MIRA
INFORM REPORT
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Report Date : |
12.01.2013 |
IDENTIFICATION DETAILS
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Name : |
KAWASAKI HEAVY INDUSTRIES LTD |
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Registered Office : |
Kobe Crystal Tower, 1-1-3 Higashi-Kawasakicho Chuoku Kobe 560-8680 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
October 1986 |
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Com. Reg. No.: |
1400-01-003719 (Kobe-Chuoku) |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturer of heavy electric machinery & engineering works |
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No. of Employees : |
33,267 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
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.
Source
: CIA
Company name and address
KAWASAKI HEAVY INDUSTRIES LTD
REGD NAME: Kawasaki
Jyukogyo KK
MAIN OFFICE: Kobe
Crystal Tower, 1-1-3 Higashi-Kawasakicho Chuoku Kobe 560-8680 JAPAN
Tel:
078-371-9530 Fax: 078-371-9566
*.. The is its Hyogo
Factory
E-Mail address: (through the URL to each division)
ACTIVITIES
Mfg of heavy
electric machinery & engineering works
BRANCHES
Tokyo, Sapporo,
Sendai, Hyogo, Akashi, other (Tot 28)
OVERSEAS
China (2), Taipei,
Seoul, Jakarta, Singapore, Kuala Lumpur, Bangkok, USA (2), Brazil, UK,
Netherlands
(Subsidiaries): USA (6), Canada, Brazil (2), UK (3), Germany (4), Netherlands (3), Korea, China (4, including Hong Kong), Thailand, Philippines, Indonesia, Australia
FACTORIES
Kobe, Akashi,
Hyogo, Gifu, other (Tot 10)
OVERSEAS
USA (4), Brazil,
UK, China (2), Philippines, Indonesia, Thailand
CHIEF EXEC
SATOSHI HASEGAWA,
PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,303,778 M
PAYMENTS REGULAR CAPITAL Yen
104,484 M
TREND UP WORTH Yen 315,922 M
STARTED 1896 EMPLOYES 33,267
COMMENT
MFR OF HEAVY ELECTRIC MACHINERY & ENGINEERING WORKS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: US$3,000.000.00.
Notes: Unit: In Million Yen
Forecast (or estimated) figures for 31/03/2013
fiscal term
HIGHLIGHTS
The subject company was established
originally in 1878 by Shozo Kawasaki for mfg Western-style oceangoing steel
ships, on his account, and was incorporated in 1986. This is a comprehensive heavy electric
machinery mfg & engineering company, with strength in railroad rolling
stocks, motorcycles and medium-sized gas turbines. Also major shipbuilder. Since incorporated spun off various
divisions, such as steel, transportation, etc into independent firms, which now
constitute its main group firms. In Oct
2006, spun off its environmental operations (handling refuse incineration
facilities & recycling facilities for natural resources). Because construction of major refuse
incineration facilities peaked the firm decided to restructure operations. Highly competitive in railway rolling stock
& medium-size gas turbines.
Purchased cement business from IHI.
Joined environmental equipment production in China. New shipbuilding yard in Dalian (China)
completed in 2010. In rolling stock, the
firm puts hopes in North America, rich with a number of railway projects. It won orders for an LNG ship in June 2012
for the first time in five terms. It is
constructing a new motorcycle plant in S/E Asia. It plans to start the direct production of
sports motorcycles in India. Currently,
Kawasaki consigns production there to Bajaj Auto Ltd, a local firm, but plans
to complete the switch to its own production using its own workers within this
year.
Intra-company Organizations: Ship &
Offshore Structure Company, Rolling Stock Company, Aerospace Company, Gas
Turbine & machinery Company, Plants & Infrastructure Company,
Motorcycles & Engine Company, Precision Machinery Company.
FINANCIAL INFORMATION
The sales volume for Mar/2012 fiscal
term amounted to Yen 1,303,778 million, a 6.2% up from Yen 1,226,949 million in
the previous term. Japan economy was initially forecast to remain stagnant owing
to such factors as disruption of supply chains after the Great East Japan
Earthquake, the historically high Yen and adverse impacts from floods in
Thailand. However, signs of recovery
gradually emerged toward the end of the fiscal year. China has maintained high economic growth
albeit at a slower pace, and infrastructure demand in emerging economies,
including Asia and Brazil, remained firm.
Orders received totaled Yen 1,311.8 billion, a Yen 41.2 billion increase
compared with the previous year. The
recurring profit was posted at Yen 63,627 million and the net profit at Yen
23,323 million, respectively, compared with Yen 49,136 million recurring profit
and Yen 25,965 million net profit, respectively, a year ago.
(Apr/Sept/2012 results): Sales Yen 574,999
million (down 1.7%), operating profit Yen 10,391 million (down 60.9%),
recurring profit Yen 20,165 million (down 25.9%), net profit Yen 12,429 million
(down 30.2%). (% compared with the same
period last year).
For the current term ending Mar 2013 the
recurring profit is projected at Yen 50,000 million and the net profit at Yen
30,000 million, respectively, on a 0.2% fall in turnover, to Yen 1,300,000
million. Motorcycle business will become
profitable. Aircraft and gas turbine
sales will fare well. But shipbuilding
will post an operating deficit, and main proit-earner construction machinery
hydraulic equipment will fall further than expected after the pullout from
China. Operating profit drop will expand
due to the strong Yen.
The financial situation is considered FAIR
to GOOD and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Oct 1986
Regd No.:
1400-01-003719 (Kobe-Chuoku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 3,360 million shares
Issued:
1,669,629,122 shares
Sum: Yen 104,484 million
Major
shareholders (%): Japan Trustee Services T (5.4), Master Trust Bank of Japan T (4.4),
Mizuho Bank (3.4), JFE Steel (3.3), Nippon Life Ins (3.2), Japan Trustee Services
T9 (2.4), Company’s Kyoeikai Assn (2.0), Employees’ S/Holding Assn (1.9), SSBT
OD05 Omnibus Acct Treaty (1.8), Tokio Marine & Nichido Fire Ins (1.6);
foreign owners (16.1).
No. of shareholders: 134,930
Listed on the S/Exchange (s) of: Tokyo, Osaka,
Nagoya
Managements: Tadaharu Ohashi,
ch; Satoshi Hasegawa, pres; Masashi Segawa, v pres; Mitsutoshi Takao, v pres; Nobumitsu
Kambayashi, mgn dir; Kyohei Matsuoka, mgn dir; Hiroshi Takata, mgn dir; Shigeru
Murayama, mgn dir; Makoto Sonoda, mgn dir; Joji Iki, mgn dir
Nothing
detrimental is known as to the commercial morality of executives.
Related
companies: Kawasaki Shipyard, Kawasaki Precision Machinery,
NIPPI Corp, Kawasaki Thermal Engineering,
Kawasaki Motors Corp, Kawasaki
Safety Service Ind, Kawaju Shoji, other
OPERATION
Activities: Comprehensive
heavy electric machinery mfg & engineering works:
(Sales
breakdown by divisions):
Shipbuilding
(9%): new-building ships, ship repairs, ship remodeling, other;
Railway
Rolling Stock (10%): railway rolling
stocks, civil-engineering machinery & equipment, snow plow, crushing
machines;
Aerospace
(16%): aircraft, spacecraft, other;
Gas
Turbine & Machinery (15%):
jet engines, multi-purpose gas turbines, generating machinery;
Industrial
Plants, Environment & Steel Structure (9%): industrial
machinery & plants, boilers, environmental machinery & equipment, steel
structures;
Multi-Purpose Machinery (20%): motorcycles,
four-wheel vehicles, water-crafts (Jet Ski), multi-purpose gasoline engines,
industrial robots;
Others
(21%): hydraulic equipment, fire-preventive equipment, medical
equipment, management of welfare facilities,
other.
Overseas
Sales Ratio (57%)
Clients: [Mfrs,
wholesalers] Sojitz Corp, Marubeni Corp, Sumitomo Corp, Itochu Corp, JR West
Japan, other
No. of accounts:
3,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Sojitz Corp, Sumitomo Corp, Sojitz Aerospace, Itochu Corp,
Marubeni Corp, Kawasho Corp, Fujitsu Ltd, Maeda Construction, Itochu Aviation,
Kawajyu Finance, Mitsubishi Heavy Ind, Fuji Heavy Ind, other.
Payment record: Regular
Location: Business area in
Kobe. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
Mizuho Corporate
Bank (H/O)
SMBC (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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1,303,778 |
1,226,949 |
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Cost
of Sales |
1,088,918 |
1,037,078 |
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GROSS PROFIT |
214,860 |
189,870 |
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Selling & Adm Costs |
157,375 |
147,242 |
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OPERATING PROFIT |
57,484 |
42,628 |
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Non-Operating P/L |
6,143 |
6,508 |
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RECURRING PROFIT |
63,627 |
49,136 |
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NET PROFIT |
23,323 |
25,965 |
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BALANCE SHEET |
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Cash |
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34,316 |
47,233 |
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Receivables |
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404,054 |
401,753 |
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Inventory |
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441,895 |
425,322 |
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Securities, Marketable |
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Other Current Assets |
86,921 |
77,411 |
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TOTAL CURRENT ASSETS |
967,186 |
951,719 |
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Property & Equipment |
274,750 |
275,780 |
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Intangibles |
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18,786 |
19,249 |
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Investments, Other Fixed Assets |
101,417 |
107,530 |
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TOTAL ASSETS |
1,362,139 |
1,354,278 |
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Payables |
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310,775 |
319,271 |
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Short-Term Bank Loans |
137,568 |
143,972 |
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Other Current Liabs |
247,659 |
240,493 |
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TOTAL CURRENT LIABS |
696,002 |
703,736 |
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Debentures |
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60,000 |
50,000 |
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Long-Term Bank Loans |
198,737 |
203,801 |
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Reserve for Retirement Allw |
75,052 |
80,556 |
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Other Debts |
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16,425 |
18,751 |
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TOTAL LIABILITIES |
1,046,216 |
1,056,844 |
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MINORITY INTERESTS |
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Common
stock |
104,484 |
104,340 |
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Additional
paid-in capital |
54,393 |
54,251 |
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Retained
earnings |
176,414 |
158,615 |
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Evaluation
p/l on investments/securities |
3,989 |
3,876 |
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Others |
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(23,336) |
(23,619) |
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Treasury
stock, at cost |
(22) |
(30) |
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TOTAL S/HOLDERS` EQUITY |
315,922 |
297,433 |
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TOTAL EQUITIES |
1,362,139 |
1,354,278 |
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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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84,737 |
81,929 |
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Cash Flows
from Investment Activities |
-65,959 |
-52,942 |
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Cash
Flows from Financing Activities |
-26,831 |
-18,862 |
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Cash,
Bank Deposits at the Term End |
|
33,245 |
44,629 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
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Net
Worth (S/Holders' Equity) |
315,922 |
297,433 |
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Current
Ratio (%) |
138.96 |
135.24 |
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Net
Worth Ratio (%) |
23.19 |
21.96 |
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Recurring
Profit Ratio (%) |
4.88 |
4.00 |
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Net Profit
Ratio (%) |
1.79 |
2.12 |
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Return
On Equity (%) |
7.38 |
8.73 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.54 |
|
|
1 |
Rs.88.05 |
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Euro |
1 |
Rs.72.29 |
INFORMATION DETAILS
|
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 |
|
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 |
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-- |
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.