MIRA INFORM REPORT

 

 

Report No. :

305496

Report Date :

28.01.2015

 

IDENTIFICATION DETAILS

 

Name :

TOYO TANSO CO LTD

 

 

Registered Office :

5-7-12 Takeshima Nishi-Yodogawaku Osaka 555-0011

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013 (Consolidated)

 

 

Date of Incorporation :

July 1947

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufactures isotropic graphite: special graphite, carbon products for machinery, carbon products for electric appliances

 

 

No. of Employee :

1,961

 

 

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 Limit :

YEN 1,028.6 MILLION

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

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 TANSO CO LTD

 

REGD NAME:    Toyo Tanso KK

MAIN OFFICE:  5-7-12 Takeshima Nishi-Yodogawaku Osaka 555-0011 JAPAN

Tel: 06-6472-5811     Fax: 06-6472-6007

 

                        *.. The given name is its USA Office     -

 

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

E-Mail address: (thru the URL)

 

ACTIVITIES:     Mfg of isotropic graphite, carbon products

BRANCHES:     Tokyo, Sendai, Ibaraki, Nagoya, other (Tot12)

OVERSEAS:     USA, Europe (3), China, Taiwan, Korea, Thailand, India, Turkey

FACTORIES:     Kannonji (Kagawa-Pref), Iwaki

 

CHIEF EXEC:    AKIRA NOAMI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY:                   FINANCES        FAIR                                         A/SALES          Yen 20,542 M

                                    PAYMENTS      SLOW BUT CORRECT               CAPITAL           Yen 7,692 M

                                    TREND             UP                                            WORTH            Yen 58552 M

                                    STARTED         1947                                         EMPLOYES      1,961

 

COMMENT:       MFR OF ISOTROPIC GRAPHITE 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                        MAX CREDIT LIMIT: YEN 1,028.6 MILLION, 30 DAYS NORMAL TERMS

 

Unit: In Million Yen

Forecast figures for the 31/12/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is a forerunner in isotropic graphite used in main parts of advanced products for semiconductors, nuclear energy and aerospace.  Maintains highest 30% market share in the world.  Has strength in comprehensive production ranging from material procurement in processing and marketing.

 

 

FINANCIAL INFORMATION:

 

The sales volume for Dec/2013 fiscal term amounted to Yen 20,542 million, a 28% down from Yen 28,409 million in the previous term.  The recurring profit was posted at Yen 1,303 million and the net loss at Yen 111 million, respectively, compared with Yen 673 million recurring profit and Yen 210 million net loss, respectively, a year ago.

 

(Jan/Sept/2013 results); Sales Yen 25,276 million, operating profit Yen 975 million, recurring profit Yen 1,130 million, net profit Yen 1,329 million.

 

For the term that ended Dec 2014 the recurring profit was projected at Yen 1,400 million and the net profit at Yen 1,500 million, on sales amount of Yen 34,000 million.  Final results are yet to be released.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,028.6 million, on 30 days normal terms.

 

 

REGISTRATION

           

      Date Registered:　          Jul 1947

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:                   66 million shares

Issued:                20,750,688 shares

Sum:                   Yen 7,692 million

 

Major shareholders (%): Japan Trustee Services T (18.4), Junko Morita (16.4), Kondo Holdings (5.6), Kondo Ikueikai (4.0), Mitsubishi Corp (3.0), Takako Kondo (2.9), Bank of NY Non Treaty Jasdec (1.8), Juniper (1.7), Mizuho Bank (1.7), MUFG (1.7); foreign owners (16.6)

 

No. of shareholders: 7,474

 

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

 

Managements: Junko Morita, ch; Akira Noami, pres; Matao Nakahara, dir; Shoichiro Nakayama, dir; Takashi Konishi, dir; Kiyoshi Nojiro, dir

 

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

 

Related companies: Toyo Tanso USA, Totan Kako Co, Ohwada Carbon Ind, other.

 

OPERATION

           

Activities: Manufactures isotropic graphite: special graphite (48%), carbon products for machinery (8%), carbon products for electric appliances (16%), others (27%)

Overseas Sales Ratio (64%)

           

Clients: [Mfrs, wholesalers] Toyo Tanso USA, Shin-Etsu Semiconductor, other

Exports to China, USA, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Air Water, Ohwada Carbon Ind, JFE Shoji Trade, other

 

Payment record: Slow but correct

 

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

 

Bank References:

Mizuho Bank (Nishi-Noda)

Hyakujushi Bank (Kujo)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/12/2013

31/12/2012

INCOME STATEMENT

 

　

　

  Annual Sales

　

20,542

28,409

　

  Cost of Sales

15,648

21,345

　

      GROSS PROFIT

4,893

7,063

　

  Selling & Adm Costs

3,858

6,546

　

      OPERATING PROFIT

1,035

517

　

  Non-Operating P/L

268

156

　

      RECURRING PROFIT

1,303

673

　

      NET PROFIT

-111

-210

BALANCE SHEET

 

 

　

　

  Cash

　

8,497

7,209

　

  Receivables

 

13,447

11,256

　

  Inventory

 

18,480

18,546

　

  Securities, Marketable

　

　

　

  Other Current Assets

578

1,437

　

      TOTAL CURRENT ASSETS

41,002

38,448

　

  Property & Equipment

29,892

31,406

　

  Intangibles

 

1,051

1,055

　

  Investments, Other Fixed Assets

2,284

2,599

　

      TOTAL ASSETS

74,229

73,508

　

  Payables

 

2,393

1,538

　

  Short-Term Bank Loans

4,578

4,527

　

　

 

　

　

　

  Other Current Liabs

4,556

5,018

　

      TOTAL CURRENT LIABS

11,527

11,083

　

  Debentures

 

　

　

　

  Long-Term Bank Loans

3,133

3,910

　

  Reserve for Retirement Allw

178

674

　

  Other Debts

　

838

875

　

      TOTAL LIABILITIES

15,676

16,542

　

      MINORITY INTERESTS

 

　

　

Common stock

7,692

7,692

　

Additional paid-in capital

9,534

9,534

　

Retained earnings

36,924

37,450

　

Evaluation p/l on investments/securities

84

69

　

Others

 

4,376

2,278

　

Treasury stock, at cost

(58)

(58)

　

      TOTAL S/HOLDERS` EQUITY

58,552

56,965

　

      TOTAL EQUITIES

74,229

73,508

CONSOLIDATED CASH FLOWS

 

　

　

 

Terms ending:

31/12/2013

31/12/2012

　

Cash Flows from Operating Activities

　

3,496

1,751

　

Cash Flows from Investment Activities

-1,442

-8,381

　

Cash Flows from Financing Activities

-1,464

4,696

　

Cash, Bank Deposits at the Term End

　

6,871

5,823

ANALYTICAL RATIOS            Terms ending:

31/12/2013

31/12/2012

　

 

Net Worth (S/Holders' Equity)

58,552

56,965

　

 

Current Ratio (%)

355.70

346.91

　

 

Net Worth Ratio (%)

78.88

77.49

　

 

Recurring Profit Ratio (%)

6.34

2.37

　

 

Net Profit Ratio (%)

-0.54

-0.74

　

　

Return On Equity (%)

-0.19

-0.37

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.46

UK Pound

1

Rs.92.77

Euro

1

Rs.69.03

 

 

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%)

 

 

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.