MIRA INFORM REPORT
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Report No. : |
332834 |
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Report Date : |
17.07.2015 |
IDENTIFICATION DETAILS
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Name : |
TSUDAKOMA CORPORATION |
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Registered Office : |
5-18-18 Nomachi Kanazawa Ishikawa-Pref 921-8650 |
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Country : |
Japan |
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Financials (as on) : |
30.11.2014 |
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Date of Incorporation : |
December 1939 |
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Com. Reg. No.: |
004330 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufactures textile machinery (78%): air jet looms, water jet looms, conversion kits, rapier looms, doffing systems, filament sizing machines, preparatory machinery, part stock information, product data download, others; machine tools & attachments (22%) |
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No. of Employees : |
1,309 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 second-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.
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Source
: CIA |
Company
Name
TSUDAKOMA CORPORATION
REGD NAME: Tsudakoma
Kogyo KK
MAIN OFFICE: 5-18-18
Nomachi Kanazawa Ishikawa-Pref 921-8650 JAPAN
Tel: 076-242-1111
Fax: 076-242-4172
URL: http://www.tsudakoma.co.jp/
E-Mail address: info1@tsudakoma.co.jp
ACTIVITIES: Mfg
of textile machinery, machine tools
BRANCHES: Hamamatsu,
Fukuoka
OVERSEAS: USA, France, Germany, Italy, Spain,
Sweden, Indonesia, Thailand, Pakistan, India, Brazil, China & Korea
(--agent dealers)
FACTORIES: At the caption address (area 81,490
m2), Nonoichi (area 73,357 m2), Hakusan (area 61,619 m2) (--Ishikawa)
CHIEF EXEC: NOBUHIRO
TAKANO, PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 34,735 M
PAYMENTSSLOW BUT
CORRECT CAPITAL Yen 12,316 M
TREND UP WORTH Yen 14,687 M
STARTED 1939 EMPLOYES 1,309
COMMENT: MFR SPECIALIZING IN TEXTILE
MACHINERY. FINANCIAL SITUATION
CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
Notes:
Unit: In Million Yen
Forecast
(or estimated) figures for 30/11/2015 fiscal term
HIGHLIGHTS
The subject company was established originally in 1909 by Komajiro Tsuda for mfg silk & artificial silk loom, on his account. Incorporated in 1939 as Tsudakoma Ind Co and the firm has been succeeded by his descendants. Renamed as captioned in 1982. This is the largest comprehensive mfr of textile machines. Now world’s largest maker of water/air jet looms. Branching out into machine tools including rotary tables for MC’s. Highly reliant on exports including those to China.
FINANCIAL
INFORMATION
The sales volume for Nov/2014 fiscal term amounted to Yen 34,735 million, a 15.6% down from Yen 41,117 million in the previous term. The operations continued in the red to post Yen 1,181 million recurring loss and Yen 1,263 million net losses, respectively, compared with Yen 606 million recurring loss and Yen 898 million net losses, respectively, a year ago
(Dec/2014/May/2015 results); Sales Yen 17,305 million (down 8.7%), operating loss Yen 301 million (previously Yen 544 million loss), recurring loss Yen 311 million (previously Yen 576 million loss), net loss Yen 291 million (previously Yen 566 million loss). (% & figures as compared with the corresponding period a year ago)
For the current term ending Nov 2015 the operations are projected to
come back to profitability to post Yen 250 million recurring profit and Yen 200
million net profit, respectively, on a 9.4% rise in turnover, to Yen 38,000
million. Orders for textile machinery
will rebound in India and Indonesia.
The financial situation is considered maintained FAIR and should be good
for ORDINARY business engagements.
REGISTRATION
Date Registered:
Dec 1939
Regd No.:
(Ishikawa-Kanazawa)
004330
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 199,003,000
shares
Issued: 68,075,552
shares
Sum: Yen
12,316 million
Major
shareholders (%): Customers’ S/Holding Assn (13.2), Company’s Treasury Stock (6.1), Meiji Yasuda
Life Ins (5.1), Hokuriku Bank (3.7), Hokkoku Bank (3.4), Mitsui Sumitomo Ins
(2.6), Tokio Marine & Nichido Fire Ins (2.6), Employees’ S/Holding Assn
(2.2), Nomura Trust Inv T (1.9), Master Trust Bank of Japan T (1.6); foreign
owners (3.6)
No. of shareholders: 6,102
Listed on the S/Exchange (s) of: Tokyo
Managements: Shoji Hishinuma,
ch; Nobuhiro Takano, pres; Tatsuo Takehana, s/mgn dir; Jun’ichi Nishino, mgn
dir; Susumu Nakamura, dir; Mitsuru Suwa, dir; Nobuhiro Kano, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related
companies: Kyowa Electronics & Machinery Ind, Tsudakoma Transportation,
Tsudakoma General Service, Tsudakoma (Shanghai) Co, other
OPERATION
Activities: Manufactures textile machinery (78%): air jet looms, water jet looms, conversion kits, rapier looms, doffing systems, filament sizing machines, preparatory machinery, part stock information, product data download, others; machine tools & attachments (22%):
Overseas
sales ratio (72%)
Clients:
[Mfrs,
wholesalers] Marubeni Techmatex, Sojitz Corp, Koma Precision, Itochu Systech
Corp, NTC Toyama, Diamond Textile Mills, T-Tech Japan, other.
Exports to: China, India, Pakistan, Thailand,
Indonesia, Korea, Brazil, France, Germany, Italy, Spain, Sweden, USA,
other. Exports into Europe through
Tekmatex Europe SA, and into USA through Tekmatex Inc.
No. of accounts:
3,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers]
Kyowa Electronics & Machinery Ind, Kanazawa Kiko, Hokuryo Denko, Hikida
Sangyo, Higashiyama Ind, Staubli, Fanuc Corp, other.
Payment record: Slow but correct
Location: Light industrial
area in Kanazawa City. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References:
Hokuriku Bank
(Kanazawa)
Hokkoku Bank (H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated in million yen) |
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Terms Ending: |
30/11/2014 |
30/11/2013 |
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INCOME STATEMENT |
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Annual Sales |
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34,735 |
41,177 |
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Cost of Sales |
31,418 |
37,155 |
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GROSS PROFIT |
3,317 |
4,022 |
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Selling & Adm Costs |
4,524 |
4,534 |
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OPERATING PROFIT |
-1,207 |
-512 |
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Non-Operating P/L |
46 |
-94 |
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RECURRING PROFIT |
-1,161 |
-606 |
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NET PROFIT |
-1,263 |
-698 |
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BALANCE SHEET |
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Cash |
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8,024 |
7,816 |
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Receivables |
9,751 |
16,024 |
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Inventory |
5,142 |
4,948 |
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Securities, Marketable |
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Other Current Assets |
381 |
398 |
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TOTAL CURRENT ASSETS |
23,298 |
29,186 |
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Property & Equipment |
10,067 |
10,381 |
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Intangibles |
53 |
54 |
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Investments, Other Fixed Assets |
3,139 |
2,814 |
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TOTAL ASSETS |
36,557 |
42,435 |
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Payables |
3,234 |
4,653 |
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Short-Term Bank Loans |
6,327 |
6,452 |
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Other Current Liabs |
6,205 |
9,030 |
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TOTAL CURRENT LIABS |
15,766 |
20,135 |
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Debentures |
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Long-Term Bank Loans |
1,362 |
1,828 |
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Reserve for Retirement Allw |
4,533 |
4,335 |
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Other Debts |
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209 |
131 |
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TOTAL LIABILITIES |
21,870 |
26,429 |
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MINORITY INTERESTS |
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Common
stock |
12,316 |
12,316 |
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Additional
paid-in capital |
38,880 |
38,880 |
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Retained
earnings |
(1,673) |
(299) |
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Evaluation
p/l on investments/securities |
274 |
125 |
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Others |
(33,873) |
(33,779) |
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Treasury
stock, at cost |
(1,237) |
(1,237) |
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TOTAL S/HOLDERS` EQUITY |
14,687 |
16,006 |
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TOTAL EQUITIES |
36,557 |
42,435 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
30/11/2014 |
30/11/2013 |
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Cash
Flows from Operating Activities |
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1,448 |
-2,834 |
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Cash
Flows from Investment Activities |
-653 |
-1,529 |
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Cash
Flows from Financing Activities |
-593 |
1,610 |
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Cash,
Bank Deposits at the Term End |
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7,884 |
7,686 |
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ANALYTICAL RATIOS Terms ending: |
30/11/2014 |
30/11/2013 |
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Net
Worth (S/Holders' Equity) |
14,687 |
16,006 |
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Current
Ratio (%) |
147.77 |
144.95 |
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Net
Worth Ratio (%) |
40.18 |
37.72 |
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Recurring
Profit Ratio (%) |
-3.34 |
-1.47 |
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Net
Profit Ratio (%) |
-3.64 |
-1.70 |
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Return
On Equity (%) |
-8.60 |
-4.36 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.50 |
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1 |
Rs.99.17 |
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Euro |
1 |
Rs.69.39 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.