MIRA INFORM REPORT

 

 

Report Date :

09.04.2014

 

IDENTIFICATION DETAILS

 

Name :

KANSAI ELECTRIC POWER CO LTD

 

 

Registered Office :

Shin-Kanden Bldg, 3-6-16 Nakanoshima Kitaku Osaka 5300-0005

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

May 1951

 

 

Com. Reg. No.:

Not Available 

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Engaged in Electric Power Generation & Supply as well as information & communications

 

 

No. of Employees

34,011

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

Yen 38,990.3 Million

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but Correct  

 

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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 2013 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 225% 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

 

KANSAI ELECTRIC POWER CO LTD

 

 

REGD NAME

 

Kansai Denryoku KK

 

 

MAIN OFFICE

 

Shin-Kanden Bldg, 3-6-16 Nakanoshima Kitaku Osaka 5300-0005JAPAN

           

Tel: 06-6441-8821     Fax: 06-6443-0233     -

 

URL:                 http://www.kepco.co.jp

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

           

Engaged in Electric Power Generation & Supply as well as information & communications

 

 

BRANCHES   

 

52 locations nationwide

 

 

POWER PLANTS

 

166 locations nationwide: hydraulic power (150), steam power (11), N-power (3), internal combustion (1), new energy (1); transfer substrates (1,583)

 

 

CHIEF EXEC

 

MAKOTO YAGI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                                         A/SALES          Yen 2,859,054 M

PAYMENTSSlow but Correct         CAPITAL           Yen 489,320 M

TREND UP                                            WORTH            Yen 1,278,106 M

STARTED         1951                                         EMPLOYES      34,011

 

 

COMMENT

 

ELECTRIC POWER GENERATION & SUPPLY 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 38,990.3 MILLION, 30 DAYS NORMAL TERMS

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

2,606,592

193,132

127,170

(%)

1,789,429

(Consolidated)

31/03/2011

2,769,783

237,987

123,143

6.26

1,832,416

31/03/2012

2,811,424

-274,671

-242,257

1.50

1,529,843

31/03/2013

2,859,054

-353,190

-243,422

1.69

1,278,106

31/03/2014

3,310,000

-125,000

-98,000

15.77

..

                        Unit: In Million Yen

Forecast figures for the 31/03/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is the electric power company, second largest in Japan.  Pioneer in nuclear and LNG power generation.  Diversifying energy sources to LNG and coal.  Management deteriorating due to lower utilization of nuclear power facilities.  The company will enter power retailing business in the metropolitan area with new electric power generation of a subsidiary.  It is making an additional excavation survey on the interrelation of peripheral active faults at Oi and Takahama N-power plants, under the screening for re-startup. .

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 2,859,054 million, a 1.7% up from Yen 2,811,424 million in the previous term.   The operations continued in the red to post Yen 353,190 million recurring loss and Yen 243,422 million net losses, respectively, compared with Yen 265,537 million recurring loss and Yen 242,257 million net loss, respectively, a year ago.

 

(Apr/Dec/2013 results): Sales Yen 2,398,539 million (up 15.2%), operating loss Yen 7,675 million (previously Yen 197,589 million loss), recurring loss Yen 34,178 million (previously Yen 221,472 million loss), net loss Yen 34,652 million (previously Yen 151,973 million loss).  (% & figures compared with the corresponding period a year ago). 

           

For the term that ended Mar 2014 the recurring loss is projected at 125,000 million and the net loss at Yen 98,000 million.  Rate hikes were implemented.  Sales were revised up under the torrid summer weather.  Profits were posted in the first half, due to the lagged expense payments.  N-power plants in operation became none as Oi N-power plant entered he regular facility checkups in Sept 2013.   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 38,990.3 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered: May 1951

Legal Status:       Limited Company (Kabushiki Kaisha

Authorized:       1,784,059,697 shares

Issued:                938,733,028 shares

Sum:                   Yen 489,320 million

 

Major shareholders (%): Osaka City (8.9), Company’s Treasury Stock (4.7), Nippon Life Ins (4.1), Kobe City (2.9), Japan Trustee Services T (2.8), Master Trust Bank of Japan T (2.6), Employees’ S/Holding Assn (2.2), Mizuho Bank (1.8), Kochi Shinkin Bank (1.6), Caceis Bank France Ordinary (1.2); foreign owners (18.9)

 

No. of shareholders: 290,142

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Shosuke Mori, ch; Makoto Yagi, pres; Masao Ikoma, v pres; Hidemi Toyomatsu, v pres; Jiro Kagawa, v pres; Shigeki Iwane, v pres; Yuzuru Hiroe, v pres; Noriaki Hashimoto, mgn dir; Yoichi Gyo, mgn dir; Yoshihiro Doi mgn dir; Masahiro Iwatani, mgn dir; Yasuhiro Yajima, mgn dir

 

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

 

Related companies: Energia Communications, other.

 

 

OPERATION

           

Activities: Electric power generation & supply (85%), information & communications (5%), others (10%)

           

Clients: [Consumers, mfrs, wholesalers] JR Nishinippon, Osaka City, Kobe Steel, Sanyo Special Steel, Nippon Electric Glass, Osaka Titanium Technologies, Sharp Corp, other

           

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsubishi Corp, Qatar LNG Service Agencies, JX Nippon  Mining & Energy Corp, Kobe Steel (power generation), Electric Power Development, other

 

Payment record: Slow but Correct  

 

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

 

Bank References:

MUFG (Osaka-Chuo)

SMBC (Osaka-Chuo)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

  Annual Sales

 

2,859,054

2,811,424

  Cost of Sales

2,795,044

2,691,455

      GROSS PROFIT

64,010

119,969

  Selling & Adm Costs

378,022

349,357

      OPERATING PROFIT

-314,012

-229,388

  Non-Operating P/L

-39,178

-45,283

      RECURRING PROFIT

-353,190

-274,671

 

      NET PROFIT

-243,422

-242,257

BALANCE SHEET

  Cash

 

156,465

129,234

  Receivables

187,290

181,023

  Inventory

159,988

166,068

  Securities, Marketable

 

 

  Other Current Assets

203,771

247,575

      TOTAL CURRENT ASSETS

707,514

723,900

  Property & Equipment

6,927,635

6,797,451

  Intangibles

 

 

  Investments, Other Fixed Assets

1

1

      TOTAL ASSETS

7,635,150

7,521,352

  Payables

440,995

366,221

  Short-Term Bank Loans

139,027

152,264

 

 

 

  Other Current Liabs

507,939

529,676

      TOTAL CURRENT LIABS

1,087,961

1,048,161

  Debentures

6,258,967

4,928,742

  Long-Term Bank Loans

1,421,525

1,491,491

  Reserve for Retirement Allw

370,360

365,689

  Other Debts

 

(2,781,770)

(1,842,575)

      TOTAL LIABILITIES

6,357,043

5,991,508

      MINORITY INTERESTS

Common stock

489,320

489,320

Additional paid-in capital

66,634

66,634

Retained earnings

754,319

1,024,581

Evaluation p/l on investments/securities

43,411

26,669

Others

20,692

18,895

Treasury stock, at cost

(96,270)

(96,256)

      TOTAL S/HOLDERS` EQUITY

1,278,106

1,529,843

 

      TOTAL EQUITIES

7,635,150

7,521,352

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2013

31/03/2012

Cash Flows from Operating Activities

 

142,673

43,869

Cash Flows from Investment Activities

-430,662

-408,357

Cash Flows from Financing Activities

313,695

399,193

 

Cash, Bank Deposits at the Term End

 

155,451

128,514

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

Net Worth (S/Holders' Equity)

1,278,106

1,529,843

Current Ratio (%)

65.03

69.06

Net Worth Ratio (%)

16.74

20.34

Recurring Profit Ratio (%)

-12.35

-9.77

Net Profit Ratio (%)

-8.51

-8.62

Return On Equity (%)

-19.05

-15.84

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.95

UK Pound

1

Rs.99.36

Euro

1

Rs.82.15

                

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.