MIRA INFORM REPORT

 

 

Report Date :           

19.12.2011

 

IDENTIFICATION DETAILS

 

Correct Name :

CHISSO CORPORATION 

 

 

Registered Office :

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

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

January 1950

 

 

Com. Reg. No.:

(Osaka-Kitaku) 067055

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of industrial chemicals, functional chemicals

 

 

No. of Employees :

3151 persons

 

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 :

Poor

Payment Behaviour :

Slow

Litigation :

----

 

 

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Japan

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

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

 

*.. Registered at: 3-3-23 Nakanoshima Kitaku Osaka

 

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

 

 

FACTORIES

 

Minamata (Kumamoto), Goi, Yokkaichi, Moriyama, Tobata

 

OFFICER(S)

 

MICHIO MORITA, PRES Masashi Masumura, v pres

Tohru Uchimura, s/mgn dir          Takeyuki Morimura, mgn dir

Ysuyuki Gotoh, mgn dir              Ichiro Ohe, mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    WEAK              A/SALES          Yen 245,958 M

PAYMENTS      Slow              CAPITAL           Yen 7,813 M

TREND             SLOW              WORTH            Yen (-) 108,345 M

STARTED                     1950                 EMPLOYES      3,151

 

 

COMMENT    

 

MFR OF INDUSTRIAL CHEMICALS. 

 

FINANCIAL SITUATION CONSIDERED WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: (-) 7,476.3 MILLION.  DUE TO NEGATIVE NET WORTH ALL CREDITS ARE RECOMMENDED TO BE ON SECURED TERMS

 

 

                        Forecast figures for the 31/03/2012 fiscal term.

 

 

HIGHLIGHTS

           

The subject company was established originally in 1906 as Sogi Electric Co Ltd, for mfg industrial chemicals.  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.  In Apr 2011, the firm established a subsidiary, JNC Corp, and transferred its trading operations to the firm.

 

(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 Yen 34,599 million was paid to certified patients and group individuals at Mar/2011).  In Mar 2011, thanks to the arbitration, the out-of-the-court settlement was concluded at the lump-sum payment of Yen 9,271 million to 1,992 certified patients.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2011 fiscal term amounted to Yen 245,958 million, a 5.8% down from Yen 261,170 million in the previous term.  Business was affected by the North Japan Earthquake & tsunami that occurred in Mar 2011, disrupting supply channels and short of supply.    The recurring profit was posted at Yen 24,810 million and the net loss at Yen 26,316 million, respectively, compared with Yen 22,064 million recurring profit and Yen 10,502 million net profit, respectively, a year ago.  Wrote off Yen 47,528 million extraordinary losses coming from the compensation for Minamata Disease.

 

(Apr/Sept/2011 results): Sales Yen 110,531 million (down 12.6%), operating profit Yen 9,411 million (down 47.4%), recurring profit Yen 7,361 million (down 54.4%), net loss Yen 1,857 million (previously Yen 9,258 million profit).  (% and figures compared with the corresponding period a year ago).

 

For the current term ending Mar 2012 the recurring profit is projected at Yen 17,500 million, on a10.6% rise in turnover, to Yen 220,000 million.  The firm does not forecast net profits/losses saying that at this stage it is difficult to foresee the business trends and no forecast for profits are disclosed.  We have tentatively set at a minimum amount post-taxes.

 

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

 

 

REGISTRATION

 

Date Registered:  Jan 1950

Regd No.:        (Osaka-Kitaku) 067055

Legal Status:   　Limited Company (Kabushiki Kaisha)

Authorized:      　620 million shares

Issued:             　156,279,375 shares

Sum:                　Yen 7,813 million

 

Major shareholders (%): Mizuho Corporate Bank (4.3), Japan Securities Depository Center (3.8), Akisumi Hoshino (1.8), Tokio Marine & Nichido Fire Ins (1.5), MUFG (1.4),  Sekisui Chemical Ind (1.1)

 

No. of shareholders: 35,484

 

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

 

OPERATION

 

Activities: Manufactures functional chemicals (35%), organic & fine chemicals (29%), processed materials (24%), others (12%).

 

Overseas Sales (33%)

 

(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: Slow

 

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:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

245,958

261,170

 

  Cost of Sales

189,944

209,876

 

      GROSS PROFIT

56,013

51,294

 

  Selling & Adm Costs

26,676

24,753

 

      OPERATING PROFIT

29,337

26,540

 

  Non-Operating P/L

-4,527

-4,476

 

      RECURRING PROFIT

24,810

22,064

　

      NET PROFIT

-26,316

10,502

BALANCE SHEET

 

 

 

 

  Cash

　

45,441

35,319

 

  Receivables

 

42,727

53,601

 

  Inventory

 

33,056

40,446

 

  Securities, Marketable

　

7,006

 

  Other Current Assets

14,784

12,122

 

      TOTAL CURRENT ASSETS

136,008

148,494

 

  Property & Equipment

68,134

70,139

 

  Intangibles

 

4,088

4,456

 

  Investments, Other Fixed Assets

21,156

22,206

 

      TOTAL ASSETS

229,386

245,295

 

  Payables

 

36,710

53,443

 

  Short-Term Bank Loans

33,783

41,058

 

　

 

　

　

 

  Other Current Liabs

31,278

29,632

 

      TOTAL CURRENT LIABS

101,771

124,133

 

  Debentures

 

300

300

 

  Long-Term Bank Loans

183,011

147,076

 

  Reserve for Retirement Allw

13,470

13,109

 

  Other Debts

　

39,179

41,412

 

      TOTAL LIABILITIES

337,731

326,030

 

      MINORITY INTERESTS

 

 

 

  Capital, Paid-Up

7,813

7,813

 

  Surplus

 

(116,158)

(88,547)

 

      SHAREHOLDERS' EQUITY

(108,345)

(80,734)

　

      TOTAL EQUITIES

229,386

245,295

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

23,628

43,303

 

Cash Flows from Investment Activities

-10,190

-10,215

 

Cash Flows from Financing Activities

-3,985

1,454

　

Cash, Bank Deposits at the Term End

　

44,807

41,675

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

(108,345)

(80,734)

 

 

Current Ratio (%)

133.64

119.62

 

 

Net Worth Ratio (%)

-47.23

-32.91

 

 

Recurring Profit Ratio (%)

10.09

8.45

 

 

Net Profit Ratio (%)

-10.70

4.02

 

 

Return On Equity (%)

24.29

-13.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.52.81

UK Pound

1

Rs.82.00

Euro

1

Rs.68.81

 

 

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.