MIRA INFORM REPORT

 

 

Report No. :

347342

Report Date :

28.10.2015

 

IDENTIFICATION DETAILS

 

Name :

TAKISAWA MACHINE TOOL CO LTD

 

 

Registered Office :

983 Natsukawa Okayama 701-0164

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

October 1944

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures machine tools: CNC lathes (74.8%), ordinary lathes (15.3%), mailing center (6.1%), others (3.8%).

 

 

No. of Employees :

667

 

 

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

 

TAKISAWA MACHINE TOOL CO LTD

 

REGD NAME:    Takisawa Tekkosho KK

MAIN OFFICE:  983 Natsukawa Okayama 701-0164 JAPAN

Tel: 086-293-1500     Fax: 086-293-5799

 

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

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

 

ACTIVITIES:     Mfg of machine tools

BRANCHES:     Saitama, Osaka, Nagoya, Okayama, Fukuoka, other (Tot 15)

OVERSEAS:     Taiwan, China, USA, UK, Thailand, India, Indonesia (--subsidiaries)

FACTORIES:     At the caption address. Kurashiki (2) (Tot 3)

 

CHIEF EXEC:    KAZUHIRO HARADA, PRES

 

Yen Amount:    In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 26,759 M

PAYMENTS      REGULAR                     CAPITAL           Yen 2,319 M

TREND STEADY                       WORTH            Yen 17,176 M

STARTED         1944                             EMPLOYES      667

 

COMMENT:       MFR OF MACHINE TOOLS.  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 is a time-honored, medium-sized mfr of comprehensive machine        tools, producing NC lathes, ordinary lathes and MCs.  Has overseas sales & production bases in          Taiwan & China (Shanghai).  Overseas subsidiaries are also in USA, UK, Thailand and India.      Automakers are main users.  In 2003, acquired by investment fund Phoenix Capital.  Construction of new plant under way, scheduled to finish Mar 2009 term.  Planning to boost production capacity for NC-multifunctional equipment by 30% to meet stronger demand in India and other overseas markets.  About 40% of the products are exported.  Taiwan Takisawa Technology Co Ltd went public on the Taiwanese OTC market.  Enthusiastic about expansion in the US targeting the energy industry.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 26,759 million, a 16.9% up from Yen 22,889 million in the previous term.  In the mainline NC lathes business, new orders from automakers fared well in China, etc.  The recurring profit was posted at Yen 2,480 million and the net profit at Yen 1,133 million, respectively, compared with Yen 1,632 million recurring profit and Yen 784 million net profit, respectively, a year ago. 

 

(Apr/Jun/2015 results): Sales Yen 5,817 million (up 8.6%), operating profit Yen 306 million (up 4.7%), recurring profit Yen 220 (down 43.4%), net profit Yen 97 million (down 41.4%).  (% as compared with the corresponding period a year ago).

           

For the current term ending Mar 2016 the recurring profit is projected at Yen 3,000 million and the net profit at Yen 1,700 million, on a 4.6% rise in turnover, to Yen 28,000 million.  Sales will remain brisk in the domestic & overseas market, led by those to automakers. 

 

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

 

 

REGISTRATION

 

Date Registered:                      Oct 1944

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                              150 shares

Issued:                          65,781,228 shares

Sum:                            Yen 2,319 million

           

Major shareholders (%): Fanuc Ltd (4.5), Chugoku Bank (4.4), Customers’ S/Holding Assn (4.3), Master Trust Bank of Japan T (2.3), Japan Trust Services T (2.2), Sumitomo Mitsui Trust Bank (1.2), Japan Trustee Services T6 (1.1), Chugin Lease (1.0), Company’s Stock Investment (1.0), Japan Trustee Services T5 (1.0); foreign owners (5.4)

           

No. of shareholders: 6,347

 

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

 

Managements: Kazuhiro Harada, pres; Yasumasa Kondo, s/mgn dir; Takumi Taguchi, mgn dir; Junji Matsubara, mgn dir; Kazuhiro Kajitani, dir; Noriaki Hayashida, dir; Hideaki Wada, dir; Yan Ching Tai, dir

           

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

 

Related companies: Takisawa Techno Service Inc, KK Cascade, other

 

Overseas subsidiaries: Taiwan Takisawa Technology Co Ltd, Shanghai Takisawa Miyano Machinery Co, Ltd, Takisawa Inc (USA), Takisawa UK Ltd, Takisawa (Thailand) Co Ltd, SAP Takisawa Machine Tools Private Ltd (India), other

 

 

OPERATION

           

Activities: Manufactures machine tools: CNC lathes (74.8%), ordinary lathes (15.3%), mailing center (6.1%), others (3.8%).

 

Sales ratio: Japan (57%), Asia (35%), North America (8%)

 

Export Ratio (65%)

 

(Mfg items): Multi-purpose machines (turning/milling combined machines, machining/turning combined machines), compound CNC lathes, CNC oval turning center, parallel twin-spindle CNC lathes, vertical CNC lathes, traveling column vertical machining center, CNC/manual lathers, other.

 

Clients: [Mfrs, wholesalers] Yamazen Corp (10.1%), Ishii Hyoki Co, Yuasa Trading, Hamamatsu Corp, Tazmo Co, G-Net, Nachi-Tokiwa Corp, Kanto Bussan Co, Okabe Kikai,      other.

 

No. of accounts: 500

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Fanuc Ltd, Takisawa Tekko Techno Service, Danto Kogyo, Nishibe Shoten, other.

 

Payment record: Regular

 

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

 

Bank References:

Chugoku Bank (H/O)

Mizuho Trust Bank (Okayama)

Relations: Satisfactory

 

 

FINANCES

 

 

FINANCES: (Consolidated in million yen)

　

 

　

　

Terms Ending:

31/03/2015

31/03/2014

 

INCOME STATEMENT

 

　

 

　

  Annual Sales

　

26,759

22,889

 

　

  Cost of Sales

19,295

16,640

 

　

      GROSS PROFIT

7,464

6,248

 

　

  Selling & Adm Costs

5,278

4,681

 

　

      OPERATING PROFIT

2,185

1,567

 

　

  Non-Operating P/L

295

65

 

　

      RECURRING PROFIT

2,480

1,632

 

　

      NET PROFIT

1,133

784

 

BALANCE SHEET

 

 

　

 

　

  Cash

　

6,163

4,906

 

　

  Receivables

 

8,272

8,007

 

　

  Inventory

 

7,965

4,206

 

　

  Securities, Marketable

500

500

 

　

  Other Current Assets

1,126

4,299

 

　

      TOTAL CURRENT ASSETS

24,026

21,918

 

　

  Property & Equipment

7,233

6,477

 

　

  Intangibles

 

24

29

 

　

  Investments, Other Fixed Assets

634

510

 

　

      TOTAL ASSETS

31,917

28,934

 

　

  Payables

 

6,436

6,025

 

　

  Short-Term Bank Loans

819

1,075

 

　

　

 

　

　

 

　

  Other Current Liabs

3,965

3,115

 

　

      TOTAL CURRENT LIABS

11,220

10,215

 

　

  Debentures

 

　

　

 

　

  Long-Term Bank Loans

2,367

2,327

 

　

  Reserve for Retirement Allw

782

724

 

　

  Other Debts

　

372

354

 

　

      TOTAL LIABILITIES

14,741

13,620

 

　

      MINORITY INTERESTS

 

　

 

　

Common stock

2,319

2,319

 

　

Additional paid-in capital

1,568

1,568

 

　

Retained earnings

9,375

8,512

 

　

Evaluation p/l on investments/securities

104

55

 

　

Others

 

3,841

2,889

 

　

Treasury stock, at cost

(31)

(30)

 

　

      TOTAL S/HOLDERS` EQUITY

17,176

15,313

 

　

      TOTAL EQUITIES

31,917

28,934

 

CONSOLIDATED CASH FLOWS

 

　

 

　

 

Terms ending:

31/03/2015

31/03/2014

 

　

Cash Flows from Operating Activities

　

2,556

787

 

　

Cash Flows from Investment Activities

-978

-414

 

　

Cash Flows from Financing Activities

-536

-355

 

　

Cash, Bank Deposits at the Term End

　

6,163

4,906

 

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

 

　

 

Net Worth (S/Holders' Equity)

17,176

15,313

 

　

 

Current Ratio (%)

214.14

214.57

 

　

 

Net Worth Ratio (%)

53.81

52.92

 

　

 

Recurring Profit Ratio (%)

9.27

7.13

 

　

 

Net Profit Ratio (%)

4.23

3.43

 

　

　

Return On Equity (%)

6.60

5.12

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.95

UK Pound

1

Rs.99.73

Euro

1

Rs.71.84

 

 

INFORMATION DETAILS

 

Analysis Done by :

HEE

 

 

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%)

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.