MIRA INFORM REPORT

 

 

Report Date :

08.04.2013

 

IDENTIFICATION DETAILS

 

Name :

ASAHI KASEI CHEMICALS CORPORATION

 

 

Registered Office :

Jimbocho Mitsui Bldg, 1-105 Kanda-Jimbocho Chiyodaku Tokyo 101-8101

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

November, 1972

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of petrochemicals, industrial chemicals

 

 

No. of Employees :

5,400

 

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 :

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

(31.03.2012)

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

 

ASAHI KASEI CHEMICALS CORPORATION

 

 

REGD NAME

 

Asahi Kasei Chemicals KK

 

 

MAIN OFFICE

 

Jimbocho Mitsui Bldg, 1-105 Kanda-Jimbocho Chiyodaku Tokyo 101-8101 JAPAN

Tel: 033296-3200     Fax: 03-3296-3438

 

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

E-Mail address:            info@asahi-kasei.co.jp/chemicals

 

 

ACTIVITIES  

 

Mfg of petrochemicals, industrial chemicals

 

 

BRANCHES

 

Osaka, Nagoya, Fukuoka

 

 

OVERSEAS

 

China, Korea, Singapore, Indonesia, Europe, USA (--subsidiaries)

 

 

FACTORIES

 

Mizushima, Kawasaki, Nobeoka, Fuji, Moriyama, Shizuoka, Oita, Wakayama, Fukuoka, Chiba

 

 


OFFICER(S)

 

MASAKI SAKAMOTO, PRES     Yuji Kobayashi, s/mgn dir

Hajime Nagahara, mgn dir          Yoshio Negishi, mgn dir

Tsuneo Takemoto, mgn dir         Yukihiro Mori, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

           

FINANCES        FAIR                 A/SALES          Yen 547,382 M

PAYMENTSREGULAR   CAPITAL           Yen 3,000 M

TREND STEADY           WORTH            Yen 167,622 M

STARTED         1972                 EMPLOYES      5,400

 

 

COMMENT

 

MFR OF INDUSTRIAL CHEMICALS, WHOLLY OWNED BY ASAHI KASEI CORP

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established on the basis of 4 Asahi Kasei group firms merging into one entity.  The subject specializes in mg petrochemicals, polymers, performance chemicals, other.  This is actually mfg division of Asahi Kasei Corp (See REGISTRATION).  It expanded production capacity of acrylonitril at Korean Plant in Jan 2012, and in Jun 2012 will built a new factory in Singapore for production of chemicals for supply to automobile tire industry.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 547,382 million, a 0.6% up from Yen 541,666 million in the previous term.  Market recovered.  The recurring profit was posted at Yen 25,181 million and the net profit at Yen 10,821 million, respectively, compared with Yen 34,737 million recurring profit and Yen 15,493 million net profit, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 26,000 million and the net profit at Yen 11,000 million, respectively, on a 3% rise in turnover, to Yen 563,000 million.  Newly expanded Korean plant and new plant in Singapore will contribute.    .

 

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

 

 


REGISTRATION

 

Date Registered:                       Nov 1972

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  160,000 shares

Issued:                         40,000 shares

Sum:                             Yen 3,000 million

Major shareholders (%): Asahi Kasei Corp* (100)

           

*.. Comprehensive chemical firm engaged in diversified businesses of clothing, membranes and housing, Tokyo, founded 1931, listed Tokyo, Osaka, Nagoya, Fukuoka & Sapporo S/E’s, capital Yen 103,389 million, turnover Yen 1,573,230 million, operating profit Yen 104,258 million, recurring profit Yen 107,567 million, net profit Yen 55,766 million, total assets Yen 1,655,659 million, net worth Yen 693,934 million, employees 28,401, pres Taketsugu Fujiwara.

 

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

 

 

OPERATION

 

Activities: Manufactures petrochemicals/industrial chemicals: monomers, organic & inorganic chemicals, polyethylene, synthetic rubber & elastomers, polymers, cleaners, packaging products, performance chemicals, systems & membranes, other (--100%).

 

Clients: [Mfrs, wholesalers] Mitsubishi Corp, Itochu Corp, Bridgestone Corp, Sekisui Chemical Ind, Nippon Paper Group firms, other

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsubishi Corp, Sanyo Sekiyu Kagaku, JX Nippon Oil & Energy Corp, other

 

Payment record: Regular

 

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

           

Bank References:

SMBC (Tokyo)

Mizuho Bank (H/O)

Relations: Satisfactory

 

 


FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

563,000

547,382

543,666

469,883

Recur. Profit

 

26,000

25,187

34,737

17,061

Net Profit

 

11,000

10,821

15,493

6,392

Total Assets

 

 

456,120

435,679

420,579

Current Assets

 

 

241,696

225,262

206,536

Current Liabs

 

 

225,369

188,730

186,966

Net Worth

 

 

167,622

175,517

165,969

Capital, Paid-Up

 

 

3,000

3,000

3,000

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.85

0.68

15.70

-19.39

    Current Ratio

 

..

107.24

119.36

110.47

    N.Worth Ratio

..

36.75

40.29

39.46

    R.Profit/Sales

 

4.62

4.60

6.39

3.63

    N.Profit/Sales

1.95

1.98

2.85

1.36

    Return On Equity

..

6.46

8.83

3.85

 

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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.88

UK Pound

1

Rs.83.54

Euro

1

Rs.70.90

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

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.