MIRA INFORM REPORT
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Report No. : |
348255 |
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Report Date : |
31.10.2015 |
IDENTIFICATION DETAILS
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Name : |
TSUDAKOMA CORPORATION |
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Registered Office : |
5-18-18 Nomachi Kanazawa Ishikawa-Pref 921-8650 |
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Country : |
Japan |
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Financials (as on) : |
30.11.2014 |
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Date of Incorporation : |
Dec., 1939 |
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Com. Reg. No.: |
(Ishikawa-Kanazawa) 004330 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Textile Machinery, Machine Tools. |
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No. of Employees : |
1,309 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source
: CIA |
Company
Name and address
TSUDAKOMA CORPORATION
REGD NAME: Tsudakoma
Kogyo KK
MAIN OFFICE: 5-18-18
Nomachi Kanazawa Ishikawa-Pref 921-8650 JAPAN
Tel: 076-242-1111 Fax: 076-242-4172
URL: http://www.tsudakoma.co.jp/
E-Mail address: info1@tsudakoma.co.jp
ACTIVITIES
Mfg of textile
machinery, machine tools
BRANCHES
Hamamatsu, Fukuoka
OVERSEAS
USA, France,
Germany, Italy, Spain, Sweden, Indonesia, Thailand, Pakistan, India, Brazil, China & Korea (--agent dealers)
FACTORIES
At the caption
address (area 81,490 m2), Nonoichi (area 73,357 m2), Hakusan (area 61,619 m2) (--Ishikawa)
CHIEF
EXEC
NOBUHIRO TAKANO,
PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 34,735 M
PAYMENTSSLOW BUT
CORRECT CAPITAL Yen
12,316 M
TREND UP WORTH Yen 14,687 M
STARTED 1939 EMPLOYES 1,309
COMMENT
MFR SPECIALIZING IN TEXTILE MACHINERY.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
Notes: Unit: In Million Yen
Forecast
(or estimated) figures for 30/11/2015 fiscal term
HIGHLIGHTS
The subject
company was established originally in 1909 by Komajiro Tsuda for mfg silk &
artificial silk loom, on his
account. Incorporated in 1939 as Tsudakoma Ind Co and the firm has been succeeded by his descendants. Renamed as
captioned in 1982. This is the largest comprehensive mfr of textile
machines. Now world’s largest maker of water/air jet looms. Branching out
into machine tools including
rotary tables for MC’s. Highly reliant on exports including those to China.
FINANCIAL
INFORMATION
The sales volume
for Nov/2014 fiscal term amounted to Yen 34,735 million, a 15.6% down from Yen
41,117 million in the previous term. The
operations continued in the red to post Yen 1,181 million recurring loss and
Yen 1,263 million net losses, respectively, compared with Yen 606 million
recurring loss and Yen 898 million net losses, respectively, a year ago
(Dec/2014/Aug/2015
results); Sales Yen 26,869 million (up 3.0%), operating loss Yen 356 million
(previously Yen 1,008 million loss), recurring loss Yen 390 million (previously
Yen 1,059 million loss), net loss Yen 366 million (previously Yen 1,163 million
loss). (% & figures as compared with
the corresponding period a year ago)
For the current
term ending Nov 2015 the operations are still projected at a loss to post Yen 250
million recurring loss and Yen 250 million net losses, respectively, on a 5.9%
rise in turnover, to Yen 36,800 million.
Orders for textile machinery stagnated in China, the main market
representing 50% of total exports, due to the economic down. Business in China affects total performance. Currently expanding into India &
Pakistan.
The financial situation is considered maintained FAIR and good for
ORDINARY business engagements.
REGISTRATION
Date Registered:
Dec 1939
Regd No.:
(Ishikawa-Kanazawa)
004330
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 199,003,000
shares
Issued: 68,075,552
shares
Sum: Yen
12,316 million
Major shareholders
(%): Customers’ S/Holding Assn (13.0), Company’s Treasury Stock (6.1), Meiji
Yasuda Life Ins (5.1), Hokuriku Bank (3.7), Hokkoku Bank (3.4), Mitsui Sumitomo
Ins (2.6), Tokio Marine & Nichido Fire Ins (2.6), Employees’ S/Holding Assn
(2.3), Marubeni Corp (1.5), CBNYDFA Int’l Small Cap Value P (1.3); foreign
owners (3.3)
No.
of shareholders: 5,768
Listed
on the S/Exchange (s) of: Tokyo
Managements: Shoji Hishinuma,
ch; Nobuhiro Takano, pres; Tatsuo Takehana, s/mgn dir; Jun’ichi Nishino, mgn dir;
Susumu Nakamura, dir; Mitsuru Suwa, dir; Nobuhiro Kano, dir
Nothing detrimental is known as to the
commercial morality of executives.
Related companies: Kyowa
Electronics & Machinery Ind, Tsudakoma Transportation, Tsudakoma General
Service, Tsudakoma (Shanghai) Co, other
OPERATION
Activities: Manufactures
textile machinery (78%): air jet looms, water jet looms, conversion kits, rapier looms, doffing
systems, filament sizing machines, preparatory machinery, part stock
information, product data download, others; machine tools & attachments
(22%):
Overseas sales
ratio (72%)
Clients: [Mfrs,
wholesalers] Marubeni Techmatex, Sojitz Corp, Koma Precision, Itochu Systech
Corp, NTC Toyama, Diamond Textile Mills, T-Tech Japan, other.
Exports to: China, India, Pakistan, Thailand, Indonesia, Korea, Brazil,
France, Germany, Italy, Spain, Sweden, USA, other. Exports into Europe through Tekmatex Europe
SA, and into USA through Tekmatex Inc.
No. of accounts: 3,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Kyowa Electronics & Machinery Ind, Kanazawa Kiko, Hokuryo
Denko, Hikida Sangyo, Higashiyama Ind, Staubli, Fanuc Corp, other.
Payment
record: Slow but correct
Location: Light industrial area in Kanazawa
City. Office premises at the caption
address are owned and maintained satisfactorily.
Bank
References:
Hokuriku
Bank (Kanazawa)
Hokkoku
Bank (H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
30/11/2014 |
30/11/2013 |
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INCOME STATEMENT |
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Annual Sales |
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34,735 |
41,177 |
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Cost of Sales |
31,418 |
37,155 |
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GROSS PROFIT |
3,317 |
4,022 |
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Selling & Adm Costs |
4,524 |
4,534 |
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OPERATING PROFIT |
-1,207 |
-512 |
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Non-Operating P/L |
46 |
-94 |
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RECURRING PROFIT |
-1,161 |
-606 |
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NET PROFIT |
-1,263 |
-698 |
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BALANCE SHEET |
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Cash |
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8,024 |
7,816 |
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Receivables |
9,751 |
16,024 |
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Inventory |
5,142 |
4,948 |
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Securities, Marketable |
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Other Current Assets |
381 |
398 |
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TOTAL CURRENT ASSETS |
23,298 |
29,186 |
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Property & Equipment |
10,067 |
10,381 |
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Intangibles |
53 |
54 |
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Investments, Other Fixed Assets |
3,139 |
2,814 |
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TOTAL ASSETS |
36,557 |
42,435 |
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Payables |
3,234 |
4,653 |
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Short-Term Bank Loans |
6,327 |
6,452 |
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Other Current Liabs |
6,205 |
9,030 |
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TOTAL CURRENT LIABS |
15,766 |
20,135 |
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Debentures |
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Long-Term Bank Loans |
1,362 |
1,828 |
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Reserve for Retirement Allw |
4,533 |
4,335 |
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Other Debts |
|
209 |
131 |
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TOTAL LIABILITIES |
21,870 |
26,429 |
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MINORITY INTERESTS |
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Common
stock |
12,316 |
12,316 |
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Additional
paid-in capital |
38,880 |
38,880 |
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Retained
earnings |
(1,673) |
(299) |
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Evaluation
p/l on investments/securities |
274 |
125 |
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Others |
(33,873) |
(33,779) |
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Treasury
stock, at cost |
(1,237) |
(1,237) |
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TOTAL S/HOLDERS` EQUITY |
14,687 |
16,006 |
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TOTAL EQUITIES |
36,557 |
42,435 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
30/11/2014 |
30/11/2013 |
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Cash
Flows from Operating Activities |
|
1,448 |
-2,834 |
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Cash
Flows from Investment Activities |
-653 |
-1,529 |
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Cash
Flows from Financing Activities |
-593 |
1,610 |
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Cash,
Bank Deposits at the Term End |
|
7,884 |
7,686 |
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ANALYTICAL RATIOS Terms ending: |
30/11/2014 |
30/11/2013 |
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Net
Worth (S/Holders' Equity) |
14,687 |
16,006 |
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Current
Ratio (%) |
147.77 |
144.95 |
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Net
Worth Ratio (%) |
40.18 |
37.72 |
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Recurring
Profit Ratio (%) |
-3.34 |
-1.47 |
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Net
Profit Ratio (%) |
-3.64 |
-1.70 |
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Return
On Equity (%) |
-8.60 |
-4.36 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.65.22 |
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|
1 |
Rs.99.93 |
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Euro |
1 |
Rs.71.67 |
INFORMATION DETAILS
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Analysis Done by
: |
TRI |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.