MIRA INFORM REPORT

 

 

Report Date :

28.06.2013

 

IDENTIFICATION DETAILS

 

Name :

CHIYODA JGC JOINT VENTURE (CIJG)

 

 

Registered Office :

2-12-1 Tsurumi-Chuo Tsurumiku Yokohama 230-8601

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Year of Establishments:

2009

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Engineering works of LNG plants & facilities

 

 

No. of Employees :

4,000 (Including Laborers)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate  

Payment Behaviour :

Unknown

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 – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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

 

CHIYODA JGC JOINT VENTURE (CIJG)

 

 

REGD NAME

 

Chiyoda JGC Joint Venture (Not registered)

 

 

MAIN OFFICE

 

2-12-1 Tsurumi-Chuo Tsurumiku Yokohama 230-8601 JAPAN

Tel: 045-506-7136 (same phone number with Chiyoda Corp)

                                               

URL:     http://www.chiyoda-corp.com (Of the parent, Chiyoda Corp)

 

 

ACTIVITIES

 

Engineering works of LNG plants & facilities

 

 

BRANCHES   

 

Nil

 

 

OFFICERS

 

Takashi Kubota, pres of the parent, Chiyoda Corp                                             

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Unavailable

PAYMENTSUnknown             CAPITAL           - - -

STARTED         2009                 EMPLOYES      4,000 (including laborers)

                       

COMMENT

 

ENGINEERING OF LNG PLANT, JV BETWEEN CHIYODA CORP & JGC CORP.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: UNABLE TO BE ASSESSED DUE TO THE LACK OF PROVEN BUISNESS.  Max credit limit of the parent, Chiyoda Corp, is estimated at Yen 8,294.9 million, on 30 days normal terms

 

 

HIGHLIGHTS

           

The subject company was established jointly by Chiyoda Corp and JGC Corp (See REGISTRATION) for construction of LNG plants & facilities.  In 2009, the firm won from Esso Highlands Limited, operator of the PNG LNG project.  The scope of the work is for 6.6 tons per annum LNG plant, with two 3.3 million trans, including facilities for inlet processing, treating, liquefaction, storage, and loading.  The office is located with Chiyoda Corp’s address, as above given.  Chiyoda Corp has the majority share of the firm.

 

 

FINANCIAL INFORMATION

           

Financial are consolidated by the parents and not individually disclosed.

 

The financial situation is considered FAIR and good for ORDINARY business engagements with the financial strength of the two parents.  Max credit limit is unable to be assessed due to the lack of individual business.  The max credit limit of the parent, Chiyoda Corp, is estimated at Yen 7,917.5 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:           Not registered

(Founded 2009)

Legal Status:                Limited Company (Kabushiki Kaisha)

Major shareholders (%): Chiyoda Corp* (70), JGC Corp** (30) (Estimated figures only)

No. of shareholders: 2

 

*.. Chiyoda Corp, leading comprehensive plant engineering company, at the caption address, founded 1948, listed Tokyo S/E, capital Yen 43,396 million, sales Yen 254,675 million, operating profit Yen 24,197 million, recurring profit Yen 23,793 million, net profit Yen 14,364 million, total assets Yen 365,795 million, net worth Yen 168,737 million, employees 4,104, pres Takashi Kubota

 

Consolidated Financials are attached (See SUPPLEMNTS)

 

**.. JGC Corp, plant engineering firm, Yokohama, founded 1928, listed Tokyo S/E,

Capital Yen 23,511 million, sales Yen 556,966 million, operating profit Yen 67,053 million, recurring profit Yen 72,550 million, net profit Yen 39,111 million, total assets Yen 526,169 million, net worth Yen 291,042 million, employees 6,569, pres Koichi Kuwana

 

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

 

 

OPERATION

           

Activities: Engineering works on LNG plants & facilities (--100%)

 

Clients: Oil refineries, heavy machinery mfrs, other

            No. of accounts: Unavailable

            Domestic areas of activities: Nationwide

 

Suppliers: Mfrs, wholesalers, other

 

Payment record: Unknown  

 

Location: Business area in Yokohama.  Office premises at the caption address are owned by the parent, Chiyoda Corp, and maintained satisfactorily.

 

Bank References:

MUFG (H/O)

Mizuho Corporate Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

NOT AVAILABLE

 

SUPPLEMENTS

CONSOLIDATED FINANCIAS OF THE PARENT, CHIYODA CORPORATION

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

 

254,675

247,082

 

  Cost of Sales

215,783

215,563

 

      GROSS PROFIT

38,891

31,519

 

  Selling & Adm Costs

14,693

13,974

 

      OPERATING PROFIT

24,107

17,544

 

  Non-Operating P/L

-314

-1,812

 

      RECURRING PROFIT

23,793

15,732

 

      NET PROFIT

14,364

7,979

BALANCE SHEET

 

 

 

 

  Cash

 

35,577

33,855

 

  Receivables

 

43,840

56,033

 

  Inventory

 

 

 

 

  Securities, Marketable

138,499

96,841

 

  Other Current Assets

102,562

129,377

 

      TOTAL CURRENT ASSETS

320,478

316,106

 

  Property & Equipment

19,001

19,021

 

  Intangibles

 

4,600

4,733

 

  Investments, Other Fixed Assets

21,716

13,532

 

      TOTAL ASSETS

365,795

353,392

 

  Payables

 

86,211

97,417

 

  Short-Term Bank Loans

10,000

 

 

 

 

 

 

 

  Other Current Liabs

98,476

84,470

 

      TOTAL CURRENT LIABS

194,687

181,887

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

198

10,208

 

  Reserve for Retirement Allw

2,486

2,809

 

  Other Debts

 

(314)

2,729

 

      TOTAL LIABILITIES

197,057

197,633

 

      MINORITY INTERESTS

 

 

 

Common stock

43,396

43,396

 

Additional paid-in capital

37,112

37,112

 

Retained earnings

89,346

77,832

 

Evaluation p/l on investments/securities

1,509

(229)

 

Others

 

(1,298)

(1,058)

 

Treasury stock, at cost

(1,328)

(1,295)

 

      TOTAL S/HOLDERS` EQUITY

168,737

155,758

 

      TOTAL EQUITIES

365,795

353,392

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

 

55,615

-5,229

 

Cash Flows from Investment Activities

-9,140

-2,577

 

Cash Flows from Financing Activities

-2,899

-805

 

Cash, Bank Deposits at the Term End

 

173,769

130,618

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

168,737

155,758

 

 

Current Ratio (%)

164.61

173.79

 

 

Net Worth Ratio (%)

46.13

44.08

 

 

Recurring Profit Ratio (%)

9.34

6.37

 

 

Net Profit Ratio (%)

5.64

3.23

 

 

Return On Equity (%)

8.51

5.12

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.59

UK Pound

1

Rs.92.92

Euro

1

Rs.78.94

 

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.