MIRA INFORM REPORT

 

 

Report No. :

302384

Report Date :

27.01.2015

 

IDENTIFICATION DETAILS

 

Name :

TORAY INDUSTRIES INC

 

 

Registered Office :

Nihombashi Mitsui Tower, 2-1-1 Nihombashi-Muromachi Chuoku Tokyo 103-0022

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014 (Consolidated)

 

 

Date of Incorporation :

Jan., 1926

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Synthetic Fiber.

 

 

No. of Employees :

45,881

 

 

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

 

 

Maximum Credit Limits :

YEN 55,154.9 MILLION

 

 

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

 

TORAY INDUSTRIES INC

 

REGD NAME:               Toray KK

 

MAIN OFFICE:              Nihombashi Mitsui Tower, 2-1-1 Nihombashi-Muromachi Chuoku Tokyo

                      103-0022 JAPAN

                                                Tel: 033245-5111     Fax: 03-3245-5054

 

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

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

 

 

ACTIVITIES

 

Mfg of synthetic fiber

 

 

BRANCHES

 

Nagoya, Fukuoka, Fukui, Sendai, Sapporo, Hiroshima

 

 

OVERSEAS   

 

USA, China, Korea, Europe, Asia, other (--subsidiaries)

 

 

FACTORYIES

 

Shiga (2), Ehime, Nagoya, Aichi (2), Okazaki, Mishima, Chiba, Tsuchiura, Gifu, Ishikawa

 

 

CHIEF EXEC

 

AKIHIRO NIKKAKU, PRES

 

Yen Amount:    In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                                         A/SALES                      Yen 1,837,778 M

PAYMENTS      NO COMPLAINTS                      CAPITAL                       Yen 147,873 M

TREND             STEADY                       WORTH                        Yen 944,625 M

STARTED         1926                                         EMPLOYES                  45,881

 

 

COMMENT    

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 55,154.9 MILLION, 30 DAYS NORMAL TERMS.

 

 

                     Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is the largest mfr of synthetic fibers.  Addressive in overseas business.  Stressing advanced materials such as high-performance films for electronic parts and RO membrane for water treatment. World’s largest maker of PAN carbon fibers.  Also engaged in pharmaceuticals.  

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 1,837,778 million, a 15.4% up from Yen 1,592,279 million in the previous term.  Sales of carbon fibers for automobile airbags and aircraft boosted earnings.  The recurring profit was posted at Yen 110,648 million and the net profit at Yen 59,608 million, respectively, compared with Yen 88,244 million recurring profit and Yen 48,477 million net profit, respectively, a year ago. 

 

(Apr/Sept/2014 results): Sales Yen 947,979 million (up 11.0%), operating profit Yen 51,324 million (up 15.9%), recurring profit Yen 56,489 million (up 21.4%), net profit Yen 41,270 million (up 40.5%).  (% as compared with the same period the last year).

           

For the current term ending Mar 2015 the recurring profit is projected at Yen 133,000 million and the net profit at Yen 83,000 million, on a 14.3% rise in turnover, to Yen 2,100,000 million.  Textile and carbon fibers will continue to drive sales growth. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 55,154.9 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Jan 1926

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         4,000 million shares

Issued:                1,631,481,403 shares

Sum:                   Yen 147,873 million

           

Major shareholders (%): Master Trust Bank of Japan T (7.1), Nippon Life Ins (4.3), Japan Trustee Services T (4.3), Mitsui Life Ins (2.2), SMBC (1.8), Japan Trustee Services T4 (1.3), Mitsui Fudosan (1.1), State Street Bank West Treaty (1.1), Mitsui Sumitomo Ins (1.0), Chase London SL Omnibus Acct (1.0); foreign owners (25.3).

           

No. of shareholders: 162,326

 

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

 

Managements: Sadayuki Sakakibara, ch; Akihiro Nikkaku, pres; Eizo Tanaka, v pres; Nobuo Suzui, v pres; Koichi Abe, v pres; Moriyuki Onishi, a/mgn dir; Shin’ichi Okuda, s/mgn dir; Kazushi Hashimoto, s/mgn dir; Ryo Murayama, s/mgn dir; Yukichi Deguchi, s/mgn dir; Akira Uchida, mgn dir

           

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

 

Related companies: Toray Engineering, Chori Co, Soda Aromatic, other.

 

 

OPERATION

 

Activities: Manufactures synthetic fibers, others:

 

(Sales breakdown by divisions):

 

Fibers & Textiles (41%): filament yarns, spun yarns, woven & knitted fabrics of nylon, polyester & acrylics, non-woven fabrics, man-made suede, apparel products;

Plastics & Chemicals (26%): nylon, ABS, PBT, PPS, POM & other resins & molded products, polyolefin foam, polyester, polypropylene, PPS & other films & processed film products, raw materials for synthetic fibers & plastics, gypsum, zeolite catalysts, pharmaceutical & agrochemical intermediates & other fine chemicals, veterinary medicines;

Telecom Systems (13%): films & plastic products for information & telecommunications related areas, electronic circuit materials, semiconductor-related materials, LCD color filters & its related materials & equipment, PDP-related materials, magnetic recording materials, graphic materials & its related equipment;

Carbon Fiber Composite Materials (6%): carbon fiber, advanced composite materials & fabricated products;

Environment & Engineering (10%); comprehensive engineering, condominiums & homes, industrial machinery, environmental equipment, water treatment membranes & related equipment, materials for housing, building and civil engineering applications;

Life Science & Other Businesses (4%): pharmaceuticals, medical products, analysis, physical evaluation, research related services, other.

Overseas sales ratio (50%)

 

Clients: [Mfr, wholesalers] Toray Engineering, Matsushita Electric Ind, Mitsui & Co, Toray Medical, Chori co, Toray International, Japan Display, GSI Creos Corp, Tokai Rika Create Corp, other.

No. of accounts: 2,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Toray International, Japan Energy, Mitsui & Co, Chori Co, Toray Engineering, JX Nippon Oil & Nikko Energy, other.

 

Payment record: No Complaints

 

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

 

Bank References:

            SMBC (H/O)

            Mizuho Bank (Tokyo)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

　

　

  Annual Sales

　

1,837,778

1,592,279

　

  Cost of Sales

1,485,171

1,280,649

　

      GROSS PROFIT

352,607

311,630

　

  Selling & Adm Costs

247,354

228,194

　

      OPERATING PROFIT

105,253

83,436

　

  Non-Operating P/L

5,395

4,808

　

      RECURRING PROFIT

110,648

88,244

　

      NET PROFIT

59,608

48,477

BALANCE SHEET

　

　

  Cash

　

114,138

108,666

　

  Receivables

352,094

308,230

　

  Inventory

370,822

313,707

　

  Securities, Marketable

　

　

　

  Other Current Assets

83,311

66,129

　

      TOTAL CURRENT ASSETS

920,365

796,732

　

  Property & Equipment

781,235

627,245

　

  Intangibles

100,084

42,620

　

  Investments, Other Fixed Assets

317,999

265,336

　

      TOTAL ASSETS

2,119,683

1,731,933

　

  Payables

209,465

185,927

　

  Short-Term Bank Loans

131,444

98,633

　

　

　

　

　

  Other Current Liabs

255,673

265,718

　

      TOTAL CURRENT LIABS

596,582

550,278

　

  Debentures

40,000

20,000

　

  Long-Term Bank Loans

388,932

282,739

　

  Reserve for Retirement Allw

93,172

69,359

　

  Other Debts

　

56,372

30,931

　

      TOTAL LIABILITIES

1,175,058

953,307

　

      MINORITY INTERESTS

　

　

Common stock

147,873

147,873

　

Additional paid-in capital

136,735

136,748

　

Retained earnings

505,834

462,536

　

Evaluation p/l on investments/securities

49,546

35,388

　

Others

106,092

(2,749)

　

Treasury stock, at cost

(1,455)

(1,170)

　

      TOTAL S/HOLDERS` EQUITY

944,625

778,626

　

      TOTAL EQUITIES

2,119,683

1,731,933

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

161,455

100,815

　

Cash Flows from Investment Activities

-214,826

-107,523

　

Cash Flows from Financing Activities

41,475

26,167

　

Cash, Bank Deposits at the Term End

　

113,137

107,890

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

944,625

778,626

　

Current Ratio (%)

154.27

144.79

　

Net Worth Ratio (%)

44.56

44.96

　

Recurring Profit Ratio (%)

6.02

5.54

　

Net Profit Ratio (%)

3.24

3.04

　

　

Return On Equity (%)

6.31

6.23

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.50

UK Pound

1

Rs.92.16

Euro

1

Rs.69.62

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIT

 

               

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.