MIRA INFORM REPORT

 

 

Report No. :

324641

Report Date :

27.05.2015

 

IDENTIFICATION DETAILS

 

Name :

TOYOTA INDUSTRIES CORPORATION

 

 

Registered Office :

2-1 Toyodacho Kariya City Aichi-Pref 448-8671

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

November 1926

 

 

Com. Reg. No.:

1803-01-014273

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures: automobile (50%), industrial vehicles (40%), distribution (5%), textile machinery (4%), others (1%).

 

 

No. of Employees :

51,032

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

Yen 76,756.8 Million

Status :

Excellent

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

 

TOYOTA INDUSTRIES CORPORATION

 

 

REGD NAME

 

KK Toyota Jido Shokki

 

 

MAIN OFFICE

 

2-1 Toyodacho Kariya City Aichi-Pref 448-8671 JAPAN

Tel: 0566-22-2511     Fax: 0566-27-5650     -

 

URL:                 http://www.toyota.industries.com

E-Mail address: (thru the URL)

 

ACTIVITIES:     Mfg of automobiles, industrial vehicles, textile machinery

BRANCHES:     Tokyo, Fukui, Chiba

OVERSEAS:     North America, Latin America, Europe, China, other

FACTORIES:    Aichi (10); USA, India, France, China

 

CHIEF EXEC:   AKIRA ONISHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 2,166,661 M

PAYMENTS      REGULAR                     CAPITAL           Yen 80,462 M

TREND             UP                                WORTH            Yen 2,425,929 M

STARTED         1926                             EMPLOYES      51,032

 

COMMENT:      MFR OF AUTOMOBILES, TEXTILE MACHINERY, OTHER FINANCIAL SITUATION COSIDERED FAI AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 76,756.8 MILLION, 30 DAYS NORMAL TERMS

 

 

 

 

 

 

Unit: In Million Yen

Forecast figures for the 31/03/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is the originated many Toyota Motor group firms.  Set up originally to produce automatic looms invented by founder Sakichi Toyoda.  Has 4 mainlines: textile machinery, forklifts, automobile assembly including commercial vehicles, and compressors.  Has production bases worldwide.  Fostering electronic equipment. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 2,166,661 million, a 7.9% up from Yen 2,007,856 million in the previous term.  The recurring profit was posted at Yen 170,827 million and the net profit at Yen 115,263 million, respectively, compared with Yen 138,133 million recurring profit and Yen 91,705 million net profit, respectively, a year ago. 

           

For the current term ending Mar 2016 the recurring profit is projected at Yen 176,000 million and the net profit at Yen 119,000 million, on a 1.5% rise in turnover, to Yen 2,200,000 million.  Orders for compressors will rise further.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 76,756.8 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　    Nov 1926

Regd No.;                                 1803-01-014273 (Aichi-Kariya)

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                  1,100 million shares

Issued:             326,840,540

Sum:                            Yen 80,462 million

 

Major shareholders (%): Toyota Motor (23.5), Denso Corp (9.0), Towa Real Estate (4.8), Toyota Tsusho (4.6), Company’s Treasury Stock (3.6), Master Trust Bank of Japan T (2.9),  Nippon Life Ins (2.0), Aisin Seiki (2.0), Japan Trustee Services T (1.7), Employees’ S/Holding Assn (1.3); foreign owners (23.7)

 

No. of shareholders: 13,587

 

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

 

Managements: Tetsuro Toyoda, ch; Akira Onishi, pres; Chiaki Yamaguchi, v pres; Kazue Sasaki, v pres; Yoji Morishita, v pres; Shin’ya Furukawa, s/mgn dir; Msaharu Suzuki,s/mgn dir; Norio Sasaki, s/mgn dir;

 

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

 

Related companies: Aichi Corp, Toyota Industries Europe, other.

 

 

OPERATION

           

Activities: Manufactures: automobile (50%), industrial vehicles (40%), distribution (5%), textile machinery (4%), others (1%).

 

Overseas Sales Ratio (47%)

           

Clients: [Mfrs, wholesalers] Toyota Motor, Toyota Tsusho Corp, Denso Corp, Toyota L&F Chubu, Toyota L&F Tokyo, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Toyota Motor, Toyota Tsusho Corp, NOK, Denso Corp, Okaya & Co, Asahi Cokes Ind, Nitto Kogyo Corp, other

 

Payment record: Regular

 

Location: Business area in Kariya City, Aichi-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

SMBC (Nagoya)

MUFG (Nagoya)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

2,166,661

2,007,856

　

  Cost of Sales

1,765,861

1,651,573

　

      GROSS PROFIT

400,799

356,282

　

  Selling & Adm Costs

283,224

248,590

　

      OPERATING PROFIT

117,574

107,691

　

  Non-Operating P/L

53,453

30,442

　

      RECURRING PROFIT

170,827

138,133

　

      NET PROFIT

115,263

91,705

BALANCE SHEET

　

　

  Cash

　

247,273

226,383

　

  Receivables

265,504

246,676

　

  Inventory

194,836

170,241

　

  Securities, Marketable

34,085

46,012

　

  Other Current Assets

203,203

182,746

　

      TOTAL CURRENT ASSETS

944,901

872,058

　

  Property & Equipment

707,532

626,114

　

  Intangibles

192,702

190,882

　

  Investments, Other Fixed Assets

2,805,761

2,109,956

　

      TOTAL ASSETS

4,650,896

3,799,010

　

  Payables

205,816

196,904

　

  Short-Term Bank Loans

99,736

120,058

　

　

　

　

　

  Other Current Liabs

347,635

346,391

　

      TOTAL CURRENT LIABS

653,187

663,353

　

  Debentures

185,998

212,198

　

  Long-Term Bank Loans

421,154

323,400

　

  Reserve for Retirement Allw

86,766

63,854

　

  Other Debts

　

877,862

706,879

　

      TOTAL LIABILITIES

2,224,967

1,969,684

　

      MINORITY INTERESTS

　

　

Common stock

80,462

80,462

　

Additional paid-in capital

105,592

105,654

　

Retained earnings

644,165

563,957

　

Evaluation p/l on investments/securities

1,523,393

1,022,525

　

Others

113,826

99,740

　

Treasury stock, at cost

(41,509)

(43,012)

　

      TOTAL S/HOLDERS` EQUITY

2,425,929

1,829,326

　

      TOTAL EQUITIES

4,650,896

3,799,010

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

182,191

155,059

　

Cash Flows from Investment Activities

-160,769

-118,483

　

Cash Flows from Financing Activities

-8,918

6,183

　

Cash, Bank Deposits at the Term End

　

248,706

226,406

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

2,425,929

1,829,326

　

Current Ratio (%)

144.66

131.46

　

Net Worth Ratio (%)

52.16

48.15

　

Recurring Profit Ratio (%)

7.88

6.88

　

Net Profit Ratio (%)

5.32

4.57

　

　

Return On Equity (%)

4.75

5.01

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.85

UK Pound

1

Rs.98.38

Euro

1

Rs.69.64

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 

               

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.