MIRA INFORM REPORT

 

 

Report Date :           

30.03.2011

 

IDENTIFICATION DETAILS

 

Name :

HITACHI PLANT TECHNOLOGIES LTD

 

 

Registered Office :

Rise Arena Bldg 12F, 4-5-2 Higashiikebukuro Toshimaku Tokyo 170-8466

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

June 1929

 

 

Com. Reg. No.:

(Tokyo-Toshimaku) 024129

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Plant Installation 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 8,542.2 Million

Status :

Satisfactory

Payment Behaviour :

Usually Correct

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

 

HITACHI PLANT TECHNOLOGIES LTD

 

 

REGD NAME

 

KK Hitachi Plant Technologies

 

 

MAIN OFFICE

 

Rise Arena Bldg 12F, 4-5-2 Higashiikebukuro Toshimaku Tokyo 170-8466 , JAPAN

Tel: 03-5928-8001

URL:                             http://www.hitachi-pt.co.jp/

E-Mail address:            info@hitachi-pt.co.jp

 

 

ACTIVITIES  

 

Plant installation engineering works

 

 

BRANCHES   

 

Nationwide (55);

(Overseas); China (7), Egypt, Venezuela, Philippines, etc (Tot 24)

 

 

FACTORIES  

 

Tsuchiura, Amagasaki, Ebina, Sano

 

 

OFFICERS

 

TOSHIAKI HIGASHIHARA, PRES                       Masaharu Sumikawa, ch

Toshiyuki Takaoka, v pres                                   Shinjiro Ueda, v pres

Yoshiaki Kobayashi, s/mgn dir                            Shuzo Hanamura, s/mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 335,262 M

PAYMENTS                  REGULAR                     CAPITAL           Yen 7,319 M

TREND             SLOW                          WORTH            Yen 103,136 M

STARTED                     1929                             EMPLOYES      6,550

 

 

COMMENT

 

PLANT INSTALLATION ENGINEERING WORKS, OWNED BY HITACHI LTD. FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY  BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 8,542.2 MILLION, 30 DAYS NORMAL TERMS.

 

 

                        Forecast (or estimated) figures for 31/03/2011 fiscal term

 

 

HIGHLIGHTS

           

The subject company is the nation’s largest plant installation engineering company, owned by Hitachi Ltd.  In Apr 2006, merged two Hitachi group firms and changed the company name from Hitachi Plant Engineering & Construction.  By the merger, the firm reorganized operations into five core divisions; social Infrastructure & industrial machinery systems; Mechatronics, industrial plant systems, air conditioning systems, and energy systems. (See OPERATION).

 

Regarding effects of the earthquake off the Pacific Coast, Hitachi Ltd, the parent, announced as follows:

Status of Production Bases: Hitachi’s buildings and production facilities have suffered damaged, mainly at production bases in Ibaraki Prefecture.  The company will make the safety of its employees the first priority, and will continue gather details on the status of damages to production facilities, while closely monitoring conditions of utilities such as the availability of electric power.

 

Main production bases where damages to buildings and production facilities have been confirmed:

·         Hitachi Ltd Power Systems Company, Hitachi Works

·         Hitachi Ltd Urban Planning & Development Systems Company, Mito Works

·         Hitachi Ltd Information & Control Systems Company, Omika Works

·         Hitachi Ltd Appliances Inc, Taga Office

·         Hitachi Automotive Systems, Sawa Works

·         Hitachi Automotive Systems, Fukushima Works

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 335,262 million, a 15.3% down from Yen 395,693 million in the previous term.  The business environment was severe after affected by the global economic downturn that continued.  Orders received were down 19% to Yen 311,403 million.  Sales declined in all segments.  The recurring profit was posted at Yen 5,567 million and the net profit at Yen 1,751 million, respectively, compared with Yen 5,856 million recurring profit and Yen 859 million net losses, respectively, a year ago.

 

(Apr/Sept/2010 results): Sales Yen 130,204 million (down 1.7%), operating loss Yen 1,463 million (previous Yen 3,884 million loss), recurring loss Yen 1,576 million (previously Yen 4,259 million loss), net loss Yen 1,117 million (previously Yen 2,617 million).  (% & figures compared with the corresponding period a year ago).

           

For the current term ending Mar 2011 the recurring profit is projected at Yen 5,500 million and the net profit at Yen 1,700 million, on a 1.6% fall in turnover, to Yen 330,000 million.  The forecast figures were announced in Apr 2010 and have not revised.  Taking into the damages and aftermath of the said earthquake the figures could well be revised.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 8,542.2 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:          Jun 1929

Regd No.:                                 (Tokyo-Toshimaku) 024129

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  250 million shares

Issued:                         135,590,898 shares

Sum:                            Yen 7,319 million

           

Major shareholders (%): Hitachi Ltd* (100)

 

No. of shareholders: 7,363

 

*.. Largest comprehensive mfr of electrical machinery, Tokyo, founded 1920, listed Tokyo, Osaka, Nagoya, Luxemburg, Frankfurt, Amsterdam, Paris, New York S/E’s, capital Yen   408,814 million, turnover Yen 8,968,546 million, recurring profit Yen 63,580 million, net        loss Yen 106,961 million, total assets Yen 9,318,463 million, net worth Yen 1,415,077 million, employees 352,524, pres Takashi Kawamura

           

 

OPERATION

 

Activities: Plant installation engineering works:

 

(Sales breakdown by divisions):

Energy Systems (24%), Industrial Systems (20%), Air Conditioning Systems (20%), Social & Environmental Systems (36%).

 

Overseas sales ratio 22.6%: Asia 12.5%, other region 10.1%.

 

(Division Breakdown):

 

Social Infrastructure & Industrial Machinery Systems: pump systems, water treatment systems, compressors, gears;

 

Mechatronics: electronics mfg systems, clean materials handling systems, logistics systems, cranes;

 

Industrial Plant Systems: plants, equipment, total engineering, refrigerating facilities, materials handling systems, industrial wastewater treatment systems, engineering systems;

 

Air Conditioning Systems: building equipment, industrial air-conditioning facilities & clean rooms;

 

Energy Systems: power plants, dust collection systems, other.

 

           

Clients: [Mfrs, wholesalers] Hitachi Ltd, Renesas Technologies, Hitachi Displays, other.

            No. of accounts: 2,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Tokyo Kinsho, Hitachi Densen Shoji, Shinko Dengyo, other.

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Kanda-Ekimae)

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

　

335,262

395,693

 

  Cost of Sales

294,939

354,519

 

      GROSS PROFIT

40,323

41,174

 

  Selling & Adm Costs

34,101

33,813

 

      OPERATING PROFIT

6,222

7,361

 

  Non-Operating P/L

-655

-1,505

 

      RECURRING PROFIT

5,567

5,856

　

      NET PROFIT

1,751

-859

BALANCE SHEET

 

 

 

 

  Cash

　

11,447

15,778

 

  Receivables

 

145,681

166,820

 

  Inventory

 

68,637

74,920

 

  Securities, Marketable

　

　

 

  Other Current Assets

24,194

22,291

 

      TOTAL CURRENT ASSETS

249,959

279,809

 

  Property & Equipment

27,429

27,370

 

  Intangibles

 

2,195

1,793

 

  Investments, Other Fixed Assets

17,167

19,245

 

      TOTAL ASSETS

296,750

328,217

 

  Payables

 

88,623

107,394

 

  Short-Term Bank Loans

24,029

31,666

 

　

 

　

　

 

  Other Current Liabs

60,466

68,171

 

      TOTAL CURRENT LIABS

173,118

207,231

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

1,208

　

 

  Reserve for Retirement Allw

14,785

13,862

 

  Other Debts

　

4,503

5,301

 

      TOTAL LIABILITIES

193,614

226,394

 

      MINORITY INTERESTS

 

 

 

Common stock

12,000

12,000

 

Additional paid-in capital

21,037

20,976

 

Retained earnings

68,952

68,767

 

Evaluation p/l on investments/securities

885

743

 

Others

 

588

(237)

 

Treasury stock, at cost

(326)

(426)

 

      TOTAL S/HOLDERS` EQUITY

103,136

101,823

　

      TOTAL EQUITIES

296,750

328,217

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

13,063

-12,438

 

Cash Flows from Investment Activities

-5,035

-5,713

 

Cash Flows from Financing Activities

-9,025

13,302

　

Cash, Bank Deposits at the Term End

　

13,994

15,073

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

103,136

101,823

 

 

Current Ratio (%)

144.39

135.02

 

 

Net Worth Ratio (%)

34.76

31.02

 

 

Recurring Profit Ratio (%)

1.66

1.48

 

 

Net Profit Ratio (%)

0.52

-0.22

 

 

Return On Equity (%)

1.70

-0.84

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.67

UK Pound

1

Rs.71.63

Euro

1

Rs.63.09

 

 

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.