MIRA INFORM REPORT

 

 

Report No. :

348324

Report Date :

02.11.2015

 

IDENTIFICATION DETAILS

 

Name :

TAKIHYO CO LTD

 

 

Registered Office :

Nagoya Lucent Tower 22/23/24F, 6-1 Ushijimacho Nishiku Nagoya 451-8688

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2015

 

 

Date of Incorporation :

Nov., 1912

 

 

Com. Reg. No.:

(Nagoya-Nishiku) 017083

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

General textile trader for import, export and wholesale of textile products: textile, apparel, health & life style products (93%), resins, resin films furniture, others (--6%).

 

 

No. of Employees :

917

 

 

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 – 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 first-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

 

TAKIHYO CO LTD

 

REGD NAME:               Takihyo KK

 

MAIN OFFICE:              Nagoya Lucent Tower 22/23/24F, 6-1 Ushijimacho Nishiku Nagoya 451-8688 JAPAN

                                                Tel: 052-202-5511     Fax: 052-202-5599

 

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

E-Mail address:                        webmaster@takihyo.co.jp

 

 

ACTIVITIES

 

General textile trader

 

 

BRANCHES

 

Tokyo, Osaka, Fukuoka

 

 

OVERSEAS

 

Hong Kong, China, Korea (--subsidiaries)

 

 

CHIEF EXEC

 

KAZUO TAKI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 　A/SALES       Yen 77,656 M

PAYMENTSREGULAR   　CAPITAL        Yen 3,622 M

TREND SLOW               　WORTH         Yen 35,660 M

STARTED         1912                 　EMPLOYES   917

 

 

COMMENT    

 

GENERAL TEXTILE TRADER 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Unit: In Million Yen

Forecast figures for the 29/02/2016 fiscal term

 

 

HIGHLIGHTS

 

This is an old-established general textile trader dating back to 1751 (mid-Edo Era) when Hyoemon Taki I started a textile wholesale store, on his account. This is a general textile trader handling textiles, ladies’ wear, baby & kids wear, other. The ladies’ wear, including own brand Anne Klein, account for about 40% of total sales. Also strong in children’s clothing. Shifted operation divisions to products divisions from sales channel divisions. 

 

FINANCIAL INFORMATION

 

The sales volume for Feb/2015 fiscal term amounted to Yen 77,656 million, a 2.2% down from Yen 79,370 million in the previous term.  The recurring profit was posted at Yen 2,402 million and the net profit at Yen 1,060 million, respectively, compared with Yen 2,010 million recurring profit and Yen 1,152 million net profit, respectively, a year ago. 

 

(Mar/Aug 2015 results): Sales Yen 38,945 million (up 8.1%), operating profit Yen 1,032 million (up 78.4%), recurring profit Yen 1,162 million (up 74.4%), net profit Yen 811 million (up 82.4%).  (% as compared with the corresponding period a year ago).

           

For the current term ending Feb 2016 the recurring profit is projected at Yen 2,850 million and the net profit at Yen 1,700 million, on a 2.4% rise in turnover, to Yen 79,500 million.  Sales for high profit margin apparel mfrs and specialty stores will expand.

 

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

 

 

REGISTRATION

 

Date Registered:　          Nov 1912

Regd No.:                                 (Nagoya-Nishiku) 017083

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              120 million shares

Issued:                        48 million shares

Sum:                            3,622 million

 

Major shareholders (%): Kyokuyo Holdings (25.0), Kyokuyo Kosan (4.3), Company’s Treasury Stock (2.9), MUFG (2.6), Dai-ichi Life Ins (2.5), Customers’ S/Holding Assn (2.0), Nippon Life Ins (1.7), Shigeo Taki (1.6), Sumitomo Mitsui Trust Bank (1.2), Chukyo Bank (1.1): foreign owners (2.0)

 

No. of shareholders: 4,285

 

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

 

Managements: Shigeo Taki, ch; Kazuo Taki, pres; Satoshi Okamoto, s/mgn dir; Atsushi Muto, s/mgn dir; Isamu Kita, mgn dir; Sachio Taki, dir; Masahiko Ikeda, dir; Akira Maekawa, dir

 

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

 

Related companies: TFC, Takihyo Kemica, Takihyo Operation Plaza, other

 

 

OPERATION

           

Activities: General textile trader for import, export and wholesale of textile products: textile, apparel, health & life style products (93%), resins, resin films furniture, others (--6%).

 

(Handling Items):

Textile: wool, cotton, synthetics, knitted fabrics;

Apparel: ladies’ wear, babies’ & kids’ wear, men’s wear, night wear, home wear, clothing accessories, interior goods, accessories & general merchandise

           

Clients: [Supermarkets, chain stores] Ito-Yokado, Aeon Retail Inc, Shimamura Co, Jusco, Onward Kashiyama, Tokyo Style, Daiei Inc, Uny Corp, Itokin Co, other.

No. of accounts: 800

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsui & Co, Tokyo Textile, Toyoshima & Co, Dalian Dasen                       Garments, H&S Textiles, other.

Imports from USA, Europe, China & other S/E Asian countries.

 

Payment record: Regular

 

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

 

Bank References:

            MUFG (Nagoya)

            SMBC (Nagoya)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

Terms Ending:

28/02/2015

28/02/2014

INCOME STATEMENT

  Annual Sales

　

77,656

79,370

  Cost of Sales

61,752

63,355

      GROSS PROFIT

15,904

16,015

  Selling & Adm Costs

13,657

14,093

      OPERATING PROFIT

2,247

1,921

  Non-Operating P/L

155

89

      RECURRING PROFIT

2,402

2,010

　

      NET PROFIT

1,060

1,152

BALANCE SHEET

  Cash

　

3,167

2,917

  Receivables

18,131

17,334

  Inventory

5,000

4,150

  Securities, Marketable

　

　

  Other Current Assets

5,563

2,044

      TOTAL CURRENT ASSETS

31,861

26,445

  Property & Equipment

22,779

20,788

  Intangibles

97

441

  Investments, Other Fixed Assets

6,304

5,519

      TOTAL ASSETS

61,041

53,193

  Payables

11,356

9,974

  Short-Term Bank Loans

1,740

1,780

　

　

　

  Other Current Liabs

8,139

3,963

      TOTAL CURRENT LIABS

21,235

15,717

  Debentures

　

　

  Long-Term Bank Loans

1,800

3,825

  Reserve for Retirement Allw

450

176

  Other Debts

　

1,896

1,731

      TOTAL LIABILITIES

25,381

21,449

      MINORITY INTERESTS

  Capital, Paid-Up

3,622

3,622

  Surplus

32,038

28,122

      SHAREHOLDERS' EQUITY

35,660

31,744

　

      TOTAL EQUITIES

61,041

53,193

CONSOLIDATED CASH FLOWS

Terms ending:

28/02/2015

28/02/2014

Cash Flows from Operating Activities

　

3,507

-837

Cash Flows from Investment Activities

-1,986

446

Cash Flows from Financing Activities

-1,324

123

　

Cash, Bank Deposits at the Term End

　

3,035

2,800

ANALYTICAL RATIOS            Terms ending:

28/02/2015

28/02/2014

Net Worth (S/Holders' Equity)

35,660

31,744

Current Ratio (%)

150.04

168.26

Net Worth Ratio (%)

58.42

59.68

Recurring Profit Ratio (%)

3.09

2.53

Net Profit Ratio (%)

1.36

1.45

Return On Equity (%)

2.97

3.63

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.22

UK Pound

1

Rs.99.93

Euro

1

Rs.71.67

 

INFORMATION DETAILS

 

Analysis Done by :

HEE

 

 

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%)

 

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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.