MIRA INFORM REPORT

 

 

Report No. :

336561

Report Date :

11.08.2015

 

IDENTIFICATION DETAILS

 

Name :

TORAY INTERNATIONAL INC

 

 

Registered Office :

Nihombashi TI Bldg, 3-1-1 Nihombashi-Honcho Chuoku Tokyo 103-0023

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

December 1986

 

 

Com. Reg. No.:

0100-01-051554

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, Export and Wholesale of Fibers, Apparel, Resins, Fur, Other.

 

 

No of Employees :

402

 

 

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 :

Satisfactory

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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 four times since 2008. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 2014 stood as the fourth-largest economy in the world after first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA


Company name

 

TORAY INTERNATIONAL INC

 

 

REGD NAME

 

Toray International KK

 

 

MAIN OFFICE

 

Address:          Nihombashi TI Bldg, 3-1-1 Nihombashi-Honcho Chuoku Tokyo 103-0023 JAPAN

Tel: 03-3245-5880     Fax: 03-0245-570

 

                        *.. The is its Osaka Branch

 

URL:                 http://www.toray-intl.com/

E-Mail address:      (thru the URL)

 

 

ACTIVITIES  

 

Import, export, wholesale of fibers, apparel, resins, fur, other

 

 

BRANCHES   

 

Osaka, Sapporo, Sendai, Nagoya, Fukuoka, Chiba

 

 

OVERSEAS   

 

USA (5), Mexico (3), London, Milan, Frankfurt, Hong Kong, China (2),Taiwan (5), Korea, India (2), Indonesia

Singapore, Thailand, Russia, Vietnam, Bangladesh, Myanmar

 

 

OFFICER(S)  

 

MITSUO OHYA, PRES               Toshiyuki Onogi, s/mgn dir

Hiroshi Takaki, dir                                  Kentaro Noma, dir        

Katsunori Matsuda, dir               Kazuhiko Shiomura, dir

 

Yen Amount:                             In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 553,981 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 2,040 M

TREND UP                                WORTH            Yen 43,699 M

STARTED         1986                             EMPLOYES      402

 

 

COMMENT    

 

TORADING FIRM, WHOLLY OWNED BY TORAY INDUSTRIES IINC. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

 

HIGHLIGHTS

           

The subject company was established on the basis of an international trading division separated from Toray Industries Ltd, synthetic fiber mfr, at the caption address (See REGISTRATION).  This is a trading firm specializing in import, export and wholesale of a wide range of products: from fibers, textiles, resins, apparel, chemicals, electronics materials, plant machinery, other.  Having 29 overseas branch offices in 16 overseas countries, actively engaged in international trading businesses.  Business is not confined to Toray group, and sales outside Toray group account for 60% of total sales.     

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 553,981 million, a 16% up from Yen 479,133 million in the previous term.  Sales of functional autumn & winter wear grew steadily.  Sales of carbon fibers for automobile airbags and aircraft also boosted earnings.  The recurring profit was posted at Yen 13,166 million and the net profit at Yen 8,514 million, respectively, compared with Yen 11,066 million recurring profit and Yen 7,240 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 12,900 million and the net profit at Yen 8,800 million, respectively, on a 3% rise in turnover, to Yen 569,100 million.   Textiles and carbon fibers will continue to drive sales growth.

           

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

 

REGISTRATION

 

Date Registered:                                   Dec 1986

Regd No.:                                             0100-01-051554 (Tokyo-Minatoku)

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              128,000 shares

Issued:                                     32,005 shares

Sum:                                        Yen 2,040 million

Major shareholders (%):                       Toray Industries Ltd*(100)

           

* Largest mfr of synthetic fibers, at the caption address, founded 1926, listed Tokyo S/E, capital Yen 147,873 million, turnover Yen 1,837,773 million, operating profit Yen 105,253 million, recurring profit Yen 110,648 million, net profit Yen 59,608 million, total assets Yen 2,119,683 million, net worth Yen 859,001 million, employees 45,881, pres Akihiro Nikkaku

           

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

 

 

OPERATION

 

Activities: Trading firm, wholly owned by Toray Industries Ltd, for import, export and wholesale a wide range products:

 

(Sales Breakdown by Divisions):

Fibers & Textile Div (18%): synthetic filament, yarns, staple fibers, rayon, cotton, wool, spun yarns, non-woven fabrics, industrial sling, other;

 

Apparel Div (24%): woven & knitted textiles, apparel products, man-made suede, leather products, other;

 

Plastics Div (18%): plastic resins, films, other;

 

Electronics & Advanced Products Div (5%): electronics materials, optical fiber, water treatment instruments, computer peripherals, ceramics;

 

Materials, Chemicals Plant & Machinery Div (30%): Fiber & plastic production plant & machinery, raw materials for synthetic fibers, fine chemicals, carbon fiber, composite parts, steel;

 

Commercial Products Div (5%): cleaning cloth, fur, rubber, other.

 

Exports (35%); Imports (35%)

 

Clients: [Mfrs, wholesalers] Toray Ind & group firms, Uniqlo Co, GU Corp, other. 

Exports to USA, Europe, Asia, other.

 No. of accounts: Unavailable

 Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Toray Ind & group firms, Nippon Oil, Ghangzhou Hualida Garments Group, Sabic Asia Pcific Ltd.other.

 

Imports from USA, Europe, S/E Asia, China, other.

 

Payment record: No Complaints

 

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

 

Bank References:

            SMBC (Osaka-Chuo)

            MUFG (Osaka-Chuo)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

569,100

553,981

479,133

479,290

Recur. Profit

 

12,900

13,166

11,066

9,339

Net Profit

 

8,800

8,514

7,240

5,312

Total Assets

 

 

149,433

137,270

130,974

Current Assets

 

 

141,202

128,757

123,643

Current Liabs

 

 

98,914

93,853

94,034

Net Worth

 

 

43,699

38,082

31,099

Capital, Paid-Up

 

 

2,040

2,040

2,040

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

       S.Growth Rate

 

2.73

15.62

-0.03

..

       Current Ratio

 

..

142.75

137.19

131.49

       N.Worth Ratio

 

..

29.24

27.74

23.74

       R.Profit/Sales

 

2.27

2.38

2.31

1.95

       N.Profit/Sales

 

1.55

1.54

1.51

1.11

     Return On Equity

 

..

19.48

19.01

17.08

 

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


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 63.76

UK Pound

1

Rs. 98.76

Euro

1

Rs. 69.88

 

INFORMATION DETAILS

 

Analysis Done by :

RSM

 

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.