MIRA INFORM REPORT
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Report Date : |
13.05.2013 |
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) : |
31.03.2013 |
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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 : |
5376 |
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 : |
Good |
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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 – March 31st 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 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.
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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 467,979 M
PAYMENTSNo
Complaints CAPITAL Yen
41,970 M
TREND UP WORTH Yen 294,895 M
STARTED 1951 EMPLOYES 5,376
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 31/03/2014
fiscal term
HIGHLIGHTS
The subject firm is a major mfr of xylene & methanol, started newly in 1971 thru the 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. In unprofitable isophtalic acid business, shutdown of either Mizushima or Matsuyama plant is becoming a real possibility, the company will make the decision by the end of 2013. It will step up efforts to boost sales of highly wear-resistant resins, following production boost at Thailand subsidiary in 2013 and South Korea subsidiary in 2014.
FINANCIAL INFORMATION
The sales volume for Mar/2013 fiscal term amounted to Yen
467,979 million, a 3.5% up from Yen 452,217 million in the previous term. Profitability of chemical business was
lowered, affected by deteriorating market conditions. But reduced depreciation costs through the
shift to straight-line method helped.
The recurring profit was posted at Yen 27,651 million, but the net
losses at Yen 7,793 million, respectively, compared with Yen 26,116 million
recurring profit and Yen 12,227 million net profit, respectively, a year ago.
For the current term ending Mar 2014 the recurring profit is
projected at Yen 34,000 million and the net profit at Yen 26,000 million,
respectively, on a 13.3% rise in turnover, to Yen 530,000 million. Prices of chemicals will recover sluggishly,
but sales of electronic materials and functional chemicals will pick up. Operating profits will increase thanks in
part to the weakening Yen.
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: 20,488
Listed on the S/Exchange (s) of: Tokyo
Managements: Hideki Odaka, 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
*.. At June shareholders’ meeting & board of directors meeting: Kazuo Sakai will be elected to ch, Toshikiyo Kurai will be president
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%:
(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, Mitsubishi International Corp, 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: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
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467,979 |
452,217 |
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Cost of Sales |
400,011 |
385,731 |
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GROSS PROFIT |
67,967 |
66,486 |
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Selling & Adm Costs |
56,545 |
57,402 |
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OPERATING PROFIT |
11,421 |
9,083 |
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Non-Operating P/L |
16,230 |
17,033 |
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RECURRING PROFIT |
27,651 |
26,116 |
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NET PROFIT |
-7,793 |
12,327 |
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BALANCE SHEET |
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Cash |
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28,888 |
27,438 |
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Receivables |
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127,843 |
122,054 |
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Inventory |
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88,040 |
76,086 |
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Securities, Marketable |
140 |
10,241 |
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Other Current Assets |
16,486 |
18,218 |
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TOTAL CURRENT ASSETS |
261,397 |
254,037 |
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Property & Equipment |
195,453 |
191,178 |
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Intangibles |
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3,374 |
3,275 |
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Investments, Other Fixed Assets |
153,684 |
146,760 |
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TOTAL ASSETS |
613,908 |
595,250 |
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Payables |
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73,907 |
69,427 |
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Short-Term Bank Loans |
84,627 |
90,511 |
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Other Current Liabs |
36,904 |
33,526 |
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TOTAL CURRENT LIABS |
195,438 |
193,464 |
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Debentures |
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15,000 |
15,000 |
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Long-Term Bank Loans |
61,183 |
56,277 |
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Reserve for Retirement Allw |
7,549 |
7,095 |
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Other Debts |
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39,843 |
31,302 |
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TOTAL LIABILITIES |
319,013 |
303,138 |
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MINORITY INTERESTS |
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Common
stock |
41,970 |
41,970 |
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Additional
paid-in capital |
35,595 |
35,593 |
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Retained
earnings |
231,882 |
245,083 |
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Evaluation
p/l on investments/securities |
8,607 |
3,468 |
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Others |
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(15,065) |
(25,964) |
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Treasury
stock, at cost |
(8,094) |
(8,039) |
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TOTAL S/HOLDERS` EQUITY |
294,895 |
292,111 |
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TOTAL EQUITIES |
613,908 |
595,250 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2013 |
31/03/2012 |
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Cash
Flows from Operating Activities |
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31,169 |
37,348 |
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Cash
Flows from Investment Activities |
-30,818 |
-37,274 |
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Cash
Flows from Financing Activities |
-14,356 |
-9,676 |
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Cash,
Bank Deposits at the Term End |
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26,907 |
35,701 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
294,895 |
292,111 |
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Current
Ratio (%) |
133.75 |
131.31 |
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Net
Worth Ratio (%) |
48.04 |
49.07 |
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Recurring
Profit Ratio (%) |
5.91 |
5.78 |
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Net
Profit Ratio (%) |
-1.67 |
2.73 |
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Return
On Equity (%) |
-2.64 |
4.22 |
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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.54.54 |
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UK Pound |
1 |
Rs.84.19 |
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Euro |
1 |
Rs.71.11 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
---- |
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.