MIRA INFORM REPORT

 

 

Report No. :

304709

Report Date :

27.01.2015

 

IDENTIFICATION DETAILS

 

Name :

TAKAYAMA REED CO LTD

 

 

Registered Office :

2-27-20 Jinguji Kanazawa Ishikawa-Pref 920-0806

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

February 1960 

 

 

Com. Reg. No.:

2200-01-004100

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of reeds for weaving machines

 

 

No. of Employee :

58

 

 

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

 

TAKAYAMA REED CO LTD

 

 

REGD NAME 

 

Takayama Reed KK

 

 

MAIN OFFICE

 

2-27-20 Jinguji Kanazawa Ishikawa-Pref 920-0806 JAPAN

Tel: 076-252-2266      Fax: 076-252-3134

 

URL:                 http://www.takayamareed.co.jp

E-Mail address: info@takayamareed.co.jp

 

 

ACTIVITIES  

 

Mfg of reeds for weaving machines

 

 

BRANCHES   

 

Fukui

 

 

OVERSEAS

 

Korea, Thailand, Taiwan, China, Italy, Canada

 

 

FACTORIES  

 

Ishikawa

 

 

OFFICERS

 

TORU TAKAYAMA, PRES        

Osamu Ishiwata, mgn dir

Ken Takayama, dir        

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                                                     A/SALES          Yen 1,451 M

PAYMENTS      NO COMPLAINTS                      CAPITAL           Yen 49 M

TREND             UP                                            WORTH            Yen 239 M

STARTED         1960                                                     EMPLOYES      58

 

 

COMMENT

 

MFR OF REEDS FOR WEAVING MACHINES.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established originally in 1915 by Seizo Takayama, on his account, as a reed repair shop.  Incorporated in 1960, the firm has been succeeded by his descendants.  This is a specialized mfr of reeds for all kind of weaving machines, including heavy looms for forming & dryer fabrics (See OPERATION).  Has 6 overseas offices: Korea, Taiwan, Canada, Italy, China and Thailand.  Technical assistance agreement concluded with: LPL Company in Canada, and Zenfrini SRL in Italy.  Domestic clients include major textile weaving makers, other, nationwide.

 

 

FINANCIAL INFORMATION

           

Financials are only partially disclosed.

 

The sales volume for Mar/2014 fiscal term amounted to Yen 1,451 million, a 38% up from Yen 1,062 million in the previous term.  This is attributed to the revised orders from existing clients.  The net profit was posted at Yen 38 million, compared with Yen 3 million a year ago.

 

For the current tem ending Mar 2015 the net profit is projected at Yen 40 million, on a 3% rise in turnover, to Yen 1,500 million.  Business is seen expanding steadily. 

 

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

 

 

REGISTRATION

 

Date Registered:                                   Feb 1960

Regd No.:                                             2200-01-004100 (Ishikawa-Kanazawa)

Legal Status:                           Limited Company (Kabushiki Kaisha)

Authorized:                              396,000 shares

Issued:                                     99,000 shares

Sum:                                        Yen 49.5 million

Major shareholders (%):                       Toru Takayama (34), Osamu Ishiwata (15), Employees’ S/Holding Assn (11), Katsumi Kitamura (10)

No. of shareholders:                 13

 

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

 

OPERATION

           

Activities: Manufactures reeds for all kinds of weaving machines, including heavy looms for forming & dryer fabrics: tunnel reeds, duraflex reeds, jumbo reeds, separator combs, expansion combs, back reeds, expander straight combs, super expander 50, hook reeds, warping reeds, ultrasonic sub-nozzle, other; Maintenance Tools (on-loom reed cleaner, nozzle inspector, portable air checker, ultrasonic reed cleaning machines, ultrasonic sub-nozzle cleaner, others (--100%)

 

Clients: [Mfrs, wholesalers] Tsudakoma Corp, Nippon Filcon Co, YKK Corp, Marui Orimono Group firms, Toyota Industries Corp, Nonin Kinu (Silk), Toray Group firms, other 

No. of accounts: 300

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Nitto Hatsujo Co, Mitsubishi Plastics Inc, Sankyo Tateyama Inc, Citizen Watch, Aica Kogyo Co, other

 

Payment record: No Complaints

 

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

 

Bank References:

                        Hokuriku Bank (Higashi-Oodori)

                        MUFG (Kanazawa-Chuo)

                        Relations: Satisfactory

 


FINANCES (In Million Yen)

 

Terms Ending:

 

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

1,500

1,451

1,052

1,101

Recur. Profit

 

..

..

..

..

Net Profit

 

40

35

3

10

Total Assets

 

 

N/A

N/A

N/A

Net Worth

 

 

239

215

212

Capital, Paid-Up

 

 

49

49

49

Div.Ttl in Million (¥)

 

 

4.6

0.00

2.4

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

3.38

37.93

-4.45

2.32

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

 

..

..

..

    N.Profit/Sales

 

2.67

2.41

0.29

0.91

 

Notes: Financials are only partially disclosed.

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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.49

UK Pound

1

Rs.92.16

Euro

1

Rs.69.61

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

DPT

 

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.