MIRA INFORM REPORT

 

 

Report No. :

301726

Report Date :

20.01.2015

 

IDENTIFICATION DETAILS

 

Name :

TOYO DENSO CO LTD

 

 

Registered Office :

2-10-4 Shimbashi Minatoku Tokyo 105-0004

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

November 1960

 

 

Com. Reg. No.:

0104-01-020356 (Tokyo-Minatoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufactures of electronic components for automobiles/motorcycles, generators, others (--100%)

 

 

No. of Employee :

1,006

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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

 

TOYO DENSO CO LTD

 

REGD NAME:   Toyo Denso KK

MAIN OFFICE:  2-10-4 Shimbashi Minatoku Tokyo 105-0004 JAPAN

                        Tel: 03-3502-0151      Fax: 03-3502-7946

 

                        *.. The is its Technical Center in Saitama-Pref

 

URL:                 http://www.toyo-denso.co.jp

E-Mail address: (thru the URL)

 

ACTIVITIES:     Mfg of electronic components of automobiles/motorcycles, generators

BRANCHES:     Hamamatsu, Utsunomiya, Kameyama (Mie)

OVERSEAS:     USA, China, Thailand, Taiwan, Indonesia, Vietnam, & UK

FACTORIES:    Mie, Kumamoto

 

OFFICERS:       KIYOSHI KOIDE, PRES             Isao Koide, ch

                        Kyogo Sakaguchi, v pres                       Kenji Takenaka, s/mgn dir

                        Hiroyuki Togami, s/mgn dir        Kunio Fukushima, s/mgn dir      

           

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY:      FINANCES        FAIR                             A/SALES          Yen 30,690 M

                        PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 596 M

                        TREND SLOW                           WORTH            Yen 9,925 M

                        STARTED         1960                             EMPLOYES      1,006

 

COMMENT:      MFR OF ELECTRONIC COMPONENTS FOR AUTOMOBILES.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established originally in 1947 as Koide Electric Works as a private enterprise and was incorporated in 1960.  This is a specialized mfr of electronic components for automobiles/motorcycles.  This firm is owned and operated essentially by the Koike family.  Goods are exported.  Clients include major carmakers.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2013fiscal term amounted to Yen 30,690 million, a 31% down from Yen 44,199 million.  This is referred to the transfer of some part of operations to its overseas subsidiaries.  The recurring profit was posted at Yen 1,497 million and the net profit at Yen 408 million, respectively, compared with Yen 1,034 million recurring profit and yen 747 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 1,500 million and the net profit at Yen 410 million, respectively, on a 6% rise in turnover, to Yen 32,500 million. 

 

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

 

 

REGISTRATION

 

Date Registered:           Nov 1960

Regd No.:                     0104-01-020356 (Tokyo-Minatoku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  5.5 million shares

Issud:                           1.38 million shares

Sum:                            Yen 696.125 million

Major shareholders (%): Kiyoshi Koide (21.4), Isao Koide (18), Honda Motors (14.5), Mariko Koide (14.3)

No. of shareholders: 35

 

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

 

 

OPERATION

 

Activities: Manufactures electronic components for automobiles/motorcycles, generators, others (--100%)

 

Clients: [Carmakers, wholesalers] Honda Motor, Thai Toyo Denso, Toyo Denso Indonesia, Shanghai Toyo Denso, W Eastec Inc, Vietnam Toyo Denso, Isuzu Motor, Honda Trading Corp, Kawasaki Heavy Ind, other

No. of accounts: 300

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Honda Motor, Shanghai Toyo Denso, Thai Toyo Denso, Toyo Denso Indonesia, Sojitz Planet, Nexus Co, Kodo Co, Vietnam Toyo Denso, Toyo Denko Co, Sumitomo Wiring System, other

 

Payment record: No complaints

 

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

 

Bank References:

MUFG (Shimbashi-Ekimae)

Mizuho Bank (Tokyo)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

32,500

30,690

44,199

44,582

Recur. Profit

 

1,500

1,497

1,034

815

Net Profit

 

410

408

747

391

Total Assets

 

 

34,964

35,437

36,237

Current Assets

 

 

17,090

17,212

18,880

Current Liabs

 

 

12,773

14,596

15,076

Net Worth

 

 

9,925

9,628

8,574

Capital

 

 

596

596

596

Div.in Million (¥)

 

 

0

196

0

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.90

-30.56

-0.86

23.79

    Current Ratio

 

..

133.80

117.92

125.23

    N.Worth Ratio

 

..

28.39

27.17

23.66

    R.Profit/Sales

 

4.62

4.88

2.34

1.83

    N.Profit/Sales

 

1.26

1.33

1.69

0.88

    Return On Equity

 

..

4.11

7.76

4.56

 

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


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.70

UK Pound

1

Rs.93.41

Euro

1

Rs.71.33

 

 

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.