|
Report Date : |
04.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
KANDENKO CO., LTD. |
|
|
|
|
Registered Office : |
4-8-33, Shibaura, Minato-ku, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2014 [Consolidated] |
|
|
|
|
Date of Incorporation : |
01.09.1944 |
|
|
|
|
Com. Reg. No.: |
0104-01-006818 |
|
|
|
|
Legal Form : |
Listed |
|
|
|
|
Line of Business : |
Providing Electric Facilities Service. |
|
|
|
|
No of Employees : |
8,821 |
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 |
|
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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. Prime
Minister Shinzo ABE has declared the economy his government's top priority; he
has overturned his predecessor's plan to permanently close nuclear power plants
and is pursuing an economic revitalization agenda of fiscal stimulus, monetary
easing, and structural reform. Japan joined the Trans Pacific Partnership
negotiations in 2013, a pact that would open Japan's economy to increased
foreign competition and create new export opportunities for Japanese
businesses. 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 is exceeding 230% of GDP. To help raise government
revenue and reduce public debt, Japan decided in 2013 to gradually increase the
consumption tax to a total of 10% by the year 2015. Japan is making progress on
ending deflation due to a weaker yen and higher energy costs, but reliance on
exports to drive growth and an aging, shrinking population pose other major
long-term challenges for the economy.
|
Source
: CIA |
KANDENKO CO., LTD.
========
Country:
Company name: KANDENKO CO., LTD.
Name in local language: KANDENKO,
K.K. (株式会社関電工)
Office address: 4-8-33, Shibaura, Minato-ku,
Tokyo 108-0023
Office tel: 03-5476-2111
Office fax: 03-5476-3946
Website: www.kandenko.co.jp
Business type: Service
Industry: Electric
facilities
Established: September 1, 1944
Capital: Jp. 10,264,416,900
yen
Employees: 8,821 (as of March 31, 2014,
consolidated)
Corporate formation: Listed
Corporation No.: 0104-01-006818
(Tokyo Legal Affairs Bureau)
=====================
As of March 31, 2014:
Paid in capital : Jp.10,264,416,900
yen
Number of authorized shares : 820,000,000
shares
Shares issued : 205,288,338
shares
Number of shareholder : 8,392
Name of shareholders Number of thousand shares (%)
-------------------------------------------------------------------------------------------------------------------------
TEPCO(Tokyo Electric Power Co.) 94,753
(46.15)
Mizuho Bank, Ltd. 8,121 ( 3.95)
Japan Trustee Services Bank, Ltd.(trust unit) 6,975 ( 3.39)
Master Trust Bank of Japan, Ltd. 6,600 ( 3.21)
Employees shareholders’ fund 6,264
( 3.05)
===========================================
Activity Product/Service
Description
-------------------------------------------------------------------------------
Service Electric
facilities work
==================
President Mr. Hiroshi Mizue (*)
Nationality: Japan
Chairman Mr. Manabu
Yamaguchi (*)
Nationality: Japan
Vice President Mr. Hideto Abe (*)
Nationality: Japan
Senior Managing Director Mr.
Tsutomu Hasegawa (*)
Nationality: Japan
Senior Managing Director Mr.
Yukio Arai (*)
Nationality: Japan
Director Mr.
Kazuo Kinoshita
Nationality: Japan
Director Mr.
Kiyoshi Goto
Nationality: Japan
Director Mr.
Haruhiko Terauchi
Nationality: Japan
Director Mr.
Kazuo Nagayama
Nationality: Japan
Director Mr.
Masahiro Serizawa
Nationality: Japan
Director Mr.
Yoshimi Morito
Nationality: Japan
Director Mr.
Shinichiro Kitayama
Nationality: Japan
Director Mr.
Hiroshi Nomura
Nationality: Japan
Director Mr.
Takashi Uchino
Nationality: Japan
Auditor Mr. Takao Ito
Nationality: Japan
Auditor Mr. Kenichi Nakamura
Nationality: Japan
Auditor Mr. Sumihito Okawa
Nationality: Japan
Auditor Mr. Takuo Izumi
Nationality: Japan
Auditor Mr. Takehiro Yamaguchi
Nationality: Japan
Note: The names of director(s) and auditor(s) are phonetically spelt.
*Key Personnel*
==============
Mr. Hiroshi Mizue
President and representative director
Born on August 1, 1946
Business career:
Apr. 1969: Employed by the subject.
Jun. 2002: Director.
Jun. 2012: Representative director and president
Home address: 5-2-23, Takamatsu, Nerima-ku, Tokyo
===========
Currency: (local currency - Jp. yen)
-------------------------------------------------------------------------------------
Year | Sales | Net Income
-------------------------------------------------------------------------------------
|
2009 |
473,804,000,000 |
5,586,000,000 |
|
2010 |
453,623,000,000 |
5,428,000,000 |
|
2011 |
462,482,000,000 |
5,866,000,000 |
|
2012 |
441,786,000,000 |
1,876,000,000 |
|
2013 |
447,741,000,000 |
3,952,000,000 |
|
2014 |
437,930,000,000 |
4,226,000,000 |
=====================
*Book Closing*
============
March 31st
*Financials*
==========
|
Consolidated Balance Sheet |
|
|
|
|
Unit: millions of JP yen |
|
|
|
|
|
3/31/2012 |
3/31/2013 |
3/31/2014 |
|
Current assets |
223,822 |
224,072 |
217,542 |
|
Cash & deposits |
49,280 |
55,831 |
44,558 |
|
Account receivables |
105,994 |
99,219 |
114,115 |
|
Inventories |
3,485 |
4,756 |
4,272 |
|
Others |
65,063 |
64,266 |
54,597 |
|
Fixed assets |
135,904 |
139,936 |
142,390 |
|
Tangible assets |
88,071 |
86,175 |
88,872 |
|
Intangible assets |
2,691 |
1,700 |
3,138 |
|
Investments & others |
45,140 |
52,060 |
50,379 |
|
Total Assets |
359,726 |
364,008 |
359,933 |
|
|
|
|
|
|
Current liabilities |
133,219 |
134,003 |
127,462 |
|
Account payables |
81,933 |
78,585 |
80,733 |
|
Short term loans |
6,980 |
7,730 |
7,631 |
|
Advance Receipts on Construction Contracts |
20,820 |
22,191 |
17,012 |
|
Outstanding taxes |
2,814 |
1,343 |
675 |
|
Others |
20,672 |
24,154 |
21,411 |
|
Fixed liabilities |
47,749 |
45,735 |
42,778 |
|
Long term loans |
900 |
800 |
2,844 |
|
Retirement benefits |
31,078 |
30,880 |
28,792 |
|
Others |
15,771 |
14,055 |
11,142 |
|
Shareholders' equity |
178,465 |
179,992 |
181,807 |
|
Paid up capital |
10,264 |
10,264 |
10,264 |
|
Capital reserves |
6,425 |
6,425 |
6,425 |
|
Retained earnings |
162,280 |
163,815 |
165,656 |
|
Treasury stock |
-504 |
-512 |
-538 |
|
Valuation & adjustment |
-3,853 |
138 |
3,363 |
|
Minority Interest |
4,145 |
4,138 |
4,521 |
|
Total Net Assets |
178,757 |
184,269 |
189,692 |
|
Total Liabilities & Net
Assets |
359,726 |
364,008 |
359,933 |
|
Consolidated Income Statement |
|
|
|
|
Unit : millions of JP yen |
|
|
|
|
|
3/31/2012 |
3/31/2013 |
3/31/2014 |
|
Sales |
441,786 |
447,741 |
437,930 |
|
Cost of goods sold |
409,120 |
415,849 |
405,390 |
|
Gross profit(loss) |
32,666 |
31,892 |
32,540 |
|
Sales/administrative expenses |
24,632 |
24,527 |
24,255 |
|
Operating profit(loss) |
8,034 |
7,364 |
8,284 |
|
Non operating income |
1,334 |
1,206 |
1,162 |
|
Non operating expenses |
298 |
268 |
358 |
|
Ordinary profit(loss) |
9,070 |
8,301 |
9,089 |
|
Special profits |
250 |
198 |
18 |
|
Special losses |
1,183 |
656 |
570 |
|
Pretax profit |
8,137 |
7,843 |
8,538 |
|
Taxes & adjustment |
6,006 |
3,648 |
3,865 |
|
Minority interest |
254 |
243 |
446 |
|
Net profit |
1,876 |
3,952 |
4,226 |
*Latest Financials *
================
On October 29, 2014 the subject released the following business results
and forecast:
As of September 30, 2014 (2Q Mar. 2015 term)
Unit: millions of JPY
|
Year term |
Sales/revenue |
Operating profit |
Ordinary profit |
Net profit |
|
2Q 2014 |
202,613 |
4,174 |
4,608 |
2,131 |
|
2Q 2015 |
201,639 |
4,463 |
4,957 |
2,552 |
|
FY 2015(F) |
455,000 |
7,800 |
8,400 |
4,300 |
|
Current assets; |
183,311 |
|
Fixed assets; |
146,821 |
|
Total assets; |
330,133 |
|
Current liabilities; |
94,194 |
|
Fixed liabilities; |
48,493 |
|
Shareholders’ equity; |
177,882 |
|
Retained earnings; |
161,735 |
|
Total net assets; |
187,445 |
|
Total liabilities and net assets; |
330,133 |
*Bank Details*
============
Bank Name : Mizuho Bank, Ltd.
Branch : Hamamatsu-cho
Bank Name : Sumitomo Mitsui
Banking Corp.
Branch : Head office
Bank Name : Bank of
Tokyo-Mitsubishi UFJ, Ltd.
Branch : Tamachi
*Credit Opinion*
=============
The subject is one of the core subsidiaries of TEPCO, which has been
facing a tough situation after the March 11th disaster at Fukushima
nuclear plant in 2011.
While the current business has been slow due to lowered budged for
facilities investment by power companies, a recovery is expected from the
second half as robust demands for construction and renovation of the buildings.
Drastic restructuring is being carried out to slash the number of local
offices.
Financial condition is sound enough.
================================
Branch name: Kita-Kanto & Hoku-Shin-etsu Business
Headquarters
Branch address: Minami-ku, Saitama-shi, Saitama pref.
----------------------------------------------------------------------------------------------------
Branch name: HigashiKanto Business Headquarters
Branch address: Chuo-ku, Chiba-shi, Chiba pref.
----------------------------------------------------------------------------------------------------
Branch name: Minami-Kanto & Tokai Business
Headqaurters
Branch address: Nishi-ku, Yokohama-shi, Kanagawa pref.
------------------------------------------------------------------------------------------------------
Branch name:
Nishi-Nippon Business Headquarters
Branch address: Kita-ku,
Osaka-shi, Osaka pref.
Overseas offices are in Singapore, Taipei, Hanoi, Jakarta and Yangon
========================================
*Main Products & Services*
======================
Engineering work at the site of electric facilities
======================
*Address*
=========
Registered address is the same as the operational address.
*Company History*
================
Date Development
-----------------------------------------------------------------------------------------------
September 1, 1944 Incorporated by integration of seven local
engineering firms located in
the greater Kanto District with an investment of JPY 3 million.
The original company name was “Kanto Denki Koji Co., Ltd.”
October 1961 Public listed on the TSE(#1942).
July 1979 Started
working at nuclear power plant.
September 1984 Took the current company name.
December 1988 Relocated the head office to the current
address.
October 2012 Started the business of wind velocity power generation
by joining a
firm.
March 2013 Started solar power business with its
subsidiary.
================
*Suppliers*
==========
Group companies(specific names not disclosed)
*Customers*
==========
TEPCO
Major general construction contractors such as Kajima, Taisei, Takenaka
etc.
===========================
*Subsidiaries & Affiliates*
=====================
As of March 31, 2014 the subject owns and controls a total of 21
subsidiaries and affiliates at home and abroad.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.89 |
|
|
1 |
Rs.96.83 |
|
Euro |
1 |
Rs.76.57 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
TPT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.