MIRA INFORM REPORT

 

 

Report Date :

23.07.2011

 

IDENTIFICATION DETAILS

 

Name :

JFE ENGINEERING CORPORATION

 

 

Registered Office :

Nippon Bldg 1F, 2-6-2 Ohtemachi Chiyodaku Tokyo 100-0004

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Year of Establishment :

April  2003

 

 

Legal Form :

Limited Company

 

 

Line of Business :

General engineering works

 

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

 

Maximum Credit Limit :

Yen 3,505.2 Million

Status :

Satisfactory

Payment Behaviour :

Regular

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 – March 31st, 2011

 

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Name and address

 

JFE ENGINEERING CORPORATION

REGD NAME:    JFE Engineering KK

MAIN OFFICE:  Nippon Bldg 1F, 2-6-2 Ohtemachi Chiyodaku Tokyo 100-0004 JAPAN

                        Tel: 03-3156-7300     Fax: 03-3516-7345

 

                        *.. The given address is its Yokohama Branch Office

                                               

URL:                 http://www.jfe-eng.co.jp

E-Mail address: info@jfe-eng.co.jp

 

 

ACTIVITIES  

 

General engineering works

 

BRANCHES   

 

Sapporo, Sendai, Tokyo, Chiba, Yokohama, Kawasaki, Osaka, Nagoya, other

 

OVERSEAS

 

Hong Kong, Vietnam, Myanmar, Frankfurt, Rome, Vienna, Abu Dhabi;

China, Philippines, Malaysia, Singapore, Indonesia, India, Australia

(--subsidiaries)

 

FACTORIES  

 

Tsurumi, Tsu, Shimizu

 

 

OFFICERS

 

SUMIYUKI KISHIMOTO, PRES               Yasutsugu Ogura, v pres

Yoichi Kamon, s/mgn dir                        Shigeki Tonooka, dir

Yukio Kato, dir                                       Shin’ichi Okada, dir                   

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 205,760 M

PAYMENTS      REGULAR                     CAPITAL           Yen 10,000 M

TREND             SLOW                          WORTH            Yen 50,938 M

STARTED                     2003                             EMPLOYES      3,229

 

 

COMMENT

 

ENGINEERING FIRM, WHOLLY OWNED BY JFE HOLDINGS INC.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY                                  

BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 3,505.2 MILLION, 30 DAYS NORMAL TERMS

 

 

Forecast (or estimated figures) for the 31/03/2012 Fiscal Term

 

 

HIGHLIGHTS

           

            The subject company was established on the basis of an engineering works division separated from JFE Holdings Inc (See REGISTRATION).  This is an engineering works company with 4 Divisions: Energy Industries Engineering Div, Environmental Industries Engineering Div, Steel Structure Engineering Div and Industrial Machinery Engineering Div (See OPERATION for details). 

 

 

FINANCIAL INFORMATION

           

            The sales volume for Mar/2011 fiscal term amounted to Yen 205,700 million, a 9% down from Yen 225,564 million in the previous term, as affected by the global economic downturn, particularly in the first half of the term.  The recurring profit was posted at Yen 10,816 million and the net profit at Yen 2,872 million, compared with Yen 12,946 million recurring profit and Yen 2,914 million net profit, respectively, a year ago.

 

            For the current term ending Mar 2012 the recurring profit is projected at Yen 11,000 million and the net profit at Yen 3,000 million, respectively, on a 5% rise in turnover, to Yen 215,000 million.  Engineering works have hit a bottom.  Shipbuilding will grow steadily.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 3,505.2 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Apr 2003

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         800,000 shares

Issued:                200,000 shares

Sum:                   Yen 10,000 million

Major shareholders (%): JFE Holdings Inc* (100)

 

*.. Holding company formed thru business combinations between Kawasaki Steel and NKK in Sept 2002, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 147,143 million, sales Yen 3,195,560 million, operating profit Yen 182,810 million, recurring profit Yen 165,805 million, net profit Yen 58,608 million, total assets Yen 3,976,644 million, net worth Yen 1,437,595 million, employees 54,400, Pres Hajime Bada

 

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

 

 

OPERATION

           

Activities: Total Engineering Works, offering the following works:

 

Energy Industries Engineering Div: offshore-onshore pipeline systems, storage base systems, process plants, on-site energy supply, district heating & cooling, cogeneration, geothermal energy utilization systems, inspection, diagnosis & maintenance services;

Environmental Industries Engineering Div: high temperature gasifying & direct melting plant, hyper crate stoker plant, fluidized bed plant, flue gas & ash treatment equipment, sustainable energy plant, gas engine power generation system, steam turbine;

Steel Structure Engineering Div: bridges, hybrid caissons, steel frames for building;

Industrial Machinery Engineering Div: heavy machinery, prime movers, conveyance/handling & construction machinery, environmental plant equipment, other.

 

Clients: [Govt agencies, mfrs, electric powers, wholesalers] Tokyo Gas Co, Governments, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] JFE Steel & group firms

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Corporate (H/O)

MUFG (H/O)

Relations: Satisfactory

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

205,760

225,564

 

  Cost of Sales

174,694

193,454

 

      GROSS PROFIT

31,065

32,109

 

  Selling & Adm Costs

23,608

23,446

 

      OPERATING PROFIT

7,457

8,663

 

  Non-Operating P/L

3,359

4,283

 

      RECURRING PROFIT

10,816

12,946

　

      NET PROFIT

2,872

2,914

BALANCE SHEET

 

 

 

 

  Cash

　

1,537

6,050

 

  Receivables

 

99,936

86,118

 

  Inventory

 

4,420

2,613

 

  Securities, Marketable

　

　

 

  Other Current Assets

28,900

38,546

 

      TOTAL CURRENT ASSETS

134,793

133,327

 

  Property & Equipment

27,149

24,986

 

  Intangibles

 

933

931

 

  Investments, Other Fixed Assets

48,680

52,952

 

      TOTAL ASSETS

211,555

212,196

 

  Payables

 

40,196

41,109

 

  Short-Term Bank Loans

20,100

4,000

 

　

 

　

　

 

  Other Current Liabs

29,503

36,589

 

      TOTAL CURRENT LIABS

89,799

81,698

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

15,000

20,000

 

  Reserve for Retirement Allw

17,279

18,102

 

  Other Debts

　

38,538

42,358

 

      TOTAL LIABILITIES

160,616

162,158

 

      MINORITY INTERESTS

 

 

 

Common stock

10,000

10,000

 

Additional paid-in capital

28,778

28,778

 

Retained earnings

2,872

2,872

 

Evaluation p/l on investments/securities

　

30,969

 

Others

 

9,288

(2,190)

 

Treasury stock, at cost

　

　

 

      TOTAL S/HOLDERS` EQUITY

50,938

50,037

　

      TOTAL EQUITIES

211,555

212,196

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

50,938

50,037

 

 

Current Ratio (%)

150.11

163.19

 

 

Net Worth Ratio (%)

24.08

23.58

 

 

Recurring Profit Ratio (%)

5.26

5.74

 

 

Net Profit Ratio (%)

1.40

1.29

 

 

Return On Equity (%)

5.64

5.82

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.37

UK Pound

1

Rs.72.34

Euro

1

Rs.63.87

 

 

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.