MIRA INFORM REPORT

 

 

Report Date :

29.09.2014

 

IDENTIFICATION DETAILS

 

Name :

TOYOTSU MACHINERY CORPORATION

 

 

Registered Office :

Meieki Imai Bldg, 4-10-25 Meieki Nakamuraku Nagoya 450-0002

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

February 1978

 

 

Com. Reg. No.:

1800-01-101977 (Nagoya=Nakamuraku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Engineering of car production lines for Toyota Motor group

 

 

No. of Employees :

671

 

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

 

Status :

Good

Payment Behaviour :

No complaints

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

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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.

 

Source : CIA

 

COMPANY NAME

 

TOYOTSU MACHINERY CORPORATION

 

 

REGD NAME

 

KK Toyotsu Machinery

 

 

MAIN OFFICE

 

Meieki Imai Bldg, 4-10-25 Meieki Nakamuraku Nagoya 450-0002 JAPAN

Tel:       052-569-9100     

Fax:      052-569-7101

 

URL:                 http://www.toyotsu-machinery.co.jp

E-Mail address: (thru the URL)

 

ACTIVITIES:     Engineering of car production lines

BRANCHES:     Toyoda, Tokyo, Osaka, Hamamatsu, Hino, Toyama, other (Tot 12)

OVERSEAS:     USA, China

FACTORIES:     Toyoda

 

OFFICERS:       MASANORI YAMASE, PRES     Koichi Wada, mgn dir

                        Tetsuo Tajiri, mgn dir                  Hisao Kawai, mgn dir

                        Hiroki Sawayama, dir                 Yuji Hamamoto, dir       

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 112,275 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 325 M

TREND UP                                WORTH            Yen 6,987 M

STARTED         1978                             EMPLOYES      671

 

 

COMMENT

 

ENGINEERING OF CAR PRODUCTION LINES.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

 

HIGHLIGHTS

 

The subject company was established as Toyota Engineering KK and in 2010 integrated group 4 companies and renamed as captioned.  This is an engineering firm of car production lines for Toyota Motor Corp.  Has sales offices in USA, China and Thailand. 

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 112,275 million, a 22% up from Yen 92,224 million in the previous term.  Car production was steeply rose by Toyota Motor Corp, both in and out.  Good demand continued.  The recurring profit was posted at Yen 4,817 million and the net profit at Yen 2,891 million, respectively, compared with Yen 3,106 million recurring profit and Yen 189.3 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 5,000 million and the net profit at Yen 3,000 million, respectively, on a 5% rise in turnover, to Yen 118,000 million.  Business is seen expanding steadily. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:                                  Feb 1978

Regd No.:                                             1800-01-101977 (Nagoya=Nakamuraku)

Legal Status:                           Limited Company (Kabushiki Kaisha)

Authorized:                              2.64 million shares

Issued:                                     660,000 shares

Sum:                                        Yen 325 million

    Major shareholders (%):                   Toyota Tsusho Corp* (100)

           

*.. Sole trading firm of Toyota group, Nagoya, founded 1948, listed Tokyo S/E, capital Yen 64,936 million, sales Yen 7,743,237 million, operating profit Yen 161,321 million, recurring profit Yen 163,638 million, net profit Yen 73,034 million, total assets Yen 4,072,728 million, net worth Yen 972,739 million, employees 50,423, pres Jun Karube

 

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

 

 

OPERATION

           

Activities: Engineering of car production lines for Toyota Motor group (--100%)

Exports (30%)

 

Clients:                                    [Mfrs, wholesalers] Toyota Motor Corp, Toyota Tsusho Corp, Denso Corp, Aisin Seiki Co, Aisin AW, other 

No. of accounts:                        150

Domestic areas of activities:       Nationwide

Suppliers:                                [Mfrs, wholesalers] Keyence Corp, Trinity Industrial Corp, Gifu Seiki Kogyo Co, Yamaha Motor Co, JTEKT Corp, Canon Corp, other

 

Payment record:                      No Complaints

 

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

 

Bank References:

MUFG (Miyoshi)

MUFG (Nagoya)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

　

118,000

112,275

92,224

72,659

Recur. Profit

　

5,000

4,817

3,106

2,125

Net Profit

　

3,000

2,891

1,893

1,096

Total Assets

　

　

49,662

35,937

32,538

Current Assets

　

　

48,100

34,401

30,939

Current Liabs

　

　

41,989

29,702

26,823

Net Worth

　

　

6,987

5,675

5,195

Capital, Paid-Up

　

　

325

325

325

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

5.10

21.74

26.93

66.42

    Current Ratio

　

..

114.55

115.82

115.35

    N.Worth Ratio

　

..

14.07

15.79

15.97

    R.Profit/Sales

　

4.24

4.29

3.37

2.92

    N.Profit/Sales

　

2.54

2.57

2.05

1.51

    Return On Equity

　

..

41.38

33.36

21.10

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.57

UK Pound

1

Rs.100.42

Euro

1

Rs.78.45

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

SMN

 

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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