MIRA INFORM REPORT
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Report Date : |
24.05.2013 |
IDENTIFICATION DETAILS
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Name : |
TOYO ENGINEERING CORP |
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Registered Office : |
2-8-1 Akanehama Narashino City Chiba-Pref 275-0024 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
May 1961 |
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Com. Reg. No.: |
(Chiba-Narashino) 002504 |
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Legal Form : |
Limited Company (Kabushiki Kaisha |
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Line of Business : |
Plant engineering works |
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No. of Employees : |
4,443 |
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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Maximum Credit Limit : |
YEN 3,450.6 MILLION |
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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 – 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.
Source : CIA
Company name and address
TOYO ENGINEERING CORP
REGD NAME: Toyo
Engineering KK
MAIN OFFICE:
2-8-1 Akanehama Narashino City Chiba-Pref 275-0024 JAPAN
Tel:
047-451-1111 Fax: 047-454-1800-
URL: http://www.toyo-eng.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Plant engineering
works
BRANCHES
Tokyo
OVERSEAS
China (2),
Indonesia, Dubai, Teheran, Russia, Thailand, Iran, Saudi Arabia,
Europe, India, Canada, USA, Mexico,
Venezuela (--subsidiaries/agents)
FACTORIES
At the caption
address (Engineering Center)
CHIEF EXEC
KATSUMOTO
ISHIBASHI, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 157,881 M
PAYMENTSREGULAR CAPITAL Yen 18,198 M
TREND UP WORTH Yen 69,265 M
STARTED 1961 EMPLOYES 4,443
COMMENT
PLANT ENGINEERING WORKS
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 3,450.6 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast figures for the 31/03/2012 fiscal term.
HIGHLIGHTS
The subject
company was established originally as JV formed by Toyo Konetsu (today Mitsui Chemicals),
Mitsui & Co and Taisei Corp. This is
a plant engineering company servicing for industries: oil/gas, petrochemicals,
transportation systems, pharmaceuticals, fine chemicals, power generation,
biotechnology, environment, other. Has
world level technology for urea and ammonia fertilizer plant engineering. Well-experienced in oil refining,
petrochemical and N-Power plants. The
company won new order for Thailand power plant project in non-petroleum and
non-petrochemical sector in tie-up with Mitsui & Co. New orders for the Mar/2013 term exceeded the
precedent term’s level at about Yen 270 billion and are likely to reach the
target, thanks to large-lot orders for fertilizer plants or others in the
second half. The company will send
several management staff to its overseas subsidiary having deficient-ridden
projects for stricter profit management.
FINANCIAL INFORMATION
The sales volume for
Mar/2012 fiscal term amounted to Yen 157,881 million, a 1.4% up from Yen
155,696 million. The recurring profit
was posted at Yen 5,102 million and the net profit at Yen 3,728 million,
respectively, compared with Yen 7,012 million recurring profit and Yen
3,773million net profit, respectively, a year ago. .
(Apr/Dec/2012 results):
Sales Yen 162,674 million (up 51.8%), operating profit Yen 4,153 million (down
25.1%), recurring profit Yen 4,153 million (down 15.2%), net profit Yen 2,150
million (down 45.0%) (% compared with
the corresponding period a year ago).
For the term that ended
Mar 2012 the recurring profit was projected at Yen 7,000 million and the net
profit at Yen 3,500 million, respectively, on a 71.0% rise in turnover, to Yen
270,000 million. Work completions
recovered sharply, buoyed by brisk new orders.
But profit margin was worsening due to increase in competitive bidding
and emergence of deficit-ridden works.
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 3,450.6 million, on 30 days normal terms.
REGISTRATION
Date Registered: May 1961
Regd No.: (Chiba-Narashino) 002504
Legal Status: Limited Company (Kabushiki Kaisha
Authorized: 500
million shares
Issued: 192,792,539shares
Sum: Yen
18,198 million
Major
shareholders (%): Mitsui & Co (22.7), Mitsui Chemicals (13.3), Japan Trustee
Services T (3.3), Master Trust Japan Services T (6.4), Japan Trustee Services T
(3.7), Nomura Trust Inv T (12.8), Taisei
Corp (2.5), Trust & Custody Services (2.3), Japan Trustee Services T9
(1.5), SMBC (1.2), Chase London SL
Omnibus Acct (0.7); foreign owners
(13.5)
No. of shareholders: 10,664
Listed on the S/Exchange (s) of: Tokyo
Managements: Yushi Nagata,
ch; Kenji Soejima, v ch; Katomoto Ishibashi, pres; Makoto Fusayama, v pres;
Hideki Shiinoki, s/mgn dir; Keiichi Matsumoto, s/mgn dir; Takaya Naito, s/mgn
dir; Satoshi Kuwahara, mgn dir; Mitsutoshi Hamamura, mgn dir; Masayuki Uchida,
mgn dir
Nothing detrimental
is known as to the commercial morality of executives.
Related companies: Toyo Business Engineering, other.
OPERATION
Activities: Plant engineering
works (98%) for: energy, oil refining, oil & gas development petrochemicals
& chemicals, water treatment, infrastructure, environment, pharmaceutical
& fine chemicals, food & beverages, electronics & semiconductors,
transportation systems, power generation, nuclear power, advanced production
systems, automobiles, manufacturing, fine chemicals distribution systems,
biotechnology, other; real estate leasing & management (2%).
Overseas
Sales Ratio (73%)
Clients: [Oil refiners,
mfrs, wholesalers] Indian Oil Corporation, PDVSA Petroleo SA, Petropars Ltd,
Evonik Monosilane Japan Co, Petroleos de Venezuela SA, Dalian Sumika Jingang
Chemicals Co, PT Kalimantan Timur (Kaltim), Mitsui Chemicals, Toshiba Plant
Systems, Nippon Oil, other
No. of accounts:
800
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Taisei Corp, Toyo Engineering India Ltd, Toyo Engineering Korea
Ltd, Seamens Industrial Rurbo-Machinery BV, JNC Engineering Mitsui & Co,
IHI Corp, other
Payment record: Regular
Location: Business area in
Narashino City, Chiba-Pref. Office
premises at the caption address are owned and maintained satisfactorily.
Bank
References:
SMBC (H/O)
Mizuho Corporate
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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157,881 |
155,696 |
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Cost of Sales |
132,963 |
129,123 |
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GROSS PROFIT |
24,918 |
26,573 |
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Selling & Adm Costs |
19,577 |
19,758 |
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OPERATING PROFIT |
5,341 |
6,815 |
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Non-Operating P/L |
-239 |
200 |
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RECURRING PROFIT |
5,102 |
7,012 |
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NET PROFIT |
3,728 |
3,773 |
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BALANCE SHEET |
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Cash |
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48,041 |
45,069 |
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Receivables |
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35,832 |
30,737 |
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Inventory |
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Securities, Marketable |
44,499 |
43,992 |
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Other Current Assets |
42,472 |
28,895 |
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TOTAL CURRENT ASSETS |
170,844 |
148,693 |
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Property & Equipment |
32,164 |
31,557 |
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Intangibles |
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6,403 |
4,717 |
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Investments, Other Fixed Assets |
13,004 |
13,420 |
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TOTAL ASSETS |
222,415 |
198,387 |
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Payables |
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50,096 |
40,811 |
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Short-Term Bank Loans |
12,983 |
18,774 |
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Other Current Liabs |
54,868 |
45,676 |
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TOTAL CURRENT LIABS |
117,947 |
105,261 |
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Debentures |
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Long-Term Bank Loans |
24,582 |
15,163 |
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Reserve for Retirement Allw |
5,314 |
4,971 |
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Other Debts |
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5,306 |
5,895 |
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TOTAL LIABILITIES |
153,149 |
131,290 |
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MINORITY INTERESTS |
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Common
stock |
18,198 |
18,198 |
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Additional
paid-in capital |
20,759 |
20,759 |
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Retained
earnings |
31,293 |
28,434 |
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Evaluation
p/l on investments/securities |
225 |
471 |
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Others |
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(847) |
(419) |
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Treasury
stock, at cost |
(363) |
(347) |
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TOTAL S/HOLDERS` EQUITY |
69,265 |
67,096 |
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TOTAL EQUITIES |
222,415 |
198,387 |
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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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5,710 |
11,305 |
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Cash
Flows from Investment Activities |
-2,417 |
-1,371 |
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Cash
Flows from Financing Activities |
102 |
3,822 |
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Cash,
Bank Deposits at the Term End |
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90,452 |
87,337 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
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Net Worth
(S/Holders' Equity) |
69,265 |
67,096 |
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Current
Ratio (%) |
144.85 |
141.26 |
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Net
Worth Ratio (%) |
31.14 |
33.82 |
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Recurring
Profit Ratio (%) |
3.23 |
4.50 |
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Net
Profit Ratio (%) |
2.36 |
2.42 |
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Return
On Equity (%) |
5.38 |
5.62 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.55.99 |
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|
1 |
Rs.84.18 |
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Euro |
1 |
Rs.71.86 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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 |
|
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.