MIRA INFORM REPORT

 

 

Report Date :

24.01.2014

 

IDENTIFICATION DETAILS

 

Name :

PENTA-OCEAN CONSTRUCTION CO LTD

 

 

Registered Office :

2-2-8 Koraku Bunkyoku Tokyo 112-8576

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

April 1950

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Marine Civil Engineering Works

 

 

No. of Employees :

2,980

 

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 6,010.9 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 – 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

 

PENTA-OCEAN CONSTRUCTION CO LTD

 

 

REGD NAME

 

Goyo Kensetsu KK

 

MAIN OFFICE

 

2-2-8 Koraku Bunkyoku Tokyo 112-8576 JAPAN

 

Tel: 03-3816-7181     Fax: 03-3817-7642

 

URL:                 http://www.penta-ocean.co.jp/

E-Mail address:            (through the URL)

 

 

ACTIVITIES  

 

Marine civil engineering works

 

 

BRANCHES   

 

Sapporo, Yokohama, Osaka, Hiroshima, Fukuoka, other (Tot 98)

 

 

OVERSEAS   

 

Singapore, Hong Kong, Indonesia, Malaysia, Egypt, Colombo, Manila, Bangkok, Hanoi, Myanmar, Micronesia, Phnom Penh, Dubai, Taiwan

 

 

CHIEF EXEC 

 

YOSHIO MURASHIGE, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

SUMMARY

           

FINANCES        FAIR                                         A/SALES          Yen 349,839 M

PAYMENTSSlow but Correct         CAPITAL           Yen 30,449 M

TREND UP                                            WORTH            Yen 65,110 M

STARTED         1950                                         EMPLOYES      2,980

 

 

COMMENT    

 

MARINE CIVIL ENGINEERING WORKS. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 6,010.9 MILLION, 30 DAYS NORMAL TERMS.

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

324,781

7,733

1,746

(%)

54,465

(Consolidated)

31/03/2011

302,256

7,431

2,163

-6.94

60,460

 

31/03/2012

328,004

7,448

1,622

8.52

62,385

 

31/03/2013

349,839

6,559

2,029

6.66

65,110

 

31/03/2014

357,000

7,500

2,600

2.05

..

                        Unit: In Million Yen

                        Forecast (or estimated) figures for 31/03/2014 fiscal term

 

 

HIGHLIGHTS

 

The subject company was established originally in 1896 in Kure by Jinjiro Mizuno, as Mizuno Gumi, in order to engage in reclamation and seawall construction works, on his account.  Won reputation as master marine engineering firm which led the firm to be marine civil engineering firm.  A pioneer in large-scale waterfront projects overseas and earned reputation for technology in Suez Canal construction.  Tops in water-front dredging works.  Aiming at becoming general contractor by bolstering building construction div.  The firm is shifting overseas operations from Mid East to Asia including Singapore & Vietnam. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 349,839 million, a 6.7% up from Yen 328,004 million in the previous term.  The recurring profit was posted at Yen 9,559 million and the net profit at Yen 2,029 million, respectively, compared with Yen 7,448 million recurring profit and Yen 1,622 million net profit, respectively, a year ago.

 

(Apr/Sept/2013 results): Sales Yen 185,298 million (up 11.5%), operating loss Yen 4,316 million (up 76.6%), recurring profit Yen 3,420 million (up 68.4%), net profit Yen 1,635 million (up 454.5%).  (% compared with the corresponding period a year ago).

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 7,500 million and the net profit at Yen 2,600 million, respectively, on a 2.0% rise in turnover, to Yen 357,000 million.  Non-consolidated new orders are increasing to Yen 320 billion up 14% over the preceding term, with civil engineering and overseas works increasing, despite moderate building construction.  The execution of works in hand are going on favorably and stricter profitability management will show payoffs.  Operating profit will bounce back, even if labor and fuel costs rise in the second half. 

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 6,010.9 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered: Apr 1950

Legal Status:   Limited Company (Kabushiki Kaisha)

Authorized:      599,135,000 shares

Issued:             286,013,910 shares

Sum:                 Yen 30,449 million

 

Major shareholders (%): Japan Trustee Services T (8.5), Master Trust Bank of Japan T (6.1), Mizuho Bank (2.4), Juniper (2.4), Meiji Yasuda Life Ins (2.3), Sompo Japan Ins (1.4), Tokio Marine & Nichido Fire Ins (1.3), Employees’ S/Holding Assn (1.2), Mizuho Trust & Banking (1.2), Japan Trustee Services T1 (0.9); foreign owners (11.5)

 

No. of shareholders: 43,094

 

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

 

Managements: Yoshio Murashige, pres; Hayuru Tsuda, v pres; Kiyoshi Ida, v pres; Kosuke Kondo, s/mgn dir; Kenichi Okabe, s/mgn dir; Sumio Yamashita, s/mgn dir; Kunihiko Sasaki, s/mgn dir; Tsuneyoshi Mochizuki, s/mgn dir; Yasuji Kakimoto, s/mgn dir; Takuzo Shimizu, s/mgn dir; Masami Kouchi, mgn dir

 

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

 

Related companies: Penta-Ocean Dredging, Yoshin Construction, Penta Builders, other

 

 

OPERATION

 

Activities: Domestic civil engineering works (36%), domestic: construction works (32%), overseas construction works (30%), others (2%).

 

Overseas sales ratio (30%).

 

Clients: Municipal offices, government & public agencies, business firms, other

No. of accounts: 2,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Itochu Corp, Mitsubishi Corp, Sojitz Corp, Mitsui & Co,

Marubeni Corp, Nippon Steel, Metal One, other.

 

Payment record: Slow but Correct  

 

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

 

Bank References:

Mizuho Corporate Bank (H/O)

Resona Bank (Tokyo)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

 

349,839

328,004

 

  Cost of Sales

328,724

303,820

 

      GROSS PROFIT

21,115

24,183

 

  Selling & Adm Costs

14,651

15,201

 

      OPERATING PROFIT

6,463

8,982

 

  Non-Operating P/L

96

-1,534

 

      RECURRING PROFIT

6,559

7,448

 

      NET PROFIT

2,029

1,622

BALANCE SHEET

 

 

 

 

  Cash

 

50,595

63,370

 

  Receivables

 

113,699

118,610

 

  Inventory

 

9,727

11,041

 

  Securities, Marketable

 

 

 

  Other Current Assets

26,621

28,505

 

      TOTAL CURRENT ASSETS

200,642

221,526

 

  Property & Equipment

72,604

68,507

 

  Intangibles

 

1,127

636

 

  Investments, Other Fixed Assets

22,353

21,248

 

      TOTAL ASSETS

296,726

311,917

 

  Payables

 

111,574

112,842

 

  Short-Term Bank Loans

39,955

45,687

 

 

 

 

 

 

  Other Current Liabs

41,226

47,468

 

      TOTAL CURRENT LIABS

192,755

205,997

 

  Debentures

 

10,000

10,000

 

  Long-Term Bank Loans

20,984

25,483

 

  Reserve for Retirement Allw

351

324

 

  Other Debts

 

7,525

7,727

 

      TOTAL LIABILITIES

231,615

249,531

 

      MINORITY INTERESTS

 

 

 

Common stock

30,449

30,449

 

Additional paid-in capital

18,386

18,386

 

Retained earnings

8,635

7,453

 

Evaluation p/l on investments/securities

1,181

(107)

 

Others

 

6,482

6,227

 

Treasury stock, at cost

(23)

(23)

 

      TOTAL S/HOLDERS` EQUITY

65,110

62,385

 

      TOTAL EQUITIES

296,726

311,917

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

 

8,333

26,739

 

Cash Flows from Investment Activities

-10,466

-11,585

 

Cash Flows from Financing Activities

-11,058

1,738

 

Cash, Bank Deposits at the Term End

 

49,927

62,712

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

65,110

62,385

 

 

Current Ratio (%)

104.09

107.54

 

 

Net Worth Ratio (%)

21.94

20.00

 

 

Recurring Profit Ratio (%)

1.87

2.27

 

 

Net Profit Ratio (%)

0.58

0.49

 

 

Return On Equity (%)

3.12

2.60


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.99

UK Pound

1

Rs.102.67

Euro

1

Rs.83.98

 

INFORMATION DETAILS

 

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.