MIRA INFORM REPORT

 

 

Report No. :

329676

Report Date :

29.06.2015

 

IDENTIFICATION DETAILS

 

Name :

TOHO INTERNATIONAL INC

 

 

Registered Office :

Orix Honmachi Bldg 2F, 1-4-1 Nishi-Honmachi Nishiku Osaka 550-0005

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2014

 

 

Date of Incorporation :

Jan., 1988

 

 

Com. Reg. No.:

1200-01-085415 (Osaka-Nishiku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Export of Wire & Spring; Import of Wire/Cable Making Equipment & Tools.

 

 

No. of Employees :

33

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 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.

 

Source : CIA

 

 

Company name and address

 

TOHO INTERNATIONAL INC

 

REGD NAME:               Toho International KK

     MAIN OFFICE:                     Orix Honmachi Bldg 2F, 1-4-1 Nishi-Honmachi Nishiku Osaka 550-0005 JAPAN

                                                Tel: 06-6243-4561     Fax: 06-6243-4565

 

URL:                             http//:www.toho-intl.co.jp

E-mail:                         export@toho-intl.co.jp; import@toho-intl.co.jp   

 

 

ACTIVITIES

 

Export of wire & spring; import of wire/cable making equipment & tools

 

 

BRANCHES

 

Tokyo, Utsunomiya (Tochigi)

 

 

OVERSEAS

 

Singapore

 

 

OFFICER(S)

 

HIROFUMI NAKAZAKI, PRES    Taeko Nakamura, dir

Yoshiro Kawamoto, dir              Rieko Nakazaki, dir

                       

Yen Amount:                              In million Yen, unless otherwise stated

 

 

SUMMARY

           

FINANCES        FAIR                             A/SALES                      Yen 2,094 M

PAYMENTSNO COMPLAINTS    CAPITAL                       Yen 30 M

TREND UP                                WORTH                        Yen 345 M

STARTED         1988                             EMPLOYES                  33

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN WIRE & SPRING AND TOOLS. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

 

HIGHLIGHTS

           

The subject company was established by Hirofumi Nakazaki in order to make most of his experience in the subject line of business. This is a trading firm for import and export of precision wire & spring, wire/spring making tools & equipment (See OPERATION). Exports to Singapore, Hong Kong, China, other S/E Asian countries, and imports from USA, Europe, other.  Has an office in Singapore.  Domestic clients include major electric Ind, other

 

 

FINANCIAL INFORMATION

 

The sales volume for Sept/2014 fiscal term amounted to Yen 2,094 million, a 15% up from Yen 1,805 million in the previous term.  The recurring profit was posted at Yen 63 million and the net profit at Yen 62 million, respectively, compared with Yen 61 million recurring profit and Yen 41 million net profit, respectively, a year ago.  .

 

For the current term ending Sept 2015 the recurring profit is projected at Yen 65 million and the net profit at Yen 65 million, respectively, on a 5% rise in turnover, to Yen 2,200 million.  Weaker Yen will raise export revenues in Yen terms.

 

Financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:                       Jan 1988

Regd No.:                     1200-01-085415 (Osaka-Nishiku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  2,400 shares

Issued:                         600 shares

Sum:                            Yen 30 million

      Major shareholders (%):      Hirofumi Nakazaki (67), Employees’ S/Holding Assn (10), Taeko Nakamura (5), other

No. of shareholders:     5

           

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

 

 


OPERATION

 

Activities: Exports precision various types of wire & spring, spring wire, strips for spring, other (--60%); imports wire/spring making tools/equipment, such as wire drawing dies, cold pressure welders, precision die tools, optical instruments for die & wire measurement, other (--40%).

 

Exports oil tempered alloy & stainless steel wire for important parts of a car, such as valve spring of an engine, suspensit9n springs in automobile.

 

Clients: [Mfrs, wholesalers] Sumitomo Electric Ind, Bridgestone Corp, Furukawa Electric Ind, Tokusen Corp, other.

Exports to Hong Kong, China, Singapore, India, other S/E Asian countries

            No. of accounts: 500

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Murata Machinery, Sumitomo Electric Ind, Nippon Seisen Co, Tokusen Corp, Hitachi Ltd Group firms, Fort Wayne Wire Die Inc, Nas Stainless Steel Strip Mfg, other.

Imports from USA, Europe, other.

 

Payment record: No complaints

 

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

 

Bank References

            Mizuho Bank (Semba)

            Kinki Osaka Bank (Joto)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

30/09/2015

30/09/2014

30/09/2013

30/09/2012

Annual Sales

 

2,200

2,094

1,805

1,857

Recur. Profit

 

65

63

61

93

Net Profit

 

65

62

41

56

Total Assets

 

 

1,619

1,303

1,191

Current Assets

 

 

1,323

1,027

955

Current Liabs

 

 

1,046

866

730

Net Worth

 

 

345

324

297

Capital, Paid-Up

 

 

30

30

30

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.06

16.01

-2.80

-6.02

    Current Ratio

 

..

126.48

118.59

130.82

    N.Worth Ratio

 

..

21.31

24.87

24.94

    R.Profit/Sales

 

2.95

3.01

3.38

5.01

    N.Profit/Sales

 

2.95

2.96

2.27

3.02

    Return On Equity

 

..

17.97

12.65

18.86

 

Notes: Forecast (or estimated) figures for the 30/09/2015 fiscal term. 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.60

UK Pound

1

Rs.100.09

Euro

1

Rs.71.23

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.