MIRA INFORM REPORT

 

 

Report Date :

30.12.2013

 

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) :

31.03.2013

 

 

Date of Incorporation :

November 1972

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of petrochemicals/industrial chemicals including monomers, organic & inorganic chemicals, polyethylene, synthetic resins, synthetic rubber & elastomers, polymers, cleaners, packaging products, performance chemicals, systems & membranes, pharmaceuticals & food additives, explosives, plastic films, storage bags

 

 

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 :

Satisfactory 

 

 

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 – September 30th, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 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

 

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: 03-3296-3200     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; China

 

 

OFFICER(S)

 

YUJI KOBAYASHI, PRES                      Yoshio Negishi, dir

Tsuneo Takemoto, dir                 Katsuhiko Yamasoe, dir

       kihiro Mori, dir                                Mutsuo Narita, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 552,198 M

PAYMENTS      REGULAR         CAPITAL           Yen 3,000 M

TREND STEADY           WORTH            Yen 173,021 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/2013 fiscal term amounted to Yen 552,198 million, a 0.8% up from Yen 547,382 million in the previous term.  Exports were active.  The recurring profit was posted at Yen 10,227 million and the net profit at Yen 6,121 million, respectively, compared with Yen 25,187 million recurring profit and Yen 10,821 million net profit, respectively, a year ago.

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 11,000 million and the net profit at Yen 6,200 million, respectively, on a 5% rise in turnover, to Yen 579,000 million.   .

 

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, Nagoya, Fukuoka & Sapporo S/E’s, capital Yen 103,389 million, turnover Yen 1,666,640 million, operating profit Yen 91,960 million, recurring profit Yen 95,125 million, net profit Yen 53,712 million, total assets Yen 1,841,946 million, net worth Yen 841,089 million, employees 28,987, 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 resins, synthetic rubber & elastomers, polymers, cleaners, packaging products, performance chemicals, systems & membranes, pharmaceuticals & food additives, explosives, plastic films, storage bags, 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:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

579,000

552,198

547,382

543,666

Recur. Profit

 

11,000

10,227

25,187

34,737

Net Profit

 

6,200

6,121

10,821

15,493

Total Assets

 

 

498,949

456,120

435,679

Current Assets

 

 

278,600

242,696

225,262

Current Liabs

 

 

263,330

225,369

188,730

Net Worth

 

 

173,021

167,622

175,517

Capital, Paid-Up

 

 

3,000

3,000

3,000

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.85

0.88

0.68

15.70

    Current Ratio

 

..

105.80

107.69

119.36

    N.Worth Ratio

..

34.68

36.75

40.29

    R.Profit/Sales

 

1.90

1.85

4.60

6.39

    N.Profit/Sales

1.07

1.11

1.98

2.85

    Return On Equity

..

3.54

6.46

8.83

 

Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term. 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.06

UK Pound

1

Rs.102.03

Euro

1

Rs.85.27

 

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.