MIRA INFORM REPORT

 

 

Report Date :

29.06.2013

 

IDENTIFICATION DETAILS

 

Name :

IHI INFRASTRUCTURE CO LTD

 

 

Registered Office :

3 Ohama-Nishimachi Sakaiku Sakai Osaka-Pref 590-0977

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

November  2009

 

 

Com. Reg. No.:

1200-01-023932 (Osaka-Sakai)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Engineering woks of bridges, gates, other steel structures

 

 

No. of Employees :

808

 

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

 

Maximum Credit Limit:

Yen 1,107.7 Million

Status :

Satisfactory

Payment Behaviour :

No Complaints

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 and address

 

IHI INFRASTRUCTURE CO LTD

REGD NAME:   KK IHI Infrastructure Systems

MAIN OFFICE:  3 Ohama-Nishimachi Sakaiku Sakai Osaka-Pref 590-0977 JAPAN

Tel: 072-223-0981      Fax: 072-223-0387

 

                        *.. The is its Tokyo Branch Office (Oversees sales Dept)

 

URL:                 http://www.ihico.j

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Engineering woks of bridges, gates, other steel structures

 

BRANCHES

 

Tokyo (as given), Osaka, Sapporo, Sendai, Chiba, Nagoya, other (Tot 9)

 

OVERSEAS

 

Istanbul

 

FACTORIES

 

Sakai (Sakai Works)

 

 

OFFICERS

 

AKIRA INOUE, PRES                Suguru Nose, dir

Takanobu Tokuyama, dir                        Ken’ichi Ajioka, dir

Takeshi Kawakami, dir   

           

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 42,987 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 4,903 M

TREND SLOW                           WORTH            Yen 13,356 M

STARTED         2009                             EMPLOYES      808

 

COMMENT

 

ENGINEERING WORKS OF STEEL STRUCTURES, OWNED BY IHI CORP.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 1,107.7 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

            The subject company was established as an engineering work company by IHI Corp.  This is an engineering company of bridges, gates and various other steel structures.  It also fabricates, sell and install disaster prevention equipments.  Clients include ministry of Ministry of Land, Infrastructure and Transport, Japan Highway Public Corp, local municipal offices, other.

 

 

FINANCIAL INFORMATION

           

            The sales volume for Mar/2012 fiscal term amounted to Yen 42,987 million, a 22% down from Yen 54,890 million in the previous term.  Work volumes substantially decreased as affected by the Great North Japan Earthquake that occurred in Mar 2011 plus business slump with industrial activities were slow.  The recurring profit was posted at Yen 292 million and the net profit at Yen 333 million, respectively, compared with Yen 4,470 million recurring profit and Yen 5,233 million net profit, respectively, a year ago.

 

            For the term that ended Mar 2013 the recurring profit was projected at Yen 300 million and the net profit at Yen 350 million, respectively, on a 3% rise in turnover, to Yen 44,200 million.  Final results are yet to be released. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,107.7 million, on 30 days normal terms.

 

REGISTRATION

 

Date Registered:         Nov 2009

Regd No.:                  1200-01-023932 (Osaka-Sakai)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         392,000 shares

Issued:                98,000 shares

Sum:                   Yen 4,903.82 million

      Major shareholders (%): IHI Corp* (100)

 

*.. One of major comprehensive heavy electric machinery mfrs, Tokyo, founded 1889, listed Tokyo, Osaka, Nagoya, Fukuoka & Sapporo S/E’s, capital Yen 95,762 million, sales Yen 1,256,049 million, operating profit Yen 42,141 million, recurring profit Yen 36,219 million, net profit Yen 33,386 million, total assets Yen 1,364,239 million, net worth Yen 299,282 million, employees 28,492, pres Tamotsu Saito

 

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

 

 

OPERATION

 

Activities: Engineering firm: design, fabrication, construction, assessment, repair & maintenance of bridges, gates and various other steel structures; also fabrication, sales and installation of disaster prevention equipments, others (--100%)

 

Clients: [Mfrs, wholesalers] Ministry of Land, Infrastructure & Transport, Japan Highway Public Corp, local municipalities, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] JFE Shoji Trade Construction Materials Corp, Nippon Steel Trading, Sumisho Tekko Hambai Co, Sumikin Bussan Corp, Oiles Corp, other

 

Payment record: No Complaints

 

Location: Business area in Sakai, Osaka.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Mizuho Corporate Bank (Osaka)

MUFG (Osaka)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

44,200

42,987

54,890

26,162

Recur. Profit

 

300

292

4,470

 

Net Profit

 

350

333

5,233

107

Total Assets

 

 

39,667

41,421

44,417

Current Assets

 

 

21,586

25,662

 

Current Liabs

 

 

21,985

22,998

 

Net Worth

 

 

13,356

13,099

7,788

Capital, Paid-Up

 

 

4,903

4,903

4,903

Div.P.Share(¥)

 

 

 

 

 

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.82

-21.69

109.81

90.41

    Current Ratio

 

..

98.19

111.58

..

    N.Worth Ratio

..

33.67

31.62

17.53

    R.Profit/Sales

 

0.68

0.68

8.14

..

    N.Profit/Sales

0.79

0.77

9.53

0.41

    Return On Equity

..

2.49

39.95

1.37

 

Notes: Forecast (or estimated) figures for the 31/03/2013 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.70

UK Pound

1

Rs.91.14

Euro

1

Rs.77.97

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.