MIRA INFORM REPORT

 

 

Report Date :

25.11.2008

 

 

IDENTIFICATION DETAILS

 

Name :

CHISSO CORPORATION

 

 

Registered Office :

Shin-Ohtemachi Bldg 9F, 2-2-1 Ohtemachi Chiyodaku Tokyo 100-8105

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

Janruary 1950

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Industrial Chemicals, Functional Chemicals

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

--

 

 

name & address

 

CHISSO CORPORATION

REGD NAME:    Chisso KK

MAIN OFFICE:  Shin-Ohtemachi Bldg 9F, 2-2-1 Ohtemachi Chiyodaku Tokyo 100-8105 JAPAN

                                    Tel: 03-3243-6400     Fax: 03-3243-6487

 

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

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

 

 

ACTIVITIES  

 

Mfg of industrial chemicals, functional chemicals

 

 

BRANCHES

 

Osaka, Kumamoto, Sapporo

 

 

OVERSEAS

 

Germany, China (Shanghai), Taiwan, Korea

 

 

FACTORY(IES)

 

Minamata, Goi, Yokkaichi, Moriyama, Tobata

 

 

OFFICER(S)

 

Shukichi Gotoh, ch                   

SHUN’ICHI OKADA, PRES

Masamitsu Okada, dir               

Nobuya Tabata, dir

Tohru Uchimura, dir                   

Koji Hosono, dir

 

Yen Amount:    In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        WEAK              A/SALES          Yen 269,687 M

PAYMENTS      UNKNOWN       CAPITAL           Yen 7,813 M

TREND             UP                    WORTH            Yen (-) 99,077 M

STARTED         1950                 EMPLOYES      2,762

 

 

COMMENT    

 

MFR OF INDUSTRIAL CHEMICALS. 

FINANCIAL SITUATION CONSIDERED WEAK BUT GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: DUE TO NEGATIVE NET WORTH ALL CREDITS ARE RECOMMENDED TO BE WITH SECURED TERMS

 

 

HIGHLIGHTS

           

The subject company was established originally in 1906 as Sogi Electric Co Ltd, for mfg industrial chemicals and incorporated in 1950, and renamed as captioned in 1965.  The firm succeeded in commercialization of nitric acid & acetic acid syntheses as well as polyvinyl chloride.  Specializes in mfg organic chemicals, fine chemicals, silicon chemicals, other.

           

(Chisso Minamata Disease): This is a neurological syndrome caused by severe mercury poisoning.  The disease was firstly discovered in Minamata City, Kumamoto-Pref, Japan in 1956.  It was caused by the release of methyl mercury in the industrial wastewater from Chisso Corporation’s chemical factory, which continued from 1932 to 1968.  In 1965, it was found in Agano River basin in Niigata-Pref.  The government certified persons as Minamata Disease based on Pollution-related Health Damage Law, and those who are recognized as Minamata Disease from the Medical Science point of view can receive compensations from Chisso Corp which is responsible for the pollution.  (A lump-sum payment of about Yen 22 million had been paid to each of 2,955 certified patients on average, and the total payment amounts to approx Yen 144 billion by Mar 2001). Further compensation of damages is still being sued by claimants.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2008 fiscal term amounted to Yen 269,687 million, a 24.3% up from Yen 216,979 million in the previous term.  Functional chemicals (LCD materials) for PC monitor were expanded.  Production facilities were strengthened in Minamata Factory.  Chemicals also rose.  Total Chemicals Div up 26.2% to Yen 225,834 million.  LDC panel mfg was strengthened in Korea & Taiwan factories.  The recurring profit was posted at Yen 20,181 million and the net profit at Yen 10,817 million, respectively, compared with Yen 216,979 million recurring profit and Yen 12,273 million net profit, respectively, a year ago..

 

For the current term ending Mar 2009 the recurring profit is projected at Yen 18,000 million and the net profit at Yen 9,000 million, respectively, on a 7.5% rise in turnover, to Yen 290,000 million.  Demand is expected to shrink as the domestic business is seen slowing down.

          

The financial situation is considered WEAK but should be good for MODEST business engagements.  Due to the negative net worth we recommend that all credits to be on fully secured terms on new transactions.

 

 

 

 

REGISTRATION

 

Date Registered:  Jan 1950

Legal Status:     　Limited Company (Kabushiki Kaisha)

Authorized:        　620 million shares

Issued:              　156,279,375 shares

Sum:                　Yen 156,270,000 million

           

 

Major shareholders (%)

 

Mizuho Corporate Bank (4.3), Tokio Marine & Nichido Fire Ins (1.5), MUFG (1.4), Akisumi Hoshino (1.3), Sekisui Chemical Ind (1.1)

No. of shareholders: 36,036

           

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

 

 

OPERATION

 

Activities: Manufactures functional chemicals (34%), organic & fine chemicals (50%), processed materials, others (17%).

Overseas Sales (25.8%): S/E Asia 22.1%, N America 2.2%, others 1.5%.

 

(Mfg items – example & not limited):

Organic Chemicals: alcohols, aldehydes, ketones, acids, esters, flame retardants, specialty resins;

Fine Chemicals: bio sensor, microbial detection sheet, new bio inspection agent, polylysive, functional cellulose microparticles, cellulose fine beads, hyaluronic acid;

Silicon Chemicals: organic silicon products, reactive silicon products, silicon trichloride, silicon tetrochlordie, other;

 

 

Clients

 

 [Mfrs, wholesalers] Esso Sekiyu Chemical, Keiyo Polyethylene, C G Star, E S Fiber Visions, Itochu Corp, Kisco, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers

 

[Mfrs, wholesalers] Chisso Petrochemical Corp, Chisso Polypro Fiber, Kyushu Chemical Ind, Chisso Fine Techno, Sun Electronics (--subsidiaries & group firms), other

 

Payment record: Regular

 

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

 

 

Bank References

 

Mizuho Corporate Bank (H/O)

MUFG (Tokyo)

Relations: Satisfactory

 

 

FINANCES: (In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2008

31/03/2007

INCOME STATEMENT

 

 

 

  Annual Sales

　

269,687

216,979

 

  Cost of Sales

225,718

178,683

 

      GROSS PROFIT

43,968

38,295

 

  Selling & Adm Costs

23,150

19,480

 

      OPERATING PROFIT

20,818

18,815

 

  Non-Operating P/L

-638

248

 

      RECURRING PROFIT

20,181

19,063

　

      NET PROFIT

10,817

12,273

BALANCE SHEET

 

 

 

 

  Cash

　

20,134

23,325

 

  Receivables

 

50,351

49,154

 

  Inventory

 

761

412

 

  Securities, Marketable

　

　

 

  Other Current Assets

47,878

39,296

 

      TOTAL CURRENT ASSETS

119,124

112,187

 

  Property & Equipment

70,017

67,686

 

  Intangibles

 

1,810

1,723

 

  Investments, Other Fixed Assets

22,803

21,040

 

      TOTAL ASSETS

213,754

202,636

 

  Payables

 

54,400

57,844

 

  Short-Term Bank Loans

28,179

27,635

 

　

 

　

　

 

  Other Current Liabs

24,448

24,243

 

      TOTAL CURRENT LIABS

107,027

109,722

 

  Debentures

 

400

400

 

  Long-Term Bank Loans

150,962

150,848

 

  Reserve for Retirement Allw

12,897

12,488

 

  Other Debts

　

41,545

38,815

 

      TOTAL LIABILITIES

312,831

312,273

 

      MINORITY INTERESTS

 

 

 

Common stock

7,813

7,813

 

Additional paid-in capital

472

472

 

Retained earnings

(116,905)

(127,732)

 

Evaluation p/l on investments/securities

315

667

 

Others

 

9,246

9,156

 

Treasury stock, at cost

(18)

(12)

 

      TOTAL S/HOLDERS` EQUITY

(99,077)

(109,636)

　

      TOTAL EQUITIES

213,754

202,636

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2008

31/03/2007

 

Cash Flows from Operating Activities

　

11,937

17,788

 

Cash Flows from Investment Activities

-11,720

-10,083

 

Cash Flows from Financing Activities

2,916

2,663

　

Cash, Bank Deposits at the Term End

　

20,134

23,325

ANALYTICAL RATIOS            Terms ending:

31/03/2008

31/03/2007

 

 

Net Worth (S/Holders' Equity)

(99,077)

(109,636)

 

 

Current Ratio (%)

111.30

102.25

 

 

Net Worth Ratio (%)

-46.35

-54.10

 

 

Recurring Profit Ratio (%)

7.48

8.79

 

 

Net Profit Ratio (%)

4.01

5.66

 

 

Return On Equity (%)

-10.92

-11.19

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.97

UK Pound

1

Rs.75.45

Euro

1

Rs.64.21

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. 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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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