MIRA INFORM REPORT

 

 

Report Date :           

10.03.2011

 

IDENTIFICATION DETAILS

 

Name :

TOYO ENGINEERING CORP

 

 

Registered Office :

2-8-1 Akanehama Narashino City Chiba-Pref 275-0024

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

May 1961

 

 

Com. Reg. No.:

(Chiba-Narashino) 002504

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Plant Engineering Works

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

Yen 4,034.1 Million

Status :

Moderate

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 – December 31, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

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

 

TOYO ENGINEERING CORP

 

 

REGD NAME

 

Toyo Engineering KK

 

 

MAIN OFFICE

 

2-8-1 Akanehama Narashino City Chiba-Pref 275-0024 JAPAN

Tel: 047-451-1111     Fax: 047-454-1800-

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Plant engineering works

 

 

BRANCHES

 

Tokyo

 

 

OVERSEAS   

 

Beijing, Jakarta, Doha, Teheran, Saudi Arabia, Moscow

 

 

FACTORIES  

 

At the caption address (engineering Center)

 

CHIEF EXEC 

 

YUTAKA YAMADA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 　A/SALES       Yen 173,943 M

PAYMENTS      REGULAR         　CAPITAL        Yen 18,198 M

TREND             SLOW              　WORTH         Yen 65,295 M

STARTED                     1961                 　EMPLOYES   3,951

 

 

COMMENT    

 

PLANT ENGINEERING WORKS 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 4,034.1 MILLION, 30 DAYS NORMAL TERMS

 

                        Forecast figures for the 31/03/2011 fiscal term.

 

 

HIGHLIGHTS

 

The subject company was established originally as JV formed by Toyo Koatsu (today Mitsui Chemicals), Mitsui & Co and Taisei Corp.  This is a plant engineering company servicing for industries: oil/gas, petrochemicals, transportation systems, pharmaceuticals, fine chemicals, power generation, biotechnology, environment, other.  Has world level technology for urea and ammonia fertilizer plant engineering.  Well-experienced in oil refining, petrochemical and N-Power plants.  The company won new order for Thailand power plant project in non-petroleum and non-petrochemical sector in tie-up with Mitsui & Co.  Newly-acquired Canadian engineering firm will only make marginal contribution to earnings.  But the company plans to enhance operation in the Americas in addition to enhancement of Brazilian base.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 173,943 million, a 46.7% down from Yen 326,248 million in the previous term.  Global economic downturn affected the sales.  New orders received declined substantially.  The recurring profit was posted at Yen 14,448 million and the net profit at Yen 7,131 million, respectively, compared with Yen 16,141 million recurring profit and Yen 6,515 million net profit, respectively, a year ago.　.

 

(Apr/Dec/2010 results): Sales Yen 113,726 million (down 14.0%), operating profit Yen 3,815 million (down 59.0%), recurring profit Yen 4,011 million (down 62.1%), net profit Yen 2,400 million (down 56.7%).  (% compared with the corresponding period a year ago).

 

For the current term ending Mar 2011 the recurring profit is projected at Yen 4,500 million and the net profit at Yen 2,500 million, on an 8% fall in turnover, to Yen 160,000 million.  New orders are projected at more than two-fold to Yen 280 million.  But works on hand are decreasing, affected by peak-out of large-lot works.  Profit margin on works is shrinking.  Heavy burden will be posed by increased sales promotion costs for winning new orders.  Operating profit will drop sharply.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 4,034.1 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　May 1961

Regd No.:         (Chiba-Narashino) 002504

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       500 million shares

Issued:                192,792,539shares

Sum:                   Yen 18,198 million

 

Major shareholders (%): Mitsui & Co (22.7), Mitsui Chemicals (13.3), Japan Trustee Services T (3.3), Master Trust Bank of Japan T (3.2), Taisei Corp (2.0), Nomura Trust Inv T (1.9), Kanto Natural as Development (1.3), Nomura Asset Mgt UK Evergreen N (1.2), SMBC (1.2), HSBC Bank, Clients Non-Tax Treaty (1.1); foreign owners (14.3)

 

No. of shareholders: 13,417

 

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

 

Managements: Yushi Nagata, ch; Yutaka Yamada, pres; Takuma Hatano, v pres; Keiji Soejima, v pres; Kazuomi Nishihara, v pres; Makoto Fusayama, s/mgn dir; Keiichi Matsumoto, s/mgn dir; Satoshi Kuwahara, s/mgn dir; Hideki Shiinoki, s/mgn dir; Mitsutoshi Hamamura, s/mgn dir; Masayuki Uchida, d/mgn dir

 

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

 

Related companies: Toyo Business Engineering, other.

 

 

OPERATION

           

Activities: Plant engineering works (98%) for: energy, oil refining, petrochemicals & chemicals, oil & gas development, infrastructure, environment, pharmaceutical & fine chemicals, food & beverages, electronics & semiconductors, automobiles, manufacturing, other; real estate leasing & management (2%).

 

Overseas Sales Ratio (70.7%): Asia/Oceania 12.8%, Mid East/Africa 13.6%, Russia/Europe 1.4%, Latin America 34.4%, other 8.5%

           

Clients: [Oil refiners, mfrs, wholesalers] Indian Oil Corporation, PDVSA Petroleo SA, Petropars Ltd, Nippon Oil, other

            No. of accounts: 800

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Taisei Corp, other

 

Payment record: Regular

 

Location: Business area in Narashino City, Chiba-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

SMBC (H/O)

Mizuho Corporate Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

173,943

326,248

 

  Cost of Sales

140,959

291,496

 

      GROSS PROFIT

32,983

34,751

 

  Selling & Adm Costs

19,913

19,583

 

      OPERATING PROFIT

13,070

15,167

 

  Non-Operating P/L

1,378

974

 

      RECURRING PROFIT

14,448

16,141

　

      NET PROFIT

7,131

6,515

BALANCE SHEET

 

 

 

 

  Cash

　

36,899

33,116

 

  Receivables

 

27,373

35,857

 

  Inventory

 

21,676

25,758

 

  Securities, Marketable

37,993

29,989

 

  Other Current Assets

17,725

24,383

 

      TOTAL CURRENT ASSETS

141,666

149,103

 

  Property & Equipment

32,446

34,561

 

  Intangibles

 

3,010

2,178

 

  Investments, Other Fixed Assets

13,005

13,570

 

      TOTAL ASSETS

190,127

199,412

 

  Payables

 

35,084

44,339

 

  Short-Term Bank Loans

7,786

5,505

 

　

 

　

　

 

  Other Current Liabs

47,757

60,619

 

      TOTAL CURRENT LIABS

90,627

110,463

 

  Debentures

 

1,000

1,000

 

  Long-Term Bank Loans

20,947

18,916

 

  Reserve for Retirement Allw

4,815

3,852

 

  Other Debts

　

7,443

6,672

 

      TOTAL LIABILITIES

124,832

140,903

 

      MINORITY INTERESTS

 

 

 

Common stock

18,198

18,198

 

Additional paid-in capital

20,759

20,760

 

Retained earnings

25,525

19,642

 

Evaluation p/l on investments/securities

618

127

 

Others

 

510

76

 

Treasury stock, at cost

(315)

(294)

 

      TOTAL S/HOLDERS` EQUITY

65,295

58,509

　

      TOTAL EQUITIES

190,127

199,412

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

10,807

-8,961

 

Cash Flows from Investment Activities

-684

-4,988

 

Cash Flows from Financing Activities

-8,344

2,242

　

Cash, Bank Deposits at the Term End

　

73,954

61,461

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

65,295

58,509

 

 

Current Ratio (%)

156.32

134.98

 

 

Net Worth Ratio (%)

34.34

29.34

 

 

Recurring Profit Ratio (%)

8.31

4.95

 

 

Net Profit Ratio (%)

4.10

2.00

 

 

Return On Equity (%)

10.92

11.14


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.02

UK Pound

1

Rs.72.70

Euro

1

Rs.62.54

 

 

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

 

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.