd No.: 0104-01-020186 (Tokyo-Minatoku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
550 million shares
Issued:
263,992,598 shares
Sum: Yen 20,886
million
Major shareholders (%): Japan Trustee Services T (4.4),
SMBC (4.4), Master Trust Bank of Japan T (3.3), Customers’ S/Holding Assn
(2.9), Group Employees’ S/Holding Assn (2.3), MUFG (2.1), Chase London SL
Omnibus Acct (1.5), Norin Chukin Bank (1.4), Mitsui Life Ins (1.3), Bank of New
York Mellon SANV10 (1.3); foreign owners (24.9).
No. of shareholders:
13,750
Listed on the S/Exchange (s) of:
Tokyo
Managements: Akihiko Yamadera, ch; Futoshi
Hashimoto, pres; Katsutoshi Yamada, dir; Soichi Nomura, dir; Takeshi Ozeki,
dir; Mikishi Takamura, dir; Kazuaki Nakagawa, dir; Shinichi Sugiura, dir;
Nobuhiro Ishikawa, dir; Eiichi Takizawa, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Aron
Kasei Co, Oita Chemical Co, MT Aqua Polymer Inc, Tsurumi Soda Co, other.
Overseas Subsidiaries: Toagosei America (Ohio); TOA-DIC
Zhangjiagang Chemical, Toagosei Hong Kong; Toagosei (Zhuhai) (--China); Taiwan
Toagosei, TOA Jet Chemical (--Taiwan), Toagosei Singapore (Singapore); Toagosei
Korea Co Ltd
OPERATION
Activities:
Manufactures industrial chemicals:
(Sales breakdown by Divisions): (Cited
from the firm’s website)
Basic Chemicals Div (30%):
Caustic soda: chemical fibers, pulp, dye, and
pharmaceuticals;
Oxygen: combustion enhancing gas for welding
& cutting, oxygen inhalation (and high pressure oxygen treatment) for
medical use, oxygen aeration for wastewater treatment, oxygen-based pulp
bleaching, and fermentation in biotechnology;
Sulfuric acid: fertilizers, synthetic fibers, and
inorganic chemicals;
Trichloroethylene: metal degreasing & cleaning
solvents, and raw materials
Acrylic Products Div (39%):
Acrylic esters: acrylic fibers, fiber processors,
paints, pressure sensitive & other adhesives, leather processors, paper
processors, & acrylic resin, detergent builders;
Acrylic acid: nonwoven cloth binders, flocculants,
dispersants, paper processors, superabsorbent resin, & detergent builders;
Polymer flocculants: treatment of various kinds of
wastewater & dehydration of sludges;
Construction materials: one-pack waterproof spray
materials, decorative waterproof wall materials, permeable type
water-absorption preventive agents, chemical grouts, & earth resistance
reducing agents;
Specialty Chemicals Div (11%):
Cyanoacrylate instant adhesives: for bonding rubber, plastic,
metal, & wood in industrial & consumer uses;
Heat-resistant adhesives: for bonding metal &
ceramics used in high-temperature environments;
Hot melt adhesives: for bonding plastics, metals
& textiles; for bonding difficult-to-bond plastics like PE, PP polyester,
& nylon;
Special monomers & oligomers: raw
materials for paints, printing inks, coatings, & adhesives;
Silver-based antimicrobial agents: For
kitchen & bathroom equipment, building materials, & textiles;
Antifungal agents: For kitchen equipment, home
appliances, & paints;
Plastics, other (20%):
Pipes & couplings: rigid PVC pipes;
Environmental products: trash receptacles;
Nursing care products: portable toilets, nursing care
bath products.
Overseas Sales Ratios (16%)
Clients: [Mfrs, wholesalers] TG Corporation,
Sumitomo Chemical, Nagase Corp, Mitsubishi Chemical, Mitsubishi Corp, Nippon
Soda, OG Chemical, Konishi Co, MT Aquapolymer Inc, Saiden Chemical Ind, Jusco,
Konishi Co, Akros Trading Co, KISCO, Inagaki Yakuhin Co, Toko Shoji Co, other.
No. of
accounts: 1,000
Domestic
areas of activities: Nationwide
Suppliers:
[Mfrs, wholesalers] Mitsubishi Chemical, Showa Denko, Shikoku Electric
Power,
Chubu Electric Power, Mitsubishi Corp, Sumitomo Corp, Mitsui & Co, Itochu
Corp,
Mitsubishi Gas Chemical, Nippon
Shokubai, Oita Chemical, Kaneka Corp, Komatsuya Co, other.
Payment record:
Regular
Location: Business area in Tokyo. Office premises at the caption address are
leased and maintained satisfactorily.
Bank References:
SMBC
(H/O)
MUFG
(Tokyo)
Relations:
Satisfactory
FINANCIALS
(in Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/12/2013 |
31/12/2012 |
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INCOME STATEMENT |
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Annual Sales |
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151,081 |
148,203 |
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Cost of Sales |
112,204 |
108,246 |
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GROSS PROFIT |
38,877 |
39,956 |
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Selling & Adm Costs |
14,501 |
14,583 |
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OPERATING PROFIT |
24,376 |
25,372 |
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Non-Operating P/L |
-9,030 |
-10,122 |
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RECURRING PROFIT |
15,346 |
15,250 |
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NET PROFIT |
9,605 |
9,699 |
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BALANCE SHEET |
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Cash |
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17,029 |
17,096 |
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Receivables |
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43,028 |
43,434 |
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Inventory |
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14,795 |
15,989 |
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Securities, Marketable |
23,000 |
14,000 |
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Other Current Assets |
3,922 |
2,765 |
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TOTAL CURRENT ASSETS |
101,774 |
93,284 |
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Property & Equipment |
65,901 |
66,065 |
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Intangibles |
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815 |
902 |
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Investments, Other Fixed Assets |
24,596 |
21,200 |
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TOTAL ASSETS |
193,086 |
181,451 |
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Payables |
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15,735 |
14,878 |
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Short-Term Bank Loans |
7,238 |
6,234 |
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Other Current Liabs |
11,354 |
12,677 |
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TOTAL CURRENT LIABS |
34,327 |
33,789 |
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Debentures |
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Long-Term Bank Loans |
5,861 |
5,986 |
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Reserve for Retirement Allw |
313 |
454 |
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Other Debts |
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4,437 |
4,982 |
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TOTAL LIABILITIES |
44,938 |
45,211 |
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MINORITY INTERESTS |
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Common
stock |
20,886 |
20,886 |
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Additional
paid-in capital |
16,798 |
16,796 |
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Retained
earnings |
100,790 |
93,821 |
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Evaluation
p/l on investments/securities |
4,424 |
1,412 |
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Others |
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5,428 |
3,445 |
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Treasury
stock, at cost |
(178) |
(120) |
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TOTAL S/HOLDERS` EQUITY |
148,148 |
136,240 |
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TOTAL EQUITIES |
193,086 |
181,451 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/12/2013 |
31/12/2012 |
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Cash
Flows from Operating Activities |
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18,023 |
23,293 |
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Cash
Flows from Investment Activities |
-6,852 |
-15,041 |
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Cash Flows
from Financing Activities |
-2,094 |
-3,377 |
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Cash,
Bank Deposits at the Term End |
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39,798 |
29,529 |
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ANALYTICAL RATIOS Terms ending: |
31/12/2013 |
31/12/2012 |
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Net
Worth (S/Holders' Equity) |
148,148 |
136,240 |
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Current
Ratio (%) |
296.48 |
276.08 |
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Net
Worth Ratio (%) |
76.73 |
75.08 |
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Recurring
Profit Ratio (%) |
10.16 |
10.29 |
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Net
Profit Ratio (%) |
6.36 |
6.54 |
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Return
On Equity (%) |
6.48 |
7.12 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.45 |
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1 |
Rs.99.45 |
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Euro |
1 |
Rs.79.46 |
INFORMATION DETAILS
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Analysis Done by
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SUB |
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Report Prepared
by : |
PDT |
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.