MIRA INFORM REPORT

 

 

Report No. :

325416

Report Date :

02.06.2015

 

IDENTIFICATION DETAILS

 

Name :

TOYOTSU MATERIAL INC

 

 

Registered Office :

Cross Court Tower 12F, 4-4-10 Meieki Nakamuraku Nagoya 450-0002

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

May, 1999

 

 

Com. Reg. No.:

1800-01-048098 (Nagoya-Nakamuraku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, Export and Wholesale of Iron & Steel Raw Materials, Products, Recycled Metals.

 

 

No. of Employees :

111

 

 

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 :

Good 

 

 

Payment Behaviour :

Regular

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 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. The government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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

 

TOYOTSU MATERIAL INC

 

REGD NAME:               Toyotsu Material KK

 

MAIN OFFICE:              Cross Court Tower 12F, 4-4-10 Meieki Nakamuraku Nagoya 450-0002 JAPAN

Tel: 052-569-2227          Fax: 052-565-6070

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

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

 

 

ACTIVITIES

 

Import, export, wholesale of iron & steel raw materials, products, recycled metals

 

 

BRANCHES

 

Tokyo, Osaka, Fukuoka (3), Komaki, Sendai

 

 

OFFICERS

 

KIYOSHI YAMAKAWA, PRES    Kozo Yoda, mgn dir

Norio Kato, mgn dir                   Takuzo Shirai, dir

Hideki Kondo, dir                      Satoshi Yamanaka, dir                          

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES                      Yen 149,948 M

PAYMENTSREGULAR   CAPITAL                       Yen 100 M

TREND UP                    WORTH                        Yen 3,835 M

STARTED         1999                 EMPLOYES                  111

 

 

COMMENT

 

TRADING FIRM, OWNED BY TOYOTA TSUSHO CORP.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a nonferrous metal division separated from Toyota Tsusho Corp (See REGISTRATION).  This is a trading firm specializing in import, export and wholesale of iron & steel raw materials, products, non-ferrous products, recycled alloys & metals, other.  For imports and exports the parent’s worldwide offices/subsidiaries are fully utilized.  Opened the Tokyo Office in Apr 2013.  Domestic clients include major steel mills, wholesalers, other

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 149,948 million, a 131% huge up from Yen 64,993 million in the previous term.  This is largely attributed to rising demand for recycled metals & alloys, also metal unit prices were up.  The recurring profit was posted at Yen 2,773 million and the net profit at Yen 1,653 million, respectively, compared with Yen 1,248 million recurring profit and Yen 759 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 3,000 million and the net profit at Yen 1,750 million, respectively, on a 5% rise in turnover, to Yen 157,500 million.  Business is seen expanding steadily. 

 

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

 

 

REGISTRATION

 

Date Registered:           May 1999

Regd No.:                                 1800-01-048098 (Nagoya-Nakamuraku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  800 shares

Issued:                         200 shares

Sum:                            Yen 100 million

      Major shareholders (%): Toyota Tsusho Corp* (100)

 

*.. Sole trading house in the Toyota Group, Nagoya, founded 1948, listed Tokyo S/E,  Capital Yen 64,936 million,  sales Yen 7,743,237 million, operating profit Yen 161,321 million, recurring profit Yen 163,438 million, net profit Yen 73,034 million, total assets Yen 4,094,048 million, net worth Yen 967,332 million, employees 50,423, pres Jun Karube

 

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

 

 


OPERATION

           

Activities: Imports, exports and wholesales iron & steel raw materials (45%), their products & parts (9%), nonferrous metals recycled products (aluminum, copper, nickel, other), recycled EVs (electric vehicles) (18%), others (28%).

Osaka Office (20%), Tokyo Office (8%)

 

Clients: [Mfrs, wholesalers] Toyota Tsusho Corp, Toyota Motor group, Aichi Steel Corp, Kobe Steel, Almine Co, Alinco Inc, Metal Do Co, Mitsubishi Electric, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Toyota Tsusho Corp, other

 

Payment record: Regular

 

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

 

Bank References:

            SMBC (Nagoya)

            MUFG (Nagoya)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

157,500

149,948

64,993

51,531

Recur. Profit

 

3,000

2,773

1,248

1,043

Net Profit

 

1,750

1,653

759

408

Total Assets

 

 

26,769

12,963

10,967

Current Assets

 

 

26,304

12,608

10,715

Current Liabs

 

 

22,793

10,334

8,916

Net Worth

 

 

3,835

2,503

1,988

Capital, Paid-Up

 

 

100

100

100

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.04

130.71

26.12

-16.33

    Current Ratio

 

..

115.40

122.01

120.18

    N.Worth Ratio

 

..

14.33

19.31

18.13

    R.Profit/Sales

 

1.90

1.85

1.92

2.02

    N.Profit/Sales

 

1.11

1.10

1.17

0.79

    Return On Equity

 

..

43.10

30.32

20.52

 

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


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.61

UK Pound

1

Rs.97.27

Euro

1

Rs.69.63

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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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