MIRA INFORM REPORT

 

 

Report No. :

314538

Report Date :

14.04.2015

 

IDENTIFICATION DETAILS

 

Name :

TOSHIBA MACHINE CO LTD

 

 

Registered Office :

2068-3 Ohka Numazu City Shizuoka-Pref410-8510

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

March 1949

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufactures machine tools & industrial equipment

 

 

No. of Employee :

3,475

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 and address

 

TOSHIBA MACHINE CO LTD

 

REGD NAME:   Toshiba Kikai KK

MAIN OFFICE:  2068-3 Ohka Numazu City Shizuoka-Pref410-8510 JAPAN

                        Tel: 055-926-8510     Fax: 055-926-6501

 

                        * Tokyo Head Office at: 2-2-2 Uchisaiwaicho Chiyodaku Tokyo, as given

 

URL:                 http://www.toshiba-machine.co.jp/

E-Mail address: info@toshiba-machine.co.jp

 

 

ACTIVITIES

 

Mfg of molding machines, machine tools

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya, Sendai, Fukuoka, Takasaki, Shizuoka, other (Tot 9)

 

 

OVERSEAS

 

USA, Canada, Germany, Singapore, China (10), India, Vietnam, Thailand, Indonesia, India, other (Tot 14 countries)

 

 

FACTORIES

 

At the caption address, Zama, Gotemba (--Kanagawa); Shanghai (China), Thailand (Tot 4)

 

 

CHIEF EXEC

 

YUKIO IINUMA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES                      Yen 113,062 M

PAYMENTS      REGULAR         CAPITAL                       Yen 12,484 M

TREND             SLOW               WORTH                        Yen 84,217 M

STARTED         1949                 EMPLOYES                  3,475

 

 

COMMENT

 

MFR SPECIALIZING IN MOLDING MACHINES & MACHINE TOOLS. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

 

 

 

Notes: Unit: In Million Yen Forecast (or estimated) figures for 31/03/2015 fiscal term

 

 

HIGHLIGHTS

 

This is large-sized machine tool mfr set up in 1949 as industrial machinery mfr.  In 1961, merged with Toshiba group machine tool firm to integrate & strengthen operations.  Emphasis shifting into injection molding, die-cast and extruding machines, and semiconductor mfg equipment.   

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/20143 fiscal term amounted to Yen 113,062 million, a 6.5% down from Yen 120,899 million in the previous term.  The recurring profit was posted at Yen 6,501 million and the net profit at Yen 4,444 million, respectively, compared with Yen 9,823 recurring profit and Yen 7,891 million net profits, respectively, a year ago.

           

(Apr/Dec/2014 results): Sales Yen 86,727 million (up 10.3%), operating profit Yen 2,812 million (down 3.5%), recurring profit Yen 4,139 million (up 0.4%), net profit Yen 2,506 million (up 17.9%).  (% as compared with the corresponding period a year ago).

 

For the term that ended Mar 2015 the recurring profit was projected at Yen 6,800 million and the net profit at Yen 4,500 million, on a 10.6% rise in turnover, to Yen 125,000 million.  New orders for injection molding machines and die-cast machines expanded.  Final results are yet to be released. 

 

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

 

 

REGISTRATION

 

Date Registered:　Mar 1949

Legal Status:    　Limited Company (Kabushiki Kaisha)

Authorized:      　300 shares

Issued:             　166,885,530 shares

Sum:                　Yen 12,484 million

           

Major shareholders (%): Toshiba Corp (20.1), Company’s Treasury Stock (8.9), Japan Trustee Services T (6.4), Master Trust Bank of Japan T (5.4), Chase London SL Omnibus Acct (3.7), Shizuoka Bank (1.7), SMBC (1.6), Customers’ S/Holding Assn (1.5), Toyota Motor (1.4); foreign owners (27.0).

           

No. of shareholders: 10,538

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Yukio Iimura, pres; Yoshihiro Kishimato, s/mgn dir; Satoshi Hironaa mgn dir; Shigetomo Saamoto, mgn dir; Masayuki Yagi, mgn dir; Kazuo Takamura, dir; Katsuo Ito, dir; Takahiro Mikami, dir; Hiroshi Akiyama, dir; Yoshihiro Ogura, dir

           

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

 

Related companies: (Domestic): Toshiba Machine Machinery, Hyest Corp, Toshiba Machine Plastic & Diecast Engineering, other;

(Overseas): Toshiba Machine Co America, Toshiba Machine Europe GmbH, Toshiba Machine South East (Singapore), other

 

           

OPERATION

           

Activities: Manufactures machine tools & industrial equipment:

 

(Sales Breakdown by Divisions):

Molding Machines (65%): Injection molding machines, plastic extrusion machines, die-casting machines, printing presses, other;

Machine Tools (20%): high precision machines, semiconductor mfg equipment, castings, other;

Oil Hydraulic Equipment (7%): hydraulic equipment, high precision machines, electronic controls, industrial robots, waste water treatment units, others;

Others (8%).

Overseas Sales Ratio (52%)

 

Clients: [Mfrs, wholesalers] Toshiba Machine America, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] IBJL Toshiba Leasing, Toshiba Machine, Fanuc, Yachiyo Corp, other

 

Payment record: Regular

 

Location: Business area in Numazu City, Shizuoka-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

SMBC (Tokyo)

Shizuoka Bank (Numazu)

Relations: Satisfactory

 

 

FINACIALS

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

　

　

  Annual Sales

　

113,062

120,899

　

  Cost of Sales

81,480

87,294

　

      GROSS PROFIT

31,581

33,605

　

  Selling & Adm Costs

26,955

25,526

　

      OPERATING PROFIT

4,625

8,078

　

  Non-Operating P/L

1,876

1,745

　

      RECURRING PROFIT

6,501

9,823

　

      NET PROFIT

4,444

7,891

BALANCE SHEET

　

　

  Cash

　

21,779

21,327

　

  Receivables

37,951

40,006

　

  Inventory

27,317

23,843

　

  Securities, Marketable

19,500

17,000

　

  Other Current Assets

4,929

4,664

　

      TOTAL CURRENT ASSETS

111,476

106,840

　

  Property & Equipment

21,108

19,829

　

  Intangibles

3,667

400

　

  Investments, Other Fixed Assets

12,429

15,170

　

      TOTAL ASSETS

148,680

142,239

　

  Payables

24,675

21,998

　

  Short-Term Bank Loans

11,296

16,859

　

　

　

　

　

  Other Current Liabs

11,355

14,130

　

      TOTAL CURRENT LIABS

47,326

52,987

　

  Debentures

　

　

　

  Long-Term Bank Loans

5,300

　

　

  Reserve for Retirement Allw

10,278

8,411

　

  Other Debts

　

1,559

1,441

　

      TOTAL LIABILITIES

64,463

62,839

　

      MINORITY INTERESTS

　

　

Common stock

12,484

12,484

　

Additional paid-in capital

19,600

19,600

　

Retained earnings

59,319

56,306

　

Evaluation p/l on investments/securities

2,648

2,221

　

Others

207

(1,173)

　

Treasury stock, at cost

(10,041)

(10,039)

　

      TOTAL S/HOLDERS` EQUITY

84,217

79,399

　

      TOTAL EQUITIES

148,680

142,239

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

3,024

7,435

　

Cash Flows from Investment Activities

-1,509

-2,195

　

Cash Flows from Financing Activities

-1,684

-3,003

　

Cash, Bank Deposits at the Term End

　

41,279

38,327

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

84,217

79,399

　

Current Ratio (%)

235.55

201.63

　

Net Worth Ratio (%)

56.64

55.82

　

Recurring Profit Ratio (%)

5.75

8.12

　

Net Profit Ratio (%)

3.93

6.53

　

　

Return On Equity (%)

5.28

9.94

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.39

UK Pound

1

Rs.91.06

Euro

1

Rs.66.16

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ANK

 

 

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.