MIRA INFORM REPORT

 

 

Report Date :

03.11.2012

 

IDENTIFICATION DETAILS

 

Name :

IHI PLANT CONSTRUCTION CO LTD

 

 

Registered Office :

Toyosu IHI Bldg, 3-1-1 Toyosu Kotoku Tokyo 135-0061

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

September 1969

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Engineering/construction of power plants

 

 

No. of Employees :

475 employees

 

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

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

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

(31.03.2012)

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

 

IHI PLANT CONSTRUCTION CO LTD

 

 

REGD NAME

 

IHI Plant Kensetsu KK

 

 

MAIN OFFICE

 

Toyosu IHI Bldg, 3-1-1 Toyosu Kotoku Tokyo 135-0061 JAPAN

Tel: 03-4553-1000      Fax: 03-4553-1040

 

URL:                 http://www.ipc-ihico.jp

E-Mail address: ipc_info_mail@ipc-ihico.jp

 

 

ACTIVITIES  

 

Engineering/construction of power plants

 

 

FACTORIES

 

Sunamachi (Kotoku), Chita, Aioi, Fukushima, Tochigi, Hyogo

 

 

OFFICERS

 

NOZOMU KOBAYASHI, PRES               Hideaki Kobayashi, mgn dir

Tatsuo Tanaka, mgn dir                          Osamu Sasagawa, mgn dir

Hiroaki Shimojo, mgn dir                         Takeshi Nishiyama, mgn dir       

           

Yen Amount:                                         In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                             A/SALES          Yen 32,159 M

PAYMENTS      No Complaints          CAPITAL           Yen 500 M

TREND             SLOW                          WORTH            Yen 7,184 M

STARTED                     1969                             EMPLOYES      475

 

 

COMMENT

 

ENGINEERING/CONSTRUCTION OF POWER PLANTS.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: US#2,000,000.-

 

           

HIGHLIGHTS

           

The subject company was established on the basis of an engineering division separated from IHI Corp (See REGISTRATION).  This is an engineering firm for construction of power plants: thermal, atomic power, wind power, solar energy, other.  Also makes industrial machinery.  Clients include electric power companies, gas companies, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2012 fiscal term amounted to Yen 32,159 million, a 2% down from Yen 32,926 million in the previous term.  The recurring profit was posted at Yen 1,078 million and the net profit at Yen 238 million, respectively, compared with Yen 1,555 million recurring profit and yen 476 million net profit, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 1,080 million and the net profit at Yen 240 million, respectively, on an almost similar turnover, to Yen 32,200 million. 

 

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

 

 

REGISTRATION

 

Date Registered:             Sept 1969

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         3.2 million shares

Issued:                806,000 shares

Sum:                   Yen 500 million

 

Major shareholders (%): IHI Corp* (100)

 

*.. One of major heavy electric machinery mfr, Tokyo, founded 1889, listed Tokyo, Osaka, Nagoya, Fukuoka, Sapporo S/E’s, capital Yen 95,762 million, sales Yen 1,221,869 million, operating profit Yen 43,333 million, recurring profit Yen 41,713 million, net profit Yen 23,823 million, total assets Yen 1,292,267 million, net worth Yen 251,130 million, employees 28,137, pres Tamotsu Saito

 

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

OPERATION

           

Activities: Engineering/construction of power plants: thermal power plants, atomic power plants, wind power plants, solar power plants, other; manufactures industrial machinery, other; power boilers (24%), atomic power facilities (28%), storage plant environmental facilities (28%), steel structures, industrial machinery, others (20%)

 

Clients: [Mfrs, wholesalers] IHI Corp, IHI Infrastructure Systems Co, Tokyo Gas Engineering, IHI Metal Tech Co, Nuclear Services Co, other 

            No. of accounts: 300

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Gastech Corp, Hokkaido Power Engineering, JGC Plant Solution, Tokyo Douryoku Co, Yamazaki Co, other

 

Payment record: No Complaints

 

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

 

Bank References:

Mizuho Bank (Fukagawa)

SMBC (Tokyo-Chuo)

Relations: Satisfactory

 

 

FINANCES

 (In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

　

32,200

32,159

32,926

43,922

Recur. Profit

　

1,080

1,078

1,555

817

Net Profit

　

240

238

476

434

Total Assets

　

　

24,369

19,920

30,038

Current Assets

　

　

21,287

16,498

26,115

Current Liabs

　

　

14,811

10,273

20,576

Net Worth

　

　

7,184

7,171

6,945

Capital, Paid-Up

　

　

500

500

500

Div.P.Share(¥)

　

　

91.00

288.00

256.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

0.13

-2.33

-25.04

-11.24

    Current Ratio

 

..

143.72

160.60

126.92

    N.Worth Ratio

..

29.48

36.00

23.12

    R.Profit/Sales

 

3.35

3.35

4.72

1.86

    N.Profit/Sales

0.75

0.74

1.45

0.99

    Return On Equity

..

3.31

6.64

6.25

 

Notes: Forecast (or estimated) figures for the 31/03/2013 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.66

UK Pound

1

Rs.86.37

Euro

1

Rs.69.24

 

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%)

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.