MIRA INFORM REPORT

 

 

Report Date :

15.12.2012

 

IDENTIFICATION DETAILS

 

Name :

ASAHI KASEI CORPORATION

 

 

Registered Office :

1-105 Kanda-Jimbocho Chiyodaku Tokyo 101-8101

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

May, 1931

 

 

Reg. No.:

0100-01-008647

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of chemicals, home/construction materials, electronics, health foods

 

 

No. of Employees :

28,401

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

Regular

Litigation :

Clear

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

japan - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

Source : CIA

 

 

 

Company name

 

ASAHI KASEI CORPORATION

 

 

REGD NAME

 

Asahi Kasei KK

 

 

MAIN OFFICE

 

1-105 Kanda-Jimbocho Chiyodaku Tokyo 101-8101 JAPAN

Tel: 03-3296-3000     Fax: 03-3296-3161     -

 

URL:                 http://www.asahi-kasei.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of chemicals, home/construction materials, electronics, health foods

 

 

BRANCHES

 

Osaka, Nobeoka, Miyazaki (2), Fuji, Moriyama, other

 

 

OVERSEAS

 

China (7), USA (10), Europe (8), Asia (5), Australia

 

 

FACTORIES

 

Nobeoka, Mizushima, Kawasaki, Fuji, Moriyama, other (--subsidiary makers)

 

 

CHIEF EXEC

 

TAKETSUGU FUJIWARA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY          

 

FINANCES        FAIR                 　A/SALES       Yen 1,573,230 M

PAYMENTS      REGULAR         　CAPITAL        Yen 103,389 M

TREND             UP                    　WORTH         Yen 719285 M

STARTED         1931                 　EMPLOYES   28,401

 

 

COMMENT    

 

COMPLIHENSIVE CHEMICAL MAKER 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

 

                        Unit: In Million Yen

Forecast figures for the 31/03/2013 fiscal term.

 

 

HIGHLIGHTS

 

This is the comprehensive chemical maker, originally founded in 1922.  Engaged in diversified businesses of clothing, membranes, housing, construction and electronics materials.  Emphasis shifting from styrene- and acrylonitrile-based fibers and chemicals to housing & construction materials.  Also leading maker of synthetic fibers.  Adopted holding company system in Oct 2003 thru spin-offs.  The company will pull out of the depressed US production of elastic polyethylene textiles in Oct 2012.  It aims to add a transdermal agent to its lucrative osteoporosis medications in four years.  The company also plans further miniaturization of electronic compasses where it holds a high market share in the products for smartphones.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 1,573,230 million, a 1.1% up from Yen 1,555,945 million in the previous term.  Japanese economy slowed down significantly during the fiscal year, with the global economy being affected by the sovereign debt crisis in Europe, and with exports to China and other emerging markets slowing down in the second half.  Mfg activity was generally recovered from the stagnant period following the Great East Japan Earthquake.  By Divisions: Chemicals down 2.8% to Yen 680,100 million; Homes/Construction Materials up 10.4% to Yen 452,000 million; Health Care up 2.7% to Yen 119,500 million; Fibers up 1.9% to Yen 110,800 million; Electronics down 7.7% to Yen 146,100 million.  The recurring profit was posted at Yen 107,567 million and the net profit at Yen 55,766 million, respectively, compared with Yen 118,219 million recurring profit and Yen 60,288 million net profit, respectively, a year ago. 

           

For the current term ending Mar 2013 the recurring profit is projected at Yen 93,000 million and the net profit at Yen 50,500 million, on a 7.1% rise in turnover, to Yen 1,685,000 million.  Housing sales will rise steadily.  Pharmaceuticals will benefit from the growth of lucrative own-brand products.  But chemicals and electronics materials sales are off to a slow start after slumping since the previous term, and sales will drop below expectations, even with second-half recovery.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 50,098.8 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　May 1931

Regd No.:             0100-01-008647 (Tokyo-Chiyodaku)

Legal Status:        Limited Company (Kabushiki Kaisha

Authorized:          4,000 million shares

Issued:                1,402,616,332 shares

Sum:                   Yen 103,389 million

 

Major shareholders (%): Master Trust Bank of Japan T (5.4), Nippon Life Ins (5.2), Japan Trustee Services T (4.5), Employees’ S/Holding Assn (3.4), SMBC (2.5), SSBT OD05 Omnibus Acct Treaty Cl (2.0), Chase London SL Omnibus Acct (1.9), Mizuho Corporate Bank (1.4), Tokio Marine & Nichido Fire Ins (1.4), Sumitomo Life Ins (1.3); foreign owners (25.5)

 

No. of shareholders: 90,135

 

Listed on the S/Exchange (s) of: Tokyo, Osaka, Nagoya, Fukuoka, Sapporo S/E’s

 

Managements: Ichiro Itoh, ch; Taketsugu Fujiwara, pres; Koji Fujiwara, dir; Yasuyuki Yoshida, dir; Hideki Kobori, dir; Hiroshi Kobayashi, dir; Masafumi Nakao, dir; Yoshiharu Kodama, dir; Morio Ikeda, dir

 

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

 

Related companies: Asahi Kasei Chemicals, Asahi Kasei Homes, Asahi Kasei Electronics. Others (Tot 21)

 

 

OPERATION

           

Activities: Comprehensive chemical mfg firm: chemicals & fibers (43%), housing & materials (29%), pharmaceuticals & medical lines (8%), textiles (7%), electronics (9%), others (4%).

Overseas Sales Ratio (27%)

           

Clients: Mfrs, wholesalers, other

            No. of accounts: 800

            Domestic areas of activities: Nationwide

           

Payment record: Regular

 

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

 

Bank References:

SMBC (H/O)

Norin Chukin Bank (Tokyo)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

  Annual Sales

　

1,573,230

1,555,945

  Cost of Sales

1,178,968

1,151,204

      GROSS PROFIT

394,261

404,741

  Selling & Adm Costs

290,003

281,814

      OPERATING PROFIT

104,258

122,927

  Non-Operating P/L

3,309

-4,708

      RECURRING PROFIT

107,567

118,219

　

      NET PROFIT

55,766

60,288

BALANCE SHEET

  Cash

　

102,875

140,319

  Receivables

266,056

273,414

  Inventory

279,236

256,248

  Securities, Marketable

360

371

  Other Current Assets

73,243

85,299

      TOTAL CURRENT ASSETS

721,770

755,651

  Property & Equipment

416,119

418,354

  Intangibles

45,189

31,101

  Investments, Other Fixed Assets

227,490

220,773

      TOTAL ASSETS

1,410,568

1,425,879

  Payables

143,194

136,407

  Short-Term Bank Loans

74,490

108,889

　

　

　

  Other Current Liabs

231,916

238,472

      TOTAL CURRENT LIABS

449,600

483,768

  Debentures

25,000

25,000

  Long-Term Bank Loans

62,710

91,722

  Reserve for Retirement Allw

106,277

107,309

  Other Debts

　

47,696

42,478

      TOTAL LIABILITIES

691,283

750,277

      MINORITY INTERESTS

Common stock

103,389

103,389

Additional paid-in capital

79,402

79,402

Retained earnings

516,401

478,681

Evaluation p/l on investments/securities

40,148

29,647

Others

(17,667)

(13,402)

Treasury stock, at cost

(2,388)

(2,115)

      TOTAL S/HOLDERS` EQUITY

719,285

675,602

　

      TOTAL EQUITIES

1,410,568

1,425,879

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2012

31/03/2011

Cash Flows from Operating Activities

　

141,260

148,128

Cash Flows from Investment Activities

-89,503

-78,838

Cash Flows from Financing Activities

-91,030

-26,144

　

Cash, Bank Deposits at the Term End

　

96,351

134,450

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

Net Worth (S/Holders' Equity)

719,285

675,602

Current Ratio (%)

160.54

156.20

Net Worth Ratio (%)

50.99

47.38

Recurring Profit Ratio (%)

6.84

7.60

Net Profit Ratio (%)

3.54

3.87

Return On Equity (%)

7.75

8.92

 

 

           

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.39

UK Pound

1

Rs.87.78

Euro

1

Rs.71.29

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.