MIRA
INFORM REPORT
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Report Date : |
14.02.2013 |
IDENTIFICATION DETAILS
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Name : |
MITSUBISHI GAS CHEMICAL CO INC |
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Registered Office : |
Mitsubishi Bldg, 2-5-2 Marunouchi
Chiyodaku Tokyo 100-8324 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
April 1951 |
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Com. Reg. No.: |
0100-01-008768
(Tokyo-Chiyodaku) |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturer of xylene, methanol |
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No. of Employees : |
5,216 employees |
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 : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 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.
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Source : CIA |
Company name
MITSUBISHI GAS CHEMICAL CO INC
REGD NAME
Mitsubishi Gas
Kagaku KK
MAIN OFFICE
Mitsubishi Bldg, 2-5-2
Marunouchi Chiyodaku Tokyo 100-8324 JAPAN
Tel:
03-3283-5000 Fax: 03-3287-0833
E-Mail address: info@mgc.co.jp
ACTIVITIES
Mfg of
xylene, methanol
BRANCHES
Osaka,
Nagoya, Niigata, Mie, Okayama, Kanagawa, Saga, other (Tot 13)
OVERSEAS
Shanghai,
USA, Germany, Singapore, Thailand
FACTORIES
Niigata,
Yokkaichi, Kashima, Mizushima, Naniwa, Yamagata, Saga;
OVERSEAS
Saudi Arabia,
Brunei, Venezuela, China
CHIEF EXEC
KAZUO
SAKAI, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 452,212 M
PAYMENTS No
Complaints CAPITAL Yen 41,970 M
TREND UP WORTH Yen 595,250 M
STARTED 1951 EMPLOYES 5,216
COMMENT
MFR OF XYLENE, METHANOL, OTHER.
FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS
Notes: Unit: In Million Yen
Forecast (or estimated) figures for
31/03/2013 fiscal term
HIGHLIGHTS
The subject firm is a major mfr of xylene & methanol, started newly
in 1971 thru merger of Japan Gas Chemical & Mitsubishi Edogawa
Chemical. Strong in such basic chemicals
as ammonia & urea. Strong in
overseas trading including Saudi Arabia.
Emphasizing engineering
plastics. Completing construction of
methanol plant in Saudi Arabia in 2008, and plants in Venezuela & Brunei in
2009. Investigating feasibility of plant
in Chongging (China). Started DME
production in Niigata plant in Jun 2008.
The firm started sample shipments of special polycarbonate for optical
lenses, aiming for full-scale marketing soon.
It is considering capacity expansion at its overseas plants for
polyacetal, a metal substitute resin for automobiles and household electric
appliances. It is planning to increase
staff in representative offices in China & Taiwan on a step-by-step basis,
with a view to enhancing marketing of semiconductor materials to major
customers in these countries.
FINANCIAL INFORMATION
The sales volume for Mar/2012 fiscal term amounted to Yen 452,217
million, a 0.3% up from Yen 451,033 million in the previous term. During the fiscal term Japanese economy faced
great difficulty due to a number of events, including the major natural disaster
in Japan, the strong yen, the public debt crisis in Europe, the slowdown of the
Chinese economy, and the major floods in Thailand, The firm achieved a slight increase in net
sales. Due to lower sales the operating
profits were substantially lower than the prior-year level. By divisions, Natural Gas Chemicals up 5.2%
to Yen 153,100 million; Aromatic Chemicals up 12.7% to Yen 125,300 million;
Specialty Chemicals down 9.7% to Yen 121,000 million; Information &
Advanced Materials down 12.9% to Yen 7,800 million. The recurring profit was posted at Yen 26,116
million and the net profit at Yen 12,327 million, respectively, compared with
Yen 36,394 million recurring profit and Yen 18,950 million net profit,
respectively, a year ago.
(Apr/Jun/2012 results): Sales Yen 115,433 million (up 0.1%), operating
profit Yen 1,112 million (down 79.9%), recurring profit Yen 5,280 million (down
47.6%), net profit Yen 4,188 million (down 40.6%). (% compared with the corresponding period a
year ago).
For the current term ending Mar 2013 the recurring profit is
projected at Yen 28,000 million and the net profit at Yen 23,000 million,
respectively, on a 6.1% rise in turnover, to Yen 460,000 million. Industrial chemical business will be
steady. Sales of electronic industrial
materials and functional products will rebound towards the second half. But prices of aromatic and natural gas
chemicals will be weaker than expected.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date Registered: Apr
1951
Regd No.: 0100-01-008768 (Tokyo-Chiyodaku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
984,856,000 shares
Issued: 483,478,398 shares
Sum: Yen 41,970
million
Major shareholders
(%):
Company’s Treasury Stock (6.5), Master Trust Bank of Japan T (6.4), Japan
Trustee Services T (5.3), Nippon Life Ins (4.4), Meiji Yasuda Life Ins (3.4),
MUFG (2.8), Zenkyoren (2.6), Mitsubishi UFJ Trust (2.4), Norin Chukin Bank
(2.0), Asahi Glass (2..0); foreign owners (20.5)
No. of
shareholders: 20,522
Listed on the
S/Exchange (s) of: Tokyo
Managements: Hideki Okada,
ch; Kazuo Sakai, pres; Toshikiyo Kurai, s/mgn dir; Masami Orisaku, s/mgn dir; Makoto
Mizutani, mgn dir; Yukio Sakai, mgn dir; Katsuhiko Sugita, mgn dir; Takayuki
Watanabe, mgn dir; Yoshihiro Yamane, mgn dir; Kunio Kawa, mgn dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: MGC Filsheet Co,
MGC Electro Techno Inc, AG Int’l Chemical, Eiwa Chemical Ind, other.
OPERATION
Activities: Manufactures
xylene, methanol, other industrial chemicals:
(Sales Breakdown
by Divisions): Natural Gas Chemicals (34%); Aromatic Chemicals (28%); Functional
Chemicals (27%); Specialty Chemicals (11%).
Overseas Sales
Ratio 41%: Asia 33%; N/S Americas
6%; others 2%
(Mfg products): organic/inorganic
chemicals, petroleum-derived chemicals, chemical fertilizers, agro chemicals,
feeds, feed additives, synthetic resins, synthetic rubber & other high
molecular polymers, dyes, pigments, paints & adhesives, pharmaceutical
products, quasi-drugs, biochemical products, food & food additives,
detergents, bleaches, gas absorbers, civil-engineering & construction
materials, ceramic products, information device, components & apparatus,
others
Clients: [Mfrs,
wholesalers] Mitsubishi Corp, Itochu Chemical Frontier, Daicel Chemical Ind,
Sojitz Corp, other
No. of accounts: 1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] JX Nippon Oil & Energy Corp, Shell Chemicals Japan, Mitsubishi
Chemical, other
Payment record: No Complaints
Location: Business area in
Tokyo. Office premises at the caption address
are owned by the group and maintained satisfactorily.
Bank References:
MUFG
(H/O)
Mitsubishi
UFJ Trust Bank (H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2012 |
31/03/2011 |
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INCOME STATEMENT |
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Annual Sales |
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452,217 |
451,033 |
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Cost of Sales |
385,731 |
370,963 |
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GROSS PROFIT |
66,486 |
80,070 |
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Selling & Adm Costs |
57,402 |
56,706 |
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OPERATING PROFIT |
9,083 |
23,363 |
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Non-Operating P/L |
17,033 |
13,031 |
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RECURRING PROFIT |
26,116 |
36,394 |
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NET PROFIT |
12,327 |
18,950 |
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BALANCE SHEET |
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Cash |
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27,438 |
47,964 |
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Receivables |
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122,054 |
112,029 |
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Inventory |
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76,086 |
68,216 |
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Securities, Marketable |
10,241 |
613 |
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Other Current Assets |
18,218 |
15,700 |
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TOTAL CURRENT ASSETS |
254,037 |
244,522 |
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Property & Equipment |
191,178 |
176,823 |
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Intangibles |
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3,275 |
4,231 |
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Investments, Other Fixed Assets |
146,760 |
151,469 |
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TOTAL ASSETS |
595,250 |
577,045 |
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Payables |
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69,427 |
60,108 |
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Short-Term Bank Loans |
90,511 |
69,845 |
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Other Current Liabs |
33,526 |
52,574 |
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TOTAL CURRENT LIABS |
193,464 |
182,527 |
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Debentures |
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15,000 |
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Long-Term Bank Loans |
56,277 |
79,850 |
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Reserve for Retirement Allw |
7,095 |
5,402 |
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Other Debts |
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31,302 |
21,008 |
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TOTAL LIABILITIES |
303,138 |
288,787 |
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MINORITY INTERESTS |
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Common
stock |
41,970 |
41,970 |
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Additional
paid-in capital |
35,593 |
35,591 |
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Retained
earnings |
245,983 |
236,597 |
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Evaluation
p/l on investments/securities |
3,468 |
4,197 |
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Others |
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(26,864) |
266,610 |
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Treasury
stock, at cost |
(8,039) |
(7,920) |
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TOTAL S/HOLDERS` EQUITY |
292,111 |
577,045 |
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TOTAL EQUITIES |
595,249 |
865,832 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2012 |
31/03/2011 |
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Cash
Flows from Operating Activities |
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37,348 |
39,773 |
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Cash
Flows from Investment Activities |
-37,274 |
-24,626 |
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Cash
Flows from Financing Activities |
-9,876 |
-1,849 |
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Cash,
Bank Deposits at the Term End |
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35,701 |
46,768 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
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Net
Worth (S/Holders' Equity) |
292,111 |
577,045 |
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Current
Ratio (%) |
131.31 |
133.96 |
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Net
Worth Ratio (%) |
49.07 |
66.65 |
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Recurring
Profit Ratio (%) |
5.78 |
8.07 |
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Net
Profit Ratio (%) |
2.73 |
4.20 |
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Return
On Equity (%) |
4.22 |
3.28 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.53.85 |
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UK Pound |
1 |
Rs.84.42 |
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Euro |
1 |
Rs.72.40 |
INFORMATION DETAILS
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Report Prepared
by : |
PRL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.