MIRA INFORM REPORT

 

 

Report Date :           

29.10.2011

 

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) :

31.03.2011

 

 

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 6,700.2 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 – 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

 

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

 

*.. The given address is its Tsuchiura Plant

 

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, Ryugasaki, Sano, Kasado, Matsudo

 

 

OFFICERS

 

TOSHIAKI HIGASHIHARA, PRES                       Masaharu Sumikawa, ch

Toshiyuki Takaoka, v pres                                   Shinjiro Ueda, v pres

Hiroshi Maruta, mgn dir                                      Naotaka Murasumi, mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 300,728 M

PAYMENTS      REGULAR                     CAPITAL           Yen 12,000 M

TREND             SLOW                          WORTH            Yen 86,820 M

STARTED         1929                             EMPLOYES      6,500

 

 

COMMENT    

 

PLANT INSTALLATION ENGINEERING WORKS, OWNED BY HITACHI LTD. 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY  BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 6,700.2 MILLION, 30 DAYS NORMAL TERMS.

 

 

 

                        Forecast (or estimated) figures for 31/03/2012 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, which now reduced to 4 divisions; social Infrastructure systems; Industrial Systems; Air Conditioning Systems and Energy Systems. (See OPERATION).  In 2010 the firm became a wholly owned subsidiary of Hitachi Ltd, until then the firm had been listed on the Tokyo Stock Exchange. 

 

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/2011 fiscal term amounted to Yen 300,728 million, a 10.3% down from Yen 335,262 million in the previous term.  The financial results were impacted by the Great East Japan Earthquake on March 11 2011, as Hitachi factories are located in the midst or around the earthquake-stricken areas, and posted a net loss of Yen 3,636 million.  Sales declined in all segments.  By divisions, Social Infrastructure Systems down 8.7% to Yen 109,731 million, Industrial Systems down 17.2% to Yen 54,861 million, Air Conditioning Systems down 12.5% to Yen 58,116 million; Energy Systems down 5.3% to Yen 78,020 million.   The recurring profit was posted at Yen 5,660 million and the net loss at Yen 3,636 million, respectively, compared with Yen 5,567 million recurring profit and Yen 1,751 million net losses, respectively, a year ago.

 

For the current term ending Mar 2012 the recurring profit is projected at Yen 5,700 million and the net profit at Yen 3,700 million, on a 5% rise in turnover to Yen 315,000 million.  The firm says it has already returned to a normal business track during the first quarter of fiscal 2011.  The firm will move rapidly from domestic market to high growth emerging markets: China, S/E Asia, India, Middle East, Africa, Russia and South America.  It will continue to make investments to these areas.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.            Max credit limit is estimated at Yen 6,700.2 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Jun 1929

Regd No.:         (Tokyo-Toshimaku) 024129

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         770 million shares

Issued:                194,820,508 shares

Sum:                   Yen 1,200 million

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

 

*.. Largest comprehensive mfr of electrical machinery, Tokyo, founded 1920, listed Tokyo, Osaka, Nagoya, Luxemburg, Frankfurt, Amsterdam, Paris, New York S/E’s, capital Yen   409,130 million, turnover Yen 9,315,807 million, operating profit Yen 444,508 million, recurring profit Yen 432,201 million, net profit Yen 238,869 million, total assets Yen 9,433,634 million, net worth Yen 1,440,280 million, employees 371,833, pres Hiroaki Nakanishi

 

 

OPERATION

 

Activities: Plant installation engineering works:

           

(Sales breakdown by divisions):

           

Social Infrastructure Systems (37%): pump systems, water treatment systems, compressors, gears;

 

Industrial Systems (18%): plants, equipment, total engineering, refrigerating facilities, materials handling systems, industrial wastewater treatment systems, engineering systems, electronics mfg systems, clean materials handling systems, logistics  systems, cranes;

Air Conditioning Systems (19%): building equipment, industrial air-conditioning facilities & clean rooms;

 

Energy Systems (26%): power plants, dust collection systems, other.

 

Overseas Sales (20%).

           

Clients: [Mfrs, wholesalers] Hitachi Ltd, Renesas Technologies, Hitachi Displays, Canon Inc, Takeda Pharmaceutical, Chimei Opto Electronics, AU Optronics, Hitachi High Technologies, Shin-Etsu Semiconductors, other.

            No. of accounts: 2,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Hitachi Ltd, Tokyo Kinsho, Hitachi Densen Shoji, Shinko Dengyo, Hitachi Capital, Babcock Hitachi, Hitachi Technology & Service, 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:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

300,728

335,262

 

  Cost of Sales

260,120

294,939

 

      GROSS PROFIT

40,608

40,323

 

  Selling & Adm Costs

34,977

34,101

 

      OPERATING PROFIT

5,631

6,222

 

  Non-Operating P/L

29

-655

 

      RECURRING PROFIT

5,660

5,567

　

      NET PROFIT

-3,636

1,751

BALANCE SHEET

 

 

 

 

  Cash

　

8,686

11,447

 

  Receivables

 

121,627

141,316

 

  Inventory

 

62,128

68,637

 

  Securities, Marketable

　

　

 

  Other Current Assets

42,876

28,559

 

      TOTAL CURRENT ASSETS

235,317

249,959

 

  Property & Equipment

27,038

27,429

 

  Intangibles

 

2,181

2,195

 

  Investments, Other Fixed Assets

16,345

17,167

 

      TOTAL ASSETS

280,881

296,750

 

  Payables

 

82,887

87,588

 

  Short-Term Bank Loans

13,075

24,194

 

　

 

　

　

 

  Other Current Liabs

77,101

61,336

 

      TOTAL CURRENT LIABS

173,063

173,118

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

480

640

 

  Reserve for Retirement Allw

12,350

11,783

 

  Other Debts

　

8,168

8,073

 

      TOTAL LIABILITIES

194,061

193,614

 

      MINORITY INTERESTS

 

 

 

Common stock

12,000

12,000

 

Additional paid-in capital

　

　

 

Retained earnings

20,904

21,037

 

Evaluation p/l on investments/securities

(2,274)

(1,820)

 

Others

 

56,190

71,919

 

Treasury stock, at cost

　

　

 

      TOTAL S/HOLDERS` EQUITY

86,820

103,136

　

      TOTAL EQUITIES

280,881

296,750

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

29,602

13,063

 

Cash Flows from Investment Activities

-5,161

-5,035

 

Cash Flows from Financing Activities

-12,163

-9,025

　

Cash, Bank Deposits at the Term End

　

26,139

13,994

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

86,820

103,136

 

 

Current Ratio (%)

135.97

144.39

 

 

Net Worth Ratio (%)

30.91

34.76

 

 

Recurring Profit Ratio (%)

1.88

1.66

 

 

Net Profit Ratio (%)

-1.21

0.52

 

 

Return On Equity (%)

-4.19

1.70

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.48.82

UK Pound

1

Rs.78.57

Euro

1

Rs.69.29

 

 

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.