MIRA INFORM REPORT

 

 

Report No. :

337857

Report Date :

21.08.2015

 

IDENTIFICATION DETAILS

 

Name :

TAJIMA INDUSTRIES LTD. 

 

 

Registered Office :

Tajima Bldg. 3-19-22, Shirakabe, Higashi-ku, Nagoya-shi, Aichi pref. 461-0011

 

 

Country :

Japan

 

 

Date of Incorporation :

06.05.1970

 

 

Com. Reg. No.:

1800-01-017306 (Nagoya )

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Engaged in Sales and export of Automated Multi-Head Embroidery Machines bearing the Brand name “Tajima”.

 

 

No of Employees :

54

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

US$ 300,000

 

Status :

Moderate

 

 

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

 

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 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

 

TAJIMA INDUSTRIES LTD.

 

 

Company OUTLINE

 

Company name:            TAJIMA INDUSTRIES LTD.

Name in local language: TAJIMA KOGYO K.K

Office address:             Tajima Bldg. 3-19-22, Shirakabe, Higashi-ku, Nagoya-shi, Aichi pref. 461-0011

Country:                        Japan

Office tel:                                 052-932-3811/3445

Office fax:                    052-932-0899/3449

Website:                       www.tajima.com 

Business type:              Trader  

Industry:                                   Embroidery machines

Established:                  May 6, 1970

Capital:                                     Jp. 65,500,000 yen

Employees:                  54

Corporate formation:     Private 

Corporation No.:           1800-01-017306 (Nagoya Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

Paid in capital :                         Jp. 65,500,000 yen

Number of authorized shares :   256,000 shares

Shares issued :                         131 ,000 shares

Number of shareholder :                        15

 

Name of shareholders                           Number of shares (%)

--------------------------------------------------------------------------------------------

T.I.K. Corp.                                           20,000 shares (15.3)

Mr. Hitoshi Tajima, President                  12,791 shares ( 9.8)

Employees shareholders fund                       n. a.

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

Activity             Product/Service Description

-------------------------------------------------------------------------------

Trading             Embroidery machines

 

 

COMPANY MANAGEMENT

 

President                      Mr. Hitoshi Tajima

Nationality:                    Japan

 

Vice President               Mr. Kenji Tajima

Nationality:                    Japan

 

Director                        Ms. Hitomi Tajima

Nationality:                    Japan

 

Director                        Ms. Ikumi Kojima

Nationality:                    Japan

 

Director                                    Mr. Minoru Tominaga

Nationality:                    Japan

 

Director                                    Mr. Yoshinobu Nakamura

Nationality:                    Japan

 

Director                                    Mr. Hideki Tajima

Nationality:                    Japan

 

Auditor                         Mr. Ktsumi Oshima

Nationality:                    Japan

 

Note: The names of director(s) and auditor(s) are phonetically spelt.

 

 

Key Personnel

 

Mr. Hitoshi Tajima

President and representative director

Born on September 11, 1942

Home address: 3-19, Machikita, Moriyama-ku, Nagoya-shi 463-0074

 

 

FINANCIALS

 

Currency: (local currency - Jp. yen)

-------------------------------------------------------------------------------------

 Year |         Sales            |      Net Income    

-------------------------------------------------------------------------------------

2008

17,827,638,000

346,489,000

2009

9,560,257,000

loss 54,241,000

2010

5,598,000,000

loss 443,519,000

2011

9,738,826,000

loss 255,376,000

2012

7,899,657,000

loss 362,436,000

2013

6,391,000,000

483,000,000

2014

8,498,000,000

337,000,000

 

 

FINANCIAL DESCRIPTION

 

*Book Closing*

============

End of February

 

*Financials*

==========

As a private limited company, no official financial statement is required to be disclosed publicly.

 

 

Bank Details

 

Bank Name :     Chukyo Bank, Ltd.

Branch :            Daikan-cho

 

Bank Name :     Bank of Tokyo-Mitsubishi UFJ, Ltd.

Branch :            Higashi

 

 

Credit Opinion

 

The subject was originally founded as a sales company of Tajima multi-head automated embroidery machines, but became as a core company of Tajima group business.

When it comes to an automated embroidery machine, the name, “TAJIMA” is well-known rather among overseas customers.

Performance has been picking up since it hit a bottom in 2010 when Japanese currency was appreciated.

The sales, however, has not reached the level of heyday as the group shifted its production base out of Japan.

Although the exact financial condition is not available due to non-disclosure of its financial statements, there may be a certain amount of retained earnings.

Negative factors are not observed in particular at present.

Our standard suggestion would be up to US$ 300,000 on terms of 90 days.

 

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

 

*Main Products & Services*

======================

Engaged in Sales and export of Automated Multi-Head Embroidery Machines bearing the Brand name “Tajima”

 

 

FACTORY FACILITIES & MANUFACTURING CAPABILITIES

 

Production is conducted by affiliated companies at home and abroad.

 

 

ORGANIZATION STRUCTURE

 

*Address*

 

Registered address is the same as the operational address.

 

 

Company History

 

Date                             Development

-----------------------------------------------------------------------------------------------

April 1944                     Founded “Tokai Industrial Machine Co., Ltd.,” aiming at sales and

repair of industrial sewing machines.

March 1964                   The above company invented a multi-head automated embroidery

machine.

May 6, 1970                  The subject incorporated under the current company name as a sales

firm of the above machines.

February 1990               Founded “Tajima America Corp.”

November 2004             Shanghai Tajima Precision Machine Co., Ltd. in China.

November 2008             Founded a subsidiary, “TM Koki Co., Ltd.” in Japan.

September 2011            Founded “Tajima Europe S.A.R.L.” in France.

July 2013                      Founded “Tajima Do Brasil Ltda.” In Brazil.

 

 

TRADE REFERENCES

 

*Suppliers*

==========

Tokai Industrial Machines Co., Ltd.

Pals Micro Systems Inc.

 

*Customers*

==========

Naka-Nippon Juki Co., Ltd.

Yokoyama Special Machines Co., Ltd.

Seiken Corporation

 

Export to more than 100 countries

 

 

MAJOR SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

 

Company name:            Tokai Industrial Machines Co., Ltd.

Country:                        Japan

Status:                          Affiliate

----------------------------------------------------------------------------------------------------

Company name:            Tajima America Corporation

Country:                        U.S.A.

Status:                         Affiliate

 

----------------------------------------------------------------------------------------------------

Company name:            Shanghai Tajima Precision Machines Co., Ltd.

Country:                        China

Status:                                      Affiliate  

----------------------------------------------------------------------------------------------------

 

 

RELATED PARTIES DESCRIPTION

 

*Subsidiaries & Affiliates*

=====================

As of February 28, 2014 the subject owns and controls a total of five affiliates at home and abroad.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.24

UK Pound

1

Rs.102.21

Euro

1

Rs.72.57

 

INFORMATION DETAILS

 

Report Prepared by :

ASH

 

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.