MIRA INFORM REPORT

Report Date :

28.04.2012

IDENTIFICATION DETAILS

Name :	CHIYODA CORPORATION

Registered Office :	2-12-1 Tsurumi-Chuo Tsurumiku Yokohama 230-8601

Country :	Japan

Financials (as on) :	31.03.2011

Date of Incorporation :	January 1948

Com. Reg. No.:	0200-01-018029 (Yokohama-Tsurumiku)

Legal Form :	Limited Company

Line of Business :	Plant engineering of oil refining & petrochemical plants

No. of Employees :	4,104

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

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 31^st, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Japan

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name

CHIYODA CORPORATION

REGD NAME

Chiyoda Kako Kensetsu KK

MAIN OFFICE

2-12-1 Tsurumi-Chuo Tsurumiku Yokohama 230-8601 JAPAN

Tel: 045-521-1231 Fax: 045-506-7085

URL: http://www.chiyoda-corp.com/

E-Mail address: (thru the URL)

ACTIVITIES

Plant engineering of oil refining & petrochemical plants

BRANCHES

Tokyo, Osaka, Nagoya, Sapporo, Naha, Sendai, Kurashiki, Takamatsu

OVERSEAS

Abu Dhabi, Doha, Teheran, Shanghai, Beijing, Jakarta, Singapore, Hague, Milan, Ulsan

FACTORIES

Kawasaki (research center)

CHIEF EXEC

TAKASHI KUBOTA, PRES & CEO

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 247,082 M

PAYMENTS REGULAR CAPITAL Yen 43,396 M

TREND SLOW WORTH Yen 155,758 M

STARTED 1948 EMPLOYES 4,104

COMMENT

MAJOR COMPREHENSIVE PLANT ENGINEERING COMPANY, AFFILIATED TO MITSUBISHI CORP.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

Notes: Unit in Million Yen

Forecast (or estimated) figures for 31/03/2012fiscal term

HIGHLIGHTS

The subject company was established on the basis of a construction division spun off from Mitsubishi Oil Co Ltd. This is a leading comprehensive plant engineering company belonging to Mitsubishi group, with strength in petroleum & petrochemical facilities. Excels in LNG plants, which division has grown to be the mainstay, accounting for over 40% of total sales. Engaged in major LNG engineering plant projects in Near & Mid East, and Russia. At one time the firm was thrown into management crisis but with the help of Bank of Tokyo-Mitsubishi, Mitsubishi Corp and Kellogg Brown & Root of the US, the firm recovered. Robust demand of LNG plants overseas helped greatly to the restructuring and profitability. Boasts high level technology with recognition by oil majors. Engaged in joint work with Ebara Corp, a pumps & air-blower maker, Tokyo, in environment-related overseas plant engineering. Started test run for LNG1 plants, and LNG2 plant projects to be completed in spring 2009. Received first orders for LNG plant from Algeria. Mitsubishi Corp is the top shareholder. Reportedly (from The Nikkei dated 21/09/2010) , the firm will participate in the Qatar Helium 2 Project, which calls for the construction of the world’s largest helium production facility, one that will boast an annual capacity of roughly 40 million cu. Meters of the gas. Chiyoda Al Mana Engineering LLC, a joint venture in which Chiyoda owns a 49% stake, has won the order to build the facility’s extraction units, which will recover helium generated as a byproduct at six large liquefied natural gas plant in Qatar. The firm has received an official order for an LNG plant in Australia from IMPEX Corp, jointly with JGC Corp, which will contribute to sales by Yen 360 billion. It aims to receive orders for another two large LNG plant projects in Australia.

FINANCIAL INFORMATION

The sales volume for Mar/2011 fiscal term amounted to Yen 247,082 million a 21.1% down from Yen 312,985 million in the previous term. The firm won bids for the construction of a polycrystalline silicon plant in Malaysia, for an LNG plant in Australia, and for LNG receiving plant in Fukuoka-Pref. Completed construction for LNG plant Trains 6 & 7 to be operated by Qatar Liquefied Gas Co. The devastation of the March 11 earthquake and the impact of electricity shortages affected. Completed projects in overseas were down 21.1% to Yen 247,082 million, and in Japan down 15.9% to Yen 120,990 million. The recurring profit was posted at Yen 15,732 million and the net profit at Yen 7,979 million, respectively, compared with Yen 4,837 million recurring profit and Yen 2,953 million net profit, respectively, a year ago.

(Apr/Dec/2011 results): Sales Yen 172,578 million (down 6.4%), operating profit Yen 15,912 million (up 23.4%), recurring profit Yen 15,850 million (up 48.8%), net profit Yen 8,644 million (up 59.3%) (% compared with the corresponding period a year ago).

For the term that ended Mar 2012 the recurring profit was projected at Yen 21,000 million and net profit at Yen 11,000 million, respectively, on a 5.2% rise in turnover, to Yen 260,000 million. New orders were projected at Yen 580 billion (up 2.5%). Final results will be released on 11/May/2012.

The financial situation is considered FAIR and good for ORDINARY business engagements.

REGISTRATION

Date Registered: Jan 1948

Regd No.: 0200-01-018029 (Yokohama-Tsurumiku)

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 570 million shares

Issued: 260,324,529 shares

Sum: Yen 43,396 million

Major shareholders (%): Mitsubishi Corp (33.3), Master Trust Bank of Japan T (5.5), MUFG (3.4), Japan Trustee Services T (3.2), Mitsubishi UFG Trust (3.0), Bank of New York Treaty Jasdec (2.1), Nomura Trust Inv T (1.3), State Street Bank & Trust (1.2), Japan Trustee Services T9 (1.1), Tokio Marine & Nichido Fire Ins (1.0); foreign owners (23.2)

No. of shareholders: 9,928

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

Managements: Takashi Kubota, pres; Yoichi Kanno, v pres; Masahito Kawashima, s/mgn dir; Hiroshi Ogawa, s/mgn dir; Satoru Yokoi, mgn dir; Kazuo Obokata, mgn dir; Hiromi Koshizuka, mgn dir; Shogo Shibuya, mgn dir; Kazushi Okawa, dir

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

Related companies: Chiyoda Keiso, Chiyoda Kosho, other

OPERATION

Activities: Plant engineering works:

(Sales breakdown by divisions): LNG plants (36%), gas & electric power plants (18%), petroleum & petrochemicals plants (25%), general chemicals plants (5%), social development works & environmentally-related (6%), others (10%).

Overseas sales ratio (54.0%): Asia 4.1%, Near & Mid East 47.1%, Oceania (2.1%), others (0.7%)

Clients: [Oil, LNG, petrochemical industries] Oman LNG, Exxon Chemical Singapore, Shell Eastern Petroleum, Tokyo Electric Power, Tokyo Gas, Teijin Polycarbonate Singapore, Kobe Steel, Eastern Petrochemical, Yokohama City government, Nippon Shinyaku, Esso Highlands, Bayer & Dow Chemical, Qatar Liquefied Gas Co, other.

No. of accounts: 2,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsubishi Corp, Ebara Corp, Mitsubishi Heavy Ind, Nippon Steel, Fisher Japan, Yokogawa Electric, Mitsubishi Electric, Man Turbo Machinery, other.

Payment record: Regular

Location: Business area in Yokohama City. Office premises at the caption address are owned and maintained satisfactorily.

Bank References:

MUFG (H/O)

Mitsubishi Trust Bank (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				247,082	312,985
	Cost of Sales				215,563	298,766
	GROSS PROFIT				31,519	14,219
	Selling & Adm Costs				13,974	12,517
	OPERATING PROFIT				17,544	1,702
	Non-Operating P/L				-1,812	3,135
	RECURRING PROFIT				15,732	4,837
	NET PROFIT				7,979	2,953
BALANCE SHEET
	Cash				33,855	43,002
	Receivables				56,033	51,318
	Inventory				88,662	69,917
	Securities, Marketable				96,841	96,841
	Other Current Assets				40,805	29,641
	TOTAL CURRENT ASSETS				316,196	290,719
	Property & Equipment				19,021	21,450
	Intangibles				4,733	5,142
	Investments, Other Fixed Assets				13,442	10,863
	TOTAL ASSETS				353,392	328,174
	Payables				97,417	89,523
	Short-Term Bank Loans					4

	Other Current Liabs				84,470	76,433
	TOTAL CURRENT LIABS				181,887	165,960
	Debentures
	Long-Term Bank Loans				10,208	10,000
	Reserve for Retirement Allw				2,809	2,105
	Other Debts					856
	TOTAL LIABILITIES				197,633	178,921
	MINORITY INTERESTS
	Common stock				43,396	43,396
	Additional paid-in capital				37,112	37,112
	Retained earnings				77,832	70,759
	Evaluation p/l on investments/securities				(229)	102
	Others				(1,058)	(901)
	Treasury stock, at cost				(1,295)	(1,215)
	TOTAL S/HOLDERS` EQUITY				155,758	149,253
	TOTAL EQUITIES				353,392	328,174
CONSOLIDATED CASH FLOWS
				Terms ending:	31/03/2011	31/03/2010
	Cash Flows from Operating Activities				-5,229	8,613
	Cash Flows from Investment Activities				-2,577	-2,722
	Cash Flows from Financing Activities				-805	-2,079
	Cash, Bank Deposits at the Term End				130,618	139,790
ANALYTICAL RATIOS Terms ending:					31/03/2011	31/03/2010
		Net Worth (S/Holders' Equity)			155,758	149,253
		Current Ratio (%)			173.84	175.17
		Net Worth Ratio (%)			44.08	45.48
		Recurring Profit Ratio (%)			6.37	1.55
		Net Profit Ratio (%)			3.23	0.94
		Return On Equity (%)			5.12	1.98

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.68
UK Pound	1	Rs.85.12
Euro	1	Rs.69.38

INFORMATION DETAILS

Report Prepared by :

MNL

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.