MIRA INFORM REPORT

 

 

Report No. :

344196

Report Date :

06.10.2015

 

IDENTIFICATION DETAILS

 

Name :

TAKASHIMA & CO LTD

 

 

Registered Office :

Ochanomizu Kyoun Bldg 13F, 2-2 Kanda-Surugadai Chiyodaku Tokyo 101-8118

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

Dec., 1931

 

 

Com. Reg. No.:

0100-01-034860 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, Export and Wholesale of Building & Industrial Materials.

 

 

No. of Employees :

465

 

 

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 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

 

TAKASHIMA & CO LTD

 

REGD NAME:               Takashima KK

MAIN OFFICE:              Ochanomizu Kyoun Bldg 13F, 2-2 Kanda-Surugadai Chiyodaku Tokyo 101-8118

                                                JAPAN

                                                Tel: 03-5217-7600     Fax: 03-5217-7601

 

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

E-Mail address:                        tyokoma@tak.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of building & industrial materials

 

 

BRANCHES

 

Osaka, Nagoya, Sapporo, Sendai, Hiroshima, Fukuoka, other (Tot 10)

 

 

OVERSEAS

 

USA, Hong Kong, Thailand, Shanghai, Singapore

 

 

CHIEF EXEC

 

KOICHI TAKASHIMA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 　         A/SALES                      Yen 91,738 M

PAYMENTSNO COMPLAINTS    CAPITAL                       Yen 3,801 M

TREND SLOW               　         WORTH                        Yen 13,062 M

STARTED         1931                 　         EMPLOYES                  465

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN BUILDING & INDUSTRIAL MATERIALS. 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

         Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2016 fiscal term

 

 

HIGHLIGHTS

 

The subject company was established by Katakichi Takashima in order to make most of his experience and has been succeeded by his descendants.  Koichi Takashima took the pres office in Jun 2003.  The firm was originally a textile trader and has transformed itself to that of building & industrial materials, including autoclaved lightweight concrete (ALC) and insulating materials. Handles textile materials for industrial use, too. Placing more emphasis on photovoltaic power generation systems for housing. Operates subsidiaries based in Hong Kong and Thailand to engage in trilateral trading of electronic devices.  

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 91,738 million, a 3.3% down from Yen 94,854 million in the previous term.  The recurring profit was posted at 1,974 million and the net profit at Yen 1,368 million, respectively, compared with Yen 2,056 million recurring profit and Yen 1,177 million net profit, respectively, a year ago

 

(Apr/Jun/2015 results): Sales Yen 22,192 million (up 3.5%), operating profit Yen 467 million (up 10.8%), recurring profit Yen 559 million (up 14.8%), net profit Yen 363 million (up 13.0%).  (% as compared with the corresponding period a year ago).

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 2,100 million and the net profit at Yen 1,450 million, respectively, on a 9.0% rise in turnover, to Yen 100,000 million.  Sales of products for private sector capital spending, including for plants and warehouses, will continue in good shape. Sales of industrial materials will also grow.  Income from hotel leasing will contribute to earnings. 

 

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

 

 

REGISTRATION

           

      Date Registered:　   Dec 1931

       Regd No.:                  0100-01-034860 (Tokyo-Chiyodaku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         140 million shares

Issued:                45,645,733 shares

Sum:                   Yen 3,801 million

 

Major shareholders (%): Customers’ S/Holding Assn (8.5), TCSB (Mizuho Bank) (4.6), Tokio Marine &  Nichido Fire Ins (4.5), SMBC (3.9), JTSB (CMTB Equity Investment (3.8), Kuraray Co (2.2), Japan Securities Finance (1.8), Asahi Kasei Construction Materials Co (1.7), Matsui Securities (1.7), Master Trust Bank of Japan T (1.6); foreign owners (6.9)

           

No. of shareholders: 3,713

 

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

 

Managements: Koichi Takashima, pres; Yasutaka Takagaki, mgn dir; Yasuhiro Ohata, mgn dir; Toshio Gotoh, dir; Michio Yuge, dir

 

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

 

Related companies: Hi-Land Techno Corp, iTak Co, other

 

 

OPERATION

           

Activities: Trading firm specializing in import, export and wholesale of: construction materials (69%), industrial materials (31%).         

 

Clients: [Mfrs, wholesalers] Niwako Co, Token Engineering, Amano Corp, Japan Kenzai Co, Sanwa Co, Yamazaki Hifuku Kogyo, Highland Techno, TAK Green Service, other

No. of Clients: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Asahi Kasei, Dow Chemical, Kuraray Trading, Kuraray                               Plastics, Sharp Amenity Systems, Panasonic ES Solar Energy Sales, other.

 

Payment record: No Complaints

 

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

 

Bank References:

            Mizuho Bank (Kyobashi)

            SMBC (Ginza)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

91,738

94,854

　

  Cost of Sales

83,544

86,442

　

      GROSS PROFIT

8,194

8,411

　

  Selling & Adm Costs

6,438

6,571

　

      OPERATING PROFIT

1,756

1,839

　

  Non-Operating P/L

218

217

　

      RECURRING PROFIT

1,974

2,056

　

      NET PROFIT

1,368

1,177

BALANCE SHEET

　

　

  Cash

　

3,956

3,775

　

  Receivables

24,781

27,848

　

  Inventory

3,047

3,029

　

  Securities, Marketable

　

　

　

  Other Current Assets

627

653

　

      TOTAL CURRENT ASSETS

32,411

35,305

　

  Property & Equipment

3,992

3,275

　

  Intangibles

164

122

　

  Investments, Other Fixed Assets

6,010

5,222

　

      TOTAL ASSETS

42,577

43,924

　

  Payables

20,967

23,563

　

  Short-Term Bank Loans

893

3,553

　

　

　

　

　

  Other Current Liabs

3,135

2,579

　

      TOTAL CURRENT LIABS

24,995

29,695

　

  Debentures

　

50

　

  Long-Term Bank Loans

1,912

855

　

  Reserve for Retirement Allw

　

169

　

  Other Debts

　

2,607

2,176

　

      TOTAL LIABILITIES

29,514

32,945

　

      MINORITY INTERESTS

　

　

Common stock

3,801

3,801

　

Additional paid-in capital

1,825

1,825

　

Retained earnings

5,099

3,956

　

Evaluation p/l on investments/securities

1,354

627

　

Others

1,072

853

　

Treasury stock, at cost

(89)

(84)

　

      TOTAL S/HOLDERS` EQUITY

13,062

10,978

　

      TOTAL EQUITIES

42,577

43,924

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

3,084

-1,420

　

Cash Flows from Investment Activities

-1,319

-251

　

Cash Flows from Financing Activities

-1,630

1,759

　

Cash, Bank Deposits at the Term End

　

3,956

3,775

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

13,062

10,978

　

Current Ratio (%)

129.67

118.89

　

Net Worth Ratio (%)

30.68

24.99

　

Recurring Profit Ratio (%)

2.15

2.17

　

Net Profit Ratio (%)

1.49

1.24

　

　

Return On Equity (%)

10.47

10.72

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.29

UK Pound

1

Rs.99.31

Euro

1

Rs.73.39

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.