MIRA
INFORM REPORT
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Report Date : |
14.12.2013 |
IDENTIFICATION DETAILS
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Name : |
JGC CORPORATION |
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Registered Office : |
Queen Tower A, 2-3-1 Minatomirai Nishiku
Yokohama 220-6001 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
October 1928 |
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Com. Reg. No.: |
(Tokyo-Chiyodaku) 008732 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Engaged in Plant engineering works |
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No. of Employees : |
6,721 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 – September 30th, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
small agricultural sector is highly subsidized and protected, with crop yields
among the highest in the world. While self-sufficient in rice production, Japan
imports about 60% of its food on a caloric basis. 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.
Modest economic growth continued after 2000, but the economy has fallen into
recession three times since 2008. A sharp downturn in business investment and
global demand for Japan's exports in late 2008 pushed Japan 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 and the ensuing tsunami in March disrupted manufacturing. The
economy has largely recovered in the two years since the disaster, but
reconstruction in the Tohoku region has been uneven. Newly-elected Prime
Minister Shinzo ABE has declared the economy his government's top priority; he
has pledged to reconsider his predecessor's plan to permanently close nuclear
power plants and is pursuing an economic revitalization agenda of fiscal
stimulus and regulatory reform and has said he will press the Bank of Japan to
loosen monetary policy. Measured on a purchasing power parity (PPP) basis that
adjusts for price differences, Japan in 2012 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 2012. The new government will
continue a longstanding debate 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 and address
JGC CORPORATION
REGD NAME: Nikki
KK
MAIN OFFICE: Queen
Tower A, 2-3-1 Minatomirai Nishiku Yokohama 220-6001 JAPAN
Tel:
045-682-1111 Fax: 045-682-1112
URL: www.jgc.co.jp/
E-Mail address: webmaster@jgc.co.jp
ACTIVITIES
Plant engineering
works
BRANCHES
Tokyo, Osaka,
Yokohama, other (Tot 15)
OVERSEAs
Beijing,
Singapore, Paris, London, Jakarta, Bangkok, Abu Dhabi, Algiers, Teheran, Arzew
(Algeria)
(Affiliated): China, Philippines, Singapore,
Korea, Malaysia, Indonesia, Pakistan, Saudi Arabia (2), UAE, Qatar, UK (2),
Netherlands, Nigeria, Algeria, USA, Venezuela
CHIEF EXEC
KOICHI KAWANA,
PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 624,637 M
PAYMENTS REGULAR CAPITAL Yen 23,511 M
TREND UP WORTH Yen 336,083 M
STARTED 1928 EMPLOYES 6,721
COMMENT
INDUSTRIAL PLANT ENGINEERING COMPANY.
FINANCIAL SITUATION CONSIDERED FAIR TO GOOD AND
RESPONSIBLE FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast
(or estimated) figures for 31/03/2014 fiscal term
HIGHLIGHTS
This is an
independent general engineering company, founded originally in 1928 as producer
of oil products, on acquisition of license of Dubbs’ thermal cracking process
from old Universal Oil Products, USA.
Strong in oil refining, petrochemicals, LNG & nuclear fuel
processing lines. Overseas sales ratio
about 60%. With no production division,
all materials, machinery & plants are outsourced including
subsidiaries. Works cover industrial
plants, such as crude oil, lube oil, LNG, LPG, ethylene, power generation,
nuclear power facilities, food processing, hospitals, shopping centers,
airports, non-ferrous metal smelting, pharmaceuticals & R&D facilities,
information & telecommunications facilities, medical & welfare
facilities, other, extending over 18,000 projects in more than 70 countries
worldwide. Has close association with
Shell. In LNG plant projects in the US,
the company plans to win the first order in collaboration with a local concern.
(What(s new)
Oct 04 2013 JGC is awarded EPC
contract for Major Ethylene Plant in US
Sep 30 2013 JGC to lead
Mega-Solar Power project in Chiba-Pref
Aug 29 2013 JGC joins Power &
Seam Supply business in Saudi Arabia
Aug 21 2013 Contract received for
Lubrication Oil Blending Facility in Indonesia
Jun 12 2013 Investment in
Estaleiro Atlantico Sul. Brazil’s largest shipbuilder
JGC is working together with major oil companies as well as petroleum
companies in the oil producing countries.
JGC offers its services throughout the project from development planning
to plant construction and operation and maintenance.
FINANCIAL INFORMATION
The sales volume
for Mar/2013 fiscal term amounted to Yen 624,637 million, a 12.1% up from Yen
556,966 million in the previous term.
Order backlog recorded an all-time high (Yen 1.4 trillion at the term’s
start) on the buildup of large-scale
works, such as LNG project in Australia.
The execution of large-scale continuous projects, including gas
treatment works in Mideast and LNG facilities in S/E Asia, made progress. New projects also made a contribution. The recurring profit was posted at Yen 72,489
million and the net profit at Yen 46,179 million, respectively, compared with
Yen 72,550 million recurring profit and Yen 39,111 million net profit,
respectively, a year ago.
(Apr/Sept/2013
results): Sales Yen 624,637 million (up 12.1%), operating profit Yen 64,123
million (down 4.4%), recurring profit Yen 72,489 million (down 0.1%), net
profit Yen 46,179 million (up 18.1%). (%
compared with the corresponding period a year ago).
For the current
term ending Mar 2014 the recurring profit is projected at Yen 74,000 million
and the net profit at Yen 47,000 million, respectively, on a 10.5% rise in
turnover, to Yen 690,000 million. The
term’s-start order backlog recorded an all-time high of Yen 1.5 trillion. Multiple large-scale works, including
projects for upstream treatment of natural gas, LNG facilities and petroleum
refining plants, have been under way in S/E Asia. Ultra-large scale Ichthys LNG project in
Australia started a full-scale profit contribution, playing a leading role in
boosting profit showings. New orders are
projected at Yen 650 billion, up 9% over the preceding term..
The financial
situation is considered FAIR to GOOD and responsible for ORDINARY business
engagements.
REGISTRATION
Date
Registered: Oct 1928
Regd No.:
(Tokyo-Chiyodaku)
008732
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized:
600 million shares
Issued:
259,052,929 shares
Sum: Yen
23,511 million
Major
shareholders (%): Master Trust Bank of Japan T (6.7), Japan Trustee Services T (6.6),
Nikki Shoji (4.6), SMBC (4.2), JGC Scholarship Foundation (3.2), Company’s
Treasury Stock (2.5), Mizuho Corporate Bank (2.2), SSBT OD05 Omnibus Acct
Treaty CI (2.1), State Street Bank & Trust 505223 (1.2), State Street Bank
& Trust (1.2); foreign owners (39.5)
No. of shareholders: 7,841
Listed on the S/Exchange (s) of: Tokyo
Managements: Keisuke Takeuchi,
ch; Koichi Kawana, pres; Tadashi Ishizuka, v pres; Masayuki Sato, v pres;
Yutaka Yamazaki, v pres; Tsutomu Akabane, s/mgn dir; Hideaki Miura, mgn dir;
Satoshi Sato, mgn dir; Yasumasa Isetani, mgn dir; Hiroyasu Fukuyama, mgn dir;
Hitoshi Kitagawa, mgn dir
Nothing
detrimental is known as to the commercial morality of executives.
Related
companies: JGC Catalysts & Chemicals Ind, JGC Information Systems, JGC
Projects Services, Japan Fine Ceramics, JGC Plantech, other . .
OPERATION
Activities: General
engineering works (sales breakdown by divisions): Comprehensive engineering
works* (92%), catalysts & chemicals** (--6%), others (2%).
Overseas
sales ratio (77%)
*..
Detailed breakdown by industrial areas: oil/gas/resources (14%), petroleum
refining (17%), LNG (9%), chemicals (34%), power generation (6%), others (10%).
** Products:
catalysts-related (FCC catalysts, hydraulic treatment catalysts,
de-sulfurization catalysts, catalysts for petrochemicals); new
functional-related products (colloidal silica, CRT/FPD surface treatment
agents, LCD’s materials, semiconductor materials, batteries, cosmetics,
optical, other materials, antibacterial agents, other)
Clients: [Oil refineries,
chemical mfrs, other mfrs] Hokkaido Electric Power, INPEX Corp, JX Nippon Oil
& Energy Corp, Fuji Oil, Japan Oil, Gas & Metals National Corp, other.
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Tokki Ltd, Mitsui Engineering & Shipbuilding, Mitsubishi Heavy
Ind, Hitachi Ltd, Yokogawa Electric, Kobe Steel, Shinko Planning, Sanki
Engineering, Murata Machinery, Sumitomo Metal Ind, other.
Payment record: Regular
Location: Business area in
Yokohama. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References: SMBC (H/O)
Mizuho
Corporate Bank (Ohtemachi)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
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624,637 |
556,966 |
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Cost of Sales |
540,164 |
470,226 |
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GROSS PROFIT |
84,473 |
86,740 |
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Selling & Adm Costs |
20,349 |
19,686 |
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OPERATING PROFIT |
64,123 |
67,053 |
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Non-Operating P/L |
8,366 |
5,497 |
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RECURRING PROFIT |
72,489 |
72,550 |
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NET PROFIT |
46,179 |
39,111 |
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BALANCE SHEET |
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Cash |
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259,777 |
195,056 |
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Receivables |
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96,570 |
87,247 |
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Inventory |
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8,544 |
11,156 |
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Securities, Marketable |
25,000 |
27,500 |
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Other Current Assets |
70,340 |
55,213 |
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TOTAL CURRENT ASSETS |
460,231 |
376,172 |
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Property & Equipment |
71,708 |
64,887 |
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Intangibles |
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12,780 |
10,391 |
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Investments, Other Fixed Assets |
84,038 |
74,719 |
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TOTAL ASSETS |
628,757 |
526,169 |
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Payables |
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93,335 |
82,375 |
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Short-Term Bank Loans |
6,686 |
1,497 |
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Other Current Liabs |
162,418 |
121,899 |
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TOTAL CURRENT LIABS |
262,439 |
205,771 |
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Debentures |
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Long-Term Bank Loans |
9,363 |
7,591 |
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Reserve for Retirement Allw |
12,355 |
13,360 |
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Other Debts |
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8,517 |
8,405 |
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TOTAL LIABILITIES |
292,674 |
235,127 |
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MINORITY INTERESTS |
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Common
stock |
23,511 |
23,511 |
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Additional
paid-in capital |
25,603 |
25,603 |
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Retained
earnings |
291,781 |
255,322 |
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Evaluation
p/l on investments/securities |
5,417 |
2,319 |
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Others |
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(3,899) |
(9,457) |
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Treasury
stock, at cost |
(6,330) |
(6,256) |
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TOTAL S/HOLDERS` EQUITY |
336,083 |
291,042 |
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TOTAL EQUITIES |
628,757 |
526,169 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2013 |
31/03/2012 |
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Cash
Flows from Operating Activities |
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85,010 |
97,847 |
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Cash
Flows from Investment Activities |
-28,370 |
-18,746 |
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Cash
Flows from Financing Activities |
-3,695 |
-20,536 |
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Cash,
Bank Deposits at the Term End |
|
284,777 |
222,556 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
336,083 |
291,042 |
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Current
Ratio (%) |
175.37 |
182.81 |
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Net
Worth Ratio (%) |
53.45 |
55.31 |
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Recurring
Profit Ratio (%) |
11.60 |
13.03 |
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Net
Profit Ratio (%) |
7.39 |
7.02 |
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Return
On Equity (%) |
13.74 |
13.44 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.13 |
|
|
1 |
Rs.101.53 |
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Euro |
1 |
Rs.85.41 |
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 |
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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 |
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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 |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.