MIRA INFORM REPORT

 

 

Report No. :

339064

Report Date :

02.09.2015

 

IDENTIFICATION DETAILS

 

Name :

TOYOTA TSUSHO CORPORATION

 

 

Registered Office :

Century Toyota Bldg, 4-9-8 Meieki Nakamuraku Nagoya 400-8575

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

July 1948

 

 

Com. Reg. No.:

1800-01-031731

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is import, export, wholesale of metals, machinery, vehicles, industrial materials

 

 

No. of Employee :

50,423

 

 

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 192,513.2 MILLION

 

Status :

Excellent company

 

 

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

 

TOYOTA TSUSHO CORPORATION

 

 

REGD NAME

 

Toyota Tsusho KK

 

 

MAIN OFFICE

 

Century Toyota Bldg, 4-9-8 Meieki Nakamuraku Nagoya 400-8575 JAPAN

Tel: 052-584-5000     Fax: 052-584-5663

 

*.. The is its annex division in Nagoya

 

 

URL

 

http://www.toyota-tsusho.co.jp/

E-Mail address: info@toyota-tsusho.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of metals, machinery, vehicles, industrial materials

 

 

BRANCHES

 

Tokyo, Osaka, Toyoda, Kariya, Sendai, Niigata, Fukuoka, other (Tot 19)

 

 

OVERSEAS

 

Asia (32), Oceania (3), Europe (15), Mid East (2), Africa (3), North America

(24), Central/South America (7)

 

 

CHIEF EXEC

 

JUN KARUBE, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 8,663,460 M

PAYMENTSREGULAR   CAPITAL           Yen 64,936 M

TREND UP                    WORTH            Yen 1,304,483 M

STARTED         1948                 EMPLOYES      50,423

 

 

COMMENT

 

GENERAL TRADING HOUSE AFFILIATED WITH TOYOTA MOTOR

CORP. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

MAX CREDIT LIMIT: YEN 192,513.2 MILLION, 30 DAYS NORMAL TERMS.

 

                       

                        Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is the sole general trading house in Toyota Motor group.  Established originally in 1936 as an auto loan firm for Toyota automobiles.  Incorporated in 1948 on the basis of a spin-off from Toyoda Sangyo Kaisha in order to engage in foreign trading, as Nisshin Tsusho Kaisha Ltd.  Renamed as captioned in 1987.  This is a general trading house specializing in automobile-related products, steel, machinery & chemical products.  Steel & nonferrous metals account for about 50% of total sales.  Extends business support to Toyota Motor.  Exports Toyota cars chiefly to S/E Asia, China, Mideast and Latin America.  Merged with Tomen Corp in 2006.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 8,663,460 million, an 11.9% up from Yen 7,743,237 million in the previous term.  The recurring profit was posted at Yen 156,267 million and the net profit at Yen 67,571 million, respectively, compared with Yen 163,438 million recurring profit and Yen 73,034 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 158,000 million and the net profit at Yen 70,000 million, on a 3% fall in turnover, to Yen 8,400,000 million.  Sales in Russia and Central/South America will lose momentum due to the low crude oil price.

 

The financial situation is considered FAIR to EXCELLENT and good for ORDINARY business engagements. Max credit limit is estimated at Yen 192,513.2 million, on 30 days normal terms. 

 

 

 

REGISTRATION

 

Date Registered:        Jul 1948

Regd No.:                        1800-01-031731 (Nagoya-Nakamuraku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         1,000 million shares

Issued:                354,056,576 shares

Sum:                   Yen 64,936 million

           

Major shareholders (%): Toyota Motor Corp (21.5), Toyota Industries (11.1), Master Trust Bank of Japan T (5.2), Japan Trustee Services Bank (3.5), MUFG (2.2), Mitsui Sumitomo Ins (1.6), Aioi Nissay Dowa Ins (1.1), Nippon Life Ins (1.1), Tokio Marine Nichido Fire Ins (1.1); foreign owners (21.1)

 

No. of shareholders: 33,354

 

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

 

Managements: Junzo Shimizu, ch; Yoshio Shirai, v ch; Jun Karube, pres Mikio Asano, v pres; Yasuhiko Yokoi, v pres; Hiroki Sawayama, s/mgn dir; Takumi Shirai, mgn dir; Kuniaki Yamagiwa, mgn dir; Soichiro Matsudaira, mgn dir; Takeshi Hattori, mgn dir; Yoshiki Miura, mgn dir; Yuichi Oi, mgn dir; Hideki Yanase, mgn dir

 

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

 

Related companies: Toyota Tsusho America Inc, other

 

OPERATION

 

Activities: A general trading house for import, export, wholesale operations:

Metals (24%), global parts & logistics (11%), automotive (17%), machinery & energy       (20%), chemicals & electronics (22%), foods (4%), others (2%)

Overseas Sales Ratio (59%)

 

Clients: [Car makers, wholesalers, other mfrs] Toyota Motor, Toyota Tsusho America, Toyota Steel Center, Crown Motors, Denso Corp, Toyota Motor China, JX Nippon Oil & Minerals Corp, other.

No. of accounts: 2,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Toyota Motor, JFE Steel, Nippon Steel, Toyota Steel Center, Toyota Industries, Denso Corp, Toyota Tsusho America, other.

 

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:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

8,663,460

7,743,237

　

  Cost of Sales

8,028,888

7,160,738

　

      GROSS PROFIT

634,572

582,498

　

  Selling & Adm Costs

465,115

421,177

　

      OPERATING PROFIT

169,456

161,321

　

  Non-Operating P/L

-13,189

117

　

      RECURRING PROFIT

156,267

163,438

　

      NET PROFIT

67,571

73,034

BALANCE SHEET

　

　

  Cash

　

499,190

412,089

　

  Receivables

1,346,461

1,268,331

　

  Inventory

683,392

628,758

　

  Securities, Marketable

　

　

　

  Other Current Assets

240,166

211,707

　

      TOTAL CURRENT ASSETS

2,769,209

2,520,885

　

  Property & Equipment

583,819

504,104

　

  Intangibles

400,392

429,500

　

  Investments, Other Fixed Assets

780,273

618,239

　

      TOTAL ASSETS

4,533,693

4,072,728

　

  Payables

969,099

950,852

　

  Short-Term Bank Loans

608,661

520,337

　

　

　

　

　

  Other Current Liabs

483,967

464,143

　

      TOTAL CURRENT LIABS

2,061,727

1,935,332

　

  Debentures

116,161

95,000

　

  Long-Term Bank Loans

854,927

720,813

　

  Reserve for Retirement Allw

32,355

30,915

　

  Other Debts

　

164,040

134,588

　

      TOTAL LIABILITIES

3,229,210

2,916,648

　

      MINORITY INTERESTS

　

　

Common stock

64,936

64,936

　

Additional paid-in capital

155,021

154,781

　

Retained earnings

628,399

584,591

　

Evaluation p/l on investments/securities

137,976

78,553

　

Others

322,009

277,727

　

Treasury stock, at cost

(3,858)

(4,508)

　

      TOTAL S/HOLDERS` EQUITY

1,304,483

1,156,080

　

      TOTAL EQUITIES

4,533,693

4,072,728

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

169,100

133,937

　

Cash Flows from Investment Activities

-199,512

-135,587

　

Cash Flows from Financing Activities

108,247

5,356

　

Cash, Bank Deposits at the Term End

　

499,157

412,032

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

1,304,483

1,156,080

　

Current Ratio (%)

134.32

130.26

　

Net Worth Ratio (%)

28.77

28.39

　

Recurring Profit Ratio (%)

1.80

2.11

　

Net Profit Ratio (%)

0.78

0.94

　

　

Return On Equity (%)

5.18

6.32

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.26

UK Pound

1

Rs.101.99

Euro

1

Rs.74.79

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

ASH

 

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.