MIRA INFORM REPORT

 

 

Report Date :

22.01.2014

 

IDENTIFICATION DETAILS

 

Name :

TOYO ENGINEERING CORP

 

 

Registered Office :

2-8-1 Akanehama Narashino City Chiba-Pref 275-0024

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

May, 1961

 

 

Com. Reg. No.:

(Chiba-Narashino) 002504

 

 

Legal Form :

Limited Company (Kabushiki Kaisha

 

 

Line of Business :

Plant engineering works 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

 

 

No. of Employees :

4,548

 


 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 & 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 228,723 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 18,198 M

TREND             UP                              WORTH            Yen 71,091 M

STARTED         1961                           EMPLOYES      4,548

 

 

COMMENT    

 

PLANT ENGINEERING WORKS 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

173,943

14,448

7,131

(%)

65,295

(Consolidated)

31/03/2011

155,696

7,012

3,773

-10.49

67,096

 

31/03/2012

157,881

5,102

3,728

1.40

69,265

 

31/03/2013

228,723

4,032

1,457

44.87

71,091

 

31/03/2014

300,000

10,000

5,000

31.16

..

Unit: In Million Yen

Forecast figures for the 31/03/2014 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.  The company will send several management staff to its overseas subsidiary having deficient-ridden projects for stricter profit management.  The firm is planning to focus on marketing to fertilizer and power plants in Asia and the upstream oil sector in the Americas.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 228,723 million, a 44.9% up from Yen 157,881 million.  New orders for the term exceeded the precedent term’s level at about Yen 270 billion, thanks to large-lot orders for fertilizer plants or others in the second half.  The recurring profit was posted at Yen 4,032 million and the net profit at Yen 1,457 million, respectively, compared with Yen 5,102 million recurring profit and Yen 3,728 million net profit, respectively, a year ago. Profits deteriorated due to the higher costs of selling/administration and extraordinary losses coming from the depreciation of intangibles and appreciation losses of investment & securities costs..

 

(Apr/Sept/2013 results): Sales Yen 110,982 million (up 2.5%), operating loss Yen 4,481 million (previously Yen 1,548 million profits), recurring loss Yen 2,316 million (previously Yen 1,626 million profits), net losses Yen 3,672 million (previously Yen 420 million profits).  (% & figures as compared with the corresponding period a year ago).

           

For the current term ending 2014 the recurring profit is projected at Yen 10,000 million and the net profit at Yen 5,000 million, respectively, on a 31.2% rise in turnover, to Yen 300,000 million.  Orders backlog was ample Yen 386.7 billion at the end of June 2013, aided by recovery of new orders.  Construction works such as those of oil refinery auxiliary equipment in Brazil will progress smoothly.  Work completions are likely to increase sharply, thanks to full-scale contribution of new large projects including fertilizer plants. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

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), Master Trust Bank of Japan T (7.5), Nomura Trust Inv T (2.8), Japan Trustee Services T (2.7), Taisei Corp (2.5), Trust & Custody Services (2.5), Japan Trustee Services T9 (2.5), SMBC (1.2), CB (HK) CB London F135 T&D Asset M (0.7); foreign owners (12.4)

 

No. of shareholders: 10,365

 

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

 

Managements: Yushi Nagata, ch; Katsumoto 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; Masayuki Uchida, mgn dir; Masaaki Yamaguchi, mgn dir; Akhilesh Kumar, mgn dir; Tadashi Hori, mgn dir; Masaru Takezawa, mgn dir

 

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

 

Related companies: Toyo Business Engineering, other.

 

 

OPERATION

           

Activities: Plant engineering works (94%) 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 (6%).

Overseas Sales Ratio (81%)

           

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, Maruzen Oil Chemical, 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, Mitsubishi Heavy Ind, Sankyu Inc, other

 

Payment record: No complaints

 

Location: Business area in Narashino City, Chiba-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

                        SMBC (H/O)

                        MUFG (H/O)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

 

228,723

157,881

 

  Cost of Sales

204,523

132,963

 

      GROSS PROFIT

24,200

24,918

 

  Selling & Adm Costs

22,606

19,577

 

      OPERATING PROFIT

1,593

5,341

 

  Non-Operating P/L

2,439

-239

 

      RECURRING PROFIT

4,032

5,102

 

      NET PROFIT

1,457

3,728

BALANCE SHEET

 

 

 

 

  Cash

 

52,328

48,041

 

  Receivables

 

54,423

35,832

 

  Inventory

 

 

 

 

  Securities, Marketable

21,376

44,499

 

  Other Current Assets

60,390

42,472

 

      TOTAL CURRENT ASSETS

188,517

170,844

 

  Property & Equipment

31,187

32,164

 

  Intangibles

 

5,489

6,403

 

  Investments, Other Fixed Assets

15,501

13,004

 

      TOTAL ASSETS

240,694

222,415

 

  Payables

 

60,370

50,096

 

  Short-Term Bank Loans

12,712

12,983

 

 

 

 

 

 

  Other Current Liabs

60,048

54,868

 

      TOTAL CURRENT LIABS

133,130

117,947

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

26,477

24,582

 

  Reserve for Retirement Allw

5,202

5,314

 

  Other Debts

 

4,794

5,306

 

      TOTAL LIABILITIES

169,603

153,149

 

      MINORITY INTERESTS

 

 

 

Common stock

18,198

18,198

 

Additional paid-in capital

20,759

20,759

 

Retained earnings

31,537

31,203

 

Evaluation p/l on investments/securities

665

225

 

Others

 

315

(757)

 

Treasury stock, at cost

(383)

(363)

 

      TOTAL S/HOLDERS` EQUITY

71,091

69,265

 

      TOTAL EQUITIES

240,694

222,415

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

 

 

Cash Flows from Operating Activities

 

-18,986

 

 

Cash Flows from Investment Activities

-1,587

 

 

Cash Flows from Financing Activities

-532

 

 

Cash, Bank Deposits at the Term End

 

71,675

 

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

71,091

69,265

 

 

Current Ratio (%)

141.60

144.85

 

 

Net Worth Ratio (%)

29.54

31.14

 

 

Recurring Profit Ratio (%)

1.76

3.23

 

 

Net Profit Ratio (%)

0.64

2.36

 

 

Return On Equity (%)

2.05

5.38

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.54

UK Pound

1

Rs101.08

Euro

1

Rs.83.38

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.